Households in Essex are set to pay more in council tax from April after county leaders approved an increase aimed at easing mounting pressures on care services, particularly for children. The Essex County Council’s cabinet has agreed to raise council tax by 3.95%, a move expected to generate an additional £36 million annually as the authority deals with rising demands and costs in social care. Two-thirds of the council’s budget is now allocated to adult and children’s services, leaving limited room for further financial strain.
Council leaders argue that the increase is necessary to protect frontline services and safeguard vulnerable children. Cabinet member Chris Whitbread described setting the budget as “a challenge” but insisted the authority remains committed to delivering care while adjusting service delivery methods.
Alongside the tax rise, the council plans to deliver £40 million in savings over the next year by reducing certain activities and changing how services are provided. However, opposition parties have raised concerns about the potential impact of these savings, particularly on children’s services. Labour councillors warned that more than £30 million of savings would come from areas linked to children’s care, arguing that the full consequences were not yet clear. Liberal Democrats also questioned whether cost-cutting could undermine the quality of care provided to vulnerable children.
Council documents show that savings in children’s services will include negotiating lower costs with external care providers and increasing the use of foster placements instead of residential care. The authority currently supports over 5,700 children and young people through social care alongside 16,500 adults.
Despite the council tax increase, longer-term financial pressures remain significant. The council’s projected budget gap for next year has doubled to £110 million and is expected to rise to £279 million by the end of the decade, largely driven by children’s services and growing demand for special educational needs and disabilities support.
The council will use £6 million from its reserves to balance the budget in the short term but acknowledges that future years will be increasingly challenging. The full budget, including the council tax rise, will be debated and voted on by all councillors next month.