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Rents will be frozen at their present levels next year as part of a strategy to keep rents affordable and bring council rents closer to those charged by housing associations.

Central government is providing a one-off subsidy to help councils keep charges down. The government wants rents in council and housing association properties to be brought in line over the next 10 years.

It is eventually aimed to have council rents and housing association rents worked out on the same
formula based on property values and regional earnings.

Manchester Council's executive member for housing Councillor Basil Curley said it will be possible to hold rents down without any adverse impact on services, repairs and maintenance.

As part of the council's budget plans to be introduced in April, an extra ?16 million is being earmarked for education and social services.

The planned Council Tax increase will, for the third year running, represent one of the lowest rises in Greater Manchester and in the UK in an effort to encourage more people to return to live in the city.

A 4.7% increase in Government funding, through the Revenue Support Grant (RSG), will allow the Council to spend more money on vital services including an extra ?10.4 million on education and ?5.7 million on social services.

Manchester City Council's executive member for finance Councillor Clare Nangle guaranteed there will be no slip in standards resulting from the low tax rise.

She said: "We are determined to honour our commitment to keep Manchester's council tax increase as low as possible. We can state categorically that this will not be at the expense of providing good, efficient services to local people."