England to see lowest Council Tax rise in history

Council Tax in England will rise this year by the smallest amount since the tax was introduced in 1993, according to the country’s most authoritative survey, released today by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The CIPFA survey shows that England will see a rise in the 2010/11 Band D average bill of 1.8% to £1,438.72. The rise in 2009/10 was 3.0% (£1,413.84) which was itself the lowest rise for 15 years.

London councils are recording the lowest rises of any region with many councils, particularly those in inner London, freezing or reducing their Council Tax levels. Overall, households in the capital can expect to see a small 0.1% increase.

English regions outside London will be subject to higher rises, with the South West expected to see the highest increase of 2.5%. The average increase outside London is 2.1%.

The survey predicts that Welsh Council Tax payers will have a rise in the Band D average bill of 3.6%, the highest in the UK. This will mean an average Band D payment of £1,125.77, which is still £312.95 lower than the average in England.

Most Scottish councils are expected to maintain a freeze on Council Tax levels for 2010.

The CIPFA survey, carried out in conjunction with the BBC, analysed the Council Tax settlements of more than half of English and Welsh local authorities, in what is the most comprehensive and accurate examination of town hall finances for the coming year.

Ian Carruthers, CIPFA’s Head of Policy said:

‘This 1.8% rise demonstrates that local politicians have generally heeded Government calls to avoid large increases. However, councils will be facing increasing financial pressures in the coming years, which could result in cuts in some services.’

ENDS

Contact: Guy Roberts, or Lindsay Machin
CIPFA Press Office
t 020 7543 5712/5645
e guy.roberts@cipfa.org.uk or lindsay.machin@cipfa.org.uk

Notes to Editors:

1. The survey results, upon which this release is based, will be updated regularly on our website. The site also contains further information to assist in understanding the Council Tax increase: www.cipfastats.net

2. The average Council Tax demand on a “band D” property comprises three basic elements:

• Local demands of the billing authority;
• Major precepts (e.g. County Councils, Greater London Authority, and Police & Fire Authorities);
• Parish / Community Council precepts.

These elements are made up as follows:

3. These analyses are based on responses received from 51 per cent (179 authorities) of billing authorities (48 per cent in England and 95 per cent in Wales) and 86 per cent (84 authorities) of precepting authorities. When all councils have set their budgets, (by 18 March) the final outcome is not expected to change significantly.

4. The Government reserves the right to direct an authority to set a lower budget requirement if it considers that the Council Tax or the budget requirement has been increased excessively. Last year, one authority was nominated for capping. This year the Local Government Minister has made clear the government’s expectation for the average Band D council tax increase in England to hit a 16 year low. They have reiterated that the Government has maintained the three-year settlement in challenging economic circumstances and that there can be no excuse for any authority setting an excessive council tax increase in 2010/11.

5. Rounding errors, which sum to no more than one unit, may occur in the tables.

6. Where figures are confirmed in the analyses, it should be noted that the Communities and Local Government could still cap individual authorities at a later date.

7. Full survey results will be available at the end of March. For advance copies telephone: 020 8667 1144 and ask for “Council Tax Demands & Precepts Statistics 2010-11”. Spreadsheet price £240.00 (+ VAT), hard copy price £120.00.

About CIPFA

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions.

They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients.

Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.