More than 20,000 Bolton homes pay more council tax than Buckingham Palace, analysis shows.

Bolton Council’s leader has said the figures highlight ‘inherent problems’ with the way councils are funded.

As reported by The Economist, the royal residence at Buckingham Palace was charged a £1,824.10 council tax bill by Westminster Council last year – despite being in the council’s highest ‘H’ band.

In Bolton, properties are charged up to £4,077.78 per year – with all properties band D and higher charged at least £2,038.89 per year – more than £200 higher than the palace’s annual bill.

In total, 21,172 of 128,005 properties, or around 17 per cent of Bolton’s properties, were charged at a higher rate than the palace.

Additionally, another 18,918 band C properties, or 15 per cent of the total, were charged just £11.78 per year less than the palace.

The news comes as Bolton’s council tax is set to rise by more than five per cent, with the council having to plug a multi-million pound hole in the budget.

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Bolton Council leader Cllr Nick Peel said: “This highlights the inherent problems with the way local councils are funded.

“In Bolton, we do all we can to keep council tax bills as low as possible while still being able to fund the vital front-line services we all rely on.

“Other areas, many of them in the South of England, are able to set lower bills because of so much additional income from business rates, tourism and other sources.

“Council Tax is not a fair or equitable way to tax people, as it is not based on the ability to pay.

“The government should look at a fairer way to fund local councils, so that struggling families do not end up paying as much or even more than the wealthiest, which this research has highlighted.”

The Bolton News: Bolton Council leader Nick Peel criticised the way local authorities are fundedBolton Council leader Nick Peel criticised the way local authorities are funded (Image: Henry Lisowski)

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A Department for Levelling Up, Housing and Communities spokesperson said: “We have recently announced an additional £600 million support package for councils across England, increasing their overall proposed funding for next year to £64.7 billion - a 7.5 per cent increase in cash terms.

“Councils are responsible for their own finances and set council tax levels, but we have been clear they should be mindful of cost-of-living pressures.

“We continue to protect taxpayers from excessive council tax increases through referendum principles.”

Buckingham Palace did not respond to a request for comment.

If you have a story, I cover the whole borough of Bolton. Please get in touch at jack.fifield@newsquest.co.uk or click to send me a message on WhatsApp or on Signal on 07517566383.