Council Tax Freeze is good news for working families in difficult times

With pay still lagging behind inflation, and predicted to continue to do so until the middle of next year, the decision of the Coalition Government to offer councils the opportunity to freeze council tax at the 2010 level for a third consecutive year, with central government footing the difference in the bill, is definitely welcome news for working families.

The Council Tax is subsidised for people who receive other Government benefits, but for those whose only income is from their earnings it is paid in full, and so those in work pay a disproportionately higher level of Council Tax.

The freeze in the council tax means that low paid families (in places like Manchester where 75% of all housing is in Band A that means most families) are going to have more in their pockets.

Once again, thanks to the Liberal Democrats in Government the low paid are being helped the most by this council tax freeze, as although bigger houses attract higher council tax, the bulk of income tax (now filling the gap) is paid by the wealthiest in our society, offsetting their gains in council tax.


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