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Chancellor announced a freeze on council tax, science and funding for broadband in his speech to the Conservative Party conference today.

Polly Curtis
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Council tax freeze

Where is the money coming from " / aa> credit easing

10:19

George Osborne is under pressure to reach new policies to help working families and stimulate economic growth in his speech to the Conservative Party conference today. Let's check the facts your ads, as it does. Can you help me? Send your views polly.curtis @ guardian.co.uk, contact me on Twitter @ pollycurtis or participate in the discussion below of the line.

Council tax freeze

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Pre-conference call revealed that the Chancellor will announce the second year of the freeze on local taxes cost the Treasury 800 million pounds and the average family savings of £ 72 per year in £ 72 top of the first frost in 2011-12. George Osborne, said it was an example of government helping people where they could, even in difficult economic circumstances.

Work

that recycling is an advertisement for the Conservatives promised a two-year freeze in council tax at their conference in 2008 and states that want coalition agreement. The document states:

We will freeze council tax in England for a year or more, and try to freeze it for another year, in collaboration with local authorities.

Tips

were so sure that the gel would be that many have already made in its budget for next year. However, today's announcement is the first confirmation that Osborne has found the money to do so in 2012-13.

Who will benefit?

the independent Institute for Fiscal Studies has made this analysis possible effects of the freeze for two years. The following graph shows that the poorest can benefit more in terms of net change in income and the richest of cases in which the tax advice is a small proportion of their income, earn less.

But people in the group income deciles two and three benefit the least from the top and those in groups of five to qualify ninth.

Carl Emmerson, deputy director of the IFS, said:

Who benefits most? Poorest and those in between. Those who are poor but not poor and rich earn less. People who earn less are those in council tax benefit.

Put some money in people's pockets but do nothing to make the best advice of the financing system. It is assumed that the subsidy must be constantly greater than otherwise Council will bounce back taxes. This goes against the city - there are more strings attached. It is very different from what the government had done before - get rid of the commitment.

Although the poorest benefit the majority of council tax freeze an important part of working poor households benefit less from the rich.

How

advice?

In the first year to freeze the board has exclusive jurisdiction to the grant if it has frozen completely local taxes for residents. Each council in the country have done this. However, the government grant was 2.5% of their municipal tax bill, and inflation, amounts to a de facto reduction in the top of their other budget reductions from the central government. The rate of price index (CPI) is currently 4.5%, and the extent of the retail price index (which includes housing costs, including mortgage payments) is 5 2%.

Simon Parker, head of the new Local Government Network says:

For the moment, will never be enough because the councils are facing enormous pressure. The result will be on the stage of real income losses, but given the enormous pressure that households are at the moment I think all fall under the new. This demonstrates the fundamental stupidity of the financing system of local governments to reach a steady state is raising taxes.

The financing system of the board is a bust and it's a patch. You need to find a more sustainable way to finance the system. It is interesting that the government stop telling us that money was not the magic of a million pounds for it. The most important advice is struggling with elder care, child care, there is a legitimate question is asked where the money comes from and is directed to the good stuff?

adds that there are some suggestions for labor councils, due to Tory councils are more likely to be leaves counties with the richest households. "This seems more or less plausible. The most rural areas to raise more local taxes," he said.

Conservatives take credit for ? 800 to implement the second year in tax cuts the board, but boards need to find additional savings to make it work.

freeze stay in place?