East Sussex County Council will 'likely need to borrow more money'

On Tuesday (September 29), the council’s cabinet considered a report, which forecasts an expected £74.2 million deficit in its 2027/28 budget.

The report warns this gap, between its income and minimum level of required spending, means “it will not be possible to deliver essential services without further Exceptional Financial Support (EFS)”.

Such support is permission from government to use borrowing or money generated through the sale of assets to manage day-to-day spending.

Council leader Andy Woolley (Reform UK) said: “As a cabinet, we recognise and note that East Sussex County Council continues to face significant financial pressures, particularly in adult social care, home to school transport and SEND (Special Educational Needs and Disabilities) services.”

To reduce the level of deficit the report says the council will both continue lobbying for “sustainable funding” and look at potential savings.

Cllr Wooley said potential areas of savings could include capital projects and highways contract management; council organisation and staffing; properties and assets; financial monitoring and controls, including commissioning of services; and technology and media.

Cllr Kathryn Field, leader of the council’s Liberal Democrat group, questioned how effective a search for savings in these areas would be.

She said: “For the last, oh, I don’t know, 20 years staff have been looking down the backs of all available sofas for any pot of money — large or small — that they might find.

“We have been making cuts and cuts and cuts and we have got very close [to] —if we are not at — the end of the things we can sensibly cut.”

Similar views were shared by Green group deputy leader Johnny Denis and Conservative group leader Paul Redstone.

Cllr Denis said: “It’s great to have a fresh pair of eyes over things that have been looked at multiple times by multiple people, just in case there is something that has been overlooked.

“I think the bigger chance here is service reconfiguration with our districts and boroughs … what can we redesign, what can we completely rethink about how we do stuff.”

Cllr Redstone said: “It is clear from the statements in these documents and those made by the administration that dramatic savings cannot be made.

“I and my colleagues support the continuing process of review, but stress that the needs of residents must be considered at all times, particularly those most in need of support.”

Cllr Woolley responded: “I’m not saying that they are new areas, but what each of my cabinet members have committed to do is look at their portfolio, to drive down on those areas and see whether there are potential areas of save — not necessarily now, but in year two, year three of the administration.”

He added: “To Cllr Redstone’s point: we don’t expect to find huge savings, we know that you did due diligence. But, actually, at the same time … you left us with hardly anything in reserve and that’s what we are dealing with.

“So that’s why it’s important … we look to lobby hard against the government and actually try and find other sources of revenue that can pay for some of these services.”

He said this could potentially include funding from the mayoral strategic authority.

Cllr Woolley said the Chartered Institute of Public Finance and Accountancy (CIPFA) had undertaken a second review of the council’s financial resilience.

Becky Shaw, the council’s chief executive, said the review “shows us to be a lean and efficient organisation that just lacks the money it needs to meet the needs of the local populations.”

This review also supports formal approval of the council’s use of £70m of EFS in the 2026/27 financial year.

Of this £70m figure, £55.631m built into the council’s 2026-27 budget, while the remaining £14.369m is to be held as a contingency.