George Osborne extends council tax freeze

A council tax freeze in England will be extended to 2012-13 under plans to be unveiled by Chancellor George Osborne.

The £805m move will be paid for by a Whitehall "underspend", aides said.

The government cannot force councils to freeze bills but it is offering to give those which limit spending rises to 2.5% the money they need.

Ross Hawkins reports.