Council tax payers in the North East are being hit with some of the highest bills in the country, new figures have revealed.
The average rate charged to Band D properties by Northumberland County Council is the biggest in England, at £1,988, according to data released by the Government on council tax rises hitting households from April – as the nation grapples with a cost of living crisis. Gateshead is the second highest with £1,972, with County Durham 10th on £1,853, and Newcastle in 11th at £1,847.
In stark contrast, Band D households in wealthy Kensington and Chelsea are charged £987 and in Westminster just £470 by their local councils. The figures include adult social care and parish precepts levied by councils, but not the further precepts added to bills by fire services, combined authorities, or police and crime commissioners.
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While Band D numbers are the standard national measure used when comparing council tax, local authorities in the North East pointed out that it is not the truest reflection of our region – with the vast majority of homes here being in the lower-charging A to C bands.
Easington MP Grahame Morris is campaigning for "unfair" council tax to be replaced by a proportional system based on a property's value, in order to stop the highest burdens falling on poorer communities.
The Labour MP said: "It is unjust that millionaires living in mansions in London pay similar levels of council tax as those living in very modest family homes in constituencies like mine. There is a solution that the Government refuses to consider, which would move the tax burden away from the poorest communities and ask those living in the most expensive properties to pay a fairer share.”
Coun Scott Dickinson, leader of Northumberland’s Labour opposition, complained that it “beggars belief that these rates can be justified in a county with some of the highest level of poverty and communities who are suffering”, with his area’s Band B bills jumping by 4.01% this year. He added: “Something is going seriously wrong.
"The hike in council tax is coming on top of huge rises in food, energy and fuel. Yet the Government is sitting idly by and saying they can’t help everybody. People in our county deserve to be able to afford to live where they grew up, have a decent job, education, health and social care and services when they need them.”
However, Tory council leader Glen Sanderson said that the analysis of Band D bills was “like comparing apples and pears” as levels vary hugely across the country due to different councils’ responsibilities and unique characteristics.
He said: “We fully understand the cost of living increases that everyone is facing at this time and that is why a cornerstone of our budget and council tax setting was to support those most in need, and our council tax support scheme is the second most generous in the region, helping over 26,000 residents.
“It is also important to remember that the county council makes up just one part of the overall council tax bill – town and parish council precepts and the Office of the Police and Crime Commissioner are also key parts of the bill. Northumberland's Band D council tax for 2022/23 excluding parish precepts is actually £1,897, below the average for English councils of £1,930.
“We are constantly looking at ways to work as efficiently as possible and be as lean as we can be, making savings where we can but not to the cost of the quality services we provide. While it is always going to be a balancing act, we do believe we provide the best possible council services and at the same time keep our costs to a minimum.”
North Tyneside has the 28th highest Band D bills in England, South Tyneside is 35th, and Sunderland 79th.
Gateshead Council said that 90% of its properties are in band A to C and that its average council tax per dwelling was £1,257, “well below the England average”. A spokesperson added that council tax is “widely recognised as a regressive and outdated form of funding local authority services” and that the authority has “continuously lobbied the Government” on its unfairness.
Mary Readman, Durham County Council’s head of transactional services, said: “A focus on Band D council tax level is not a true reflection of the council tax paid by households in County Durham. Across the county, 84% of all properties are in council bands A to C, with 57% in band A. Properties in Band A pay two thirds of the Band D tax. Based upon the actual council tax paid per household in the county, the sum paid by council taxpayers is £186 below the national average.”
Newcastle City Council said it had “no choice but to increase council tax” after suffering £335m of cuts since 2010.
A council spokesperson added: “The vast majority of houses in Newcastle (86.1%) are in bands A to C (with 56.4% in Band A alone) whilst only 13.9% are in band D or above. As a result the average council tax payable in Newcastle in 2022-23 (£1,127) is expected to be much lower than the Band D equivalent (£1,846).”
According to the TaxPayers’ Alliance (TPA), council tax bills have rocketed by nearly 250% in cash terms since 1993. Harry Fone, grassroots campaign manager of the TPA, said: “Residents are sick to the back teeth of endless council tax rises.
“We’re in the middle of a cost of living crisis and the last thing taxpayers need is more pressure trying to make ends meet every month. Every local authority must face up to reality and become more efficient by scrapping wasteful projects and stopping bumper pay rises for staff.”
