Households in the North East will be paying over £400 more in council tax in 2023/24 than those in Greater London, analysis undertaken by CIPFA has revealed.
Government statistics published last week showed an average rise in council tax for a Band D property of 5.1%, in line with findings from CIPFA’s own parallel survey and likely to compound cost-of-living pressures.
A regional breakdown of data carried out by CIPFA shows households in the North East paying £421 more on average than those in Greater London, continuing trends from recent years that has seen poorer areas of the country pay more.
In monetary terms, households in the North East, South West and East Midlands will be paying the highest average council tax bills in 2023/24, while those in Greater London, the West Midlands and Yorkshire & the Humber will pay the lowest. Greater London is the only English region where the average council tax bill is below £2000.
CIPFA’s survey forecasts an average increase of 4.9% (£95) across England and Wales, very close to the 5.1% confirmed in government statistics last week.
Council tax forms a vital part of a local authority’s income and with central government funding reducing and demand for services increasing is under pressure to bridge any funding shortfalls. But CIPFA is also highlighting that in some areas the council tax rise will not be sufficient to ensure local public services are maintained.
Rob Whiteman, CIPFA CEO, said:
“Councils are facing an immense amount of pressure from soaring inflation and rising demand for services. They will be only too aware of the cost-of-living challenges faced by many people in their communities so the decision to raise council tax is not one that will have been taken lightly.
“It is worrying that in some places the funds raised from council tax rises still will not be enough to fill budget holes and only underlines that councils need long-term, fair and sustainable funding.”
Joanne Pitt, Head of Policy, said:
“The decision to raise council tax is a complex one, but with the myriad economic challenges confronting local authorities they were left with little choice.
“The North-South council tax divide is in danger of becoming permanently embedded. If the government’s levelling up ambitions are to succeed, it needs to address the fact that the least wealthy parts of the country are paying the most and reform the way council tax is calculated so it’s fairer for all.”
Notes to Editor:
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