COUNCIL tax rates have been frozen in Oxford for the past two years.

In 2011-12 and 2012-23, the Government gave the city council a grant equivalent to a two per cent rise, to cover the cost of the freeze.

This year, the Government offered a grant equivalent to just one per cent for the next two years, but capped any rise at two per cent.

But by putting up council tax by two per cent, the council will collect an extra £880,000 over the next four years, compared to £221,000 if it accepted the grant.

The council is also expecting to get less in its formula grant for the next financial year, which will be announced by Whitehall later this month.

The formula grant is the council’s share of business rates, which are collected by the Government. A proportion is then handed back to councils.

The city council has forecast that it will lose 1.67 per cent of its grant next year, taking it down to £11.5m, with even larger reductions expected in 2014-15, down to £10.4m, and a further 15 per cent drop to £8.87m in 2015-16.