Tax: Council Tax Freezes Next Year



Osbourne to announce a hold on council tax next year.

Osbourne to announce a hold on council tax next year.

Next year the UK is set to freeze council tax, or the tax that each household pays for local services.

The move is set to be funded by 805 million pounds of money from government cuts.

Help with the cost of living

The coalition government has recently been under fire by critics who say that their harsh austerity drive and slashing spending is not leaving enough cash for the government to prop up the struggling economy.

Osborne’s band have been trying to shift funds around to help families and businesses through this period of rising costs and stagnant pay raises.

With a goal of basically eliminating the budget deficit that has hit a record high, all by the next election in 2015, the coalition has not left itself enough room to make a real impact on the economy, critics say.

Though officials say there is little they can do to stimulate growth immediately, Osbourne said “”I wanted to help families and pensioners with the daily cost of living.”

Other criticism

Osborne has also recently been dealing with naysayers from his own party, who say that he does not have a clear and detailed strategy for economic growth.

Others are concerned with the mounting euro zone crisis, which has effected the British economy remarkably, and the UK government’s reluctance to take a leadership role in working wit the euro zone.

Still others argue that the coalition’s plan to wipe out the deficit is damaging the British economy. Ministers have elected to continue despite some analysts saying that a lower growth factor could hurt the deficit plan.

The council tax move may be just what Osborne and his coalition need to field public support, as rather than using unspent money to take down the nation’s debt, Conservatives estimate that the council tax freeze will save the average family around 72 pounds per year.

 

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