Colchester Council bosses have warned of huge cuts to public services after the Government announced a 15.5 per cent cut in its grant.

The council had already anticipated a grant cut of about ten per cent, but the 15.5 per cent figure, which amounts to about £1.7million, is much higher than planned.

Colchester councillor Paul Smith, who is responsible for resources, said: “We have already got meetings planned for cabinet to discuss it and we do have the benefit of a consultation with residents, earlier in the year, where we asked them which services and resources they valued most.

“However, difficult decisions will have to be made and there is no doubt it is going to be a very difficult year, but we have always known it would be a hard settlement.

“We are as prepared as we can be to deal with this, but there is no escaping the fact this is bad news.”

Grants from the Government make up about 40 per cent of Colchester Council’s overall budget.

The 15.5 per cent cut to the grant represents about a 7 per cent reduction in the council’s total spending power.

Mr Smith said Colchester Council had fared better than other Essex councils, but it still faced extremely difficult decisions.

At a meeting last night of the strategic overview and scrutiny panel, councillors said it was too soon to discuss the issue, but the cabinet will be looking at specific areas where cuts will have to be made tomorrow.

The final budget report is due to be considered by the cabinet on January 26.