Our budget shapes the services that matter most to people - waste and recycling, leisure centres, housing support, parks, our investment in the city, and much more.
That’s why we want to be open about where we are and what comes next. Our Draft Budget for 2026/27 is in a much better position than forecast, thanks to hard work across the Council and some tough decisions along the way. It means we’re in a stronger place to protect the services you value while continuing to improve how we work.
Where we stand right now
This time last year, we thought next year’s budget gap could be around £3.3 million. After months of careful planning and action, we’ve developed proposals that will close the gap.
We’ve reduced day‑to‑day costs, tightened up how we run our capital programme, cut energy spending, and reshaped parts of the organisation so we get better value for money. None of this has been easy, but it’s working.
The reality we’re still facing
Like councils across the country, we’re still dealing with higher costs, increased demand for services, and the long‑term effects of the cost‑of‑living crisis, plus the costs of Local Government Reorganisation (LGR). That means our medium‑term pressures remain, especially in areas like temporary accommodation and homelessness prevention. We’re not out of the woods yet and must keep modernising so we can live within our means.
What these figures mean to you and your family
When we talk about budgets, it can sound abstract. But for a lot of families, this is about whether their bins are collected on time, play parks can be modernised, leisure facilities are open, or whether support is there in a housing emergency. That’s why we’re investing to keep our services strong. For example, our leisure centres deliver millions of pounds in health and wellbeing benefits to local people every year, helping residents stay active, healthier, and more connected. You can read more about that here: Leisure World centres deliver £58 million health and wellbeing benefits.
What we’re doing next
We’re pressing on with our transformation programme to become a leaner, more efficient, more modern council. That includes investing where it makes sense, maintaining the buildings we own, building new homes for those that need them, and supporting projects that help generate income and protect essential services. Borrowing will play a part in that plan, and we’re taking professional advice to keep it safe and sustainable.
Cllr David King, Leader of the Council, said, "The numbers are moving in the right direction, and that really matters for residents. We’ve tightened our belt, made changes, and focused on the essentials. Because of that work, next year looks far better than we feared just a few months ago.
"We’re still facing pressures, and I won’t pretend otherwise. Costs are rising and demand is growing. But we are managing those challenges and our finances carefully, and we’re doing it without losing sight of the services people rely on every day.
"Our job now is to keep improving and keep making responsible decisions. We’ll continue to live within our means, invest wisely, and be open with residents every step of the way. That’s how we protect Colchester’s future.”
How you can stay involved
Cabinet will discuss the budget on 28 January 2026, and Full Council will make the final decision in February. If you’re interested in the detail, you can read the Cabinet papers and follow the discussion either by attending the meeting or watching the live stream on our YouTube channel.
This is a topic we discuss regularly at our Residents Panel meetings. Find out more about becoming a member of our Panel.
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