Council tax payers in Essex will get a boost thanks to a handout from the Government.

A £2.8 billion increase in funding for key services nationwide has just been announced by Local Government Minister Hilary Armstrong.

Essex County Council is being awarded £692 million - an increase of 5.5 per cent on last year. This is direct cash grants from the Government to provide services and is topped up by income from the council tax.

The county council's standard spending assessment - the amount it estimates the council should spend to provide a good service - has been set at £984.8 million, which is 5.8 per cent more than last year.

A spokesman from the council's treasury said the figures were what was expected.

Colchester Council is celebrating a total Government package of £10.7 million - a 7.4 per cent increase on the current financial year. This will go some way to plugging the council's predicted £800,000 budget gap.

The council's corporate finance manager Nick Skinner said the council had been expecting a 3.5 per cent increase and the increase is one of the highest in the country, providing £741,000 more than last year.

But it is too early to say what the impact on council tax bills may be. The final figure will be set by the Government in the next few weeks.

The Government has increased funding to authorities in England by 6.7 per cent.

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