Shotley peninsula residents could see increases of three percent for council tax and seven percent for council house rents under budget plans by Babergh.

If the proposed budget published today is approved by cabinet and full council in February, Babergh's portion of council tax will rise by £5.30 a year from April.

This is on top of the various parish council tax increase y, the police and crime commissioner's six per cent (an extra £15), while Suffolk County share will add another 85p a week and a ring-fenced social care increase will follow.

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."

Dave Busby

Average weekly social rent would rise by £6.68 a week to £102.15 and affordable homes' rent would go up by £9.41 a week to £143.80.

The budget plans also show an expected budget gap of £221,000 for the next financial year, which will be covered by using a portion of the £998,000 Covid 19 reserve.

The council's net cost of delivering services is set to increase by almost 20 percent – from £10.43m in 2022/3 to £12.45m in 2023/24. The cost of running and maintaining the council's housing stock has already increased by half.

Babergh leader Cllr John Ward said: "We face a challenging balancing act.

"We need to tackle rural isolation, improve access to services for our communities and support the economic growth of our towns and high streets.

"We must also continue to invest in new social housing and improve the energy efficiency of our existing council homes.

"The council is not immune to rising costs, so must find a way of funding these vital services without placing unreasonable burden on our residents.

"Thankfully, prudent investments and financial management over recent years means we are still able to deliver a balanced budget, without reneging on our promises to the people of Babergh."

Babergh has agreed to 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.

Babergh's proposed budget will go to cabinet on February 6 and full council on February 20. Any changes to council tax or rents would start on April 1.