COLCHESTER could become hundreds of millions of pounds worse off as a result of the cost of living crisis, according to analysis published by a concerned councillor.

New data gathered by Colchester’s Labour group, based on research from the Resolution Foundation, predicts bleak times ahead for the city.

The findings fear Colchester residents are set to be collectively £167million out of pocket due to the staggering impact of the cost of living crisis on the local economy.

The independent think tank believes families in the area will each be £2,100 worse off come the end of two years of soaring inflation and dwindling wages.

READ MORE: Nurses apologise over postponed appointments but stress importance of strikes for NHS

READ MORE: 'Left behind' area of Colchester to undergo makeover after city secures £19.6m grant

Adam Fox, Labour’s Colchester councillor for Old Heath and the Hythe, says the disappearing cash could be used to power local businesses and create jobs.

“The cost of living crisis isn’t just hammering families in Colchester, it’s taking millions out of the local economy,” he said.

“Families and businesses in Colchester need a real plan to help get them through – and Labour has a plan.

“We’d end the sticking plaster politics and bring about the long-term change this country needs.

“That means a Green Prosperity Plan to create good sustainable jobs by investing in areas like ours and real reform to get people back into work.

“It means transferring power out of Westminster so communities like Colchester can take decisions for ourselves.”