Households in the North East will be paying over £400 more in council tax in 2023/24 than those in Greater London, according to a new analysis by CIPFA.
CIPFA’s analysis comes as the Department for Levelling Up, Housing and Communities published data on council tax levels set by local authorities in England for 2023/24. The statistics showed an average rise of council tax for a Band D property of 5.1%.
A regional breakdown of the data by CIPFA revealed that households in the Northeast will pay £421 more on average than those in Greater London.
The professional accountancy body stated that this is a continuing trend from recent years that has seen poorer areas of the country pay more.
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Joanne Pitt, CIPFA’s head of policy, said: “The decision to raise council tax is a complex one, but with the myriad economic challenges confronting local authorities they were left with little choice.
“The North-South council tax divide is in danger of becoming permanently embedded. If the government’s levelling up ambitions are to succeed, it needs to address the fact that the least wealthy parts of the country are paying the most and reform the way council tax is calculated so it’s fairer for all.”
CIPFA’s survey also highlighted that households in the North East, South West and East Midlands will be paying the highest average council tax bills in 2023/24, while those in Greater London, the West Midlands and Yorkshire and the Humber will pay the lowest.
It also revealed that Greater London is the only English region where the average council tax bill is below £2000.
Rob Whiteman, CIPFA’s CEO, said: “It is worrying that in some places the funds raised from council tax rises still will not be enough to fill budget holes and only underlines that councils need long-term, fair and sustainable funding.”
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