Council tax in Ipswich to rise by 14p a week but worst off will pay nothing
The local authority has been setting out its plans for council tax for the next year
Ipswich Borough Council’s portion of council tax is likely to rise by around 14 pence a week while the worst off will get a full cut to council tax.
The council’s cabinet agreed a 2.97 percent rise last Tuesday, which would see a Band D property owner’s council tax increasing by 14 pence.
Cabinet members also agreed to a one-year 100 percent maximum reduction to council tax for working-age people struggling the most with the cost of living crisis.
Approval by full council is needed before either changes can be implemented.
Cllr David Ellesmere, leader of the council with responsibility for economic development and property, said: “The council has been hit with cost increases out of its control.
“In July, we identified increases totalling £6.4 million over the next four years. Since then, £9 million has been added.
“The additional £2.6 million given to the council by central government isn’t anywhere near enough to cover these £15 million extra costs.
“The council has identified £18 million of savings over the next four years but we will still need to deliver a significant savings programme in the future.
“Our top priority for the coming year is helping Ipswich residents affected by the cost-of-living crisis.
“This will be the sixth year running that Ipswich Borough Council’s tax increase is the lowest of the three bodies that make up residents’ council tax bill.
“We will keep brown bins free of charge and retain the free Summer iCard for children on free school meals.”
The other two bodies making up council tax for Ipswich residents are Suffolk County Council, which is expected to increase its portion by 3.99 percent, and Suffolk Constabulary, which will increase its part by over six percent.
The Summer iCard was established in 2018 and provides free sports and activities for children – as well as food for those on free school meals.
The cabinet also agreed to ask full council to agree to a 100 percent maximum working-age council tax reduction scheme for those worst off.
The current maximum discount is 95 percent.
Cllr Bryony Rudkin, deputy leader and portfolio holder for communities and sport, said: “I am pleased to say that 10,406 people would see a cut to their council tax and 7,685 people won’t pay any council tax next financial year.”
The change would last for one year initially but Cllr Ellesmere explained his view that it may be sensible to continue it after this period.
All district and borough councils in Suffolk except for East Suffolk Council are planning the 100 percent maximum council tax reduction.
It is expected that the removal of administrative costs involved in gaining relatively small amounts from recipients of council tax reductions will offset some of the money lost to councils from not gaining some tax.