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Job cuts likely as Essex County Council faces £170m budget gap
Overview
Essex County Council has forecasted a budget gap of £170m for next year, with its Reform UK leadership warning that job losses and redundancies are likely among its 9,000 employees. Council leader Peter Harris attributed part of the financial pressure to a £50m cut in government grant funding resulting from a new funding formula, alongside rising demand for children's services.
Key points
- Essex County Council is facing a projected budget gap of £170m for 2027-28, with a total budget expected to be £1.4bn.
- Council leader Peter Harris stated that the financial situation is likely to result in a reduction of job posts and redundancies among the authority's 9,000 staff.
- The council has written to the Labour government regarding a £50m reduction in grant funding caused by a new "fair funding" formula.
- Growing demand for children's services has contributed to the budget gap, with a forecast £61m increase in spending for 2027-28 compared to previous figures.
- The council also plans to re-examine its work-from-home arrangements for staff as part of the upcoming budget review.
