Babergh District Council has agreed its budget for 2023/24 – ensuring rural communities have access to the services they need and providing ongoing support for the district's residents, businesses, towns and villages.

The council produced a balanced budget despite increasing financial pressures as a result of global events, such as the Covid-19 pandemic and Putin's illegal war in Ukraine – plus rising inflation and interest rates.  

A report before councillors at last night's Full Council meeting showed how the net cost of delivering services is set to increase by almost 20% from £10.43m in 2022/3 to £12.45m in 2023/24, while the cost of running and maintaining the council's housing stock has already increased by 50%.

Savings and investment income are helping to balance the books, but next year's budget will also see a 2.99% increase to the district council's share of council tax - the equivalent of an extra £5.30 a year, or 10p a week for residents in a Band D property. 

Babergh leader Cllr John Ward said: "It has been a difficult budget setting period this year, but we have a balanced budget that will allow us to deliver services that our residents expect and need now, more than ever. Everyone is suffering with the cost-of-living crisis on top of Covid, but we can, and will, support them.  

"This increase is modest but necessary if we are to tackle rural isolation and support the economic growth of our towns and high streets – whilst also continuing to invest in new and improved council housing."

Council tenants will also see a 7% increase in rents to try to keep pace with increased costs and ensure necessary investment in repairs and maintenance across the council's social housing stock. 

This would mean average weekly social rent increasing by £6.68 a week from £95.47 to £102.15. For affordable housing, weekly rents would increase by £9.41 from £134.39 to £143.80.

Cllr David Busby, cabinet member for finance for Babergh, said: "Any decision to put up council tax and rents is not one we take lightly, particularly when people are already feeling the squeeze and having to make tough financial decisions.

"It is, however, testament to the stability of our finances that we have been able to propose a balanced budget despite the economic turbulence and rising costs that we face." 

Babergh has also agreed additional help for those in most financial need, with a council tax reduction of up to 100% for residents with the lowest incomes and a simplification of the existing Council Tax Reduction Scheme for residents on Universal Credit. 

The General Fund budget was agreed by 19 votes for, two against and one abstention, and the Housing Revenue Account was approved by 19 votes for, one against and two abstentions. Both had already been reviewed by members of the council's Overview and Scrutiny Committee in January, and Babergh's cabinet earlier this month.

The changes to council tax and rents will take affect from April 1.