Job cuts planned to plug Colchester authority funding gap
Colchester Borough Council's announced the potential loss of 27 of its staff to help plug the funding gap caused by the pandemic.
Last updated 16th Oct 2020
The authority needs to save £1.7 million in next year's budget due to impacts of Covid-19.
Cabinet members have agreed plans to help save the cash which include the potential loss of 27 full-time posts, and increased fees and charged for services like planning, allotments and car parks.
The council say they face losing over £11 million this year with commercial income expected to be halved.
They added that Government support will help, in part, but this year only.
The Cabinet has accepted that £6.2 million from reserves may need to be used across 2020/22, despite job cuts and savings - it will also still leave them with a £2.6 million budget gap for 2022/23 to plug.
Cllr David King, who's the council's portfolio holder for Business and Resources, said: "The Government has fallen short on its promise to fully compensate councils for the losses and extra costs of dealing with this unprecedented health and economic crisis.
"We appeal to them to help now and from next year onwards, as we face huge income losses not of our making.
"We can, for now, balance the books. We can continue to serve our residents well. But only by deep cuts to planned spend this year and because we are able, due to past prudence, to dig deep in our reserves. But we can only spend those reserves once.
"Protecting frontline services and jobs remains a priority, as we look to reshape the organisation and service delivery with partners and by listening to our staff. We will be imaginative, looking at our ways of working, where we work and our estate for opportunities to balance the books beyond this year.
"I am confident we will find a way and that we will find opportunities in this crisis. But as this next wave of the pandemic and lockdowns show, we all face huge volatility and uncertainty.
"Our budget strategy will change as needed and enable us to identify what else we must do to balance the books and still support the public through these tough times."
Cllr Mark Cory, Leader of the Council, added: "Like many organisations and businesses in Colchester, the council has suffered as a result of Covid and we need to look at transforming and how we make savings.
"The scale of the challenge means difficult decisions are inevitable, sadly.
"We will be working closely with all our staff, especially those potentially impacted by these proposals, and the unions to ensure we give them all the necessary support through this unsettling period."
A public consultation will now be held and further consideration by members will take place in January 2021.