Earlier this week, I had the opportunity to update Members at Full Council on our budget position - and I’m pleased to say that Essex County Council remains in a strong and stable place.
It’s no secret that local government finances are under pressure nationwide. But here in Essex, our careful planning and disciplined approach are paying off.
We’re currently forecasting an overspend of £5.6 million. This is just 0.5% of our total £1.2 billion budget. It’s also an improvement on our position this time last year, when we delivered a balanced budget. It’s a clear sign that our financial strategy is working, and that teams across the council are managing resources effectively despite challenging conditions.
That doesn’t mean there are not significant challenges. Like other local authorities, we’re seeing rising costs in Children’s Services, particularly around placements. In addition, the support we provide to children with Special Educational Needs and Disabilities (SEND) continues to far exceed the funding we receive from government.
We’re also feeling the impact of broader economic pressures, including high inflation and interest rates. But Essex’s position remains comparatively strong. This is thanks to the choices we’ve made, the discipline we’ve maintained, and the teamwork that runs throughout our organisation.
Looking ahead to the 2026/27 budget, our priorities remain rooted in Everyone’s Essex - our plan for a stronger, fairer, and more sustainable county. That means:
• protecting frontline services
• delivering our transformation savings
• using procurement to drive social value and support the Essex economy
• continuing to deliver our capital programme
• staying ahead of emerging challenges and not just reacting to them
Yes, there is a budget gap to address. But residents and businesses can be confident that we are focused, prepared, and committed to delivering for our county.
We’re delivering for Essex today. We’re planning for Essex tomorrow. And we’re reshaping the council to be fit for the future: financially, operationally, and strategically.
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