Budget challenge

In March, the Government is expected to announce its decision about the configuration of new unitary authority areas in Essex, that will see Colchester join with other councils to create a new unitary authority. As part of this process, restrictions will be placed on the council’s spending, and so this budget is probably the last to be set by Colchester City Council that is not constrained by local government reorganisation (LGR). 

Although the precise arrangements are not yet known, during 2026/27, the council is expected to move to a form of joint governance with other councils in the new unitary for any substantial financial decisions. Despite the improved outlook, maintaining financial discipline will be essential in the coming year, as the council begins this process. 

Visit the Essex LGR Hub to find out more about reorganisation.