Neighbouring councils announce differing tax plans

Babergh District Council's cabinet is set to consider a 2.99% increase to the authority's share of council tax bills

Two district councils that share many resources as part of a dual authority have announced differing strategies over future council tax bills.

Mid Suffolk Council has proposed to freeze its element of council tax for the upcoming financial year.

But Babergh Council's cabinet is to consider a 2.99% increase as councillors warned of a £10.9m budget gap over the next five years due to a "broken" funding system.

The two sovereign councils became a dual authority in 2011 and share a workforce of around 600 people. Both are based at Ipswich's Endeavour House with Suffolk County Council.

Mid Suffolk leader Andy Mellen said he hoped the council tax freeze was "welcome news" to residents

A report going before Mid Suffolk's cabinet on 13 December showed the net cost of providing the council's services was expected to rise by £1.69m to £15.9m in 2025-26 – an increase of about 12%.

But the council said it was not proposing an increase in council tax, meaning that its annual proportion of the bill for a Band D property would remain at £175.03.

Andy Mellen, leader of Mid Suffolk Council, said: "Being in the fortunate position to freeze council tax is unusual for a local authority, but this has been made possible thanks to buoyant growth in business rates, including income from the Gateway 14 Freeport site in Stowmarket, as well as funds generated from housing development."

Meanwhile Babergh Council said the proposed increase would see its element of council tax bills for a Band D home rise from £188.10 a year to £193.73 for 2025-26 – an extra 11p a week.

Council leader Deborah Saw said: "We have made clear that we believe the current system of funding local government is broken and call on the government to review this so we can continue delivering the services which our communities value and need."

She added: "We can still help to deliver positive change at grassroots level by being more innovative and working in partnership with communities in order to empower our towns and villages to develop solutions to issues that matter to them."

The draft general fund budget will be considered at a meeting on 13 December with further examination by councillors on 16 December.

Both councils said less than 10% of each household's council tax bill goes to the district council, with the remainder going to the county council, police and town or parish councils.