Conservatives propose a two-year council tax freeze

George Osborne has announced that if the Conservatives win the next election, every counciol will be eligible to join a scheme for a two-year freeze in council tax in order to help families cope with the rising cost of living.

This measure will save a typical Band D household over £200, and millions of families will benefit.

The Shadow Chancellor promised, “Every council tax bill of every family in every council that takes part will be frozen.”

And he said, “Instead of council tax bills that rise year after year under Labour, millions of families will get help at the time they need it most. Conservatives will not leave people to struggle with the credit crunch alone.”

The costs for the council tax freeze will be shared between local and central government.

Any council that makes savings to keep its annual council tax increase to 2.5% or below will receive additional money from central government to reduce council tax bills by a further 2.5%.

This central government funding will be raised by reducing spending on expensive private sector consultants and advertising by £500 million in the first full year of government, and by £1 billion in all subsequent years.

George stressed that as families across the country tighten their belts and live within their means, so must the government.

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