Average council tax exceeds £2,000 in two regions

The typical council tax bill for an average band D property in the North East and South West of England is set to exceed £2,000 a year for the first time.

The Chartered Institute of Public Finance and Accountancy has published its latest annual council tax survey, and found that, across England as a whole, the typical council tax bill is set to rise by £78.31. This represents a rise of 4.3 per cent.

Regional variation in the percentage increase on 2020/21 council tax bills is notable, with a difference of two percentage points between the highest increases in Inner London (5.5 per cent) and the lowest (3.5 per cent) in the East of England.

Rob Whiteman, CIPFA CEO, 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 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.

"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."

Councils in England can increase tax rates in 2021/22 as set by central government. For district councils, this is up to two per cent. For those with responsibility for adult social care this is up to five per cent before a referendum is called. This includes up to three per cent for the adult social care precept.