CIPFA comment: Average monthly council tax bill to rise by £65, worsening cost of living crisis

11-03-22

The council tax bill for an average band D equivalent property in England and Wales is set to rise by £65, or 3.5% from April, according to research from CIPFA. The tax increase adds further pressure on households already struggling with soaring inflation and the cost-of-living crisis.

While council tax is set to increase almost everywhere in England and Wales, the level of increase varies between regions.

Greater London will face the highest rise of 3.7% – although the bill will still be one of the lowest in the country at £1,682.56. The bill for an average band D property in the Northeast is set to become the highest in the country at £2,105.95, a rise of 3.5%.

Rob Whiteman, CIPFA CEO said: "While households will have to find more money to pay relatively modest council tax increases compared to other bills, everyone recognises they will be facing a harsh squeeze on living standards. Soaring inflation means this squeeze will be the largest in a generation, with energy bills set to rise by 50%.

"Councils are facing significant pressures from inflation and the decision to increase bills will not have been taken lightly. Funding essential services is vital, but in the longer run we hope central government provides long-term sustainable funding and the devolution of fiscal powers to local authorities."

Joanne Pitt, CIPFA Local Government Policy Manager said: "The latest figures show increasing discrepancies across the country, with band D council tax in the Northeast significantly higher than Greater London. If the government is serious about levelling up and addressing regional inequality, tackling this difference should be a part of those plans."

Notes to editor

  • Download the council tax data survey 2022-23
  • Council tax bands are set centrally both in England and Wales. Bands range from A to H in England and from A to I in Wales. Properties with the highest values attract up to three times as much tax as those with the lowest values. Regional differences in property prices mean that the North East will have a larger number of properties below band D than Greater London.
  • Band D properties are used as the typical value as they act as the baseline figure from which other bands are calculated.
  • The data shows annual council tax for an average band D equivalent property. In different areas, there will be a different distribution of housing stock in different bands. The figure is for an average band D property, not an average householder.
  • CIPFA's council tax survey is based on 331 questionnaires sent to authorities in England and Wales, with a 70.4% response rate.
  • The council tax bill for an average band D equivalent property in England is set to rise by 3.5% to £1,965.17 and in Wales by 2.7% to £1,778.
  • For more information please contact the CIPFA press office

Council tax referendum rules

Councils in England can increase tax rates in 2022/23 as set by central government. For district councils, this is up to 2%. For councils with social care responsibility it is up to 3%. Anything above this, a referendum is triggered. See the full details in the Referendums Relating to Council Tax Increases Report 2022/23.

Webchat is available Monday to Friday, 09:00 - 17:00 (excluding UK bank holidays).