Mid Suffolk and Babergh District Councils agree Council Tax freeze and maximum increase on same day

Partnering councils have shown stark money differences after both agreed to a Council Tax freeze and a maximum increase on the same day.

Members of the cabinet at Babergh and Mid Suffolk district councils had their first look at both authorities' budget proposals for the next financial year during their respective meetings earlier today.

The partnering councils share administrative and management team functions but show a much different financial picture.

In Mid Suffolk, councillors have agreed to a Council Tax freeze in light of the authority's nearly £6.7 million budget surplus predicted for the financial year — meaning a Band D property tax burden will stay at £175.03.

Cllr Richard Winch, who presented Mid Suffolk's report said: "[Mid Suffolk] will have an exceptionally good financial year and we're building up very substantial reserves.

"We are mindful there can be delays in projects [...] but I think we've had such a good year it's made us mindful that we need to think about our Council Tax payers and our fees and charges — that's the core logic for our decision."

Across the border in Babergh, however, the council is predicting a budget gap of £10.86 million over the next six years, forcing councillors to agree to a maximum Council Tax increase of 2.99 per cent — equivalent to a tax bill of £193.73 for a Band D property, up from £188.10.

Addressing the increase, Cllr John Ward, Babergh's lead for finance, said the council was facing a lot of financial uncertainty but stressed the authority would keep its statutory services at an excellent level.

He added: "I can guarantee that all of our core services will not be reduced in any way, we have no intention of doing that but we need to be mindful that those services operate in the most efficient way possible.

"The government has told us it expects all councils to raise Council Tax by the maximum allowed, and nearly every council will have to do that — but it's still very good value for money."

In Mid Suffolk, reserves are predicted to amount to nearly £50.5 million, with the council proposing a £10.6 million investment in several capital projects in the next financial year, and a further £27.68 million between then and 2029/30.

As it stands, Babergh expects to run out of uncommitted reserves by the 2028/29 financial year.

Cllr Ward said: "We know that, in order to have balanced budgets going forward, there's more work to be done but we've done a huge amount in terms of cost efficiencies and other improvements and it's very difficult to squeeze a lot more out because we've been doing this for years."

Babergh's finance lead did not rule out any difficult cost-saving decisions akin to the recent increase in parking charges, nor did he rule out a potential dissolution of the council so it could merge with its neighbour in Mid Suffolk.

However, with the Government's devolution plans for Suffolk still unclear, a dissolution might never happen to begin with.

The budget proposals for both councils are only the first draft as uncertainty still remains on how much the Government will be distributing to local authorities, meaning proposals can still change between now and February, when a final decision is due.