Households in the Northeast are set to pay £420 more for an average band D property in council tax than those in Greater London in what financial experts have described as ‘levelling down’.
A survey of 215 councils taken by Chartered Institute of Public Finance and Accountancy (CIPFA) reveals that the average band D council tax in Greater London will be £1,894 while in the Northeast it will be £2,315.
CIPFA described this as 'levelling down'.
CIPFA’s Council Tax Survey indicates an average rise of 5.2% in council tax for a Band D property in England and Wales.
Rob Whiteman, CIPFA CEO, said: ‘In the absence of long-term funding, the rise in council tax is an example of the Government’s presiding over a failing funding system.
‘With central government prioritising cuts in taxes and consequent spending cuts, this places more burden on councils to increase the level of council tax by the maximum allowed at a time and many residents will see a reduction in the level of service provided.
‘The decision to raise council tax would have been a difficult one, with many people in communities struggling amid cost-of-living challenges. Councils need long-term and sustainable solutions from government rather than short-term tax decision in advance of the election.’
