Council tax bill to rise could worsen cost of living crisis

The council tax bill for an average band D equivalent property in England and Wales is set to rise by £65, adding further pressure on households already struggling with soaring inflation and the cost-of-living crisis.

The CIPFA research says that while council tax is set to increase almost everywhere in England and Wales, the level of increase varies between regions.

Greater London will face the highest rise of 3.7 per cent – although the bill will still be one of the lowest in the country at £1,682.56. The bill for an average band D property in the Northeast is set to become the highest in the country at £2,105.95, a rise of 3.5 per cent.

Rob Whiteman, CIPFA CEO said: "While households will have to find more money to pay relatively modest council tax increases compared to other bills, everyone recognises they will be facing a harsh squeeze on living standards. Soaring inflation means this squeeze will be the largest in a generation, with energy bills set to rise by 50 per cent.

"Councils are facing significant pressures from inflation and the decision to increase bills will not have been taken lightly. Funding essential services is vital, but in the longer run we hope central government provides long-term sustainable funding and the devolution of fiscal powers to local authorities."

CIPFA's council tax survey is based on 331 questionnaires sent to authorities in England and Wales, with a 70.4 per cent response rate. The council tax bill for an average band D equivalent property in England is set to rise by 3.5 per cent to £1,965.17 and in Wales by 2.7 per cent to £1,778.