25/04/2003

Council taxes on homes go through the roof

Council tax bills in England have almost doubled in the past 10 years, according to research by the Halifax.

Since the introduction of the council tax by Conservative Party Prime Minister John Major in 1993, the Halifax says that the average area council tax bill in England for a Band D property has increased by 94% (£534). From an average first year bill of £568, the same Band D dwelling is now paying around £1,102 – the first time the £1,000 barrier has been broken.

The news is not good for current Prime Minister Tony Blair's own constituents in Sedgefield which now has highest area council tax charge in Britain – billing £1,294 for a Band D property in 2003/04.

And surprisingly, many central London residents pay some of the lowest council tax bills – with Westminster, Wandsworth, and City of London all featuring amongst the 10 billing authorities with the lowest area charges.

Scotland has seen similar rises, with the average bill jumping from £556 to £1,009 in the past 10 years – an increase of 81%.

But by far the biggest proportional hike was in Wales, where tax on Band D property has leapt 155%, from £328 to £837 in 2003/04.

This year's 12.9% increase in England is higher than in any previous year – the comparable rises for Scotland and Wales were 3.9% and 9.9% respectively.

Overall, council tax increases in England have outstripped inflation by more than three times since 1993. Council tax revenues have now increased from £7 billion in 1993/94 to a budgeted £18.9 billion in 2003/04.

Halifax, the UK's largest mortgage provider, has analysed council tax charges in Great Britain since its introduction in April 1993. All the data is sourced from the Office of the Deputy Prime Minister (ODPM), the Scottish Executive and the National Assembly of Wales.

(GMcG)

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