08:00 Tuesday 15 January 2013

Council tax: will it freeze?

Written byBY ADRIAN JENKINS

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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