Annual report 2024/2025 - Delivering for Colchester

Colchester City Council provides a wide range of services that residents depend and rely on. Between April 2024 and March 2025, we will have spent around £102 million delivering these services (including payments of Housing Benefit). 

The vast majority of this funding comes from income and grants, with the extra needed to run the council’s services funded through the council’s share of Business Rates, New Homes Bonuses and Council Tax.

How we get our funding

• (£77.6m) Housing Benefit Subsidy, Fees & Charges and Service Grants
• (£14.4m) Council Tax
• (£7.0m) Business Rates
• (£0.6m) New Homes Bonus
• (£2.7m) Government Grant / Reserves

How your council tax is shared across authorities

• (11%) Colchester City Council
• (74%) Essex County Council
• (11%) Police
• (4%) Fire

In some areas of Colchester, a small amount of the council tax collected is for the local parish council. Information on what Essex County Council use their share of the council tax for can be found on their website.

Budget Challenge

We are experiencing pressures on our budgets, more than normal. Colchester is not alone; most councils are facing the same problem. We have a strong track record of financial management, having saved nearly £16 million since 2018, and are working hard to realise savings for a further £6 million budget gap between now and 2026. We need to make some big changes to ensure we can balance our budget.

The reality is that we will need to reduce our operating costs by 25% over the next three years. We are developing plans for a ‘Fit for Future’ portfolio of work, which will see us reshape what we do and how we deliver our services. Find out more about the budget challenge we face, and the action being taken.