Budget will bring council tax freeze

| June 21, 2010
”Budget

In a bid to ease the pain from severe spending cuts, Chancellor George Osborne has said the coalition Government will proceed with its proposal to freeze council tax in England.

Tomorrow’s budget is expected to bring tax hikes and deep benefit cuts so the council tax freeze is expected to help “millions of families…… at the time they need it most,” according to Osborne.

In an interview with the BBC yesterday, the Chancellor said: “Unless we take determined and concerted action, we will find our country on the road to ruin”.

While the Chancellor would not provide full details of the upcoming budget and where the cuts would come from, Prime Minister David Cameron has already said public sector pay and pensions will have to be restrained.

Furthermore, Mr Osborne refused to rule out a rise in VAT. There has been speculation that this will rise from the current 17.5% to 20%.

The prospect of a bank levy has been raised – aimed at clawing back billions paid by the state to bailout the financial sector after the financial crisis.

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  1. During the Conservative push for Downing Street, we were promised a two year council tax freeze, it seems this has now become one. However, this is not the answer to the council tax problem. Something has to be done to make it fairer.

    In his speech to the House of Commons on 21 March 1991 prior to the introduction of Council Tax in April 1993, Michael Heseltine said, “…the system should ensure that regional variations in property values do not lead to disproportionate bills in high price areas.” Something has plainly gone badly wrong. What is the new government going to do to put this matter right?

    Perhaps the place to start would be Formula Grant?

    There is little to indicate that incomes, especially for pensioners, vary much across the country. Here is one example (and there are many). It may surprise you to know that the median income for Sunderland and for Eastbourne is about the same, but the average council tax per dwelling in Eastbourne is hundreds of pounds more.”