Colchester City Council in Essex released an official statement on 23 March 2026 acknowledging past delays in checking its financial records while highlighting new steps taken to protect public money. The update explains how the council is strengthening its internal systems and governance to ensure long-term stability for residents.
The council is one of 68 local authorities across the country flagged by the government for being behind schedule with its external audits. Professional auditors were previously unable to confirm if the council’s accounts for the years ending in 2021, 2022, and 2023 provided a completely accurate reflection of its spending due to national issues with audit capacity.
Despite these challenges, the council has saved nearly £16 million since 2018 from an annual budget of £26 million. While a £3.6 million budget gap was forecast for the 2024/25 period, the council has already identified £5.8 million in savings and extra income from new fees. A follow-up review by the Local Government Association in September 2023 confirmed that the council has made significant progress in fixing its internal systems.
Council leader David King and finance officer Anna D’Alessandro are currently working with new auditors at KPMG LLP to complete the remaining financial reviews. These improvements come just before the final local elections on 7 May 2026, after which the council will be replaced by a new authority as part of a wider local government reorganisation.
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