Budget challenge

The cost of living crisis, alongside the recovery from the Covid-19 pandemic and rising energy costs have placed significant pressure on the council’s budget.

What is the consequence?

Colchester is in a better position than some local authorities, but (like most other councils) we have a substantial structural deficit in our revenue budget.

The scale of the pressures we are facing cannot be met by reducing costs, making efficiencies, or raising council tax, like we have in the past. Continuing as we are, is not an option. We need to make some big changes to ensure we can balance the budget.

We must transform the way we work. If we don’t transform our organisation, to make sure we are spending within our means, we may, in future, be in a similar position to Thurrock and Birmingham councils and may have to issue a S114 Notice, to let the government know we will be unable to balance our budget.

The issuing of a S114 notice bans all new spending except for protecting vulnerable people and statutory services and pre-existing commitments.

We hope not to get anywhere near that point.