Residents in new unitary authorities could pay increased council tax, the District Councils’ Network (DCN) has cautioned.
According to analysis by the DCN, local authority areas with populations of over 500,000 have average Band D council tax bills roughly £250 higher annually than areas with smaller population sizes.
Following the research, the DCN has warned that local government reorganisation could lead to negative outcomes for taxpayers.
Cllr Sam Chapman-Allen, Chair of the District Councils’ Network, said: ‘We’re told that reorganisation should cut costs, but the evidence shows huge unitary councils, like those the Government envisages, land their residents with bigger council tax bills.’
Highlighting concerns about the creation of ‘mega councils’, the DCN has emphasised that public service delivery should be ‘radically reform[ed]’ to increase efficiency.
‘New councils should be close enough to each village, town and city to have the local insight that can prevent the ill health and social problems that cost the taxpayer dear if allowed to escalate’, added Cllr Chapman-Allen.
An MHCLG spokesperson said: ‘Councils decide their own tax levels every year with a referendum threshold for proposed increases in place to protect taxpayers. The research cited has clearly misunderstood this basic concept.
‘Reorganisation will improve public services and ensure every penny of taxpayers’ money is well spent.’
