Average homes across the north east of England are preparing to be slapped with a record £444 more in council tax than those living in London.
The stark difference between the areas has become more dramatic over the years and has finally reached record levels, according to survey analysis by the Chartered Institute of Public Finance and Accountancy (Cipfa).
From April 1, bills will rise by an average of 5.1 per cent across England and Wales, which is larger than January’s inflation rate which fell at 3.9 per cent.
Hitting out at their own Government, Labour MPs in the affected areas claimed that their constituents were being “punished”.
Hitting out at their own Government, Labour MPs in the affected areas claimed that their constituents were being ‘punished’
GETTY
Some have even suggested that the situation is worse than Margaret Thatcher’s poll tax.
Other critics have taken aim at the entire tax system, deeming it an archaic, unfair system as individuals highlighted that Buckingham Palace would be taxed less than a standard family home in Blackpool.
While the majority of areas across the north of England have a greater number of smaller homes in lower council tax bands, there are fewer in higher bands to create sufficient revenues for local authorities.
As the nation prepares to face increased costs, the north east will have to tighten their belt the most as the average Band D property will have council tax increase by five per cent to £2,425.
MORE CRIPPLING TAXES:
Meanwhile, prices will jump by 4.7 per cent to £1,981.46 from next month in Greater London.
Under usual circumstances, councils have to hold a referendum in the local area if they wish to hike up taxes by a larger margin than five per cent.
However, central government has given six regions the ability to plough on ahead with the tax hike without a referendum as a result of “dire” financial situations.
The change will affect around 2.5 million taxpayers across Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset and Trafford.
One of the affected areas affected by the hike is Birmingham
GETTY
Deputy Prime Minister Angela Rayner has claimed that only regions which previously had the lowest council tax levels were permitted to make a higher-than-normal increase.
Hartlepool MP Jonathan Brash has hit out at his governing party, saying that the tax rate were unfair and “actively punish areas for being deprived”.
“Too few expensive houses, you get hammered. Too many vulnerable adults, you get hammered. Too many children needing social care, you get hammered. It’s utterly immoral to persist with a system that is this punitive,” he told The Times.
Meanwhile, Labour MP for Easington Grahame Morris declared that the rate had become “even more regressive” than Thatcher’s poll tax, adding that the system was “fundamentally flawed”.
A spokesman for the Ministry of Housing, Communities and Local Government said councils “should put taxpayers first and carefully consider the impact of their decisions”.
He added: “We are maintaining a referendum threshold on council tax rises, so taxpayers can have the final say and be protected from excessive increases.”
