By Tom Forrest | 4 March 2014
London is leading the way in reducing council tax, with an average 0.4% cut announced by the capital’s boroughs for the 2014/15 financial year.
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The annual council tax survey from CIPFA shows a 0.4% reduction for both inner and outer London – equivalent to £5.39 off the average annual Band D bill in the capital. In contrast, authorities across the rest of England are planning increases of 0.8% or £11.35.
CIPFA said that the average increase for England as a whole (including London) would be 0.6% (£8.47) for a Band D property. This is down from the 0.8% increase introduced across England in 2013/14.
Rob Whiteman, CIPFA chief executive, pointed out that some London boroughs had repeatedly reduced their council tax demands in recent years.
But he added: ‘The clear divide between the whole of London and the rest of the country this year does seem to reflect the priorities of London authorities, perhaps not surprising in the run up to local elections.’
Outside of London, the largest increases in council tax are in the South East where the average is 1.1% (£15.68). In contrast, the East of England has effectively frozen council tax with a drop of 10p across the region.
CIPFA’s survey also shows a small increase in the number of councils refusing the 1% council tax freeze grant. Forty-three percent of councils in England will be forgoing the offer from the Department for Communities and Local Government and raising their tax.
This compares with a figure of 41% who did not take up the grant in 2013/14 and 15% who turned it down in 2012/13.
