Poorer areas could see 'even larger' council tax increases than projected, says IFS Director

7 October 2021, 17:04

By Tim Dodd

Poorer areas could see "even larger increases in council tax" than projected or a cut in council spending unless the government "steps in and redistributes funding" from richer areas, IFS Associate Director David Phillips tells LBC.

It comes as the Institute for Fiscal Studies (IFS) says council tax may need to rise by up to 5 percent a year for the next 3 years - to keep services running and pay for social care reforms.

Shelagh asked Mr Phillips, who authored the IFS' report: "Is there a built in disparity here because of housing costs in different parts of the country? The type of housing stock you have in certain parts of the country will have a lower yield than in wealthier places?"

Read more: Fuel industry says recovery 'not quick enough' as pumps left dry in London and South-East

Mr Phillips replied: "Our analysis suggests in our central projection, maybe 3.5-4 percent council tax rises will be needed over the next few years, but it could be five percent.

"That's a national picture though. As you mention, in parts of the country where most properties are in band A or band B, you can raise a lot less by council tax than in Surrey where a lot are in band F and G."

Read more: Military tankers take to roads to deliver fuel – but Sunak won't say when crisis will end

"So unless the government steps in and redistributes funding from the richer to the poorer areas, you might see poorer areas having even larger increases in council tax, or cutting back spending," he said.

"And of course, that's not really in keeping with the levelling up agenda."

More Shelagh Fogarty News

See more More Shelagh Fogarty News

Partygate scandal: 'I will never vote Conservative again,' caller says

Partygate scandal: 'I will never vote Conservative again,' passionate caller says

Ex-Met standards boss defends lack of No10 party investigations

Ex-Met standards boss defends lack of No10 party investigation

Tory MP Sir Roger Gale tells LBC party has to replace Boris Johnson as leader

Tory MP Sir Roger Gale tells LBC Boris Johnson has to be replaced as leader

Shelagh Fogarty's passionate clash with caller defending No10 party

Shelagh Fogarty's passionate clash with caller defending Number 10 party

Pavan Sagoo passed away in the same month Downing Street held a party for staff.

Mum who lost daughter, 14, during May 2020 lockdown too devastated to say the PM's name

Cladding crisis: Caller facing bankruptcy and 'fighting it every single day on credit cards'

Cladding crisis: Caller fighting bankruptcy 'every single day on credit cards'

Colston's Girls' School ex-pupil reveals 'inappropriate' rituals to slave trader

Colston's Girls' School ex-pupil reveals 'inappropriate' rituals to slave trader

'I will now say that I forgive the person who killed my son'

'I will now say that I forgive the person who killed my son'

Shelagh Fogarty takes issue with caller saying PM lies with 'every word'

Best of 2021: Shelagh Fogarty takes issue with caller saying PM lies with 'every word'

Shelagh Fogarty's best moments of 2021

Shelagh Fogarty's best moments of 2021

Best of 2021: Clash with caller branding bikini-wearing girls 'shocking'

Best of 2021: Clash with caller branding bikini-wearing girls 'shocking'

Sadiq Khan: Omicron will 'surge' without new restrictions post-Christmas

Sadiq Khan: Omicron will 'surge' without new restrictions post-Christmas

Skiing hotelier: France's tourist ban may cause my business to fold

Desperate hotelier: France's tourist ban may cause us to fold

Shelagh Fogarty baffled by caller's undying support for Boris Johnson

Shelagh Fogarty baffled by caller's undying support for Boris Johnson

Ex-Met standards boss furies listeners saying no 'public interest' in No10 party investigation

Ex-Met standards boss enrages LBC listeners saying 'no public interest' in No10 Xmas party

Current police strategy 'effectively decriminalises rape' - victims' commissioner

Current police strategy 'effectively decriminalises rape' - victims' commissioner