BROADCAST CLIP: Red wall faces higher council tax burden than London boroughs

Jun 16 2021

For immediate release

 

As reported on GB News this morning, the TaxPayers' Alliance (TPA) has today released a council-by-council breakdown showing that some less affluent areas face a higher council tax burden than wealthy metropolitan London boroughs.

Blackpool has the lowest average earnings in the UK at £19,808 but charges £1,998 per year in council tax on average – 10 per cent of the average salary. This is the third highest council tax burden in Britain. Meanwhile, Islington in north London has the highest earnings at £41,329, but charges £1,640 in council tax, making it the fifth lowest council tax burden. Seven of the top 10 lowest council tax burdens in the country were in London.

The research shows that council tax costs Brits an average of 7.3 per cent of their income. Nottingham, the most expensive Band D tax bill in the country and with the highest council tax burden, was one of five local authorities charging over ten per cent of the average local salary in tax.

 

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Despite the crushing council tax burden, which has doubled in the last twenty years, seven of the top ten local authorities with the highest council tax burden actually increased their charges by more than the English average of 4.45 per cent.

Though council tax is paid from our incomes, similar differences were seen in comparing council tax bills and local house prices. While households pay on average 0.81 per cent of their house price in council tax, some areas such as Hyndburn saw this rise as high as 2.18 per cent of the average house price.  

To pay for essential services while limiting the growth of this tax burden, the TaxPayers’ Alliance is calling on local authorities to stop council tax rises and cut down on wasteful spending by scrapping pet projects and pay rises for town hall executives.



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Key findings:

  • Hyndburn now charges the highest average council tax relative to average house price in the country. Band D council tax is £2,011 per year, which represents 2.18 per cent of the average home price of £92,173.
  • Conversely, Westminster has an average house price of £1,000,560 but pays £829 per year in council tax on average, or 0.08 per cent.
  • 93 local authorities charge over one per cent of the average house price in council tax, which includes every council tax area in the North East – but none in the South East.
  • Blackpool has the lowest gross median earnings in the UK at £19,808 per year but charges £1,998 per year in council tax on average – ten per cent of the average salary.
  • Islington has the highest gross median earnings in the UK at £41,329 per year but charges £1,640 in council tax on average. The London borough has the 15th cheapest area for council tax in England.
  • Five local authorities charged over ten per cent of the average yearly salary for their area in council tax. These were Nottingham, Teignbridge, Blackpool, North Devon and South Hams.
  • Seven of the top ten local authorities whose council tax was the highest relative to median gross salary increased their council tax in 2021-22 by more than the English average (4.45 per cent).

CLICK HERE FOR A FULL COUNCIL BY COUNCIL BREAKDOWN



Harry Fone, grassroots campaign manager at the TaxPayers' Alliance, said:

“While the crushing council tax burden affects us all, some areas are hit harder than others. 

“Ratepayers in less affluent areas are facing bills way above the odds, which only ever seem to go up. These endless rises have to stop, especially in areas that can barely afford to pay as it is.  

“Councils must do more to eradicate wasteful spending and stop these huge hikes.”

 

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

 


Regional breakdown:

In the East Midlands:

  • The local authority with the highest average council tax relative to average house price was Bolsover with 1.37 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Nottingham with 10.32 per cent. This was the highest in the country. Nottingham residents also have the highest average tax bills in the country at £2,226.

 

In the East of England:

  • The local authority with the highest average council tax relative to average house price was Great Yarmouth with 1.03 per cent.
  • The local authority with the highest average council tax relative to median gross salary was also Great Yarmouth with 9.26 per cent.

 

In London:

  • The local authority with the highest average council tax relative to average house price was Barking and Dagenham with 0.53 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Enfield with 6.91 per cent.

 

In the North East:

  • The local authority with the highest average council tax relative to average house price was County Durham with 1.90 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Gateshead with 9.55 per cent.

 

In the North West:

  • The local authority with the highest average council tax relative to average house price was Hyndburn with 2.18 per cent. This was also the highest in the country.
  • The local authority with the highest average council tax relative to median gross salary was Blackpool with 10.09 per cent.

 

In Scotland:

  • The local authority with the highest average council tax relative to average house price was East Ayrshire with 1.31 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Inverclyde with 6.12 per cent.

 

In the South East:

  • The local authority with the highest average council tax relative to average house price was Hastings with 0.89 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Rother with 9.78 per cent.

 

In the South West:

  • The local authority with the highest average council tax relative to average house price was Plymouth with 1.08 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Teignbridge with 10.13 per cent.

 

In Wales:

  • The local authority with the highest average council tax relative to average house price was Blaenau Gwent with 1.92 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Merthyr Tydfil with 8.83 per cent.

 

In the West Midlands:

  • The local authority with the highest average council tax relative to average house price was Stoke-on-Trent with 1.40 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Herefordshire with 9.22 per cent.

 

In Yorkshire and the Humber:

  • The local authority with the highest average council tax relative to average house price was Kingston-upon-Hull with 1.59 per cent.
  • The local authority with the highest average council tax relative to median gross salary was Craven with 9.72 per cent.


CLICK HERE FOR A FULL COUNCIL BY COUNCIL BREAKDOWN



Media contact:

Danielle Boxall
Media Campaign Manager, 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. The TaxPayers’ Alliance analysed council tax increases and found that council tax has more than doubled in 20 years.
  4. The TaxPayers’ Alliance’s latest Town Hall Rich List found at least 2,802 local authority staff received over £100,000 in total remuneration in 2019-20.

  5. The TaxPayers’ Alliance has launched a petition to stop council tax rises.
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