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Council balances budget but warns of tough times ahead
Like many other local authorities, *Chelmsford City Council is tackling the toughest budget position it has ever faced*, caused by acute financial pressures being felt all at once. Chelmsford is in a better position than most, but even cautious councils are feeling the pinch.
Next year’s budget has been balanced through a mix of measures, such as belt-tightening, an increase in fees and charges and by using some of the council’s rainy-day reserves, but these lifelines won’t all be available forever.
The city council will do all it can to protect the vital services it delivers to residents, which include kerbside recycling and street care, parks and green spaces, leisure and cultural venues, and community safety, but there will be difficult choices for every council in the years to come.
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A mix of big challenges
*High inflation*, a sharp rise in the demand and *cost of homelessness services* and more than a decade of *falling government support* are all placing a big strain on council finances.
The Consumer Prices Index has been around 3.9% over the last 12 months, and 10.7% the year before. This means that along with everyone else, the council has to pay more for the same things. *Council energy costs, for example, have risen from £1.3m in 2021/22 to £3m in 2024/25*. Government funding to local authorities, however, has not kept pace with inflation. Chelmsford’s revenue core funding from the Government is £11m per year less now than in 2010/11 had it been linked to inflation.
Another challenge is the recent rise in homeless households in the district. Chelmsford City Council has a legal duty to provide housing for anyone officially classified as homeless and a big increase in the cost of these services has added* £3.7m of costs to next year’s budget. *Emergency reserves have been used to fund part of this extra cost.
TA update Jan 2024
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Our spending in 2024/25
This graphic shows *how the council will be spending its cash budget* in the coming year. With the cash (revenue) budget under strain, some planned spending on projects in the council’s investment (capital) programme has been either deferred or shelved for now. But the council will continue to make some important one-off investments in local facilities, including *improvements* to *High Chelmer Multistorey* and *Fairfield Road car parks*; *better lighting at The Stables car park* close to Hylands House; *enhanced floodlights for pitches at Chelmer Park*; and works to *modernise* *the pool heating system* and save energy *at South Woodham Ferrers*.
A CHESS Homeless project to support some of the district’s most vulnerable residents by creating *24 new units for single homeless people* will receive funding through a housing grant of £350,000. Additionally, programmes such as improving the environment by *planting trees* will continue, as will plans to *refurbish children's play areas* and to build *at least 58 new, genuinely affordable flats and houses for Chelmsford families*.
\Where we spend our budget 2024/25
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How your council tax is shared
*Chelmsford City Council* collects all the council tax paid in the district, but *only keeps 10% of what residents pay*. Most (73%) goes to Essex County Council to provide services like adult social care, roads and transport. The police (11%), fire service (4%) and parish tier councils (2%) also receive a share of your council tax to pay for their services.
Council tax split 2024/25
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Council tax for an ‘average’ band D property in Chelmsford
Chelmsford City Council has increased its share of council tax by 2.99% for 2024/25 to help protect vital services and ensure that some of the costs of high inflation can be met. This means that *council tax payers living in an ‘average’ band D property in our district will pay around an extra 12p a week for city council services*.
The council tax that Chelmsford City Council receives from residents makes up around a fifth of its income and helps to pay for more than 30 separate services, from kerbside waste collection to leisure centres. In 2024/25, a typical band D property will pay Chelmsford City Council around £221.52 a year for all of its services.
Typical band D split 2024/25
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Council tax support
You can apply for a council tax reduction to help you pay your council tax if you’re on a low income or claiming benefits. Visit our website [
] for more information about council tax reductions, along with details about other discounts and exemptions [
].
If making ends meet is hard at the moment, there is also cost of living advice in on our extra help for residents [
] page.
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This email was sent to david.dawson@trustedcarcheck.co.uk using GovDelivery Communications Cloud on behalf of: Chelmsford City Council · Chelmsford Civic Centre · Duke Street, Chelmsford, Essex, CM1 1JE · (01245) 606440 GovDelivery logo [
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