Council tax to rise by 3.7% on average

By Laura Sharman | 06 March 2020

The average council tax bill is expected to increase by 3.7% in 2020/21, new analysis has revealed.

CIPFA (Chartered Institute of Public Finance and Accountancy) said council tax bills have risen consistently every year since 2012, with households facing an average increase of £64.65.

Chief executive officer of CIPFA, Rob Whiteman, said: ‘Today’s findings illustrate that local authorities across the country are putting up their council tax to fight the ongoing legacy of austerity.

'The simple fact is that council tax, along with business rates and central government grant, is no longer enough to fund increased demand on vital public services, including social care.

'These funding mechanisms remain in an unsustainable position for the long term.’

The Local Government Association (LGA) said a third of extra council tax income for adult social care services will be spent covering the cost of the 'unforeseen' increase to the National Living Wage.

Chair of the LGA's resources board, Cllr Richard Watts, said: 'Faced with ongoing funding pressures such as homelessness and looking after vulnerable children, councils continue to be left with little choice but to ask residents to pay more to help them try to protect their local services.'

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