Council tax levels for 2021/22 show the lowest increase in precepts for a decade

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The Ministry of Housing, Communities and Local Government (MHCLG) has published information on council tax levels set by councils in England for the financial year 2021-22.

Key data specific to local (parish and town) councils include:

  • The average Band D precept charged by local precepting bodies (including local councils) for 2021-22 will be £71.86, an increase of £1.97, or 2.8% from 2020-21
  • This is the lowest percentage increase since 2011-12 and the lowest cash increase since 2015-16
  • Parish precepts in 2021-22 will total £618,061 million which is £21.7 million higher than in 2020-21 and 1.79% of overall council tax

The statistical release also shows:

  • Average Band D council tax set by local authorities in England for 2021-22 is £1,898, an increase of £81 or 4.4% on the 2020-21 figure of £1,818
  • Overall council tax requirement is £34.4 billion, £1.3 billion higher than 2020-21
  • The total tax base used for setting council tax for 2021-22 was 18.139 million Band D equivalent dwellings, 18.232 in 2020-21

Cllr Sue Baxter, chairman of NALC, said: “Despite the most challenging of circumstances, England’s 10,000 local (parish and town) councils are continuing to increase their investment from their small share of council tax to support and improve their communities. At the same time, they are clearly demonstrating restraint and fiscal responsibility and looking out for taxpayers.

“The increase in the average Band D precept of 2.8% is significantly lower than the 4.4% increase by principal councils and is their lowest increase in a decade. However, this slowing down of additional investment in our neighbourhoods, villages, towns and cities is not sustainable and highlights the need for local councils to be able to directly access dedicated government funding such as for supporting their high streets, town centres, parks, leisure centres and other community assets.

“Given local councils have responded to the government’s challenge to exercise restraint, in return, the government must use the next spending review to give local councils certainty to plan for the future through a further multi-year deal not to extend council tax referendum principles.”

Read the full statistical release

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