William Eichler 11 March 2022

Council tax increases to add to ‘harsh squeeze’ on living standards

Council tax increases to add to ‘harsh squeeze’ on living standards  image
Image: ShaunWilkinson/Shutterstock.com.

Households that are already experiencing a squeeze on their finances are set to be hit by increases in council tax after April, financial experts warn.

The Chartered Institute of Public Finance and Accountancy (CIPFA) has calculated that the council tax bill for an average band D equivalent property in England and Wales is set to rise by £65 or 3.5%.

‘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%,’ commented CIPFA CEO Rob Whiteman

‘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.’

The research also found that there were what CIPFA local government policy manager Joanne Pitt called ‘increasing discrepancies across the country’ when it came to council tax rises.

Greater London will face the highest rise of 3.7% – 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%.

‘The latest figures show increasing discrepancies across the country, with band D council tax in the Northeast significantly higher than Greater London,’ said Ms Pitt.

‘If the Government is serious about levelling up and addressing regional inequality, tackling this difference should be a part of those plans.’

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