Cipfa predicts tax rise

News Article - 01 March 2007
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The Chartered Institute of Public Finance and Accountancy (Cipfa) has predicted a 4.2 per cent rise in council tax in 2007-08.

In a recent survey, Cipfa found that while the figure would mark the second-lowest increase since 1994-95, it is still some way above the government's preferred inflation rate of 2.7 per cent.

Steve Freer, chief executive at Cipfa, said that the predicted figure - which marked a fall from last year's 4.5 per cent growth - was "positive", showing that local and central government were aligning their spending.

"There is little doubt that the threat of capping if tax increases exceed five per cent has concentrated minds," he added.

Calculations by accountancy firm Grant Thornton highlight that council tax has increased by an annual £480 per household over the past 11 years, equating to an extra £9 per week.

Cipfa forecasts that properties in tax bands B and D will incur an extra £53 in council tax during 2007-08, bringing the annual total to £1,302.

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