The 291 areas set to pay more council tax than Kensington, mapped

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1. # Homes in Kensington and Chelsea cost more than £1m – but residents have much lower council tax bills than in other areas

   Households in more than 290 areas in England are expected to pay more [council tax](https://www.google.com/search?q=council+tax+topic+inews.co.uk&rlz=1C1GCEA_enGB1095GB1095&oq=council+tax+topic+inews.co.uk&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDM1NjBqMGo0qAIAsAIB&sourceid=chrome&ie=UTF-8?ico=in-line_link) than Kensington next year as bills are set to increase by 5 per cent, **i** analysis has found.

   The Prime Minister’s spokesman said on Wednesday that the council tax cap of 5 per cent will remain in place in the coming year, paving the way for local authorities to raise the levy.

   Under [current rules](https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/council-tax-changes-experts-rachel-reeves-budget-3296245?srsltid=AfmBOorn0QTz8n6ipfOzKvDu17RK8a7JXOTpYl3rkK-AMBdbcjrRUjZ_?ico=in-line_link), councils can increase tax rates by up to 5 per cent and require government permission to go beyond this figure.

   Councils have raised concerns about the impact of inflation, particularly energy bill increases, as well as growing demand for social care. It comes amid a wider[ funding crisis](https://inews.co.uk/news/the-councils-fighting-bankruptcy-receiving-government-bailouts-mapped-3336558?ico=in-line_link) – with a quarter of councils warning they will need emergency government bailouts to avoid bankruptcy in the next two years.

   Earlier this year the Government’s housing department said the average band D council tax for 2024/25 was £2,171.

   Government statistics showed that this was a rise of £106, or 5.1 per cent, on the previous year.

   It included additional fees requested by parish councils that are not subject to a cap – also known as parish precepts. Some councils [raised bills by more than 5 per cent this year](https://inews.co.uk/news/politics/more-councils-on-the-brink-as-hunt-accused-of-ignoring-social-care-crisis-2943531?srsltid=AfmBOopjVYbOMo2WZALvOn8WwJwi69TZddToYOSXFFSqQTMzw5IA8J4S?ico=in-line_link) once these precepts were factored in.

   Even though the London borough of Kensington and Chelsea has the highest house prices in the country and some of its wealthiest residents, households nearly all council areas will pay more, official data shows.

   It has the fifth cheapest council tax rate after the London boroughs of Wandsworth, Westminster, the City of London and Hammersmith and Fulham.

   In Kensington, a 5 per cent increase would mean rates of £1,607, up from the current £1,530, for band D properties.

   But in Rutland, in the East Midlands, which has the highest council tax rate in England, residents will see their bills rise from £2,543 to £2,670 – up £127.

   The average house price in Rutland is £380,000, compared with £1.17m in Kensington and Chelsea

2. They’re not raising the tax for fun though. It’s important to remember that costs for councils have gone up and this is a fair way to raise extra capital

3. Council tax needs a major overhaul. The band’s make no sense, and the disparity in property values and what’s paid in council tax is ridiculous.

4. Some councils have managed to get themselves in obscene debt and must tax more. Look up Croydons debt, if I said it here you wouldn’t believe me… then theyl cry HEY THOSE MORE WELL OFF FOLKS WITH THE NICE CLEAN NON SHITHOLE AREA ARE TAXED LESS

5. You need to look at the average tax per dwelling as well

   Otherwise all you are reporting on is inverse house prices when last valued – which is of course rage bait like this article

6. Council tax is collected by the local authority. If Kensington and Chelsea Council don’t need to up council tax to provide services then they won’t.

   There’s a bunch of councils that have essentially bankrupted themselves through poor management and bad decisions, these are the councils that are increasing council tax.

   If you want to make it ‘fair’ across the whole nation then council tax would need to be collected to the treasury and then distributed back to councils in a manner than isn’t related to the tax revenue received from each council’s area.

   Even if you add in more tax bands that go above the highest band of £320k it will only affect that councils budget unless a wider change to how council tax is collected is made.

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