Council tax is set to be frozen in Sandwell next year, in return for a government grant. The council says that it wants the “best deal” for residents.

The Government is offering the one-off grant worth £2.5 million in Sandwell if the council chooses not to increase council tax in 2012-13.

And a provisional budget report to the borough’s full council which meets on Tuesday states that the authority is proposing a zero council tax increase next year.

Councils can choose to raise the tax by up to five per cent, but if they do, they forfeit the Government’s grant.

Sandwell finance chief Councillor Steve Eling said a final decision on the council tax freeze will not be made until March.

He said: “Obviously the decision is not made and the final decision won’t be made until the final budget setting meeting in March when the council tax decision is taken, but the figures I am working on at the moment mean that we will freeze the council tax and we have been offered this money from the Government to freeze it.

“There is a sting in the tail because they are only offering this money for one year. I am still looking to offer the best deal to the people, and that is a zero council tax increase.”