Residents in Ipswich will pay around 3% more for council tax
Labour blamed the government’s lack of council funding and “crashing of the economy” for the rise
Residents in Ipswich will pay around 3% more for council tax and 7% more for council house rents from April.
The final vote on the budget last Wednesday saw these rises pushed through, as the Labour administration blamed the government’s lack of council funding and “crashing of the economy”.
Leader of the council Cllr David Ellesmere said: “The background to this and every budget for the last decade is the sweeping cuts the Conservative government has made to local government funding.
“This council now receives over £11 million less from government than it did in 2010.
“It has got harder every year to find savings. The loss of income and costs from Covid created a huge extra challenge, but this year has been even more difficult.
“The Conservatives have crashed the economy and we are all paying the price. We forecast inflation will add over £15 million to the council’s bills over the next four years.
“The government has given us extra funding amounting to £2.3 million over the next four years. While any additional funding is welcome, clearly that is a drop in the ocean compared to our costs.
“Among the comprehensive set of savings we have identified, we have reviewed our capital programme to either remove or move back projects to reduce borrowing costs.
“We will seek to increase fees and charges with a focus on the areas we’re seeing the largest increase in costs and use new government powers to increase the council tax payable on long-term empty homes.
“We will keep our popular young person’s Summer iCard scheme which gives free access to council’s sporting activities over the summer holidays, but introduce a small one-off charge for children who do not receive free school meals.
“We have identified around £18 million of savings over the next four years."
“To protect our services, we believe we have no choice but to increase our council tax by three percent.
“This is lower than wages are increasing in the public and private sector and will add just 17p a week to council tax in the average band B property.
“It is less than one third of the rate of inflation, so amounts to a real-terms cut.
“In fact, since Labour took charge of the council in 2011 we have cut our council tax by more than 40 percent in real terms.”
Cllr Ellesmere also mentioned the council’s commitment to increasing the maximum council tax reduction for those worst off to 100 percent from April – a decision with cross-party support and which every district-level council in Suffolk except East Suffolk has taken.
How will people be affected?
The 2.97 % council tax increase will take Ipswich Borough Council’s portion of council tax for a Band B property from £298.83 to £307.72, a 17 pence weekly increase.
Band B is the most common type of home in Ipswich, and council tax rates for other bands will also rise by 2.97%.
Council house rents will increase by seven percent, the highest allowed by the government.
By April, the housing revenue account that covers council house funding and costs is expected to reach a deficit of £1.241 million.
Cllr Ian Fisher, leader of the Conservative group in the council, said: “I love this town but I’m so frustrated because it could and should be a far better place for its residents and visitors.
“The Towns Fund was a £25 million gift from the government that should have been seen as a golden egg. What do we have so far? We don’t have anything.
“The largest project for the Towns Fund is the £8 million for regenerating empty town centre buildings. There has been no talk of it whatsoever for a year.
“The only direct support we are giving for the cost-of-living crisis is the increase to the maximum council tax reduction. Only a small proportion of our residents will benefit from this and nearly everyone is suffering.
“Postponing the £15.6 million commitment to council house fossil fuel replacements until more affordable technology is available would save enough money to reverse the seven percent rent rise.
“It did not have to be this way.”
Ipswich was promised up to £25 million from the Towns Fund for 11 projects in late 2021.
The housing revenue account business plan includes £15.6 million a year to convert all council houses to non-fossil fuel heating systems between 2025 and 2036 – with pilots running between 2023 and 2025.
Cllr Fisher also stated his party’s view that the level of council tax increase proposed was not needed.
The Liberal Democrat group opposed the budget but supported the need for the council tax increase.
Liberal Democrat Cllr Oliver Holmes said: “The major projects budget has been reduced by over £20 million for next year.
“This administration has given up on reducing the serious pollution in Ipswich by cutting funding to improve air quality. This report is quite literally all smoke and mirrors.
“We Liberal Democrats think the increase to council tax is unpleasant but necessary.”
The reports brought to the council meeting show that the DEFRA capital funding for air quality will reduce to nothing from April but an air quality action plan will gain £40,000 in 2023/24 – followed by no funding in the years after.
Cllr Ellesmere explained the air quality fund is being redirected to increase the number of electric vehicle charging points in Ipswich, rather than being removed.
Council tax will increase for every Suffolk authority except Mid Suffolk from April.
Compared with Ipswich’s 2.97% increase, the rise for Babergh District Council’s portion will be 2.99%, for West Suffolk will be 2.96%, and for East Suffolk will be 2.81%.
Suffolk County Council’s precept will see a 3.99% uplift and Suffolk Constabulary’s precept will go up by the most – at 6%.