A DECADE of austerity means Government funding for Southend has been “decimated”, leaving with town with a £23million blackhole,

Ian Gilbert, Labour leader of the council, claims Government cuts over the past ten years has resulted in a 93 per cent reduction in funding, with grants slashed from £63million to just £6million.

Council documents also reveal further cuts combined with the growing demand on services could lead to a funding gap of as much as £23million by 2025.

Speaking at a full council meeting, Mr Gilbert told councillors: “A decade of austerity means raising council tax is inevitable.

“It is not something I want to do, but it is the right thing to do.

“For the first time in ten years the main grant we receive from Government will not be reduced and will rise by Consumer Price Index, or £100,000.

“I have seen in some quarters a suggestion that this should be seen as a reason to celebrate.

“Yet to say the main grant we receive from Government has been decimated in the last ten years would be an understatement.”

Documents show council tax will continue to rise by at least 1.99 per cent year-on-year as the authority becomes more reliant on the tax, as well as one-off grants and long-term investments as a source of income.

However, councils will receive extra funding from the Government through the retention of 75 per cent of business rates.

Mr Gilbert added Southend Council had been able to deliver the budget without having to cut frontline services but implied there had been a significant impact internally.

He said: “While we have managed to propose a budget that does not cut any front-line services, the council cannot stay the same.

“Change is inevitable. Some departments are going through difficult changes now, and I do understand that is painful.”

Deputy leader,Ron Woodley said: “Some department will have to go through a transition change because we are looking at departments and where they need to be reorganised. Although no job losses are forecast, some departments will have to look at how to reorganise to give service we are looking for residents.

“We’ve had a £58million drop in funding. For the next financial year that £6million is carried forward but in previous years we’ve had a £58million funding drop.”

“Demand is growing on adult social care and on children’s services and that is what is making it more difficult and eventually we will probably loser that £6milion after next year.”