The Labour group’s budget amendment has been voted down by Conservative and UKIP Councillors following a meeting of full Council.
The Labour amendment demanded that the council invested in key services to improve care and reduce costs in the long run.
Among the proposals were to maintain or increase spending on children’s services, adult care services, roads and infrastructure, the Fire Service, the library service and the voluntary sector.
The Labour amendment received support from most of the council’s opposition parties, but failed to achieve an overall majority as UKIP supported the Conservatives.
Len Jacklin, Labour spokesperson for finance, said: “These are difficult times for local government, and no one can deny the need to be prudent.
“That is exactly why we brought forward this amendment.
“It is no surprise to us that the more the Tories cut from their planned services, the more they have to spend on picking up the pieces.”
Sandy Martin, Labour group leader, said “We gave Suffolk residents a vision for a County that would have robust services, good quality care and a level of spending that would be financially sustainable.”
The rejection is a particular blow to the Fire Service after a call to reverse cuts to the service and invest in new full-time day crews in Sudbury, so that tragedies can be avoided in the future.
Councillor Martin added: “I’m particularly disappointed for the people of Sudbury who deserve the funds for a new full-time day crew at their fire station, as well as the much-needed road and infrastructure improvements that the town is crying out for.
“The choice ultimately now lies with Suffolk residents. With elections in May, they can bring about the change that is needed at the County Council.”