Finances won’t be hit too hard with council tax rise

A recent report claims that council tax bills across England are set to go up by the lowest level in fourteen years, with the average bill rising by just 3.9%. Although the rise will impact on many households’ finances many consumers will be relieved that the rise is only a small one given the number of other costs that have either recently risen or are set to rise in the coming weeks.

The information comes from the accountancy firm Cipfa, and officials state that those on Band D council tax will see their bills rise by just over £50 a year, taking the annual charge to £1370. The move to keep the rise as low as possible came after the government asked councils to keep the rise below the 5% mark, which most councils have been able to do. However, some critics state that even though the rises are the lowest in fourteen years many financially strapped consumers will still find it difficult to cope.

One campaign group said that even modest rises are going to prove difficult for households that are already stretching their finances as far as they can go, with many already struggling to cope with increased energy costs, rises in food prices, and soaring petrol prices. In addition to this water companies have recently announced that water bills will be rising by an average 5.8% from April, which will also add to the financial burden. The group wants the government to replace council tax with another system based on the ability to pay.

Amongst the areas that will see the biggest rises of 5% are Slough, Leicester, Wakefield, and Derby.

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