Suffolk’s debt reaches £1.1 billion
The total debt per person has been revealed
Last updated 26th Aug 2025
Suffolk’s debt has reached £1.1 billion — here’s how your council is doing.
Analysis from the BBC Shared Data Unit of the latest Government figures has revealed an increase in the total debt held by Suffolk local authorities, rising to £1.1 billion by April this year.
Nationally, local authorities hold £122 billion in debt, the equivalent of £1,791 per UK resident.
Debt, in it of itself, is not surprising, as councils often borrow funds to invest in projects such as schools, leisure centres and theatres, as well as to invest in property to bring in extra income.
The analysis said, however, recent rises were driven by an increase in short-term lending from the Government, sometimes being used to fill holes in budgets rather than pay for investments.
But Jonathan Carr-West, Chief Executive of the Local Government Information Unit (LGIU), said levels of debt were ‘extremely worrying’.
Whose debt has increased in Suffolk?
Across the county, three councils have seen an increase in the 12 months leading up to April — Suffolk County Council (SCC), Ipswich Borough Council (IBC) and Babergh District Council (BDC).
Unsurprisingly, SCC has the highest level of total debt, given its extra responsibilities in education and social care, at just under £656 million, 10 per cent higher than last April.
Factored into this figure, a spokesperson said, were investments into extra school places, highway improvements and the opening of Lowestoft’s Gull Wing Bridge.
The spokesperson said the council borrowed responsibly and was still well within limits.
Despite having the highest level, if spread across every person in Suffolk, SCC’s debt is the equivalent of roughly £844.
Instead, the highest level of debt per person comes from IBC, at just under £1,780, in line with the national average.
In total debt terms, this is equivalent to £248 million, the second highest in Suffolk, and more than a 20 per cent increase on last year, £53 million of which is classed as general debt.
Council housing makes up £91.7 million of Ipswich’s figure, which is funded by rents rather than Council Tax, while a further £103 million makes up investments into assets, now producing £3.5 million in income every year.
Cllr Martin Cook, IBC’s lead for resources, said the council’s approach to borrowing was managed by experts, with the authority having avoided being dependent on the high interest rates of recent years.
He said the council was ensuring it had an appropriate level of borrowing and investment to support the delivery of services and other projects, such as the new play area in Chantry Park, the new depot, and the museum refurbishments.
In Babergh, where the BBC Shared Data Unit analysis showed an increase of more than £12.4 million, to over £125 million in total, the council challenged the figures.
A spokesperson said its own report showed a decrease of £8.5 million instead over the same period.
Cllr John Ward, Babergh’s lead for finance, said: “We continue to take a planned, prudent approach to protect vital services and deliver outstanding value for money to our residents.
“However, we and many other councils continue to face serious financial challenges. Government funding has simply failed to keep up with the costs we face and the demand for services our communities rely on – we urge the government to address this.”
What about decreases in debt?
The remaining three councils — Mid Suffolk District Council (MSDC), East Suffolk Council (ESC) and West Suffolk Council (WSC) — have all seen decreases in their debt levels over the same period.
The biggest decrease has come from MSDC, waving more than £13.5 million off its debt bill, down to just under £107 million.
This is still equivalent to about £990 per person in Mid Suffolk, the third highest level in the county.
Cllr Janet Pearson, the district’s finance lead, said the council was one of few in the country to freeze Council Tax this year.
“As a result, we’ve been able to invest in areas like enhancing our town centres,” she added, “providing funds for villages and local groups, community transport and improving our environment.
“However, we continue to recognise the financial challenges councils face, and take a measured, planned approach to ensure we can continue to meet our residents’ needs and offer the best possible value for money.”
In East Suffolk, where total debt decreased by just over three per cent, to £63.3 million, a spokesperson said the reduction was due to an outstanding loan left over from the former Waveney District council, as well as a repayment from a commercial property purchase.
The spokesperson said: “The security of the council’s finances is key to delivering a balanced Budget which protects vital services and invests in future projects for the benefit of our local communities.
“We are committed to achieving the best value for money for residents and aim to minimise the cost of borrowing while getting the most from external grant funding sources.”
The lowest in the county, on the other hand, is found in West Suffolk, with the council’s levels at just £49.71 per person.
Meanwhile, its total debt bill is £9.25 million, by far the lowest in Suffolk, and £250,000 lower than last year, which a spokesperson said showed the council’s prudent stance borrowing.
A West Suffolk spokesperson said: “Debt is managed so that income streams are identified to pay for it before any decision is agreed.
“It also means that councils are investing in the needs of local communities, often to provide much needed facilities to help the area thrive.”
What about when councils cease to exist?
The Government wants Suffolk’s six county, district and borough councils to cease to exist and be replaced by unitary authorities with more powers.
On the table are proposals for a single unitary authority covering the county, or three splitting it up.
Suffolk County Council, which is backing the single authority proposal, said it would allow for millions of pounds to be saved and make the council more financially sustainable, though further reform would be needed.
The districts, backing the three unitaries, said: “How any borrowing and investments from current councils will be treated within a unitary arrangement will be determined as part of the implementation of unitary local government.