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| Our budget and your council tax breakdown | | |
| This month, Chelmsford residents will receive information about their council tax for the coming year. Chelmsford City Council collects all the council tax paid in the district, but only keeps 10% of what residents pay. Most (72%) goes to Essex County Council to provide services like adult social care, roads and transport. The police (12%), fire service (4%) and parish tier councils (2%) also receive a share of your council tax to pay for their services. | | 
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| An ‘average’ band D property in Chelmsford | | |
| The council tax Chelmsford City Council receives from residents makes up around a fifth of its income and makes a contribution towards dozens of separate services, from street cleaning to leisure centres. Chelmsford City Council is raising its share of council tax by 2.96% for the coming year to help protect these vital services. This means an average band D property will pay a total of £228.07 in council tax to the city council next year - an total increase of £6.55, or an extra 13p a week. | | 
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| Budget balanced but costs going up | | |
| The city council’s budget has been balanced for 2025/26 but costs have risen dramatically over the last few years and its income hasn’t kept pace. Funding from central Government has been falling in real terms since 2010, and the 10% share of council tax paid by Chelmsford residents can’t match inflation and increased demand for council services, like looking after more than 500 homeless households. The net cost of temporary accommodation to the council in 2025/26 will be £5.2m. In 2020/21, the net cost was just £1.4m. This huge increase of 271% in just five years is reducing the council’s ability to finance other services for residents. These pressures led to a deficit being forecast in late 2024 of £4m for 2025/26. Since then, other Government decisions, such as the rise in employers’ National Insurance Contributions and another increase in the National Living Wage, have led to extra, unfunded costs for the council. | | 
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| Hard choices to close budget gap | | |
| Tough decisions have been needed to both close the budget gap and avoid permanent cuts to council services. In December, Chelmsford City Council reluctantly decided to join most other English local authorities in switching to paid garden waste collections. In 2025/26, around 45% of the council’s income will be from fees and charges and parking charges, with a smaller proportion from council tax and 9% from Government grants. | | 
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| Investments in community facilities | | |
| Investments in the community are being made in the coming year via the council’s capital programme. Improvements and maintenance will take place at some of the district’s leisure centres, including essential works to the roof and cooling system at Riverside Leisure Centre. As part of the capital programme, extra funding is also allocated for a new six-pitch sports and recreation ground at Beaulieu Park, paid for by a contribution from the developer. The council’s contribution to deliver the project comes from other planning obligations specifically made for sports provision in this area, at no additional cost to the council. | | 
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| Financial impact of council mergers unknown | | |
| Last month, Greater Essex was accepted onto the Government’s Devolution Priority Programme following a bid by Essex, Southend and Thurrock councils. This means over the next two to three years, the 15 existing Essex councils are expected to merge into a much smaller number of unitary councils that deliver all services to residents. Although next year's budget has been balanced, the forthcoming financial impact of abolishing Chelmsford City Council and merging into a bigger unitary authority has not yet been costed. Currently the Government expects the financial burden of this changeover to be borne by the councils themselves, which could be several million pounds. Over the coming months, the council will develop a plan to protect services for the remainder of Chelmsford City Council’s existence and leave a new unitary council a good starting position for the future. | | 
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