A survey from the Local Government Chronicle suggests that up to 20% of UK councils may reject the proposed freeze on increases to council tax in April next year.
The government have recently offered a financial incentive to any council who agree to freeze their council tax charges in April next year. It is estimated that it will save taxpayers about £72 for the year.
According to the survey, 80% of the 388 councils in England will agree and 4% have already decided to reject the freeze. The remaining 16% are yet to decide whether or not to accept the offer.
Those councils which are most likely to accept the freeze are generally in London and the South East of England, although Brighton have already rejected it. Councils in the North East of England appear to be more likely to reject the offer.
A similar offer last year led to many councils freezing their Council Tax charges. However there have been changes to the terms of the offer and many are concerned that there won’t be enough funding to protect against the knock on effects if they choose to freeze their charges again.
Many councils are concerned that if they agree to freeze their council tax charges, they may need to implement bigger rises in the following years to cope. Others suggest they may also need to make bigger cuts and savings in the years following the freeze.
Brighton and Hove council have come under criticism from the prime minister for rejecting the offer. However, they argue that the freeze is a gimmick which will end up costing people more money in the long run.
Bob Neill, the Local Government Minister, pointed out that under the Labour government council tax charges more than doubled. He said: “This government is helping freeze council tax for two years, as well as abolishing Labour’s plans for an expensive council tax revaluation which would force up bills. Town hall bureaucrats who want to hike the cost of living and shun the freeze are showing contempt for hard-working families and pensioners.”
