Concerns around proposals to reduce council tax in Eastbourne

At a meeting on Friday, November 1, Cllr Nick Bennett, East Sussex County Council’s lead member for resources and climate change, endorsed the authority’s response to a consultation being run by Eastbourne Borough Council (EBC).

The consultation covers the borough council’s plans to amend its Local Council Tax Reduction Scheme (LCTRS). The proposed changes include: introducing a 100 per cent discount for some households; removing a £5 per week minimum payment; and basing a self-employed claimant’s income on their actual earnings.

According to the borough council’s estimates, the changes would result in a loss of council tax income of around £1,108,700 per annum. The county council says its share of this loss would be £778,300.

Following a recommendation from officers, Cllr Bennett endorsed a response raising concerns about the proposals, which will be submitted in response to the consultation.

The response reads: “East Sussex County Council (ESCC) recognises the impact the ongoing cost of living crisis is having on local communities, particularly, those who are vulnerable, both financially and for other reasons. For example, ESCC continues to seek to support low-income residents via the Financial Inclusion Partnership.

“However, any further reduction in its council tax base will only increase the magnitude of savings required to address the budget gap, in many cases increasing the pressure on partners, including district and borough councils.

“Should the decision be made to implement the change to the Local Council Tax Reduction Scheme, ESCC would ask EBC to seek to maximise any action that maintains, or increases, the overall Council Tax collection rates.”

The response also sets out how the council faces a projected budget gap of £55.3million in 2025/26 (growing to £83.6million by 2027/28) and says the proposal would increase the projected deficit to £56.1million in 25/26.