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News: Homeowners in 'rip-off' council tax woe

Fri, 29 Jun 07

The average council tax bill in Great Britain has increased by 91% over the past decade, according to new Halifax research...

The 91% increase is significantly higher than the following over the same period:

  • a 31% rise in the headline rate of the Retail Price Index.

  • a 44% increase in the price of services.

  • a 51% growth in average earnings.

The average council tax per dwelling1 in Britain in the current financial year (2007-08) is £1,078 compared to £564 in 1997-98. 

More than one in two areas have seen at least a doubling in council tax bills in the last ten years, with Monmouth experiencing the biggest percentage increase since 1997-98 (184%) followed by Powys (150%) and Westminster (149%).

Despite recording one of the biggest increases over the past decade, Westminster continues to have one of the lowest council tax rates with an average bill of £773 in 2007-08, the seventh lowest in the country

South East hit hardest

Regionally, the average council tax bill per dwelling is highest in the South East (£1,255) and the East of England (£1,184).  Council tax per dwelling is lowest in Wales (£871) and Yorkshire & the Humber (£959).

Average area council tax charges have more than doubled since 1997 in 215 billing authorities in Great Britain (53% of the total), with Richmond-upon-Thames recording the highest average council tax bill in the country at £1,665.  This is a massive 106% higher than in 1997-98 (£807).

The average council tax bill in Wandsworth in 2007-08 is £641, the lowest in the country.  This is 65% higher than in 1997-98 (£388).  Ten years ago, Westminster had the lowest average bill in Britain (£310).

Prices cheaper in the North and Wales

Major cities outside the south of England feature prominently amongst those authorities that have experienced the smallest percentage rises in average council tax charges since 1997, with some of the smallest rises seen in Liverpool, Manchester and Glasgow.

Eleven of the 30 areas with the lowest average council tax bill per dwelling are in Wales.  Five of the lowest areas are in Scotland and four are in the West Midlands.  In 1997-98, 16 of the 30 areas with the lowest average bills were in Wales.

Almost one in four – 86 out of the 354 billing authorities in England - have sent out an average area charge of under £1,000 for the current tax year (2007-08).  This compares with almost two in three billing authorities – 20 out of 32 - in Scotland and nine in ten – 20 of the 22 – billing authorities in Wales.

Martin Ellis, Chief Economist, commented:

"Council tax bills have increased significantly faster than either average earnings or retail prices over the past ten years.  Bills diverge across the country. Growth rates over the last decade differ by a wide margin between billing authorities too."

Source: Halifax

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