London areas have lowest council tax in UK

Posted on Tuesday, November 19, 2024

Despite being home to some of the most expensive property in the UK, two London areas are actually the cheapest when it comes to council tax.

In Wandsworth in south London council tax stands at just £921 per dwelling.  Tax Accountant commented that “Wandsworth’s financial management has been lauded for years”, while “Labour’s Autumn Budget reinforces Wandsworth’s efforts, with increased central government funding for London boroughs”.

Placing second is Westminster, where council tax averages £1,057 per dwelling.

Westminster’s low tax rate is reflected in the area’s strong revenue from commercial and tourist activities, allowing the council to subsidise resident costs. The council invests heavily in public spaces and local amenities, benefiting from its central London location. The area will also benefit from further support for tourism infrastructure as outlined in the Autumn Budget.

Aatif Malik, director of Tax Accountant, said: “Although the Autumn Budget 2024 will likely cause a hike in council tax rates throughout England, it also has the potential to bolster the economy by supporting the growth of local infrastructure and public services.

“This study illustrates how government funding plays a crucial role in supporting local councils, particularly in areas where economic conditions make it challenging to raise revenue.”

Outside of London the cheapest council tax is in Kingston-upon-Hull, where it costs an average of £1,135 per dwelling.

The council focuses on delivering efficient local services and invests in areas like economic regeneration and community programs without the need to drive up council tax rates.

Sunderland follows in fourth place, with an average council tax rate of £1,149 per dwelling.

The council continues to prioritise community investment projects and affordable housing developments, keeping council tax manageable for the area’s predominantly working class population.

Malik added: “These results demonstrate the effectiveness of strategic budgeting and targeted funding.

“In regions like Wandsworth, Westminster, and Sunderland, councils have successfully balanced local services with affordability, allowing residents to benefit from both low tax rates and quality public amenities.”

Via @PropertyWire