Millions of households could enjoy a two-year freeze on council tax bills if the Conservatives win power, shadow chancellor George Osborne has announced.

The initiative was unveiled to a rapturous reception from Tory activists at the party's conference in Birmingham.

The party hopes the move will result in a repeat of the success of Mr Osborne's inheritance tax give-away at last year's gathering, which was credited with helping catapult the Conservatives into the lead in the polls.

But it was denounced as a "con" by Labour, who warned the freeze - worth £200 to a typical Band D household - would require big cuts in public services.

Mr Osborne used his keynote speech in Birmingham to continue the Tory assault on Prime Minister Gordon Brown, accusing him of "dither and delay" over the collapse of the Bradford & Bingley bank, whose nationalisation dominated discussions at the conference.

He pointed the finger of blame at Mr Brown for creating the conditions for what the PM himself has termed "the age of irresponsibility".

He said: "Who would have thought that the epitaph on the gravestone of the Brown years would be carved by the man himself?".

Turning last week's Brown jibe against David Cameron back upon the Labour leader, Mr Osborne said: "When it comes to leading and listening and learning ... this is no time for a novice."

Mr Osborne condemned the nationalisation deal, which he said would lead to low-income households paying extra taxes to bail out millionaire bankers.

And he insisted that bankers who paid themselves huge salaries and bonuses must themselves bear their share of the blame for the current crisis and their share of the pain it is causing.

"If you take risks, you must bear the costs," he told bankers. "You helped cause this mess and you can help pay to clear it up."

Under Mr Osborne's council tax plan, local authorities in England which keep their annual rise to 2.5 per cent or below would get extra funding from Whitehall - effectively wiping out the increase.

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