ANALYSIS: Council tax receipts have more than tripled since the start of the century

For immediate release

Council tax receipts have more than tripled since the start of the century, according to analysis of new government data by the TaxPayers’ Alliance campaign group, an increase of 214 per cent. 

Total receipts have soared from £12.2 billion in 2000-01 to £38.5 billion in 2023-24. In the last ten years alone, receipts have increased by over 61 per cent, with the 7.5 per cent increase in 2021-22 the largest in almost 20 years, since 2003-04. Three of the ten largest percentage increases in council tax receipts have come in the last five years.

The region where council tax receipts increased the most in the first quarter of the latest financial year, compared to the first quarter of the previous financial year, is the North East, where receipts increased by 11.7 per cent, compared to the West Midlands, which saw the smallest increase of 5.8 per cent. When compared with the first quarter 2010-11, the furthest that regional data goes back, the region where council tax receipts have increased the most is the East Midlands, where receipts increased by 79.1 per cent. The East of England saw the smallest increase since 2010-11, at 76.2 per cent.

The councils with the largest increases in council tax receipts in the first quarter of the latest financial year were Durham (34.2 per cent), Wiltshire (19.9 per cent), Liverpool (17.8 per cent), Hackney (16.6 per cent) and Wigan (14.4 per cent). The councils with the largest increases in council tax receipts since 2010-11 are Tower Hamlets (160 per cent), Swale (135.6 per cent), Salford (123.4 per cent), Newham (123.3 per cent) and Wakefield (120.8 per cent).

Separately, the amount paid in exit payments to senior employees in local government has increased from £20.5 million in 2014-15 to £29.7 million in 2023-24.

In 2023 the TaxPayers’ Alliance released research showing that since the introduction of the council tax system in 1993-94, council tax has increased in real terms by 79 per cent.

The TaxPayers’ Alliance are calling on councils to freeze council tax for the upcoming financial year. 

Chart 1: total council tax receipts collected during the financial year and percentage increase on the previous year, 2000-01 to 2023-24 

Table 1: council tax receipts collected in Q1 by region and percentage difference

Table 2: 10 local authorities with the highest percentage increase in council tax receipts collected, Q1 2023-24 and Q1 2024-25

Table 3: 10 local authorities with the highest percentage increase in council tax receipts collected, Q1 2010-11 and Q1 2024-25

Key findings:

• Council tax receipts collected in 2023-24 totalled £38.5 billion, a £26 billion or 214 per cent increase, from the £12.2 billion collected in 2000-01.
• The largest percentage increase in council tax receipts collected occurred in 2003-04 when receipts rose to £16.4 billion from the £14.5 billion collected 2002-03, a 13 per cent increase.
• The region with the largest percentage increase in Q1 receipts from 2023-24 to 2024-25 was North East England with council tax collected increasing by 11.7 per cent. This was almost five percentage points higher than the regional average for England.
• The local authority with the largest percentage increase in Q1 receipts from 2023-24 to 2024-25 was Durham with council tax collected increasing by 34.2 per cent. This was 27.7 percentage points higher than the local authority average across England.
• The local authority with the largest percentage increase in Q1 receipts from 2010-11 to 2024-25 was Tower Hamlets with council tax collected increasing by 160 per cent.

Benjamin Elks, grassroots development manager of the TaxPayers' Alliance, said:

“Local taxpayers will be outraged to see that they’re handing over more and more while basic services continue to crumble.

“As household budgets are squeezed, local authorities squander cash on pet projects, pointless non-jobs, and risky property speculation, all the while leaving residents with the bill.

“Councils should crackdown on waste and freeze council tax, giving some relief to hard-working local taxpayers.”

TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)

Media contact:

Elliot Keck

Head of Campaigns, TaxPayers' Alliance

[email protected]

24-hour media hotline: 07795 084 113 (no texts)

Notes to editors:

1. Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
   
   
2. TaxPayers' Alliance's advisory council.
   
   
3. This data only concerns English local authorities as data for Northern Ireland, Scotland and Wales is not provided.
   
   
4. The data upon which this release is based can be found here.