2nd May 2024

As a new tax year gets underway, finance experts, RIFT, have looked at where across the nation households are facing the most significant increase in costs as a result of council tax hikes, with Birmingham topping the table when it comes to the sharpest annual jump. 

RIFT analysed the latest Gov data looking at the average cost of council tax* across each local authority in England, before comparing this to the average council tax cost seen the previous year.

The figures show that the average household across England will pay £2,171 in council tax during the 2024/25 tax year - A 5.1% increase on 2023/24.

 

Highest council tax cost

The highest council tax in the land is found in Rutland, where the average household will be paying £2,543 over this tax year. The City of Nottingham also ranks high at £2,530, as does Dorset (£2,504), Lewes (£2,503), with the average annual cost also sitting above the £2,500 threshold. 

 

Authority Region 2023 to 2024 2024 to 2025 Annual change £
Annual change %
Thurrock UA East of England £1,899 £2,041 £142 7.50%
Peterborough UA East of England £1,963 £2,083 £119 6.10%
Huntingdonshire East of England £2,192 £2,322 £130 5.90%
South Cambridgeshire East of England £2,176 £2,304 £128 5.90%
Cambridge East of England £2,126 £2,249 £123 5.80%
Bolsover East Midlands £2,201 £2,321 £120 5.50%
Amber Valley East Midlands £2,086 £2,192 £106 5.10%
Rutland UA East Midlands £2,422 £2,543 £122 5.00%
Hinckley & Bosworth East Midlands £2,090 £2,194 £104 5.00%
Westminster London £914 £975 £61 6.70%
City of London London £1,146 £1,218 £72 6.30%
Hammersmith & Fulham London £1,306 £1,387 £81 6.20%
Kensington & Chelsea London £1,442 £1,530 £88 6.10%
Sunderland North East £1,899 £1,997 £97 5.10%
Newcastle upon Tyne North East £2,182 £2,294 £112 5.10%
North Tyneside North East £2,112 £2,220 £108 5.10%
Gateshead North East £2,332 £2,451 £119 5.10%
Cheshire East UA North West £2,109 £2,217 £108 5.10%
Trafford North West £1,878 £1,973 £95 5.00%
Bolton North West £2,045 £2,147 £103 5.00%
Cumberland North West £2,175 £2,284 £109 5.00%
Wigan North West £1,832 £1,924 £92 5.00%
Slough UA South East £2,027 £2,187 £159 7.90%
Woking South East £2,249 £2,372 £123 5.50%
South Oxfordshire South East £2,240 £2,357 £116 5.20%
West Berkshire UA South East £2,153 £2,264 £111 5.20%
Wealden South East £2,363 £2,484 £121 5.10%
Somerset UA South West £2,116 £2,267 £151 7.10%
Cornwall UA South West £2,221 £2,343 £121 5.50%
South Gloucestershire UA South West £2,191 £2,310 £119 5.40%
Swindon UA South West £2,086 £2,198 £112 5.40%
Cotswold South West £2,064 £2,170 £106 5.10%
Birmingham West Midlands £1,913 £2,091 £178 9.30%
Telford and the Wrekin UA West Midlands £1,936 £2,037 £102 5.30%
Solihull West Midlands £1,888 £1,984 £96 5.10%
Dudley West Midlands £1,844 £1,937 £93 5.10%
Doncaster Yorkshire and the Humber £1,926 £2,024 £98 5.10%
Bradford Yorkshire and the Humber £1,956 £2,055 £100 5.10%
Wakefield Yorkshire and the Humber £1,981 £2,080 £99 5.00%
East Riding of Yorkshire UA Yorkshire and the Humber £2,124 £2,230 £106 5.00%

 

Largest year on year increase

While Rutland is home to the highest council tax bill, it’s Birmingham where households are set to see the largest spike in cost. The average council tax bill is set to increase by 9.3%, adding an additional £178 to household outgoings, the largest increase in both the West Midlands and the nation as a whole. 

Homeowners in Slough are set to see the second highest increase in England at 7.9%, adding £159 per year to the average council tax bill, also meaning the area has seen the largest increase in the South East. 

Thurrock ranks third and is home to the highest increase in the East of England at (+7.5%), at +7.1%, Somerset has seen the fourth largest increase and largest spike in the South West, while Westminster also makes the top five with a 6.7% increase - the largest jump in London. 

Elsewhere across the nation, a 5.5% increase means homeowners in Bolsover have seen the highest increase across the East Midlands. Sunderland, Cheshire East and Doncaster have all seen a 5.1% year on year increase, the largest in their respective regions of the North East, North West and Yorkshire. 

 

Check out how council tax has changed in your local area here. 

 

Bradley Post, MD of RIFT, commented:

 

“While the economic picture may be improving and inflation has finally started to fall, many households will still be struggling given the prolonged financial strain caused by the cost of living crisis. 

 

So a council tax hike, while often inevitable, will be the last thing they want to contend with. As our research shows, the largest hikes aren’t refined to one region alone and areas from the West Midlands, South East, South West, East of England and London all feature in the top five largest annual increases alone.”