Council tax payments are to be frozen for the eight consecutive year, the Scottish Government has confirmed. All of Scotland's 32 local authority areas will benefit from the decision, it has been said.

Outlining their budgets for 2015/16, the councils agreed to maintain 2014/15 tax levels, to bring the average household saving to around £1,200.

The Scottish Government has fully funded the tax freeze by providing an additional £70m each year. This is included in the local government finance settlement – of over £10.85bn for 2015/16 – which the Scottish Government is providing to help maintain and develop vital services.

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Announcing the price freeze, Deputy first Minister John Swinney said: "This is the eighth successive year that we have worked with our local government partners to maintain council tax at 2007-08 levels, which is good news for communities and households who will benefit from the savings this brings in a challenging economic climate. Savings that amount to around £1,200 for the average Band D household.

"This partnership approach with local government is delivering real benefits for the people of Scotland in the face of the biggest reduction in public spending imposed by Westminster on any Scottish Government.

"The Scottish Government is focused on securing economic growth, tackling inequality and protecting our public services and it's great news for Scottish households who will be spared a raise in council tax for the eighth consecutive year."

He added: "Next month I will bring a further Order to Parliament to distribute the shares of the £70 million and these shares will be added to individual local authority settlement totals for 2015-16."

(JP/CD)