Increase in council tax bills anticipated by £500 over the next four years in regions most affected
In the coming years, council tax bills across various regions in the UK are set to rise significantly, with some areas experiencing substantial increases. According to an analysis by the TaxPayers' Alliance, these projected rises are part of a broader upward trend in tax burdens forecast through to 2029/30.
The largest projected increase is in Gateshead, where typical council tax bills are expected to be £567 higher in 2028/29. Other regions will also experience varying but significant council tax rises, following maximum allowable increases of around 5% annually over the past few years.
These increases are part of a broader tax burden increase expected by 2029/30, which also includes income tax and National Insurance contributions, as government freezes on personal and tax thresholds escalate the total tax take.
The highest council tax bills could be in Rutland, where charges are expected to increase from the current rate of £2,671 to £3,221 by 2029/30. In 2029/30, there will be 28 areas where council tax bills for Band D will exceed £3,000.
Residents in Band D homes in Bristol, Rutland, Nottingham, and other areas such as Dorset, Hastings, Oxford, and Newark and Sherwood could expect increases of more than £500 by 2029/30. The average council tax bill for Band D across England in 2029/30 is expected to be around £2,750.
Local authorities have been permitted to increase council tax bills by up to 5% over the next three years. The TaxPayers' Alliance has analyzed potential council tax increases and identified areas that could be hardest hit by these changes.
It's important to note that the amount of council tax you pay is based on the value of the property you live in, with each property placed in one of eight bands. These bands reflect what a home might have sold for in April 1991. Even if the property you live in was built recently, its band is based on an estimation of what its value would have been in 1991.
Elliot Keck, head of campaigns at the TaxPayers' Alliance, has stated that council tax is the ultimate stealth tax and that the government's plans will further increase the tax burden on British families and workers. The Resolution Foundation reports that the council tax burden for the very poorest has roughly doubled to approach close to five percent of income over the last 20 years.
The Treasury has been approached for comment. Parish councils have no referendum cap for council tax increases.
In summary, council tax bills are set to rise significantly across various regions in the UK over the next few years, with some areas experiencing substantial increases. The TaxPayers' Alliance has highlighted Gateshead as the area with the largest expected increase, with a rise of £567 in 2028/29. The average council tax bill for Band D across England in 2029/30 is expected to be around £2,750.
- The increases in council tax bills across various regions in the UK are part of a broader policy-and-legislation trend, including finance-related legislations like income tax and National Insurance contributions.
- The government's plans to allow council tax bills to increase by up to 5% over the next three years could further burdens British families and workers, as stated by Elliot Keck, head of campaigns at the TaxPayers' Alliance.
- The amount of council tax one pays is based on the property's value and its placement in one of eight bands, a system that dates back to April 1991, and despite property value changes since then, the bands remain fixed.
