COLCHESTER Council has warned it may be forced to reduced some services, increase taxes and fees and even consider staff redundancies if the Government doesn’t meet its promise to support authorities financially through the coronavirus pandemic.

The authority’s has been reassessing its budget, with an estimated £9 million strain on its finances due to a loss of income and service pressures during the crisis.

Plans are being drawn up to utilise the council’s reserves to see it through the remainder of the year, but council leader Mark Cory has warned there could be difficult decisions in 2021/22 due to a funding black hole.

He said: “The crisis is rocking many councils and some are going to the wall and are appealing for urgent support from the Treasury.

“We are not in that situation but we do need the support from the Government which we were promised.

“At the moment we are assuming the worst and because of this we are looking at a number of things to help our finances.

“As we have been prudent before we are looking at taking quite a substantial amount from our reserves to cover the shortfall this year.

“We have reserves for rainy days and this is a rainy day. However, we can use them this year but then they will need to be rebuilt.”

Next financial year, the council is exploring ways to save or bring in extra cash to rebuild its finances.

Mr Cory said: “We may need to increase charges for some services.

“Council tax will also be one part of helping us make up some of the gap. We only receive ten per cent of residents’ council tax bill so it won’t cover everything but it can make a difference.

“We may also have to transform services and some of the non-statutory ones may have to be changed.”

He added: “If the Government does not deliver on its promises to support us we are going to face difficult decisions about using resources, raising fees and looking at possible redundancies in the council.”

Details will be discussed at a meeting of Colchester Council’s scrutiny committee on June 1.