THE leader of Colchester Council says he “regrets” having to raise council tax but says it is “responsible management”.

Council tax is set to raise by £4.95 for residents in Colchester borough following last year’s increase of the same amount.

It comes amid soaring petrol prices and grave concerns about a hike in the cost of living.

But Paul Dundas says Colchester Council does not “exist in a vacuum”, stating it is impacted by the world outside “just like any business”.

“Therefore, we must deal with the challenges of lost income and inflationary pressures just like anyone else,” said Mr Dundas, who is an accountant by trade.

Read more: Council tax in Colchester to increase for second year running in new plans

“My main regret with this year’s budget is having to raise the council tax by just under two per cent.

“I believe in low taxes, however inflation is over five per cent and the real cost increase to the council on its running costs is estimated to be nearer ten per cent.

“So, we are upping our income by two per cent when costs are increasing by ten per cent.

“Eventually, if we let that gap grow too much in the next one or two years there will be a crunch. We will either have to reduce services we offer or charge for something we do not currently charge for.

“I do not wish or intend to do any of those things, so would prefer to make the difficult decision now to add nine pence a week rather than having to add £50 to something we currently do for £0 in a year’s time.

“That is what responsible management is about.”

Mr Dundas explained he is proud of what the council has achieved over the past year, stating it has spent £2 million less than what he forecasted, while maintaining all the services in Colchester.

He added: “In the next couple of weeks we will further outline the ambitious plans we have for the next year.

“The budget we will pass this week sets the foundations for being able to do that because it is efficient, financially sound, plans for the long term and leaves Colchester Council in a better place.”