TOWN Hall bosses are to use cash reserves to weather the coming financial storm.

Tendring Council said unlike some other local authorities in Essex, it is “well-placed” to meet the challenges brought about by the economic climate.

A report that went before the council’s cabinet on Friday set out plans to use some reserves, stand-by project budgets and savings to meet cost pressures, which total almost £3.4million this financial year and £4million next year.

It said some of the pressures are one-off issues, such as fuel and energy bills, while others – such as wage costs, inflation charges on contracts and rising costs on things including insurance premiums – will need to be budgeted for each year.

The initial budget proposals also set out a £5 rise in the council’s share of council tax next year, which means the average Band D home will pay £187.64 in 2023/24 to the district council.

Carlo Guglielmi, deputy leader and cabinet member for finance, said: “Reserves are there for a rainy day, and while we have worked hard to avoid dipping into those in the past, that rainy day is now here and we will be expected to use some of our reserves to tackle the challenges we face.

“Using our assets in this way means we can continue to focus on our priorities, but it does not mean we will be immune to having to make tough decisions in the coming months.

“Thanks to our careful financial management and making the right decisions over the past several years, we are in a strong position to move off from when looking at how we address the current challenges which are largely beyond our control.”

But Harwich Labour councillor Ivan Henderson said the challenges are due to successive cuts in grants to local councils from the Conservative Government.

“They have taken so much away from councils that they are now struggling to maintain existing services,” he said.

“Things aren’t going to get any better until we have a Government that respects local Government and want to invest in local services. We need a General Election.”

The final budget will go before the full council in February.