Highest council tax increase for 14 years

The Chartered Institute of Public Finance and Accountancy (CIPFA) has reported that household across England are set to see an average council tax increase of £81.05 – the steepest increase in 14 years.

Alongside the 5.1 per cent increase, CIPFA’s survey also identifies the ‘yawning gap’ between the amounts paid in different parts of the country, with taxpayers in the north east paying a band D average of £1,799, compared with £1,194 in London.

Figures also show police and crime commissioners are struggling with their allowances, with 90 per cent opting for increases between £11.97 and their maximum allowed increase of £12.

Rob Whiteman, CIPFA chief executive, said: “This sharp rise in council tax across the country reflects the enormous financial pressures many local authorities are currently under. Local government has made by far the biggest efficiencies in the public sector since 2010, but now it feels like crunch time, with the consequences of earlier funding cuts really beginning to bite.

“The spending freeze now in place for Northamptonshire, and inevitable cuts to come, will be a test case for what the minimum services can be that a council is required to deliver. But looking further across the country, children’s and adult social care are the main focus of resources for many town halls, set this against the phasing out of government grants and widespread use of reserves, it is clearly time for an honest conversation about what services councils should realistically be expected to deliver.”