The Ipswich Conservatives have said that it “is nothing short of scandalous” as the council said that it had earned approximately £990,000 in four years from the interest on the Towns Fund deal.
The Towns Fund cash has helped pay for schemes like the portal in the town centre.
The council was asked if it could provide an approximate value to the interest earned by due to holding the money for the Towns Fund projects by the Ipswich Tories at a meeting earlier this month.
The response was that money gained from interest was approximately £990,000 but the council confirmed to this newspaper this was a “hypothetical answer”.
Councillor Ian Fisher, leader of the Ipswich Conservative group, said: “This is nothing short of scandalous. The Conservative Government trusted Ipswich Borough Council with millions to regenerate our town, but Labour has dragged its feet.
“While residents see little progress on the ground, the council quietly earns millions of pounds in interest, effectively using regeneration money to prop up its own finances. Ipswich deserves better.”
Councillor Sam Murray, deputy leader of the group, said: “This money was meant to transform Ipswich, not sit in a bank account. Residents were promised change, investment, and a brighter future for the town centre but all they’ve seen is delay after delay.
“The people of Ipswich deserve to see the benefit of this funding now, not watch it gather interest so Labour can hide financial mismanagement while projects stall.”
Councillor Martin Cook, portfolio holder for resources, said: “This response at full council was a hypothetical answer to how much interest might have accrued on the Towns Fund money.
“We use the overall cash we have on any given day to pay for all council services and bills due on that day.
“This keeps our borrowing costs down. Separately, we use our accounting records to keep track of how much budget is available for agreed projects like the Towns Fund (£25m) and use the cash available at the time to pay for it.”
What is the Towns Fund?
Ipswich was awarded £25m of funding by the Department of Levelling Up in 2021 to give an economic boost to the town.
This was to be achieved by revitalising key sites, boosting local business and creating opportunities for residents.
These funds were allocated to 10 projects announced by Ipswich Borough Council.
The projects have included the Ipswich portal, the council’s acquisition of the Grimwades building but also the redevelopment of Arras Square.
