Adjacent Councils Reveal Divergent Council Tax Strategies

Two district councils, operating as a dual authority and sharing numerous resources, have presented contrasting approaches regarding their forthcoming council tax charges. Mid Suffolk Council has put forward a proposal to maintain its portion of council tax at the current level for the next financial year. Conversely, Babergh Council’s cabinet is scheduled to review a 2.99% increase, with councillors highlighting a projected budget deficit of £10.9 million over the coming five years, attributed to what they describe as a “broken” funding system. These two independent councils formed a dual authority in 2011 and jointly employ approximately 600 individuals. Both entities operate from Endeavour House in Ipswich, alongside Suffolk County Council. According to a report presented to Mid Suffolk’s cabinet on 13 December, the net expenditure for delivering the council’s services is anticipated to increase by £1.69 million, reaching £15.9 million in 2025-26, which represents an approximate 12% rise. Nevertheless, the council stated its intention not to propose a council tax increase, which signifies that its yearly contribution to the bill for a Band D property will stay at £175.03. Andy Mellen, the leader of Mid Suffolk Council, commented: “Being in the fortunate position to freeze council tax is unusual for a local authority, but this has been made possible thanks to buoyant growth in business rates, including income from the Gateway 14 Freeport site in Stowmarket, as well as funds generated from housing development.” In parallel, Babergh Council indicated that the suggested increment would result in its portion of council tax bills for a Band D residence climbing from £188.10 annually to £193.73 for 2025-26, equating to an additional 11 pence per week. Deborah Saw, the council leader, stated: “We have made clear that we believe the current system of funding local government is broken and call on the government to review this so we can continue delivering the services which our communities value and need.” She further remarked: “We can still help to deliver positive change at grassroots level by being more innovative and working in partnership with communities in order to empower our towns and villages to develop solutions to issues that matter to them.” The preliminary general fund budget is scheduled for deliberation at a meeting on 13 December, followed by additional scrutiny from councillors on 16 December. Both councils reported that under 10% of each household’s council tax payment is allocated to the district council, while the remaining amount is directed towards the county council, police services, and town or parish councils.