Uttlesford District Council could freeze the amount of council tax paid by residents as the costs of living crisis continues to worsen.

Opposition leader Councillor Melvin Caton (Lib Dem and Green Alliance, Stansted South & Birchanger) will propose the freeze at an Uttlesford District Council next week (December 6).

According to a council report, the estimated cost to the district council would be £180,000 and could be funded from the authority’s reserves, pots of money set aside by local councils.

A section of Cllr Caton’s motion says: “The Office for Budget Responsibility [has] forecast that real household disposable income will fall by 7.1 per cent between 2021/22 and 2023/24, worsening the existing cost of living crisis and further squeezing the vulnerable and low to middle income families.”

Read more: ‘Passing the buck to local government’: Essex councillors react to Chancellor’s budget plans for higher council tax

This comes after the government raised the limit by which local councils can increase council tax without holding a local referendum to 5 per cent in the national autumn statement earlier this month.

Local councils across the country are reporting large gaps in their finances as a result of soaring costs and drops in funding from central government.

According to a separate council report, Uttlesford District Council has a predicted net overspend of £130,000 for next year. Essex County Council has reported a budget gap of £14million.

Cllr Caton’s motion also proposes for the council to ask other local preceptors, for example Essex County Council, to also freeze their share of the tax.

A majority of Uttlesford councillors, including those from local party Residents for Uttlesford which currently controls the council, will have to vote for the motion next week for it to pass.

The council is due to set its budget for the next financial year and medium term in the spring.