Latest Public Sector News

26.03.14

Average council tax bill falling in real-terms – Pickles

The average council tax bill in England has fallen in real-terms for the fourth year, as almost two-thirds of town halls have taken up the government’s freeze offer, local government secretary Eric Pickles has said. 

National Local Government Finance statistics have revealed that the average band D Council Tax level from this April is £1,468, or a change of 0.9%, one of the lowest changes ever and a cut in real-terms. In London, Council Tax bills have fallen in cash terms by 0.4%. 

Pickles said: “In the last decade, council tax bills went through the roof. This government has been working to keep council tax down, giving hard-working people greater financial security. 

“We have given extra government funding to town halls to help freeze council tax, which has cut bills by more than 11% in real-terms.” 

PSE has sought comment from the Local Government Association but is still waiting on a reply. 

Pickles added that since 2010, the government has worked with local authorities to reduce council tax. This has cut average bills in England over four years by over 11% in real-terms. In contrast the period between 1997 and 2010 saw council tax increase in real-terms by 47%. This doubled a typical band D bill to a £120 a month. 

In Wales, however, which has not used Barnett funding to make a similar freeze offer, average bills have increased by twice the rate of inflation. 

(Image copyright: DCLG) 

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