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Research from the Chartered Institute of Public Finance and Accountancy (CIPFA) found the average increase across England will be £78. Tax rises are expected in many areas as authorities attempt to repair the damage to Britain’s public finance caused by the coronavirus pandemic.
The average council tax bill is expected to increase by 4.3 percent over the next year.
CIPFA found the highest increases, at 5.5 percent, are in parts of London whilst areas in the east of England will only see 3.5 percent.
However it will vary widely by region with some areas seeing five percent increases whilst others may only have three percent.
As a result of the increase the average cost for a Band D property in the south-west and north-east of England will rise above £2,000.
Council taxes will increase by an average of 4.3 percent in 2021
The average tax increase across England will be £78
The move was condemned by Robert Palmer, Tax Justice UK Executive Director.
Speaking to The Sun he said: “It can’t be right that a Park Lane millionaire can end up paying a comparable amount of council tax as a just about managing family in the north.
“Politicians need to grasp the nettle and tackle our grossly outmoded approach to how we tax wealth in the UK.”
Harry Fone, from the TaxPayers’ Alliance, added: “Council tax bills are going sky-high and feel like a kick in the teeth to taxpayers.
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“The last thing residents need is almost-automatic rate rises, meaning an even bigger council tax bill.
“Local authorities must do more right now to eradicate wasteful spending and stop these huge hikes.”
Due to the coronavirus pandemic the British economy shrunk by 9.9 percent in 2020.
This was the biggest annual fall since 1709 when Europe was bit by the Great Frost.
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The UK economy shrunk by 9.9 percent in 2020
“The Covid crisis has increased demand for services”
Rob Whiteman, CIPFA chief executive, said the tax increase is a direct result of the pandemic.
He commented: “The Covid crisis has increased demand for services, and those demands need to be met with funding.
“Making an increase in local authority spending power contingent on council tax is regressive, putting even more pressure on those taxpayers least able to withstand it.”
However all 32 of Scotland’s local authorities have agreed to freeze their council tax rates.
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Until recently increasing council tax by more than two percent required a local referendum.
However in his autumn spending review Chancellor Rishi Sunak raised this to five percent.
In response the Local Government Association commented: “Councils face the tough choice about whether to increase bills to bring in desperately needed funding to protect our services at a time when we are acutely aware of the significant burden that this could place on some households.
“Council tax rises – particularly the adult social care precept – have never been the solution to the long-term pressures faced by councils, particularly in social care, which is desperately in need of reform.
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“Further action is desperately needed to immediately shore up social care services – which have been on the front line during the pandemic – and to secure the long-term future of care and support.
“The Government must urgently bring forward its proposals.”
There are hopes the economy will grow rapidly as lockdown is eased, with all restrictions on socialising in England lifted on June 21 if cases continue to fall.