Under Labour, council tax more than doubled, hitting pensioners the hardest. We have worked with councils to freeze council tax, cutting bills by almost 10% in real terms. This April, taxpayers will also have the new right to pay their bills over 12 months if they wish to do so, helping those on fixed incomes, such as pensioners, to manage their monthly outgoings.
My right hon. Friend is totally correct that the doubling of council tax under Labour hit those on fixed incomes, such as pensioners, the hardest. May I welcome the work he has done on this over the past three years? Will he endeavour to make sure that the council tax freeze programme continues until, and beyond, the next general election?
That will of course largely be up to the willingness of local authorities to take the freeze or not. We managed to stop and to reverse the bill that just kept on rising, and that is an important milestone that will have enormous effects in putting more money back into people’s pockets.
That is certainly true, given the ability to have tax increment financing schemes in the projected Bill. That would certainly help my hon. Friend’s constituency, which has not done particularly well out of the current grant system. I think that, with the help of the distribution, this has the potential to provide the good people of Great Yarmouth with an opportunity to develop the front and to look to that additional crossing.
One of the advantages of enterprise zones is that businesses based on them will gain from business rates. Will my right hon. Friend confirm that local authorities with enterprise zones in them will not lose out as a result of this proposal?
My hon. Friend makes a very reasonable point. It is important for maintaining the advantages brought by enterprise zones that we do not count that money at all so that they get that sum absolutely free of any changes to top-up or tariff.