Councils outside of London to increase council tax by 3.6 per cent, CIPFA claims

According to a survey conducted by the Chartered Institute of Public Finance and Accountancy (CIPFA), councils outside of London are considering increasing council tax by an average of 3.6 per cent.

The survey also found that councils in London are maintaining their tax expenses at 0.6 per cent. CIPFA maintained the virtual freeze of the capital’s council’s tax is because London authorties are less reliant on council tax than the rest of the country.

Rob Whiteman, CIPFA chief executive, said: “Councils have made by far the biggest efficiencies in the public sector and with the government incentives over the last Parliament council tax has remained relatively static. But things have changed. Councils are effectively being encouraged by government to raise council tax, which marks a contrast to its stance in previous years.

“Over the next four years, the government will be making fundamental changes to how councils are funded, essentially withdrawing Whitehall grants by allowing councils to keep more local business rates. This is a very positive move for local democracy, but there must be clarity on the detail of the new system to show how relatively less well-resourced authorities will fare.”