ECONOMIC turmoil resulting in rising inflation and devaluation of the pound will see costs of major building projects soar in the coming months.
The result of the pound falling to a record low against the dollar has meant the costs for importing materials used for major building projects has risen exponentially.
Councillor Mark Cory said: “It’s up to us to keep the local economy going, but we are now having to deliver on projects that see inflationary costs of ten to 20 per cent.
“Due to the poor management of the economy by the government in the past week or so, we now are going to face increased costs of borrowing.
“We have projects where we have planned the borrowing out and others where we are paying borrowing costs - some of them are fixed and some of them are variable, therefore that will increase cost.”
Colchester Council leader David King added: “Councils can get themselves in a tangle.
We are not in that position, but there are examples of what economic pressures can do to local authority budgets.”
Bid for cross-party support
THE leader of Colchester Council has said he is seeking cross-party support as the authority prepares for major cost increases caused by energy prices and inflation.
David King, who became Colchester Council leader earlier this year, said he will also be inviting former council leaders round the table so they can work together to find the best way forward.
“The way we are doing this is cross-party; an administration has a responsibility and we accept that [but] the way we will refresh our strategic plan and work out change will be as cross-party as we can make it.”
He added if the current coalition lost its majority in the next election, future administrations would have to continue implementing changes.
“A lot will flow beyond next year,” he said.
'How can we do better?'
RESULTS of an inspection conducted by the Local Government Authority (LGA) will be made available to Colchester Council within weeks.
It is hoped the inspection, which took place in September after the council voluntarily requested it from the LGA, will identify aspects where the council can run more efficiently.
Colchester Council leader David King said: “We brought them in to contribute to a process that had started of looking at the essentials, what we do, how well we do it, and where we can improve to give the best services to residents.
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