ESSEX County Council has said it faces an "existential threat" as it battles to bridge an "unprecedented" budget gap – rising to almost £500m in four years.

The council is looking at budget gap of nearly £170 million in 2027/28, rising to £280m in 28/29, £384 million in 29/30 and to £476 million pounds by 2030/31 if it takes no further action.

Cabinet member for finance Cllr Bo Davis added the growing pressures in social care services are the main drivers of the budget gap – around 70 per cent of the pressure in 2027/28 relates to social care with significant increases forecast in both adult social care and children's services and in particular, the continued growth of children's placement.

In 2027/28 an extra £45m is expected to have to be spent on adult social care, an extra £64m on children's care, an extra £15m on home to school transport and £32m in children's placements. He told the leader of the Lib Dem group Councillor David King and leader of the Tory group Councillor Lee Scott he was willing to talk across the political divide.

Cllr Davis added: "This is an unprecedented amount of money that we're trying to find – savings and efficiencies. We're working closely with officers who are working tirelessly on this and we're going to come up with a plan.

"But this is not a political thing for me. It's not a point scoring thing. It's why I reached out to you both. It's why I reached out to the independents. The people of Essex deserve us as a council to come together and get this done. It is the biggest most existential threat this council has faced in a long time after local government reorganisation and we've got to face it together as as a council."

He added that no decisions have been taken on the level of council tax it wants to charge – currently set at £1,641.96 for a band D property. He said: "On council tax as I've said to both of you and all colleagues in the room know, we're working on whole council transformation.

"We're working on tackling issues in children's and adults, we're working on flattening those curves. And I don't think that it would be prudent to have any conversation about council tax until all of that work is done and we see what our financial position is.

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"Because I think to say anything now would be very premature and we don't know where we're going to be. We know where we'd like to aim, but we also know where reality might take us."

At the start of the financial year after taking income and specific grants into account the net cost of services in 2026/27 was calculated at around £1,437m, some £56m or four per cent more than originally budgeted in 2025/26.

Cllr Davis added: "The financial pressures we now face are of a different scale altogether. And when compared with previous years, are almost off the scale entirely."

He added reserves of around £600m will only be using them to fund transformation or to do bridging where absolutely necessary. He said: "This is a mountain that we have to come over together as an administration but also as a full council because it affects everyone in Essex.

"We're going to have to make tough choices. There are places where we are not going to agree, but I think that if we're all rowing in the same direction and everyone is aware, it'll make this budget setting process easier and make sure that we have the best outcomes for people in Essex."