European Commission calls for the UK to raise taxes on expensive homes, build more housing and "adjust" the Help to Buy scheme are "in line" with government policy, a Treasury spokesman has said.
"The European Commission continues to support the UK Government's strategy including its commitment to deficit reduction. The Commission's recommendations are in line with the Government's approach," the spokesman said.
Almost 600,000 poor families are facing a second year of above average council tax rises, according to new research.
The Joseph Rowntree Foundation (JRF) said 580,000 families in England will pay an average of £149 a year more than 12 months ago, having a "significant impact" on their finances.
The research group said a study of Council Tax Support, brought in last year, found that from this week 70,000 poor households will pay council tax for the first time, facing average bills of £114.
The government has rejected calls for single person council tax discounts to be scrapped for people with larger homes.
Local Government Minister Brandon Lewis said: "Single person council tax discount is a long-standing feature of the council tax system, reflecting the fact that single adults make less use of local services than larger households.
"We have absolutely no plans to change this discount, and we have rejected the LGA's calls for a Bridget Jones tax."
People living alone in large homes should lose their council tax discount to free up more money for struggling families on low incomes, local authorities say.
Single dwellers currently receive 25% off their council tax bill, but under new proposals the Local Government Association (LGA) wants councils to be able to adjust the discount for working people living alone in homes rated council tax band E and above.
Its own analysis has shown that it is costing councils more than £200 million a year to give the compulsory discount to people living in such properties, which are typically bigger and more expensive than the average family home.
At the same time, it said one in three local authorities expects they will have to reduce council tax support for families on low incomes because of a major shortfall in Government funding for the subsidy.
Local authorities are "tackling the biggest cuts in living memory" and urged the Government to give them the full amount of funding needed to provide adequate council tax support for vulnerable residents.
Chair of the Local Government Association's Finance Panel, Sharon Taylor hit out at Government cuts after the Public Accounts Committee published a scathing report into measures taken by local authorities in the wake of cuts.
Almost three quarters of local authorities (71%) required all working-age claimants to pay at least the minimum contribution towards their council tax bill, according to the Public Accounts Committee.
They also found:
- There were only 133 authorities which provided exemptions only for pensioners and war pensioners, whom the Government insisted must be protected.
- Some 19 local authorities, representing 225,000 working-age claimants in England, increased the "taper rate" at which support is reduced as income rises from 20% under the old system - some 14 of them increasing it to 25% and four to 30%.
- Taper rate increases combined with the loss of housing benefit and increase to income tax and national insurance, would mean claimants taking on additional work they would lose 93p of every £1 they yearend on a 25% rate of 97p on a 30% rate
Changes to council tax benefits have weakened work incentives for almost a quarter of a million people in England, some of whom stand to lose as much as 97p out of every extra pound they earn, a parliamentary report has found.
The chair of the House of Commons Public Accounts Committee, Margaret Hodge, branded the outcome "fundamentally perverse" saying that the decision to give local authorities powers to design support schemes for themselves has delivered the opposite result to what the Government intended
Council tax benefit was formerly administered nationally, costing taxpayers £4.3 billion in 2011/12 as five million people claimed support.
From April 2013, responsibility was transferred to 326 local authorities in England, with the Government providing funding of £3.7 billion - a cut of £414 million, or 10% of the predicted total budget if the scheme had remained unchanged.
Research by the Local Government Chronicle - which received responses from 262 of the 353 councils - found that speculation over a tighter limit had influenced behaviour. Some 14% of councils changed their proposals as a result, with half now planning a tax freeze.
Confirmation of the figures will not come until spending plans have been approved by council meetings across the country over the coming weeks.
Local authorities face a 2.9% cut in overall Government funding for 2014/15 - another reduction to budgets which town hall leaders say are already too stretched to pay for some important services.