Following Wednesday’s (18 December 2025) announcement in the House of Commons, Councillor David King, Leader of Colchester City Council has issued the following statement:
“As Leader of Colchester City Council, I welcome this funding settlement because, for the first time in many years, councils have some certainty about funding over a three-year period. This helps us plan and protect vital services.
“However, it’s important to be clear about what this means. Headlines suggesting Colchester will receive £5 million immediately are misleading. That figure is spread over three years, not one.
“In the first year, we expect some £1.1M from Government – welcome but modest given our costs are rising like every business and household.
“While this additional funding helps halts the decline in funding after years of austerity, the challenges remain significant. Rising demand for temporary accommodation, with nearly 500 households now being supported, and the financial impact of Local Government Reorganisation will continue to put strain on our budget.
“We will still need to make savings, drive efficiencies, and change how we deliver services to remain Fit for the Future.”
This settlement is currently out for consultation with councils and will only be confirmed when it passes through Parliament in January or February 2026.