North East council tax bills to be 18% higher than London, study finds
Local authorities struggle to balance funding gaps as bills rise across England
Households in the North East of England will pay £444 more in annual council tax than those in Greater London, as new data highlights growing regional disparities in local taxation.
According to an annual survey by the Chartered Institute of Public Finance and Accountancy (CIPFA), the average Band D council tax bill across England and Wales is set to rise by 5.1% in April.
While this is a slightly smaller increase than last year, it continues to outpace inflation and places additional strain on household budgets.
The North East remains the most expensive region, with Band D properties incurring an average annual charge of £2,425.
In contrast, Greater London has the lowest council tax rates, averaging £1,981, meaning households in the capital will pay 18% less than those in the North East.
Disparities in Local Taxation
London households will also see the smallest monetary increase in their bills, with an average rise of £88.90 in April. Meanwhile, six local authorities—including Bradford, Newham, and Birmingham—have been granted permission to raise council tax above the referendum threshold, with Newham implementing an 8.99% increase.
The Government justified these above-threshold increases by arguing that these councils have historically lower council tax levels, despite rising service demands.
With local government finances under pressure, CIPFA warns that council tax increases alone will not be enough to sustain public services.
“Local authorities are caught in an impossible position, balancing rising demand for essential services against financial pressures,” said Joanna Pitt, senior policy manager at CIPFA.
“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.”
A Third Year of Maximum Increases for Many Councils
The analysis, conducted by the PA news agency, found that the vast majority of councils are imposing the maximum allowable tax hike.
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- Nearly nine in 10 (88%) of the 153 upper-tier authorities in England will raise council tax by 4.99%—the highest permitted without a local referendum.
- When including councils increasing rates by 4.5% or more, the proportion rises to 94%.
- For over two-thirds (68%) of top-tier authorities, this will mark the third consecutive year of increasing council tax by the maximum legal amount.
By contrast, only nine councils have opted for a rise below 4.5%, demonstrating how few local authorities have financial flexibility to hold rates steady.
Among London boroughs, Wandsworth, Kensington & Chelsea, and Barnet have set increases just below the 4.99% threshold, at 4.80%, while Newham has secured Government approval for an 8.99% rise.
Meanwhile, in the North East, South Tyneside, Stockton-on-Tees (both 4.95%) and Sunderland are among the few councils keeping increases below the maximum.
