Colchester City Council has set a new budget for 2025/26. Full Council last week agreed to administration proposals that, as amended, acknowledge continued and significant budget pressures. The budget commits the council to balancing the books while continuing to deliver essential services and invest in the city’s future, despite the complex financial challenges facing councils nationwide.
With independent assurance that the council’s finances are in a sound position – despite significant challenges with substantial reserves – the proposals aim to advance long-term priorities, including housing and city centre regeneration. Additional support has also been allocated for street cleaning, greening services, and heritage preservation.
The budget highlights numerous challenges faced by the council, including the impact of the national housing crisis at a local level, with escalating costs of temporary accommodation. It also considers the pressures of the lower-than-expected Local Government Finance Settlement, and the increased cost of Employer National Insurance Contributions announced in the Autumn Budget 2024.
The approved budget shows the council will continue to rely on income from multiple sources, including business rates, fees, and charges, as well as a 2.99% increase in Council Tax. This increase, which is below the current rate of inflation, raises B and D Council Tax from £217.92 to £224.44 per year.
Thanking councillors for their challenge and support, Council Leader David King said: “Before local government reorganisation arrives, we are determined to safeguard Colchester’s interests. Our goal is to maintain strong finances while balancing the need for a financial legacy for future leadership. To that end, we will continue reviewing capital projects, assets, land holdings, and housing costs to help relieve budget pressures by year-end. At the same time, we remain committed to investing in the city, the city centre, and much-needed affordable housing.”
Cllr Mark Cory, Deputy Leader and Portfolio Holder for Resources, added: “We have a proven record of managing financial difficulties, despite years of reduced central government funding. I am pleased we have set a budget again, despite the pressures of rising costs and demand. This budget allows us to continue investing in our city, including our play parks, community facilities, and the legacy we leave behind.”
Both councillors reaffirm their commitment to working with all parties to find the most sustainable path forward for Colchester during these challenging times. This comes ahead of the expected local government reorganisation, which, if confirmed, will see existing councils across Essex replaced by new Unitary Authorities by 2028, responsible for delivering the full range of local government services.
Page last reviewed: 3 March 2025