County councillors have warned of “inadequate resources” after agreeing a budget which relies on government-approved borrowing of up to £70 million.
On Tuesday 10 February, East Sussex County Council set its budget for the 2026/27 financial year, which included a 4.99% council tax increase and new savings of more than £3.5 million.
Despite this, the budget still includes a £55.5 million shortfall, which the council is unable to fund from its own reserves. In light of this, the council is seeking Exceptional Financial Support (EFS) from the government — a request to borrow as much as £70 million to plug its funding gap.
Conservative council leader Keith Glazier positioned the borrowing as a necessity borne of decisions taken by successive national governments.
Speaking to the Local Democracy Reporting Service after the meeting, Councillor Glazier said, “We don’t have any opportunity to raise the council tax above the 4.99% that we regret we’ve got to do … therefore we are in the position where we are going to have to ask for £70 million in special financial assistance.”
He added, “We have been warning. The evidence is still there from my letters of the last five years, that I have written — on an annual basis to government — telling them that they are not [providing] the amount of funding to provide the services that they expect of us. There comes a time when you don’t have the reserves left, so government need to review adult social care spending and children’s services spending to get it to reflect the cost of providing such services.”
Warnings about the council’s finances were shared by Liberal Democrat group leader David Tutt. He said, “Everybody in this chamber recognises the very serious financial position East Sussex is in at the moment. We don’t have a realistic amendment to move to the budget proposals and I am not somebody who believes in moving an amendment just for the hell of it.”
Councillor Tutt said his group felt proposals it had made in previous years — with the Liberal Democrat leader specifically mentioning the sale of County Hall – would have seen the council in stronger position than it currently is.
But he also said there were no in-year savings currently available.
The Liberal Democrats opted to abstain from voting on the budget, highlighting concerns around the level of debt being taken on as a result of EFS.
This assessment appeared to be shared by the council’s other opposition groups, which also opted to abstain while simultaneously not tabling any alternative budget proposals.
Speaking after the meeting, Labour group deputy leader Christine Robinson said, “Do we really want to put ourselves into £70 million borrowing when we are just about to go into Local Government Reorganisation at full pelt with a unitary council subbing that debt?”
When asked if there were a possibility of the government not allowing the county council access to EFS, Councillor Robinson said, “I will do everything I can — and I will speak to my MP — to make sure that doesn’t happen.”
Image Credits: ESCC .