Thursday 18 January 2018

Council tax bills set to rise 0.8%

Communities Secretary Eric Pickles said council tax has fallen almost 10 per cent in real terms under the Coalition
Communities Secretary Eric Pickles said council tax has fallen almost 10 per cent in real terms under the Coalition

Council tax bills will rise by a below-inflation average of 0.8% across England this year, the Department for Communities and Local Government announced.

But a third of councils have rejected the offer of central Government help to enable them to freeze bills for residents in 2013/14.

Communities Secretary Eric Pickles said this year's rise amounts to a real-terms cut in council tax, which has fallen by 9.7% in real terms under the coalition Government, once inflation has been taken into account.

Mr Pickles said: "Council tax more than doubled under Labour. But Conservatives in Government have worked to freeze council tax for three years, helping hard-working families and pensioners with their cost of living. Over the last three years, council tax bills have fallen by almost 10%. Ed Miliband's Labour Party opposes freezing council tax, which shows how Labour remain addicted to higher taxes, and are on the side of bureaucracy, wasteful spending and not the taxpayer."

DCLG figures show that the average Band D council tax set by local authorities in England for 2013-14 will be £1,456, up from £1,444 in 2012/13. The average in London will be £1,302, compared with £1,421 in metropolitan areas, £1,486 in unitary authority areas and £1,510 in shire districts.

In all, 257 of the 421 eligible English authorities (61%) qualified for a DCLG grant worth 1% of their council tax bills by imposing a freeze or reduction in the charge - down from 90% in 2012/13.

Councils imposing the highest rises for 2013/14 in percentage terms are Conservative-held Breckland in Norfolk (7.6%), North Dorset (4.8%), East Lindsey in Lincolnshire (4.4%) and South Cambridgeshire (4.3%), and Labour-held Exeter (4%).

But the largest bills to be landing on Band D doorsteps will be in Rutland (£1,701), Hartlepool (£1,686), Kingston-upon-Thames (£1,683), Newark & Sherwood (£1,657) and Central Bedfordshire (£1,652). And some of the largest percentage rises are to be found in fire and rescue authorities in the West Midlands (10.4%), West Yorkshire (9.5%), Greater Manchester (9.5%), Leicestershire (9.4%), Berkshire (9%), Cambridgeshire (8.35) and Dorset (8.2%).

Authorities increasing their demands by more than 2% are required to hold a referendum to seek public approval, though there is an exemption for any rises which are worth less than £5, which means that big percentage hikes in the fire authorities will not have to be put to a poll. Many councils avoided a referendum by imposing rises of 1.9% or 2% - a practice previously condemned by Mr Pickles as "democracy dodging". Some 131 Conservative councils - around seven out of 10 - are freezing their council tax, compared with 51 Labour - about half - and 10 Liberal Democrat.

Local Government Association chairman Sir Merrick Cockell said local authorities want to keep council tax down, pointing out that "the vast majority" froze bills over the past two years and many have done the same this year. But he added: "The Government's offer to help local authorities freeze council tax is a short-term one which does not address the huge long-term pressures facing councils, including bigger cuts than almost any other part of the public sector and an immediate and growing crisis in funding care for the elderly. Government has cut council funding by 33% and, with last week's Budget signalling further cuts to come, local authorities have to consider the impact this will have on local services and the people who rely on them." for Communities and Local Government)

Press Association

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