TWO Suffolk councils have warned of increased uncertainty as initial plans to put up Council Tax by the maximum have been drawn up.

Councillors in Mid Suffolk and Babergh have backed initial budget proposals for the upcoming 2026/27 financial year during their respective cabinet meetings earlier today.

Both authorities are in different financial positions, with Mid Suffolk projecting a surplus of £2.4 million by the end of March, while Babergh is expecting to be £906,000 over budget.

Despite this, both have drawn up initial proposals to hike Council Tax by the maximum amount allowed without a referendum, at 2.99 per cent.

Cllr Richard Winch said increases would help keep Mid Suffolk finances stable, especially ahead of major local government reform.

"We want to leave this council in a strong financial position while retaining the excellent services and making sure we keep the burden on residents to a sensible level," he said.

Increasing tax in Suffolk would mean an average Band D charge of £180.26, a £5.23 yearly increase on current levels.

In Babergh, the increase would take Council Tax to £199.52, equivalent to a £5.79 increase for Band D properties.

Cllr John Ward, Babergh's leader and finance cabinet member, said: "Yet again, budget setting is proving to be a challenge, this year is probably the most difficult we have faced."

Both councils have warned of increased uncertainty as the Government is expected to announce next week exactly how much money local authorities will get.

Neither projected any increase in Government funding in its initial proposals.

Cllr Andy Mellen, Mid Suffolk's leader, said: "We await next week's decision with some trepidation, and we hope for better things than we've put into the figures as an expectation."

Meanwhile, both authorities have also drawn up plans to increase rents on their own housing stock for the upcoming financial year.

In Mid Suffolk, this could take the average two-bed weekly social and affordable home rents to £109.76 and £162.68 — an increase of £5.03 and £7.45, respectively.

In Babergh, the increases would be £5.51 for the average two-bed weekly social rent and £7.90 for two-bed affordable homes — taking the full price tag to £114.66 and £120.17, respectively.

Further details are expected once the Government's plans are revealed, with final decisions for all Suffolk authorities to take place in February.

Both authorities have noted the initial proposals unanimously.