How is the council funded?

A large proportion of the money to fund the services residents need and rely on used to be provided through a core grant from the government. Councils added to this through the Council Tax and other fees and charges.

Each pound of your Council Tax bill is split between Essex Police Authority, Essex Fire Authority, Parish Council, Colchester Borough Council, and Essex County Council

However, this has changed over the years from receiving a core grant to councils being able to keep more of the money they collect in business rates. As a result, over the last ten years Colchester City Council has lost around £11 million in government funding. This has meant we have had to become much more commercially focused through the setting up of Colchester Commercial Holdings Ltd.

Despite the cuts in our funding from government, the council has continued to provide and improve a wide range of services. Last year we spent around £95m delivering services.

Of this £75m comes from government grant, subsidies, fees and charges. The extra £20m net needed to run council services were funded by the Council’s share of Business Rates, New Homes Bonus and Council Tax (£12m).

Of every £1 collected in Council Tax, 12p comes to Colchester City Council.

Page last reviewed: 6 August 2020