ESCC Cabinet to consider options to address £55m funding gap

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Council leaders will be discussing how savings might be made to address the £55 million funding gap the authority could face next year.

The first round of savings proposals for 2025/26 will be presented to Cabinet on Thursday, September 26, with members being asked to agree to consult on these, carry out further work to identify additional savings and continue to lobby for more sustainable funding.

Despite careful financial planning and having made savings of £140 million over the last decade, rising demand and costs coupled with reductions in Government grant leaves East Sussex County Council with an expected budget gap of £83.6 million over the three years to 2027/28.

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A report to Cabinet says the council is facing “the most difficult financial outlook” it has ever faced. “There is a substantial and growing gap between the costs of delivering essential services to meet the needs of East Sussex residents and the income we expect to have to fund these services in future years,” it says.

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“This is both a stark and urgent position. Unless additional funding is forthcoming, the council will not be in a position to set a balanced budget in February without action, over and above steps already being taken,” the report adds.

The council has already taken action to minimise day-to-day expenditure where possible, is carefully considering recruitment to vacant posts and has reduced office space, Cabinet members will be told. The value for money services offer is also being carefully checked against comparative councils.

With concerns that any delay would worsen the council’s financial position, initial proposals for savings totalling around £4 million will be presented to Cabinet with agreement for public consultation being sought.

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The focus for possible savings has been, and continues to be on discretionary and non-statutory preventative services, directly provided services, support services and back-office functions and income generation.

The report to Cabinet says that with the adult social care budget representing 48 per cent of the council’s total net budget, “significant savings will need to be found in this area”.

Proposals to be presented include the closure of two day services for older people and two day centres, community support services and Steps to Work training for people with learning disabilities, with support being provided in different ways in future. There are also proposals to stop on-site support in supported accommodation for vulnerable adults and adults with mental health needs, significantly reducing funding for housing-related support services and not renew contracts for drug and alcohol recovery services.

Cabinet will also be asked to agree a public consultation on the introduction of a booking system for the council’s household waste recycling sites, a system already in place in neighbouring authorities.

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Further savings proposals will be bought forward as planning for the 2025/26 budget continues.

The report stresses that the council’s ongoing lobbying is vital in ensuring Government is fully aware of the “unsustainable situation faced by the county council, and the specific needs of East Sussex”.

It says it will continue to call for immediate support to cope with the impact of current demands, costs and market conditions, highlight the lack of funding to invest in the preventative approaches to mitigate increasing need, and make the case for sustainable funding.

The Cabinet meeting will be held at County Hall on Thursday, September 26 at 10am. Full reports are available on East Sussex County Council's website.

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