Bristol’s Student Flats Lead to £2.6 Million Shortfall in Council Tax Revenue

Bristol’s growing student population is costing public services £2.6 million in lost council tax, raising concerns among local councillors about funding.

Bristol’s Student Flats Lead to £2.6 Million Shortfall in Council Tax Revenue
Bristol’s Student Flats Lead to £2.6 Million Shortfall in Council Tax Revenue

Bristol: The city is seeing a surge in student numbers. This growth means public services are missing out on £2.6 million in council tax this year. Students don’t pay council tax, but they still use services like parks and waste collection.

Councillors are saying that cities with lots of students, like Bristol, need more government funding. They argue that the council tax exemptions create a real financial strain. The total loss from students not paying tax is hard to pin down, but it’s definitely rising.

During a council meeting, the issue came up, and councillors pointed out that students also contribute to the city in other ways, like spending in local pubs. Liberal Democrat councillor Caroline Gooch mentioned that university cities face more challenges than non-university areas. She suggested the government should help with a subsidy for these local authorities.

Labour Cllr Tom Blenkinsop added that every student household means less tax revenue. He acknowledged that having a large student population is good for the city’s economy. But he raised a question: how much student housing is too much? He wondered if building more specialized student housing might be a better option, even if it’s not popular.

Right now, there are thousands of student flats being built in Bristol. Some developers are getting the green light for homes that don’t meet national space and light standards. For instance, there’s a new block going up on Gas Lane near Temple Meads train station.

In 2023, councillors allowed developers to add an extra floor to this building, despite worries about the lack of light in many rooms. One councillor joked that future residents might just sleep all day on weekends.

Conservative Cllr Jonathan Hucker pointed out that Bristol’s large student population brings challenges, especially with increasing exemptions. But he also noted the benefits to the city’s nightlife and hospitality scene, based on his own experiences at local pubs.

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