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Council tax: will it freeze?

By Burton Mail  |  Posted: January 15, 2013

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TORY rulers of South Derbyshire District Council are to decide whether or not to freeze council tax.

The authority’s medium term financial plan assumes a year-on-year increase in the charge of 2.5 per cent from 2014-15.

However, the Government has again offered to reimburse authorities’ ‘lost’ revenue to the equivalent of a one per cent increase in the charge for 2013-14 and the following year for councils that freeze the rate.

In a report to councillors, head of corporate services Kevin Stackhouse said: “As the council plans on a 2.5 per cent increase per year, this would reduce projected council tax income by approximately £560,000 over the planning period.”

Under the 2011 Localism Act, the Government has capped council tax increases for 2013-14 at two per cent.

Councils can ignore this and set greater increases provided they seek voters’ approval in a referendum.

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