Paying price for living up in the North

THINK TANK SAYS TAX BILLS ARE £250 TOO HIGH

- JOSEPH TIMAN

NORTHERNERS are paying £250 a year more than they should on their council tax bills, according to a leading think tank.

The Northern Powerhouse Partnership says that introducing a fairer system would save the North of England a total of £1.2bn a year in council tax.

The current system is based on the value of properties in 1991. But since then, property prices have risen faster in some parts of the country than others, meaning that council tax is set to increase by much more in places like Greater Manchester than elsewhere.

Council tax is expected to increase by around £100 a year in each Greater Manchester borough from April, while in Westminster it is set to go up by just £45. The Northern Powerhouse Partnership is also calling for three new council tax bands to be introduced.