A Conservative government would freeze council tax for two years, George Osborne pledged today, in a surprise move unveiled to cheers at the party's conference.

The Shadow Chancellor told delegates in Birmingham that it would be paid for by putting a cap on the spending by the Government on consultants and advertising.

Although central government cannot force councils to freeze tax rises, they will offer to help those who limit their spending increases.

The Tories said that Mr Osborne's pledge would save the typical Band D household over £200. It will be paid for by cutting government spending on advertising and consultants by £500m in the first year of government and £1 billion in subsequent years.

Expert View

No sooner had Mr Osborne tried on the mantle of prudence he said Mr Brown had abandoned than he gave voters a flash of ankle

Francis Elliott

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• Tory Conference

He presented the idea as a partnership with local government. If a council can keep a bill rise to 2.5 per cent or below, the Government will provide the money to fund a further 2.5 per cent cut.

Councils that accept the offer will be able to offer constituents a complete freeze or even reduction for two years in a row. Mr Osborne said he expected a 100 per cent take up of the offer. He said the Tories wanted to help families cope with economic crisis.

The unexpected move electrified Tory conference. Mr Osborne said: “The country may not be able to afford upfront tax cuts because borrowing is too high but families facing the squeeze cannot afford tax rises either.

“So we’re going to go into partnership with local councils. If they find matching savings in their town hall, we will give them these savings from Whitehall.”

To cheers, he said: “The next Conservative Government will freeze your council tax for at least two years.

“Every council tax bill of every family in every council that takes part will be frozen.”

In his keynote speech Mr Osbourne also said the City must bear its share of blame for the economic crisis and that a future Tory government would always support and encourage the financial sector.

But he warned that the Tories would not ask hard-working families to subsidise the failures of the City.

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