Latest Public Sector News

04.04.18

Households to be hit with 5.1% council tax increase

The average household is to see its council tax bill increase by 5.1%, the government has announced.

According to the latest government figures, 148 out of 152 authorities plan on utilising some or all of the 3% adult social care precept when setting their council tax, accounting for £30 of the average Band D council tax bill this year.

The council tax requirement for 2018-19 is £29.6bn, with £538m being raised through the adult social care precept, and £518m through parish precepts.

An average area Band D property in London will see an increase of £55 compared to last year, while metropolitan areas will be hit with a larger £83 increase. Those living in unitary areas will see an average increase of £88 and those in shire areas £86.

Those areas with a parish precept have seen an average Band D parish precept increase of 4.9% in 2018-19.

Lord Porter, chair of the LGA, recently said: “Since 2010, council tax bills have risen by less than inflation and other key household bills.

“But faced with severe funding pressures, many councils feel they are being left with little choice but to ask residents to pay more to help them try and protect their local services.”

However, he also warned that many councils are now “beyond the point where council tax income can be expected to plug the growing funding gaps they face.”

Shadow communities and local government Secretary, Andrew Gwynne, added: “Over the last eight years, council budgets have been reduced by 50% and services cut, with local people forced to pick up the slack as council tax bills soar.

“After almost eight years of Tory austerity, it’s time for real change.”

Local government minister Rishi Sunak said the government recognised the pressures local services are under, which is why they are “providing a real-terms increase in resources to councils over the next two years, more freedom and fairness, and greater certainty to plan and secure value for money.”

Top image: Images of Money

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