| Council tax bills up by over £50 in England |
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| Thursday, 28 February 2008 | |
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Council tax bills will increase by an average of £52 this year in England, according to an authoritative survey.
The statistics masks wide regional differences, however, with council tax demands in the South West rising by £61 compared to only £22 in Central London. The national increase represents a 3.9 per cent hike on last year’s bills, with the average Band D bill for England expected to be £1,373, the statistics from the Chartered Institute of Public Finance and Accountancy (CIPFA) shows. The CIPFA survey carried out in conjunction with The Times and Radio 4’s Today Programme analysed the council tax settlements of more than two-thirds of English local authorities in what is the most comprehensive and accurate examination of town hall finances for the coming year. The figures come amidst a tight central government funding settlement for local authorities, creeping inflation and rising living costs. The average council tax increase for 2007/08 was 4.2 per cent. Councils in Greater London posted some of the lowest average increases, both with average 2.7 per cent rises, well below the Retail Price Index measure of inflation at 4.1 per cent. At the other end of the spectrum, the South West saw the biggest increases with 4.5 per cent. Steve Freer, CIPFA’s Chief Executive, said that the dominant factor influencing this year’s council tax decisions was the threat of “capping” by Government. The Minister has emphasised that he expects the average increase to be less than 5 per cent. Freer said he would no doubt be encouraged that the survey points to an actual average of 3.9 per cent across the country. “Councils will be redoubling their efforts to make efficiency savings to balance tight budgets. But where there’s still a gap to bridge there is every likelihood that some service levels will have to be reduced,” Freer concluded. Related articles
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