New garden waste charges part of ‘urgent action’ to protect vital services
Chelmsford City Council will next week vote whether to introduce charges for kerbside garden waste collections as part of a range of measures to close its ongoing budget gap. In October, the council’s Annual Financial Review identified a projected total budget shortfall of £13.3m for the period until 2030, and within that, a deficit of £4m for the coming financial year. Government announcements since then have increased the council’s fears that the financial position will not improve in future years.
Chelmsford is the only remaining Essex council able to charge for collecting garden waste that doesn’t currently do so. A report being considered by Full Council on 18 December recommends that an opt-in garden waste subscription service and other increases in fees and charges are now needed to help plug its budget gap and put squeezed council finances on a sustainable path.
Costs increasing but income lagging behind
Earlier this year, the council projected an ongoing shortfall ‘of such significance’ that difficult choices would be inevitable without more support from central government. Like local authorities across the country, this deficit has been exacerbated by a combination of national problems.
Council costs are going up due to rising homelessness, high inflation and the impact of higher interest rates. Income, on the other hand, is lagging behind these extra costs. Chelmsford City Council estimates that it has ‘lost’ government funding of around £11m a year since 2010/11. As government grant funding has been cut, district councils are having to depend more on income they can raise locally.
£4m budget gap to fill for 2025/26
The Review of Fees and Charges report being considered by Full Council provides an update on efforts to tackle the council’s budget gap. The Annual Financial Review in October reported a deficit of £4m for 2025/26, even after taking anticipated cost savings, government funding, increased Council Tax and revenue from fees and charges into account.
Funding from new levy on packaging producers
Since then, the Government has made several announcements, including confirmation of the introduction of ‘Extended Producer Responsibility’ (EPR) funding for councils – a levy paid by packaging producers to fund the cost of managing packaging waste. Although this £1.7m funding will make a welcome contribution towards closing the council’s immediate £4m budget gap, the net gain to the council is likely to be somewhat less than £1.7m.
New costs from Chancellor’s Autumn Budget
The report explains that this is partly because the Chancellor’s Autumn Budget introduced more costs for councils, with an unfunded rise to the National Living Wage deepening the council’s predicted deficit. The Government has also indicated that, in 2026 and beyond, Government funding for councils will be redirected to areas that are seen to be in greatest need. This could lead to further reductions in Chelmsford’s funding.
New fees crucial to prevent cuts
With government funding expected to meet less than half the council’s deficit, a new garden waste subscription and increased fees and charges remain the only other, viable options to prevent cuts to council services. The report estimates that a new garden waste subscription, set at a similar level to other Essex council schemes, could generate around £1.3m a year. Increases in parking and crematorium fees are projected to contribute a further £0.977m in 2025/26.
Cllr Chris Davidson, Cabinet Member for Finance, says urgent action is needed to protect services.
““We’re pleased to see waste packaging funding for local authorities finally delivered as it has been talked about for some time. But there is little to suggest that this funding, currently promised for only one year, will significantly transform our position. This ‘extra’ money may not go very far once we know the full impact of the Government’s funding settlement for Chelmsford.
Cllr Chris Davidson, Cabinet Member for Finance
“After more than a decade of falling government support for councils, it’s too little, too late to make a significant difference. In future years, the Government has also indicated that areas like Chelmsford, felt to be doing well, can expect to receive less rather than more. This means we have little choice but to raise more through charges in order to safeguard services.
“There is no legal obligation to provide leisure centres, high-quality parks or a local market but we know that residents value them, and they make Chelmsford the place it is. So, we are putting forward a range of increases in fees and charges and a subscription service already introduced by our neighbours. We would rather do that than cut services that matter to Chelmsford people.”
Garden waste charge proposals outlined
The report has further details of the garden waste opt-in service that will be introduced from March 2025, if Full Council votes for the changes on 18 December. The proposal is a yearly charge of £60 for a kerbside brown bin collection. This is equivalent to £5 a month for a single bin, priced at a similar level to schemes introduced by other Essex councils. As most eligible residents already have brown bins, no joining fees are proposed in addition to the yearly subscription. Households receiving Council Tax Support would pay a reduced annual charge of £45. Adding a second brown bin would cost a further £30.
““We’re the last Essex council not to charge for collecting garden waste that’s able to do so. Very reluctantly, we have little choice but to follow our neighbouring districts (and most other councils across England) in switching to a subscription service.
Cllr Chris Davidson, Cabinet Member for Finance
“We’re proud to have offered this service for free, for so long, but we are entering a new era of what councils can deliver. We will do all we can to protect the services that make Chelmsford the place we love, but difficult choices must be made.”
Suggested increases for some other charges
Although an important measure in closing the budget gap, a garden waste service is not expected to achieve this on its own. Increases to car parking tariffs are also proposed as part of this yearly review of fees and charges, with short stay charges to increase by around 10% and full-day charges to increase by 50p. Charges will also increase at Chelmsford Crematorium, where fees are usually set in line with other crematoria in Essex and East London. This year, some prices will also reflect the need to purchase more land as the cemetery runs out of space.
Full Council to consider new charges on 18 December
Full Council – the council’s main budget-setting body – will consider the Review of Fees and Charges when it meets on Wednesday 18 December. At the meeting, councillors will decide whether to back the proposals. You can see the agenda, including details of how to watch a livestream of the meeting, on our website.
Chelmsford City Council will receive news about its government funding for 2025/26 just before Christmas. This information will be used to update its forecasts and present its budget report in early 2025.
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