Dan Peters 16 January 2018

Districts call for council tax limit increase

Districts call for council tax limit increase image

Districts have called for the council tax cap to be increased so they can raise an extra £9m.

In its submission to the consultation on the provisional local government finance settlement, the District Councils’ Network (DCN) said its members should be allowed to increase council tax for Band D properties by up to £7.50 or 3% - whichever is greatest.

DCN said that keeping the existing limit at £5 would mean 88 district councils – or 44% - would fail to benefit from the Government’s decision to raise the percentage threshold to 3%.

It added that raising the limit to £7.50 would equate to an increase of 14p per week for the average household.

DCN chairman, Cllr John Fuller, said: ‘Allowing those districts to increase council tax by the greater of 3% or £7.50 would ensure the cash alternative provides meaningful headroom to continue to deliver public services which are vital to local residents.’

The submission added: ‘Increasing this limit could make a big difference to local councils and would also help deal with pressures from special expenses but would be of minimal impact to council taxpayers.’

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