CIPFA reveals second highest council tax increase in ten years

CIPFA, The Chartered Institute of Public Finance and Accountancy, has revealed average Band D households in England are set to face an increase of 4.5 per cent (£75.60) in their council tax bill for 2019/20.

This is the second highest increase of council tax in the last 10 years, surpassed only by last year’s rise of 5.1% (£80.92). The increase in 2019/20 masks significant amounts of variation between the different regions and local authority types in England.

While the average households in Greater London are to see the highest increase in council tax compared to other authority types, at 5.1%, there remains a substantial gap in cash terms between their total bill, at £1,476.39, and those of households in the North East at £1,883.95.

Local police and crime commissioners across England appear to be unanimously doubling the police precept on the council tax bill, which is climbing by more than 12.6% in England, following Local Government Secretary James Brokenshire’s announcement last year.

Rob Whiteman, CIPFA CEO, said:

“The extent of the rises across the country are a reflection of the incredible fiscal pressure faced by local authorities and police. Without a bolder vision from government, the future of these services is increasingly being put at risk.

“Local authorities have faced the most significant cuts to spending over the last ten years, and despite the government’s announcement that austerity is ending, for local authorities this is clearly not the case. Long term they remain in an unsustainable position.

“Ministers need to make radical decisions to secure the future of public services. Council tax is regressive, and increasingly divorced from the reality of property values. They will not be sufficient to meet rising demand for services such as adult, and increasingly, children’s social care.”