Millions of UK households are set to experience a hike in council tax bills by an average of 5% in April 2024, against a backdrop of funding challenges and disparities in charges across regions.
Millions of households across the UK are bracing for an increase in council tax bills, with rates set to rise by an average of 5% in April 2024. This escalation follows years of austerity and a “relentless squeeze” on local authority funds, attributed to outdated property valuations from 30 years ago, which create disparities in tax charges across regions. In Westminster, Band D properties are billed £969, whereas in Rutland, the figure soars to £2,543. Londoners will particularly feel the pressure, with bills in nearly half the capital’s boroughs exceeding £2,000 annually, marking a substantial hike from rates a decade ago.
To navigate these increases, residents are encouraged to verify their property’s council tax band to ensure they are not overpaying, potentially saving hundreds of pounds yearly. Additionally, eligibility for council tax discounts exists for individuals living alone, apprentices, and full-time students, offering a pathway to alleviate financial burdens.
With the disparity in council tax rates more pronounced in poorer northern areas compared to wealthier southern regions like London, think-tanks and local government groups call for a reform in council funding. The Institute of Public Policy Research North suggests a £4 billion injection to stabilize finances, whilst concerns about diminishing public services due to the tax hikes grow.
Despite the challenges and the public outcry for a reevaluation of council tax bands, the Department for Levelling Up, Housing and Communities has indicated that there will be no nationwide reassessment. Local authorities remain in charge of their fiscal strategies amidst these pressures, with residents across England facing varying impacts on their finances based on their locality.
