Budget challenge
Contents
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 add to this through Council Tax and other fees and charges.
However, this has changed over the years. We stopped receiving a core grant from government and are now limited to the amount of Business Rates we can keep. This means we have had to become much more commercially focused, increase income and make savings to help us pay for core services.
Despite the cuts in our funding from government, we have continued to provide and improve a wide range of services.
In 2024-2025 we spent around £102m delivering services. Of this, £80.3m comes from government grant, subsidies, fees and charges. The extra £21.7m net needed to run council services were funded by our share of Business Rates, New Homes Bonus and Council Tax (£22m).
Of every £1 collected in Council Tax, 11p comes to Colchester City Council. Out of that money, we provide a range of services that residents depend and reply on.
However, this has changed over the years. We stopped receiving a core grant from government and are now limited to the amount of Business Rates we can keep. This means we have had to become much more commercially focused, increase income and make savings to help us pay for core services.
Despite the cuts in our funding from government, we have continued to provide and improve a wide range of services.
In 2024-2025 we spent around £102m delivering services. Of this, £80.3m comes from government grant, subsidies, fees and charges. The extra £21.7m net needed to run council services were funded by our share of Business Rates, New Homes Bonus and Council Tax (£22m).
Of every £1 collected in Council Tax, 11p comes to Colchester City Council. Out of that money, we provide a range of services that residents depend and reply on.
Page last reviewed: 12 March 2025