Minimum wage rise to cost Suffolk County Council extra £5.4m

Conservative Matthew Hicks has led the council 2018

Suffolk County Council will have to find an extra £5.4m to pay for the rise in minimum wage.

The national living wage is to increase to £11.44 an hour in April 2024 for over-23s, up from £10.42.

Conservative council leader Matthew Hicks said while he believed it was a "laudable decision", it could mean cuts to services and a rise in council tax.

The main increase in costs comes from care providers having to pay carers more.

The council was facing an overspend of £11.4m before the announcement on the minimum wage. Its total planned budget for 2023-24 was £688.1m.

A higher than expected income from the Energy from Waste facility at Great Blakenham of near £10m has offset what would have been a £22m budget gap.

Mr Hicks said there would be some difficult decisions ahead, and when asked by the BBC about cuts and potential council tax raises he said "everything is in the mix; it's too early to say".

A letter has been sent to the Secretary of State for Levelling Up, Housing & Communities, Michael Gove, signed by 33 council leaders, asking for more help from central government.

The County Councils Network said "nine in 10" local authorities would now put up council tax by the maximum 4.99%.

Financial pressures could lead to a rise in council tax and potential cuts

Mr Hicks said the council is not in danger of becoming effectively bankrupt and he believed it would "balance the budget".

Transport for pupils with special educational needs and disabilities and looking after children in care make up two-thirds of the budget gap.

Opposition groups have blamed a lack of funding from government.

Councils are due to find out later this month how much money they would be getting from Mr Gove's department.

The government said it was open to talks with councils with financial issues.

Mr Gove asked councils to "consider how they can use their reserves to maintain services over this and the next financial year".