Overall council tax bills in Ipswich are set to go up by fractionally under 2% from April.

The Labour-controlled borough is set to approve a 1.97% increase in council tax bills at its meeting next week – which when added to the 2% rise by the county council and the 1.96% rise from the Police and Crime Commissioner means that the overall rise will be 1.99%.

That will add £25 to the annual bill for a Band B home in Ipswich – and just under £20 to the annual bill for a Band A home.

Homes in those two bands make up 70% of the total housing stock in the town.

Ipswich council leader David Ellesmere said the 2% council tax rise was probably the least controversial element of the budget that would be discussed at next Wednesday’s meeting.

He said: “The government has made it quite clear that it expects councils to put up their bills by 2% and that is what is happening to authorities across the country, whoever is in power.”

The borough is using 1% of its element of the increase – about £2.50 per Band B home – to fund the continued free collection of brown composting bins across the town.

Mr Ellesmere said: “That is an increase that has been forced on us by a decision by the county council, but we know residents value the service and will see paying £2.50 a year in council tax as a better deal than paying £50 a year specifically to have their brown bins emptied.”

The council has maintained its capital spending plans – including its commitment to part-finance the redevelopment of Ipswich Cornhill.

But Mr Ellesmere warned that in future years the authority could be forced to make further cuts as the rate support grant paid by government is phased out and they are left having to pay a levy to the Treasury.