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Council tax set to rise by 3.5%, according to CIPFA survey

Average Band D council tax bills in England and Wales are set to rise by £65 or 3.5% from April, according to research from CIPFA.

CIPFA CEO Rob Whiteman said that the “relatively modest” council tax increases came at the same time as households faced a “harsh squeeze on living standards” with energy bills set to rise by 50%.

“Councils are facing significant pressures from inflation and the decision to increase bills will not have been taken lightly. Funding essential services is vital, but in the longer run we hope central government provides long-term sustainable funding and the devolution of fiscal powers to local authorities.”

The survey data showed a wide variation between regions, with average band D bills in the Northeast remaining the highest in the country.

Average band D bills are set to rise by 3.5% in the Northeast to £2,105.95. In contrast, average band D bills in Greater London are increasing by 3.7% but will still be among the lowest in England and Wales at £1,682.56.

Joanne Pitt, CIPFA local government policy manager, said: “The latest figures show increasing discrepancies across the country, with band D council tax in the Northeast significantly higher than Greater London. If the government is serious about levelling up and addressing regional inequality, tackling this difference should be a part of those plans.”

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(Dan Bates)