Changes to funding system sound alarm bells at West Sussex County Council

On Thursday (November 28), the government published a policy statement for 2025/26 which referenced deprivation and the need to pump more money into areas with greater need and less ability to generate income.

During a performance & finance scrutiny committee meeting at County Hall on Friday (November 29), Jeremy Hunt, cabinet member for finance, said he understood the principle of the idea but was worried that West Sussex would lose out.

The county has its own areas of deprivation, particularly in Arun, Crawley and Worthing, but property values mean the council is in a better position to generate council tax than some other authorities.

It still faces its own financial challenges – not least a predicted budget gap of more than £8m for 2025/26 and a projected overspend of more than £26m in 2024/25.

Mr Hunt said that other factors, such as the high percentage of elderly people in the county and its level of rurality – both of which impact services even more than deprivation – needed to be taken into account.

He added: “I’m not saying that some areas [with deprivation] don’t deserve some more, but if they’re taking it from us to others, it’s a situation whereby we’re likely to be the losers on this. Our pressures are equally as high.”

Leader Paul Marshall said: “We do not want government to assume because we can raise [council tax] we don’t have deprivation – we absolutely do.”

The council won’t find out how much it will receive in government funding in 2025/26 until December 18.

James Walsh (Lib Dem, Littlehampton East) said governments tended to look at counties such as West Sussex with ‘cosiness’.

He added: “They tend to take the view that the only areas of deprivation are in inner city areas. That is just not true – and we need to shout that loud and clear.”

Mr Hunt said the ‘die has probably been cast’ when it came to how much each authority would receive but he was determined to ‘keep up the pressure’.

Letters from himself and council officers will be sent to the government within a few days.