North East households face 18% higher council tax

Households in the North East of England will face significantly higher council tax bills compared to those in Greater London, according to a recent study. The average council tax bill for a band D property in the North East will be £2,425, which is £444 more than the £1,981 bill in London. This difference represents an 18% higher cost for North East residents. As of April, the average council tax in England and Wales is set to rise by 5.1%. This increase is slightly lower than last year's rise but still above the current inflation rate. The North East will have the highest rates, while London will see the lowest increase of £88.90 in council tax bills. The government has allowed certain councils, including Bradford and Newham, to raise council tax above the usual limits due to their low tax levels. The Chartered Institute of Public Finance and Accountancy (Cipfa) noted that rising demand for services and cuts in funding mean that these tax increases may not be enough to sustain essential services. Joanna Pitt from Cipfa stated that local authorities are struggling to balance the demand for services with financial pressures. She mentioned that raising council tax is often the only option available to maintain these services. A majority of councils in England are expected to raise their council tax by the maximum allowed. Nearly 90% of upper-tier authorities will impose a 4.99% increase, which is the most they can raise without a local referendum. For some councils, this marks the third consecutive year of maximum legal increases. In London, three councils will increase taxes by less than the maximum, while Newham has permission for an even larger increase. In the North East, a few councils, including South Tyneside and Stockton-on-Tees, have chosen to implement increases just below the maximum threshold.