Council sets out plans for 2026/27 budget

The £850 million plan aims to safeguard frontline services, support the most vulnerable, and invest in Suffolk’s future – despite rising costs, growing demand and shortfalls in national funding.

Key themes of the draft budget include:

• Savings and efficiencies: £46.5 million of savings through service transformation and efficiencies, including a temporary reduction in employer pension contributions, made possible by the strong position of the council’s pension fund.
• Rising financial pressures: Increasing demand, in particular for adult and children’s social care, will add £32.2 million in costs, alongside continued pressures from the Dedicated Schools Grant deficit.
• Reserves: A one-off use of reserves will bridge a £5.9 million funding gap, while keeping reserves above the minimum level needed to manage financial risks.
• Capital investment: The capital programme has been shortened from four years to three ahead of local government reorganisation in 2028. It continues to fund essential projects like school expansions and infrastructure upgrades, as well as new schemes, such as improvements to bus services, public rights of way, and cycling and walking infrastructure.

To support these plans, the council has proposed a 4.99% rise in Council Tax, comprising a 2.99% general increase and an extra 2% for adult care. Alongside a forecast 1% rise in the taxbase, this would generate an additional £27.4 million.

For households, this would mean:

• Band B property: £25.90 per week, an increase of £1.23 a week
  (Band B properties are the most common in Suffolk)
• Band D property: £33.30 per week, an increase of £1.58 a week.

Cllr Richard Smith MVO, Suffolk County Council’s deputy leader and cabinet member for finance, economic development and skills, said:

“This is a responsible and realistic budget with a clear purpose: to protect what matters most while making targeted investments in Suffolk’s future. It goes beyond simply balancing the books, focusing on strengthening our schools, transport and infrastructure, while keeping essential services stable as we prepare for local government reorganisation in 2028.

“Residents expect high-quality services and careful use of public money, and that is exactly what this budget delivers. Transformation and efficiency across the council will ensure every pound spent delivers value for money – for vulnerable people, for families and for our communities.

“We have proposed a Council Tax increase as part of this budget, and that proposal will be debated in February. It is important to be clear that the government’s provisional finance settlement assumes that councils will raise Council Tax by the maximum permitted each year, leaving local authorities with limited options if essential services are to be maintained.

“Despite these challenging financial circumstances, our priorities are clear: protect frontline services, invest where it will make the most impact, and make the decisions needed to keep Suffolk strong, resilient and ready for the future."

Councillors will consider the plans at a Scrutiny Meeting on Tuesday 13 January 2026, which will be streamed live on the council’s YouTube channel. Relevant papers can be viewed at committeeminutes.suffolk.gov.uk.

The final budget will be agreed by all county councillors at a Full Council meeting on Thursday 12 February 2026.