24/02/2010

Historically Low Council Tax Rise

Council tax in England will rise this year by the smallest amount since the tax was introduced in 1993.

That estimation has been detailed in the country’s most authoritative survey, released today by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The CIPFA survey shows that England will see a rise in the 2010/11 Band D average bill of 1.8% to £1,438.72. The rise in 2009/10 was 3.0% (£1,413.84) which was itself the lowest rise for 15 years.

London councils are recording the lowest rises of any region with many councils, particularly those in inner London, freezing or reducing their council tax levels. Overall, households in the capital can expect to see a small 0.1% increase.

English regions outside London will be subject to higher rises, with the South West expected to see the highest increase of 2.5%. The average increase outside London is 2.1%.

The survey predicts that Welsh council tax payers will have a rise in the Band D average bill of 3.6%, the highest in the UK. This will mean an average Band D payment of £1,125.77, which is still £312.95 lower than the average in England.

Most Scottish councils are expected to maintain a freeze on council tax levels for 2010.

The CIPFA survey, carried out in conjunction with the BBC, analysed the council tax settlements of more than half of English and Welsh local authorities, in what is the most comprehensive and accurate examination of town hall finances for the coming year.

Ian Carruthers, CIPFA’s Head of Policy said: "This 1.8% rise demonstrates that local politicians have generally heeded Government calls to avoid large increases. However, councils will be facing increasing financial pressures in the coming years, which could result in cuts in some services."

(PR/GK)

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