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Councity pledges reduced Council Tax bills as details are revealed on major reform

By Joao Santos (Local Democracy Reporter) 14th Sep 2025

Cllr Richard Rout
Cllr Richard Rout

SUFFOLK County Council has promised to reduce Council Tax after it revealed its plans for major reform in Suffolk.

Suffolk's six county, district and borough councils will cease to exist by May 2028 and be replaced by unitary authorities with more powers.

Cllr Richard Rout, Suffolk County Council's lead for the major shake-up, has laid out the full business case backing a single unitary authority covering the whole county as the best possible outcome.

A brand new financial analysis carried out by Grant Thornton, an accounting firm, showed the county council's proposals would deliver £78.2 million in savings after five years, with £39.4 million extra every year after that.

These would be achieved mainly through a reduction in senior staff, at an initial cost of £13 million in redundancies, as well as savings associated with contracts.

Cllr Rout promised no frontline staff would be impacted.

Meanwhile, the financial analysis put savings associated with proposals for three unitary authorities, which are backed by the districts and borough councils, at a £145.3 million shortfall after the first five years — far from what they had suggested, at £34 million saved every year.

Cllr Rout said: "This is a really pivotal moment for local government in Suffolk, it's a once-in-a-lifetime opportunity to reshape councils.

"I am certain that One Suffolk will deliver the greatest possible savings and the greatest improvement to services of any of the proposals put to Government."

The county council's business case made a range of promises, including making the highways service more responsive and proactive, and a wholesale reduction in Council Tax for most Suffolk residents.

As part of the process, Council Tax must go through a 'harmonisation' process, during which the amount of tax will be brought to the same level for any given unitary — under the county council's proposals, this means every resident paying the same amount.

The promise is to set the Council Tax level at the lowest possible value, currently found in Mid Suffolk.

This would mean that from May 2028, residents currently living in Ipswich, East Suffolk, Babergh and West Suffolk, would pay anywhere between £17 and £245 for a Band D property.

Decreases would be found across all property band types.

Mid Suffolk residents would have their Council Tax frozen for the 2028-29 financial year.

Cllr Rout said: "When we go through a process like this and tell residents it will save money, it is only fair they feel that benefit on day one of the new council."

On top of this, the council is proposing to set up a £40 million capital investment pot to deliver initiatives in market towns, including Ipswich, to be available from day one.

A full review of car parking and markets would be conducted at the same time.

Cllr Rout said: "Looking across the county, you often see endless controversy around car parking, and businesses often feel excluded — there's a chance here to take a holistic view of car parking and markets."

Meanwhile, in order to address concerns over the remote nature of a council covering the entire county, 16 area committees would be established, each given powers to address issues locally.

Town and parish councils would also be given more powers, including over speed limits.

What has the opposition said?

Districts and borough councils, which are proposing a three-unitary model anchored in Lowestoft, Bury St Edmunds and Ipswich, have challenged the county council's financial forecasts.

They maintain their model will result in £106 million in savings in five years, rather than the negative £145.3 million suggested, and will be self-financing within that time.

A joint statement on behalf of the leaders said their model would be the only way of keeping decision-making truly local.

They said: "The county council's substitute for local democracy is to introduce 16 area committees – an unnecessary bureaucratic burden that will do little to empower communities in reality.

"One unitary council for the whole of Suffolk would be too remote and would struggle to make a real difference to the diverse communities that make up Suffolk. "

The councils will reveal more details on their proposal next week, including their own plans for Council Tax.

They said it would be 'the best of all words' in terms of simplicity in delivering services and placing residents as close to their elected representatives as possible.

They said: "Services will be specifically designed with and for local communities and businesses, achieving value for money and better, targeted outcomes."

What's next?

County councillors will be able to speak their mind during the full council meeting on Tuesday, though this will be mostly symbolic as a final decision to send the plans to the Government will be down to cabinet members on the same day.

The districts and borough councils are also going to be sending their plans to the Government by the September 26 deadline.

A consultation will then be conducted by the Government, which they expect will end in early 2026, ahead of a final decision later that year.

Elections for a 'shadow council' will take place in May 2027, which will exist underneath the current structure until May 2028, when it will take over.

     

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