Ipswich Borough Council to consider business rate relief cuts to balance its books

Cuts to business rate relief may be on the table for Ipswich as a council seeks to balance its books.

Tomorrow, Ipswich Borough Council’s executive committee will consider a new discretionary business rate relief policy for 2025/26 as part of plans to make £47,000 in savings per year.

If approved, ‘top-up relief’ would be reduced to 10 per cent from 20 per cent and also no longer given to private nurseries, academies, free, grant-maintained, faith or trust schools, as well as shops run by national charities.

In addition, the same policy would only provide a maximum discretionary top-up to sports clubs of £5,000.

A pre-meeting report said because the rates were at the council’s discretion, it could choose not to reduce relief, however this would not generate the savings required.

Cllr Martin Cook, who will bring the motion to the executive, said it would be important to proactively work with the organisations affected if the policy was approved.

It would also be vital to ensure rates given were in line with policy, he said.

The council is required to fund 40 per cent of all the relief issued.

The report added: “By adopting the proposed changes to the council’s discretionary rate relief policy, the savings required as part of the budget delivery plan will be realised while still supporting applicable organisations.

“Those organisations losing financial support will be supported proactively to identify any alternative reliefs they may be entitled to lessen the impact of these changes.”

The plans for cuts come as part of a wider £23 million funding black hole.

The plans to cut business rate relief have been recommended for approval.