The Secretary of State for Communities and Local Government (Mr Eric Pickles)
Under the last Administration, council tax bills more than doubled. By contrast, this Government have been working to keep council tax down, giving hard-working people greater financial security. The coalition Government have provided total freeze funding of up to £5.2 billion up to 2015-16, which is an unprecedented five years of council tax freezes worth potentially up to £1,075 for an average band D taxpayer over the lifetime of this Parliament.
I am today publishing new official figures which show that the average council tax bill in England has fallen in real terms for the fourth year, as almost two thirds of councils have taken up the Government’s freeze offer.
National statistics released today reveal the average band D council tax level from this April to be £1,468, or a change of just 0.9%, one of the lowest changes ever and a cut in real terms. In London, council tax bills have fallen in cash terms by 0.4%.
By comparison, in Wales, which has not used Barnett funding to make a similar freeze offer, average bills are rising by twice the rate of inflation.
Since 2010, the Government have worked with local authorities to reduce council tax. This has cut average bills in England over four years by over 11% in real terms. In contrast the period between 1997 and 2010 saw council tax increase in real terms by 47%. This doubled a typical band D bill to £120 a month.
I am pleased so many councils understand the importance of keeping tax bills down and of giving families greater financial security and have chosen to freeze or even reduce their bills.
In total 251, or 60%, of local authorities signed up to the Government offer to freeze council tax for 2014-15: a similar proportion to last year. The Government have also handed local residents new rights to veto any excessive local tax hikes through a referendum. No council chose to put an increase to a local referendum.
Residents are also now able to pay their bill over 12 months rather than 10 to help spread the cost. From April, a new national council tax discount for family annexes also comes into effect, designed to support extended families and remove an unfair penalty tax surcharge on annexes.
The list of councils that have opted to take part in the Government’s 2014-15 council tax freeze initiative, and a table showing the potential financial savings in council tax by English local authority, have been published on my Department’s website and I am placing copies in the Library of the House.