William Eichler 06 March 2017

England facing ‘highest’ council tax increase in a decade

England is facing the ‘single highest’ council tax increase in a decade, new study reveals.

The Chartered Institute of Public Finance and Accountancy (CIPFA) has found households across England are facing an average increase in council tax of 4%.

CIPFA’s annual council tax survey, which had responses from over two thirds of councils across England, revealed the increase will see the average band D equivalent bill rising £60.94 to £1,590.53.

The increase is the result of the 3% social care precept councils are permitted to levy to pay for social care, as well as the 1.99% annual council tax increase allowed for general expenditure.

CIPFA’s survey discovered 70% of councils with social care responsibilities will be taking advantage of the full 3% precept.

The total adult social care precept income for England in 2017/18 is estimated to be £554m, which is 89% out of a total possible amount of £624m.

Sean Nolan, director for local government at CIPFA said: ‘The fact that we are facing the single highest council tax increase in a decade is all the more remarkable because it comes after six years (2010/11 to 2015/16) of very low increases, actively encouraged by Government who until last year had offered a council tax freeze grant if councils did not raise theirs at all.

‘The subsequent removal of this freeze grant shows a clear shift in public policy in general, but also a reflection of the strains being caused by social care pressures.

‘We can expect these levels of increase to continue at least for next year.’

For more on council tax and the social care precept read our feature, 'Finding the money for social care'.

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