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Council tax bills set to rise in the south to fund the north

  • Deputy Prime Minister Angela Rayner released a statement today outlining Labour’s plan to reform council tax funding across England.
  • The reforms respond to concerns that deprived areas face higher council tax bills despite receiving poorer services, prompting a grant redistribution based on need.
  • A new Whitehall formula will redirect funds from wealthier southern boroughs that keep council tax low to support northern and midland towns with greater needs.
  • IFS analyst David Phillips noted that northern urban areas will benefit while affluent districts like Westminster and Wandsworth may lose funding, leading to potential tax rises or service cuts.
  • These changes risk increasing regional tensions and financial pressure on affluent councils, although protections are planned for the most affected areas amid rising local service strain.
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World News broke the news in United States on Thursday, June 19, 2025.
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