Council Tax increase of 3.75% announced in Essex's £2bil Budget
An additional £12.3 million funding boost for highways has also been announced
The council’s 2025/26 budget plans have been announced today (13 February) including a Council Tax increase of 3.75%.
This includes a 1.75% general increase and 2% increase in the adult social care precept.
For an average Band D property, this would mean an increase in the county council element of Council Tax of £1.09 a week.
The council’s budget and annual plan for next year were presented to and formally approved by county council members at a meeting of the Full Council.
An additional £12.3 million funding boost for highways has also been announced as part of the budget.
The extra funding for highways improvements will be allocated across several areas, including:
£8.5 million to continue the Members’ Highways Initiative
£1.6 million increase in the road safety budget
£1.3 million for improvements to cycle paths
£500,000 new funding to repair damaged road signs
£400,000 extra funding to improve drains and reduce the risk of flooding
It's as the top concern for residents and businesses across the county was voted the condition of roads and pavements (Residents 64%, Business 67%)
The concern with the second number of votes was levels of crime (Residents 26%, Business 40%).
In 2024/25 significant additional funding was invested in priority highway repairs and maintenance.
"This year’s budget will allow much of that progress to continue, while also providing a funding boost to other areas of highway improvements" says Councillor Tom Cunningham, Cabinet Member for Highways.
Councillor Chris Whitbread, Chancellor of Essex, said he's had to make "difficult decisions" with the budget being set "within extremely challenging economic circumstances nationally."
"The impact of high inflation and the increasing costs of providing services are undoubtedly taking a toll on local government finances."
Last week, the Government confirmed that Greater Essex would be part of its devolution priority programme and can move forward with local government reorganisation.
Councillor Whitbread, added: “Our budget will enable us to keep doing this as we work with the Government on future council structures and funding models."
The council has also committed to updating the financial and wellbeing support available to foster carers, with carers fees going up by an average of 16%
Foster carers, including those who join in 2025, will also benefit from increases including:
- increases to specialist fees (including ambassador and buddy roles)
- dedicated funding for support networks
- a £2,000 one-off loyalty bonus to households who fostered during 2024
- a £2,000 welcome bonus to new fostering households during 2025
During the Full Council meeting, Nicole Wood was also formally confirmed as the council’s new Chief Executive, officially taking over from Gavin Jones who announced his retirement last autumn.
Also announced at the Full Council meeting was the £1.3 million Essex Year of Opportunity, for people to "gain new skills and pursue exciting career opportunities".
Details of how the additional funding for highways will be allocated will be confirmed in due course.