Londoners to pay £444 less in council tax than those in the North East
20 March 2025, 11:29
Brits living in Greater London will pay £444 less annual council tax than their counterparts in the North East, a study has revealed.
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It comes as the average band D council tax bill in England and Wales is set to rise by 5.1% in April, lower than last year but still above inflation.
New research shows that the North East remains the highest-paying region in England, with the average band D property owner receiving an annual council tax charge of £2,425.
This is in stark contrast to the cost in Greater London, which has the nation’s lowest average bill of £1,981, 18% or £444 less than Brits living in the North East.
London council taxpayers will also have the lowest monetary increase in bills of £88.90, according to an annual survey by the Chartered Institute of Public Finance and Accountancy (Cipfa).
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The vast majority of Brits are facing their third year of maximum council tax increases, as local councils look to balance the books.
The Government justified allowing six councils - Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset and Trafford - to increase council tax above the referendum threshold this year by stating these councils have low levels of council tax.
Joanna Pitt, Cipfa senior policy manager, said: "Local authorities are caught in an impossible position, balancing rising demand for essential services against financial pressures.
"While increasing council tax is never an easy decision, it is often the only option available to maintain service provision in the face of difficult funding decisions."
Nearly nine in 10 (88%) of 153 upper-tier authorities in England will impose a 4.99% council tax increase this year, the most allowed without triggering a local referendum, PA News Agency has found.
Only nine councils are across the country increasing tax by less than 4.5%.
Data for individual regions showed three of the 33 London councils have opted to increase council tax by less than 4.99%, Wandsworth, Kensington & Chelsea and Barnet (4.80%), while Newham has received permission for an 8.99% increase.
Meanwhile, three of the 12 councils in the North East have set council tax below the maximum: South Tyneside and Stockton-on-Tees (both 4.95%) and Sunderland.
A Ministry of Housing, Communities and Local Government spokesperson said: "Councils are ultimately responsible for setting their own council tax levels, and we are clear that they should put taxpayers first and carefully consider the impact of their decisions.
"That's why we are maintaining a referendum threshold on council tax rises, so taxpayers can have the final say and be protected from excessive increases."
