Ipswich Borough Council approves near maximum tax hike as opposition amendment defeated

An authority approved a near-maximum Council Tax increase after an opposition amendment was defeated.

Budget proposals for the upcoming financial year were discussed by Ipswich councillors during yesterday evening's meeting.

Cllr Neil MacDonald, the leader, said the authority was facing tough times of 'considerable uncertainty' which had nothing to do with the council and everything to do with the Government, promising to tackle challenges 'head on'.

In September the council approved a cuts package to deliver between £13 million and £16 million in savings and address a £23 million gap in the authority's books.

Cllr MacDonald said: "Hard decisions have been taken and if further hard decisions are needed, they will be taken too."

Included in the proposals was a near maximum Council Tax increase of 2.98 per cent, or £12.15 extra for Band D properties — most homes in Ipswich are classed as Band B, meaning a £9.45 increase.

Before the changes could be approved, however, councillors debated a budget amendment proposed by Conservative opposition leader, Cllr Ian Fisher.

His amendment sought to transfer £306,000 from the council's earmarked £2.3 million 'rainy day' Business Rates Reserve, to compensate for the Government's plans to reduce the relief to 40 per cent, from 75 per cent.

The amendment would have applied to about 240 businesses within a specific area in the town centre.

He said: “Reserves are essentially amounts of money kept for a rainy day, i fear that rainy day is here, it is currently pouring down and there is a storm on the horizon.

"We know why we have reserves and they have been vital for the past couple of years to balance the books — most small businesses do not have this luxury.

‘It is tough running any business but it is tougher if they are run in the town centre — businesses need our help and we have the ability to give it.”

Behind the political attacks which followed in the discussion, some arguments against the amendment were raised by three councillors.

Cllr Martin Cook, the authority's lead for resources, described it as a 'one-off gimmick' which would make a big difference — he suggested it would be equivalent to only £3.49 per business, per day.

Cllr MacDonald said it was 'irresponsible to raid reserves' as it would lead to an unsustainable council, while Lib Dem leader, Cllr Oliver Holmes, said reserves should be kept at a healthy level.

According to Cllr Fisher, the council's director for resources and housing, Mr Ian Blofield, confirmed reserves would still be kept at the recommended minimum.

The amendment was defeated with 39 votes against and four in favour.

Much like the amendment, the discussion on the main proposals focused more on national politics than the budget itself.

To offset the potential impact of a Council Tax increase, Cllr MacDonald confirmed the authority's tax reduction scheme would continue, providing over 10,000 with lower or frozen tax bills.

Councillors decided to approve the budget with 36 votes for and eight against.