Babergh District Council blames government funding for fee increases

The leaders of a Suffolk council have criticised government funding, saying they face a £1.8m budget gap.

Babergh District Council said it would need to dip into its reserves to cover the deficit, which its leader said was "unsustainable".

It said it would need to increase council tax, rent for council tenants and other fees and charges.

The government said it recognised councils were facing challenges but added that funding had increased.

A draft budget for 2024-25 will be scrutinised at a meeting next week.

It includes proposals to increase council tax by the maximum amount allowed and increasing fees and charges, including council rent by 7.7%, to cover increased costs for maintenance, services and licences.

The council said it estimated the cost of services for the next financial year was £2.5m higher than the year before.

It said the majority of the increase was due to "inflationary pressures". A reduction in planning fee income, due to a stall in new developments, had also been a factor, it said.

Babergh's acting leader John Ward, an independent, said: "While our costs have risen 21% in the last year, government funding has increased by just 3.4% in the same period.

"Babergh is a well-run authority. We are making savings, driving efficiencies and reviewing our fees and charges - but this year we will have to spend reserves to balance our budget. That is unsustainable - you can only spend reserves once."

Green councillor Deborah Saw, deputy council leader, said funding for local government was "broken".

"Some councils have already gone bust and others are heading towards a cliff edge. The financial outlook for the coming years gets worse," she added.

The council has called on the government to review how councils are funded.

"Any decision to put up bills is not one we take lightly, particularly when people are already feeling the squeeze, and we are determined to continue to support those most in need," Mr Ward added.

A Department for Levelling Up, Housing and Communities spokesperson said: "Councils are ultimately responsible for their own finances, but we remain ready to talk to any concerned about its financial position."

The department announced a £64bn funding package in December, which it said was a real terms increase at an average of 6.5%.

Follow East of England news on Facebook, Instagram and X. Got a story? Email [email protected] or WhatsApp 0800 169 1830