Suffolk County Council could put up bills by an extra one per cent next year
Council tax payers could see their bill rise further in April after the government eased the cap on rises.
Until now councils have been unable to put up council tax bills by more than two per cent – although this year they can apply for an extra 3pc to cover the cost of social care.
Now the 2pc limit has been increased to 3pc – meaning county councils like Suffolk could put up their element of bills by 6pc.
The change was announced by Local Government Secretary Sajid Javid as he announced the government's settlement for local councils in the House of Commons.
He also announced that Suffolk would be one of 10 counties across the country that would be able to retain 100pc of its business rates as an experiment from April. At present its councils can only retain 50pc of business rates.
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Officials were still trying to digest these changes for Suffolk but county council leader Colin Noble said: 'We are planning for a basic council tax increase of 1.99pc and that is our position.
'But we are now checking the figures and it will go to our cabinet and full council in the new year.'
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He also welcomed the chance to hold on to business rates: 'Suffolk welcomes the Secretary of State's announcement that it has been accepted as a 100pc Business Rates pilot area in 2018-19.
'We are now studying the details of the scheme and will be working with colleagues in the borough and district councils to identify what this means for the whole Suffolk system.'