Student numbers leave city 'missing millions' in tax

Growing numbers of students living in Bristol means public services are "missing out" on millions in council tax, a city council meeting was told.

The authority is "missing" £2.6m in tax this year, councillors told the meeting. Students are exempt from paying council tax despite benefiting from council services, like bin collections and parks.

Councillor Caroline Gooch said university cities were "over-burdened" with student exemptions compared to non-university or rural areas, arguing the government should implement a subsidy scheme.

Councillors also noted how students benefitted the city, such as the night-time economy.

Gooch added: "The government should should implement a subsidy scheme for local authorities with high student populations."

The total cost of students not paying council tax in Bristol is unclear, but this year it increased by £2.6m, the Local Democracy Service reports.

Councillor Tom Blenkinsop said economically the city benefitted "from having a large student population".

"It's good that we're a university city," he said. "But it may be advisable to ask ourselves, 'how much student housing is too much?'.

"Would we be better served by building denser, more specialised student housing? Although I grant this isn't always popular."

Thousands of student flats are being built across the city currently and developers can get permission for homes that fall below national standards on space and daylight.

For example, the block of flats under construction on Gas Lane behind Temple Meads train station.

In 2023, councillors gave planning permission to developers to put an extra storey on top of this building, despite concerns about the lack of light in many of the rooms.

One councillor at the time said that future residents "would probably be asleep half the day" during weekends.

During the council meeting last week, councillor Jonathan Hucker said that although the increasing number of students provided a "significant financial challenge" for the council, the student population did help the city.

He said: "The large student population does bring benefits to the city's hospitality sector and night-time economy.

"That view is based on my own observations from many evenings spent in Wetherspoons."

A spokesperson from the the University of the West of England said students were an "integral part of Bristol's vibrancy and culture".

"UWE Bristol and its students contribute more than £400m to the local economy each year, supporting over 3,500 jobs," they said.

A spokesperson from the University of Bristol said their students had "always been part of Bristol's rich culture".

"They work and volunteer and many stay in Bristol after they graduate, starting businesses and families," they said.

"In 2022/23, University of Bristol students and their visitors contributed £318m to the local economy and supported 5,270 jobs across the city."