TAX rises, reduced services, use of cash reserves, and lower numbers of staff are just four changes likely to be implemented by Colchester Council as the authority looks to shore up its budget deficit caused by eyewatering energy bills and inflation rates.

A grim economic outlook for the next two to three years has heightened fears in local government that radical change is needed sooner rather than later, with the authority looking to avoid the fate suffered by other councils in recent years.

Although Colchester Council is not facing bankruptcy – which would lead to mass redundancies and major cuts in public services – council leader David King has said major changes are underway as the authority looks to weather the economic storm which will hit the UK in the years ahead.

He said: “We have high, sustained, embedded inflation and what is now clear is that any help from the government is going to be, at best, small.

“We haven’t got a central government settlement through yet but all the signals from the autumn statement are not encouraging.”

With government assistance limited as the cost of delivering services increases, a £3 million deficit has torn through the council budget.

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Capital building projects are likely to face delays and may even be shelved completely, though the council is yet to reveal which projects will be paused.

Also under consideration is an increase in council tax of £7.50 per year, which would generate an extra £400,000 per year.

Although all the senior staff in the council have been maintained, the number of positions has reduced, meaning staff workload will increase.

Though redundancies are expected to be low, staff who leave the authority are unlikely to be replaced in order to reduce the wage budget.

Services which are expensive to run are also likely to see changes – the Leisure World facility may reduce its opening hours and bin collections could be less frequent, though specifics have not yet been confirmed.

Council cash reserves, which currently sit at about £2 million, will also be delved into.

“There’s nothing off limits – this is the beginning of radical change,” Mr King said.