West Suffolk MP Matthew Hancock has welcomed the news that the Council Tax Support Grant is being reviewed by Forest Heath District Council and St Edmundsbury Borough Council.
Last year, both West Suffolk councils set out a four-year plan to reduce the Council Tax Support Grant to local towns and parishes.
This followed the announcement that the Revenue Support Grant funding was being cut by 48 per cent over two years.
Matthew has been working to resolve the situation, so council tax can be frozen.
During a visit by the Minister responsible Brandon Lewis, arranged by Matthew, Mr Lewis said that the level of the grant will be reviewed in 2015.
The leaders of Forest Heath District Council and St Edmundsbury Borough Council have therefore decided to review the amount of grant they pass on to town and parish councils for the financial year of 2016/7.
Commenting on the news Mr Hancock said: “I am delighted by this breakthrough for local people. I have followed the issue of Council tax closely, doing everything I can to help local families with the cost of living.
“I organised the meeting with Brandon Lewis to ensure both the town councils and the West Suffolk councils were getting a fair deal.
“This subsequent review of the Council Tax Support Grant is good news for West Suffolk, good news for Haverhill, and good news for Council Taxpayers.
“I now hope the review can ensure that, within what is a tough spending environment, all councils can live within their means and freeze council tax.”