According to a survey by the County Councils Network (CCN), the average bill for a band D property will rise to £1,889 – an increase of £70. According to the CCN survey, the increase of four percent – more than double the rate of inflation – will be made by 116 local authorities out of the 133 that have responsibility for social care.
- How will my Universal Credit be affected if I get tax rebate?
It could see residents living in band D properties cross into the £2,000 threshold, in areas such as Nottingham, Hartlepool and East Sussex.
Today, the CCN has released a new report, with analysis from Pixel Financial Management, revealing that local authorities face a funding shortfall of £19.1billion over the next five years.
The analysis assumes councils will raise Council Tax each year until 2025.
A CCN analysis of all 133 councils who have so far published their draft budgets out of 151 social care authorities, which will be ratified next month, shows that all councils plan on raising Council Tax in April.
The CCN says 18 are still yet to declare their intentions.
Of these councils, 116 plans to raise council Tax by the full amount permitted – which is 3.99 percent.
So, what would this mean for residents?
The changes would mean Council Tax bills will vary across the country, with taxpayers in county areas facing an average rise of £69.
In comparison, it would be an increase of £45 for residents in Inner London.
The average Band B would rise to £1,853 in shire countries – which is some 40 percent higher than Inner London (1,332).
All councils plan on raising council tax in April – 133 local authorities, with 18 still yet to declare their intentions.
All but two of these are proposing to levy a full two percent social care precept, ringfenced for care services.
Of these councils, 116 plans to raise council tax by the full amount permitted – 3.99 percent.
- Council tax price hike: How to know if you need to pay more
The CCN say higher council tax levels in their areas are due to historically lower funding.
Cllr David Williams, chairman of the County Councils Network, said: “Council leaders have worked hard to convince ministers of the need to provide councils with additional resources and they have responded with the largest increase in funding for over a decade.
“This funding is welcome and a lifeline for local services. However, despite this, today’s new financial forecasts for the next five years make tough reading for councils and taxpayers alike.
“This is why the government must use the March Budget to signal that councils will receive a further cash injection in the Spending Review.
“No council leader wants to raise their council tax, especially after residents have faced rises over the last few years, but today’s figures show that we simply do not have a choice.
“Unfortunately – this pattern is set to continue, but even yearly council tax rises for residents over the next five years still leaves councils with a huge £19billion shortfall, meaning local politicians will need to continue to make really tough decisions to meet rising demand for services.
“At the same time, county residents shoulder an unfair burden compared to those who live in the cities and the capital, paying rates at double what some inner London councils are able to charge, due to more generous funding for the capital.
“The government’s Fair Funding Review could help correct these funding imbalances and we are committed to working with ministers to ensure that the review is implemented next year.
“More investment in local government, and fairer funding for counties, will allow councils to not just preserve but improve frontline services, whilst investing in local and national priorities.”
Source: Read Full Article