Council Tax

House of Lords written question – answered on 25th November 2010.

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Photo of Lord Smith of Leigh Lord Smith of Leigh Labour

To ask Her Majesty's Government what estimate they have made of the size of grant to local authorities required to achieve the freeze in council tax; and, given the differential dependence of authorities on council tax income, by how much individual authorities will benefit.

Photo of Baroness Hanham Baroness Hanham The Parliamentary Under-Secretary of State for Communities and Local Government

The Government announced in the spending review that they are making an extra £650 million available to deliver on their promise to help local authorities (including police and fire authorities) to deliver a council tax freeze in England in 2011-12.

The broad intention is to provide authorities that freeze their band D council tax in 2011-12 with a grant equivalent to their having set a 2.5 per cent increase from their 2010-11 level.

I have placed in the Library of the House a letter that was sent to local authorities setting out the full technical details of how the scheme will operate and an estimate of how much each individual authority may benefit from the scheme.

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