Council tax burden as high as 10p in the pound in some local authorities says new TaxPayers' Alliance analysis

The disparity in council tax burdens means that some residents are paying five times as much council tax relative to their salary compared to residents in other local authorities. Nationally, council tax has more than doubled in relation to median earnings since its introduction. 

Building on news that council tax is 20 per cent higher in the north than in London, analysis by the TaxPayers’ Alliance (TPA) shows that residents in the area with the highest burden, West Devon, pay 10.85 per cent of their median gross pay in council tax, compared to just 2.16 per cent in Wandsworth, where the burden is lowest. Regionally, the highest is the North East, at 8.66 per cent, compared to Scotland where it is 5.1 per cent and London where it is 5.42 per cent.

The 20 council areas with the lowest average earnings in the UK all charged over 8 per cent of the median salary in council tax. Relative to both house prices and median pay, the four lowest charging councils were all in London. 

Burnley had the highest council tax relative to house price with the band D tax being £2,244 to an average house price of £116,172, or 1.93 per cent per year. Westminster had the lowest, with band D residents paying £914 on an average house price of £927,774, just 0.1 per cent. Of the ten lowest charging councils relative to house prices, nine are in London.

The TPA is calling on councils to freeze council tax next year to help bring down the burden of council tax and ease the cost of living crisis.

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Key findings:

• The national burden of council tax in relation to median average earnings has increased by 108 per cent from its introduction in 1993 to 2022.

• The North East had the highest council tax relative to median gross pay of UK regions, at 8.66 per cent. Scotland was the lowest at 5.1 per cent.

• Burnley had the highest council tax relative to house price, with the band D tax being £2,244 to an average house price of £116,172, or 1.93 per cent, per year.
  
  

• Westminster had the lowest council tax relative to house price, with band D residents paying £914 on an average house price of £927,774, or just 0.1 per cent.
  
  

• Out of the ten lowest charging councils relative to house price, nine are in London with only Elmbridge outside of the capital.
  
  

• West Devon, which has the lowest median salary, charges the highest council tax relative to salary at 10.85 per cent - The 20 lowest earning districts in the UK all charged over 8 per cent of the average salary in council tax.
  
  

• West Devon, Nottingham, Pendle and Torridge all charge over 10 per cent of the median salary for their region in council tax.
  
  

• Relative to both house prices and median pay, the four lowest charging councils were all in London.

John O’Connell, chief executive of the TaxPayers' Alliance, said:

"Taxpayers are struggling with the unsustainable burden of council tax.

“But far from falling on those with the broadest shoulders, it appears that the most hard pressed households are bearing the brunt of rising rates.

“The least local authorities can do is freeze council tax next year to give residents much needed breathing space.”