Executive to consider Medium-Term Financial Plan for 2025/26 and beyond

Grafton House - Ipswich Borough Council offices

Ipswich Borough Council’s Medium-Term Financial Plan proposals will be considered by the authority’s Executive at its meeting on Tuesday 11  February; final decisions to be made at Full Council on 19 February. 

The report includes recommended Council Tax levels and Budget for 2025/26 and the provisional Budget for the following three years, setting out how to deal with dramatically rising cost pressures while protecting services and continuing to invest in Ipswich. It builds on the work from previous Medium-Term Financial Plans and aims to ensure the Council’s finances are in a robust position.

This includes further successful progress with the Council’s savings programme to address a budget gap over the Medium-Term Financial Plan period that increased from £17.5m to £23m in the first half of 2024/25. A package of measures to tackle budget pressures through prompt action, with appropriate resources available to deliver it,  was agreed by Executive in September 2024 and is expected to achieve £19m of savings over four years.  This has already enabled the Council to put its finances on a better, more sustainable footing. 

Although the Council is confident about addressing financial challenges in 2025/26, Councillor Neil MacDonald, Leader of Ipswich Borough Council, says continuing external pressures may require tough decisions to be considered in the future:

“Like so many others, the Council has been hit by economic uncertainty and significant cost increases outside of its control. These include a significant increase in demand for key statutory services, higher price levels from recent high inflation, and the impact of interest rates reducing more slowly than expected. In real terms, over the period since 2010, levels of Government grant funding to the Borough have reduced by £119m. Added to the uncertainty is that for 2025/26 there will be another short-term one-year financial settlement for Local Government, as has been the case for the last four years.” 

“The Council remains committed to supporting residents and keen to keep Council Tax increases low. Executive will consider a recommendation to increase the Ipswich Borough Council part of Council Tax by 2.98% for 2025/26, which equates to 18p. or less per week for the average Ipswich Band B property. 

“This is the lowest proposed increase of the three components that make up Council Tax bills in Ipswich, as Suffolk County Council has proposed a 4.99% increase and the Suffolk Police and Crime Commissioner a 5.06% increase. In addition, the continuation of a discount scheme for claiming Local Council Tax Reduction will see over 10,000 of our residents benefit from lower or frozen Council Tax bills.” 

“We continue to focus on delivering against the five priorities of our ‘Proud of Ipswich’ Corporate Strategy, especially the priority of remaining a financially sustainable Council providing good quality services. The Medium-Term Financial Plan supports our financial strategy is to invest in the Town and the services the Council provides to local people and businesses, at the same time as proactively addressing many financial challenges forecast to remain over this Medium-Term Financial Plan period.  

“The Council is moving into 2025/26 with determination to meet those challenges head-on and we must still deliver our savings programme in order to tackle remaining budget pressures.” 

  

Full details of the Council’s Medium-Term Financial Plan including its Budget for 2025/26 can be found online at Agenda for Executive on Tuesday 11th February 2025, 6.00 pm | Democracy Online | Ipswich Borough Council