London council tax bills to rise fastest next year

12 Mar 21

Inner London council tax bills will see the biggest percentage increase of any region in England in 2021-22, due to a 9.5% increase in the precept for the Greater London Authority.

London Overground

London Overground train. Image ©Shutterstock

The GLA has been given permission by central government to increase its limits beyond the level that would normally trigger a referendum, due to Covid-19 related income losses from transport.

Figures from the Chartered Institute of Public Finance and accountancy show that, overall, average council tax bill for a band D property in inner London will rise by 5.5% next year – almost £6 a month.

At the other end of the scale, the East of England will see a rise of just 3.5% (£5.38 a month) and the North East 3.6% (£5.95 a month).

Outer London will see the highest monthly monetary rise – it’s 5.3% increase translates to £7.45 a month.

Rob Whiteman, CIPFA chief executive, said: “The stark contrast between the levels by which different regions are raising their council tax is indicative of the difficult political position created for them by central government.

“The Covid-19 crisis has increased demand on services, and those demands need to be met with funding.

“Making an increase in local authority spending power contingent on council tax is regressive, putting even more pressure on those taxpayers least able to withstand it.”

The typical council tax bill for an average band D property in the North East and South West of England is set to exceed £2,000 a year for the first time, according to research from CIPFA, the Chartered Institute of Public Finance and Accountancy.

Despite it’s relatively low percentage increase, due to the idiosyncracies of the council tax system, the North East is one of two regions (along with the East Midlands) where the average band D council tax bill will rise above £2,000 a year for the first time.

Across England as a whole, the typical council tax bill is set to rise by £78.31, or 4.3%, in 2021/22, CIPFA’s annual council tax survey found.

The typical council bill in Wales is set to increase by 3.9%, or £64.58, compared to 4.3% in England, CIPFA’s figures revealed. 

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