Councillor Ian Fisher calls on Ipswich Borough Council to allocate £306,000 from reserves to aid businesses facing tax relief cuts.
Why does he suggest this change? The Labour government changed tax relief, which impacts small businesses in hospitality, retail, and leisure. Relief drops from 75% to 40% in 2025. Fisher thinks it could cost £765,000.
He asks the council to help by using £306,000 from their reserves. This would help businesses cover the losses. The council will discuss and decide the budget soon. A meeting will happen on Wednesday; the executive approved it last week.
Fisher thinks the situation is urgent because the council has £2.3 million set aside specifically for business rates. He believes using some now is smart, because delaying action could make it worse. The council gets 40% of business rates. Fisher wants them to give up part so it would go back to the town’s businesses.
He says the council can afford it and mentions they have significant reserves, which should be £15 million in March 2025. Predictions show £15.3 million in four years; using the money keeps reserves steady. He thinks it’s possible with political will.
The council keeps 40% of business rates collected, while Suffolk County Council receives 10%. The central government gets the largest share, 50%. Fisher focuses on the council’s portion and wants them to use it to help local businesses.