Colchester City Council has published its draft budget for 2026/27, setting out how it will continue to deliver for residents while navigating one of the most challenging financial landscapes in decades.
A report outlining potential savings will be discussed by the Scrutiny Panel on Tuesday, 9 December, with recommendations going to Cabinet on Wednesday 10 December. These savings will form a revised Fit for the Future programme, building on the transformation and efficiencies delivered already.
In early 2024 the council launched Fit for the Future (FFF), a bold and fundamental transformation programme designed to reimagine how it operates as a council. With the aim of reducing operating costs or raising income by 25% over three years to secure the long-term sustainability of our organisation.
Despite significant progress, securing savings of some £3m a year, the council faces ongoing pressures that require further action. Rising costs and demand for services, are placing unprecedented strain on our finances – particularly homelessness temporary accommodation, which now accounts for almost 10 per cent of the council’s net expenditure.
The draft budget outlines a comprehensive approach to delivering some £5.8m of essential savings proposals that will enable the council to cope with rising cost pressures and to close an underlying £3m budget gap for 2026/27, by:
· Continued transformation and efficiency measures.
· Income generation through fair pricing for services.
· Strategic asset disposals to reduce borrowing costs.
· Careful use of reserves to protect financial resilience.
Lindsay Barker, Deputy Chief Executive of Colchester City Council, said: “We have worked tirelessly to strengthen our financial foundations and deliver transformation that benefits residents. However, the economic environment and rising demand for housing mean we must go further. Our priority is to protect essential services while preparing for Local Government Reorganisation and leaving a strong legacy for Colchester.”
Cllr David King, Leader of the Council, added: “We remain committed to supporting our communities, to keep providing key services, and to invest in our assets but we face another tough year balancing the books
“Budget setting is never easy, but with as much cross-party support as possible, we must live within our means. Taking out cost and seeking better value in all we do. Determined to deliver improvements where we can, to leave our city well placed for the future.”
The council’s draft budget will be considered by the Scrutiny Panel on 9 December and Cabinet on 10 December, with final approval scheduled for February 2026.
Residents and businesses are invited to share their views by completing the budget consultation, which will run until 9am on 8 December: https://www.colchester.gov.uk/budget-consultation/
To view the Scrutiny Panel report, visit the council’s website.