The first Council Tax rise by Forest Heath for seven years was approved yesterday by the council’s Cabinet.
The budget plan, which must be approved by the full council next Wednesday, is for a 3.6 per cent rise of £4.95 a year to bring in £87,000.
It would make Forest Heath’s share of the tax bill for a Band D home £142.38.
The plan also calls for investments to bring in future cash to make up for the Government’s Revenue Support Grant, which was £2.5 million in 2013, ending by 2020.
Forest Heath and St Edmundsbury say they will face a shortfall of £3.3 million by 2020 if they do not invest.