Evaluation by finance specialists, RIFT, reveals that council tax in England has elevated by a mean of 5.1% up to now yr, whereas shining a light-weight on “a real postcode lottery” that has seen some native charges climb by as a lot as 14%.
RIFT has analysed common council tax charges in England within the years 2022/23 and 2023/24, how the speed of tax has modified over the previous yr on a nationwide and native degree.
In latest weeks, a lot of councils throughout England, together with areas resembling Cornwall, Croydon, and Falmouth, have introduced that they intend to extend council tax charges, typically as an try to extend income and keep away from the council from going bankrupt.
RIFT can now reveal that any new council tax will increase will come as a painful second blow to a lot of England’s inhabitants who’ve already endured vital will increase over the previous yr.
In England, the typical council tax invoice has elevated from £1,966 final yr to £2,065 this yr, marking an annual improve of 5.1%, or nearly £100.
Londoners have skilled the biggest regional improve, seeing the typical fee bounce by 6.2% to sit down at £1,801 per yr.
London, nonetheless, continues to have the bottom common council tax invoice of all English areas, whereas at £2,196, the North East has the very best.
The smallest regional tax improve has been recorded within the East of England the place councils have elevated charges by a mean of 4.6%.
When analysing the information on a neighborhood authority degree, it’s revealed that there was an unlimited distinction in annual tax will increase between totally different areas of the nation.
The most important council tax improve in England has been recorded in Croydon, South London. Previously yr, the borough’s common fee has risen by a staggering 13.9%, or £273.90, bringing the present value as much as £2,240. Regardless of this huge improve, councillors in Croydon are actually contemplating one other 5% improve for the yr 2024/25.
Thurrock in Essex has seen an increase of 9.4%, and Slough has seen a rise of 9.3%.
The checklist of England’s largest will increase then goes on to be dominated by London boroughs together with the Metropolis of London (6.6%), Hammersmith & Fulham (6.4%), and Newham (6.2%).
Among the many largest council tax will increase exterior of London are Eastleigh (5.8%), Peterborough (5.8%), and Huntingdonshire (5.6%).
Nevertheless, whereas some folks battle double-digit will increase, there stay different areas of England the place residents have been extra fortunate in dealing with solely modest fee rises. These embody Central Bedfordshire (1.3%), North Lincolnshire (2.4%), Telford & Wrekin (2.6%), Surrey Heath (3.3%), and Spelthorne (3.3%).
Bradley Submit, MD of RIFT, mentioned, “Councils are having a tricky time of it in the intervening time with many getting ready to chapter. Rising council tax is a technique through which they’ll try to preserve their heads above water, however throughout a value of dwelling disaster it’s a bitter capsule to swallow for residents.
There’s additionally such an enormous discrepancy between one space of England and the subsequent. A real postcode lottery. We have now to really feel for the folks of Croydon, for instance, who’re dealing with nearly a 20% tax improve in simply two years.
Anybody who’s anxious about having the ability to afford rising taxes at a time like this may need to take into account checking whether or not or not they’re eligible for a tax refund. It’s not simply the self-employed who may very well be owed cash by HMRC, and you’ll back-collect for as much as 4 years, so it’s effectively price testing. You can be entitled to a whole bunch of kilos.”