Ipswich Borough Council budget amendment could save small businesses in town, says opposition leader

A budget amendment could save small businesses in Ipswich, the opposition leader has said.

With final budget discussions for Ipswich set to take place on Wednesday by councillors, Cllr Ian Fisher, the Conservative leader, revealed his group's amendment.

He will be proposing 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.

During the Government's budget announcements in October, Rachel Reeves, the Chancellor of the Exchequer, announced a reduction in business rates relief from 75 per cent, in place since 2020, to 40 per cent, capped at £110,000 per business.

Cllr Fisher said the change would see several small businesses paying an extra £4,000 per year at a time when they were already struggling to stay afloat.

He said: "These businesses have been hit hard in recent times — Covid and then the push to work from home has decimated the business in many town centres across the country, and Ipswich is no different.

"In my opinion, it is not raining, it is pouring and, if we do nothing, that could turn into a thunderstorm we cannot get ourselves out of."

As it stands, the collected business rates are split between Ipswich Borough Council, the county council and the Government — the £306,000 contribution would offset the borough authority's portion of the additional income.

Although Cllr Fisher said it would not represent 'life-changing amounts of money' it would be what the county council could afford to help with.

Discussions on the amendment and overall budget proposals will take place on Wednesday.