Mid Suffolk District Council opts to freeze council tax but will increase rent costs
The local authority has approved its budget for the next year
Mid Suffolk District Council approved a council tax freeze and rent increases of more than £6 a week yesterday.
The council is the only local authority in the county that isn’t implementing a council tax rise this year.
An amendment by the Green and Liberal Democrat group of councillors to direct £2 million from reserves into household energy-saving measures was also approved.
Cllr Suzie Morley, leader of the council, said: “Our residents and communities rely on us to deliver essential services – now more than ever.
“We are not immune to rising costs, but we know that our residents and businesses are feeling the pinch too.
“Thanks to careful and forward-thinking financial management over recent years, we can now protect services without putting up our share of the bills – and still deliver on our pledges.
“This means we can continue to tackle climate change, support our district’s economic growth as well as caring for our communities and the wellbeing of our residents.”
The council tax freeze will mean the annual Mid Suffolk proportion of the council tax bill for a Band D property will remain at £171.59.
The general fund budget sets council tax, while the housing revenue account budget sets rents. Both were approved yesterday.
The housing revenue account budget shows seven percent rent increases, meaning average weekly social rent will rise by £6.16 a week from £87.99 to £94.15.
For affordable housing, weekly rents will increase by £9.03 from £126.96 to £137.99.
Cllr Lavinia Hadingham, cabinet member for housing, said: “To approve an increase in our rents is difficult, especially at a time of the cost-of-living crisis.
“For five years the government implemented a one percent reduction in rents, and two years after this we feel the impact on our housing revenue account.
“We have an ageing housing stock which adds significant strain to the repairs and maintenance bill.
“Retrofitting our homes to help with the environment and reduce our tenants’ utility bills is vital. Without the rent increase, this will be at risk.
“With the increase in cost of materials, which in some cases is 35 percent, we have a challenging in meeting the most basic repairs and maintenance.”
The GLI amendment to the general fund budget was to ringfence £2 million from the strategic transformation and infrastructure reserve and other unspent reserves to tackle the energy, cost of living and climate crises in Mid Suffolk.
These actions will include improving home insulation and other energy-saving measures in the home.
Cllr Andrew Mellen, leader of the GLI group, said: “The most recent figures show that 28 percent of households in Suffolk are now in fuel poverty – that’s around 95,000 homes.
“While the government has provided generous support over the last few months, that support is coming to an end and Ofgem is likely to increase the price cap for energy again at the end of March.
“Amazingly, there are measures we can take that can help with the energy crisis, the cost-of-living crisis and address our climate ambitions.
“I’m talking of course about energy saving measures – home insulation and reducing the amount of energy a home requires.
“This is why I’m putting forward our amendment to the budget today. If we can agree the principle of this funding today, families across the district could be enjoying the benefits as soon as next winter.
“It would be wrong for me to say there is nothing currently happening in this area – we are not proposing a wholly new programme. It could well be that the funding we set aside today could be used to support and expand existing programmes.
“Current funding has been hit and miss. We bid for government funding competitively when it becomes available, which doesn’t provide the comprehensive, long-term funding this area of work desperately needs.”
The programmes currently available include the Warm Homes Suffolk scheme, which provides grants to improve energy efficiency in homes without gas central heating.
To be eligible, the combined income of everyone living in the home must be £30,000 or less.
Suffolk’s Public Sector Leaders group also recently agreed to fund the fuel poverty retrofit team which would provide staff to support all this work.
The rent increases and budget proposals will be implemented on April 1.