A plan outlining how Colchester City Council will continue to meet residents’ needs while staying within budget will be presented to Cabinet at a meeting on Wednesday (29 January 2025).
The report to Cabinet and the draft budget proposals for 2025/26 acknowledges continued and significant budget pressures, but commits the council to balance the books, whilst continuing to deliver essential services, and to invest in the city’s future, amid the complex and significant financial challenges facing councils nationwide.
From a position of financial strength, with significant reserves, the proposals aim to navigate these challenging times while advancing long-term priorities, including environmental sustainability, housing, and infrastructure improvements.
The draft budget highlights the profound impact of the national housing crisis at a local level, with the escalating costs of temporary accommodation placing significant strain on already limited budgets. While the council welcomes the confirmation of additional homelessness funding from central Government, bringing its total allocation to £1.655 million for 2025/26, this will only provide modest relief in addressing an increasingly costly and pressing challenge.
The report also emphasises the challenges posed by a lower-than-expected Local Government Finance Settlement, reinforcing the need for continued lobbying of the Government to secure future multi-year settlements that provide greater stability. It highlights significant uncertainty surrounding the Government’s compensation allocation for the increased cost of Employer National Insurance Contributions announced in the Autumn Budget 2024, with an estimated additional cost to the council of £713,000. Additionally, the proposals include a 2.99% increase in Council Tax, which, if approved, would raise Band D Council Tax from £217.92 to £224.44.
Cllr David King, Leader of Colchester City Council, said: “This draft budget shows our commitment to a sustainable and prosperous future for Colchester. We are prioritising key areas including affordable housing, and community wellbeing. We will continue to invest, in regeneration and our city, to ensure it remains a great place to work, live and visit.
“As we approach the changes brought about by Devolution and Local Government Reorganisation in Essex, this budget must also ensure Colchester is well prepared. To provide the financial stability needed to deliver on our priorities and to position us to take full advantage of future opportunities.”
Cllr Mark Cory, Deputy Leader and Portfolio Holder for Resources for Colchester City Council, added: “This budget has been challenging because of economic factors outside of our control. At every step we have included all councillors and all political parties in briefings and the shaping of the budget and will continue to do so. We have balanced the books with a focus on supporting our residents – accepting that there will be some reduction in certain services.
“But we will also do better, providing investment focus on areas including the environment, housing, infrastructure and continued support for our city centre regeneration.”
The budget proposals will be discussed by Cabinet and Scrutiny Committee members in the coming week, with the final budget set to be approved by the council in February 2025.
Page last reviewed: 27 January 2025