East Suffolk residents face rent and council tax rises from April
Residents will pay almost £5 a year more for council tax
Residents in East Suffolk will pay almost £5 a year more for council tax and just under £4 a week more for rent from April.
East Suffolk Council approved the general fund budget with council tax changes, and the housing revenue account budget laying out rent rises, on Wednesday last week.
The council also voted through the five-year medium-term financial strategy (MTFS), which showed a balanced budget for the next financial year – followed by budget gaps of £3.5 million and £6.4 million in 2024/25 and 2026/27 respectively.
Cllr Maurice Cook, cabinet member for resources, said about the general fund budget: “This report presents a balanced position for 2023/24.
“To balance the budget in 2022/23, it was necessary to use £1.098 million from the in-year savings reserves.
“Due to the level of business rates income, the use of reserves to balance the budget in 2023/24 has not been required.
“The council is actually in a position to contribute £2.46 million to reserves next financial year.
“There are activities not yet factored into the medium-term financial strategy that could reduce the budget gap towards the end of the MTFS period – including the council tax premium on second homes.
“But despite these factors, the range and scale of expenditure and income pressures indicate that actions will be needed to ensure a longer-term sustainable position – including maximising income and achieving savings.”
The levelling up and regeneration bill passing through the House of Lords would allow a 100 percent premium for second and empty homes, and East Suffolk Council has approved the principle of introducing this if the legislation is passed.
The district’s portion of council tax for a Band D home will rise by £4.95 a year to £181.17. This is an increase of 2.81 percent, compared with a maximum increase of three percent allowed by government.
This will come on top of increases to the county council’s precept of almost four percent, to the police’s precept of just over six percent and to the average town and parish councils’ precept of just under four percent, taking the average total council tax for next financial year to £2,018.75 – from this year’s bill of £1,938.63.
East Suffolk Council will keep the maximum working-age council tax reduction for those worst off at 91.5 percent from April – despite every other district-level authority in Suffolk planning a one-year maximum 100 percent council tax cut.
However, the council will use money from government to reduce bills for local council tax reduction scheme (LCTRS) claimants by up to £33 and to provide additional financial support for vulnerable residents.
Council house rents will increase by up to six percent, meaning an average increase of £3.89 a week to £96.28.
For sheltered homes, general service and utility charges will rise by £1.53 a week to £16.10 and heating charges will rise by £2.95 a week to £16.30.
Last month, it was found that council house tenants in East Suffolk would gain refunds totalling around £8 million and have rents recalculated after historical overcharging.
The council breached the regulator of housing’s standards between 2016 and 2022 when it converted homes from social rent to affordable rent.
The council informed the regulator and tenants when it discovered the issue with rent calculations.