Worthing Borough Council under ‘severe and sustained financial pressure’
Worthing Borough Council’s total borrowing stood at £224million last year, with debt-servicing costs causing significant pressure on its finances, according to an independent review.
The Chartered Institute of Public Finance and Accountancy (CIPFA) said the council was under ‘severe and sustained financial pressure’, with its financial resilience remaining in a fragile state.
The council’s borrowing rose from £216million in 2024-25 to £224.2million in 2025-26, the review found.
Interest rates also increased by 16 per cent to £5.2million, with the report finding that debt servicing costs accounted for about 15 per cent of the council’s net revenue budget and exceeded its reserves.
CIPFA said that Worthing Borough Council was in the upper quartile for indebtedness when compared with similar councils and the level of borrowing was high for the council’s size.
The review also found a £5.8million funding gap over the next five years which included a £3.4million gap in the next financial year.
It said the biggest pressures came from housing, particularly temporary and supported accommodation, alongside fluctuating commercial income, low reserves and high borrowing costs.
Despite CIPFA stating the council had taken steps to improve its financial position, including measures to tackle housing costs and controls on spending, it concluded that Worthing had ‘not yet evidenced a fully credible route to medium-term financial sustainability’.
The council is also planning to use £5million of Exceptional Financial Support next year, funded through external borrowing. CIPFA said this was a viable short-term solution but held ‘clear and material’ risks for the medium-term.
The report made 22 recommendations, including calls for the council to reduce its reliance on Exceptional Financial Support.
CIPFA also warned that local government reorganisation would add to the pressure on the council. It said Worthing would need to work proactively during the transition and agree on what decisions could be made before restrictions on power come into effect in May 2027.
The report also called for early work with the new shadow authority on major projects, to avoid delays when services move over.
The Green and Independent Alliance (GAIA) responded to the review and called for a detailed financial recovery plan and full transparency of the council’s financial fragility.
Leader of the opposition, Green councillor Claire Hunt, said: “CIPFA’s report should be a wake-up call for the Labour administration. While the report acknowledges the considerable efforts of officers trying to mitigate inadequate government funding for statutory services, the overall conclusion is stark.”
“Worthing is one of 36 Councils that remain reliant on Exceptional Financial Support, which further increases borrowing. CIPFA’s position is clear – Worthing needs a roadmap of timely actions towards long-term sustainability and we are not seeing one.”
Deputy leader of the Green and Independent Alliance, councillor Carl Walker, said: “Continued financial austerity by the Labour government is devastating councils across the country and it’s a real concern that Worthing Borough Council cannot show how it will fund a nearly £6million gap in the coming year or balance its books in the medium term without more government approved borrowing.
“Residents have a right to expect investment from the Labour Government and transparency from our Labour council. Instead, we have a council whose debt has risen to over £224million, whose reserves are at dangerously low levels, whose financial future depends on both selling off the town’s assets and continued reliance on borrowing.”
In response, a spokesperson from Worthing Borough Council said: “We’re grateful to the Ministry of Housing, Communities and Local Government for commissioning the review and for the way CIPFA engaged with us to produce it.
“The report acknowledges that we have taken appropriate and comprehensive action to manage our extremely challenging financial position and supports our view that unfortunately we will likely need exceptional financial support from the government in the years ahead to fund our vital services.”
“We’re grateful that CIPFA recognises that any further programmes of savings would most negatively affect the most vulnerable in our community, who we will not allow to be left behind. We’re examining CIPFA’s recommendations and continuing to work hard to address our ongoing financial challenges.”
The review was published by CIPFA on August 18, after being commissioned as part of Worthing Borough Council’s request for Exceptional Financial Support.A report on the review’s findings will be considered by the Joint Audit and Governance Committee on September 22.
The council said it provided regular quarterly updates on its financial position and that residents and councillors were welcome to ask about its finances at public meetings.