Council Tax Receipts Surge Over 20 Years in England

A recent study by the Taxpayers' Alliance has revealed a significant increase in council tax receipts in the UK, which have risen from £12.2 billion in 2000-01 to an estimated £38.5 billion in 2023-24, marking an increase of over 200%. The analysis highlights a 61% rise in the last decade alone, with the 2021-22 fiscal year witnessing the largest increase in council tax receipts in nearly two decades, at 7.5%. The campaign group is urging local councils to freeze council tax rates and focus on reducing wasteful spending. Local authorities across England and Wales have implemented substantial council tax hikes since April 1, with councils responsible for social care allowed to raise rates by up to 4.99% without a referendum. Other councils could increase rates by up to 2.99%. Some financially strained councils, such as Birmingham City Council, received government permission to raise taxes by over 5% without a referendum, further exacerbating taxpayer concerns. Benjamin Elks, grassroots development manager for the TaxPayers' Alliance, expressed frustration over the rising costs to taxpayers while essential services deteriorate. He criticized local authorities for mismanaging funds on unnecessary projects and urged them to prioritize fiscal responsibility to alleviate the burden on residents. The North East saw the highest increase in council tax receipts in the first quarter of this financial year, with an 11.7% rise. The East Midlands recorded the most significant increase since 2010-11, at 79.1%. Notable councils with steep increases this year include Durham, Wiltshire, and Liverpool, while Tower Hamlets has seen the largest rise since 2010-11 at 160%.