The typical council bill in Wales is set to increase by 3.9%, or £64.58, compared to 4.3% in England, the Chartered Institute of Public Finance and Accountancy (CIPFA) reveals.
CIPFA's annual council tax survey also finds a 0.5 percentage point gap between increases in different parts of Wales. The average band D equivalent household in South Wales has seen an increase of 3.7%, whereas households in the Mid and West Wales will face a rise of 4.2% in their council tax bills.
Local police and crime commissioners across Wales are collectively increasing the police precept, included in the council tax bill, which is rising by 5.5% on average.
Rob Whiteman, CIPFA CEO, said:
"This rise in council tax across Wales reflects the ongoing pressures created by COVID-19. The aftershocks of the current crisis will be felt in local authority finances for many years to come.
"The pandemic has increased demand on services, and those demands need to be met with funding. The government's decision to make local authority spending power contingent on council tax is regressive, putting even more pressure on those taxpayers least able to withstand it.
"A fair funding solution for local government, including the devolution of fiscal powers to address funding gaps locally, is sorely needed if councils are to continue delivering the services that have gotten us through the last year."
ENDS
Notes to editors:
Wales council tax referendum rules
- The referendum scheme was introduced via the Localism Act 2011.
- It applies to England only. In Wales, the National Assembly for Wales still has the power to cap local authorities' council tax rises selectively.
About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.