Council tax bills to rise by 4.3%

The typical council tax bill for an average band D property in the North East and South West of England will increase by £78.31 (4.3%) in 2021/22 exceeding £2,000 a year, according to research from the Chartered Institute of Public Finance and Accountancy (CIPFA).

CIPFA’s Council Tax Survey was based on 290 responses to questionnaires sent to authorities in England and Wales which found that across England as a whole.

The institute revealed that regional variation in the percentage increase on 2020/21 council tax bills is “notable”, with a difference of 2% points between the highest increases in inner London (5.5%) and the lowest (3.5%) in the East of England.

Rob Whiteman, CEO, CIPFA, said: “The stark contrast between the levels by which different regions are raising their council tax is indicative of the difficult political position created for them by the central government.

“The Covid crisis has increased demand on services, and those demands need to be met with funding. Making an increase in local authority spending power contingent on council tax is regressive, putting even more pressure on those taxpayers least able to withstand it.”

He added: “A fair funding solution for local government, including the devolution of fiscal powers to address funding gaps locally, is sorely needed if councils are to continue delivering the services that have gotten us through the last year.”