Budget will bring council tax freeze
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.