PEOPLE in Ipswich are facing a further increase in the cost of living after town chiefs decided on what tax increase it will levy on residents.Ipswich Borough Council has proposed to increase its share of the council tax by 2.

PEOPLE in Ipswich are facing a further increase in the cost of living after town chiefs decided on what tax increase it will levy on residents.

Ipswich Borough Council has proposed to increase its share of the council tax by 2.95 per cent in the coming year.

This will mean a 20 pence a week increase for Band D home-owners, although the majority of residents live in Band B properties and will face a 12.6p weekly increase.

The 2.95 pc increase comes on the back of a 3.75 pc rise in the county council's portion of the tax, and is above the government measure of inflation, the consumer price index, which is running at about 2.2 pc.

The joint Conservative and Liberal Democrat administration also recommends a rise in fees and charges for many services of 3.1pc.

Councillor John Carnall, responsible for finance, said: "We are determined to do our best for Ipswich residents by keeping the council tax rise as low as possible.”

He said the increase was below the level of inflation measured by the retail price index, which is currently 4.1 pc, but is not the government measure.

“This is the fourth year running that we have brought in below inflation rises,” he said.

"We are especially pleased to have achieved this after we were given a financial settlement from the Government of just 1.8pc - well below the 7pc awarded to the county council.

"We are also determined to raise the level of services, providing increasing numbers of affordable homes and continuing to support important facilities such as the Regent Theatre and the Corn Exchange and to invest in protecting our environment.

“We cut waste and red tape, not services."

Ipswich Borough Council's share of the total council tax bill is around a fifth: the overwhelming majority of the cash goes to the county council and the police authority.

The proposed budget will be discussed at a meeting of the council's executive being held today before going to a full council meeting later this month for final approval.

Is the council tax rise justified? Write to Your Letters, Evening Star, 30 Lower Brook Street, Ipswich, IP4 1AN or e-mail eveningstarletters@eveningstar.co.uk