East Sussex County Council has commissioned a report to look into whether it should apply for extra financial help from the government. On Tuesday, June 24 cabinet members met to discuss the authority’s latest “state of the county report” — a document which begins the annual budget-setting process.
Within the report, chief executive Becky Shaw warns how the authority is beginning its planning “from the most challenging financial position the council has ever faced.”
Opening the debate, Conservative council leader Keith Glazier said: “The report highlights the huge range of impact of the services the council provides for East Sussex and the strength of the organisation in its staff and its partnerships. This year’s report also clearly illustrates the ongoing pressures that we are facing, including: a continuing increase in the demand for services; significant policy change and service reforms; a challenging economic environment, which continues to have implications for the council’s own finances, as well those for residents and businesses; and linked to all of these a very challenging and uncertain financial outlook.”
In the report, Ms Shaw warns how the demand for and costs of the council’s services have continued to grow, but available funding has “not kept pace”.
The report references the council’s Medium Term Financial Plan (MTFP), which currently predicts a £36.5m deficit in 2026/27. The report highlights how this figure is based on an assumption that current funding levels will remain the same, so may be subject to change.
But, if the financial forecasts prove correct, Ms Shaw says the council will need to consider a range of measures to set a balanced budget for 2026/27, including: further savings; the use of its remaining reserves; and a bid for Exception Financial Support (EFS) from the government.
The council has not yet formally decided whether it will be seeking EFS. But, earlier this month, the authority’s lead member for resources and climate change Nick Bennett agreed to commission the Chartered Institute of Public Finance and Accountancy (CIPFA) to undertake a Financial Assurance and Governance Review.
Such a review is considered to be a necessary step for seeking EFS.
In light of the decision to commission the CIPFA review, Liberal Democrat group leader David Tutt asked Cllr Glazier if he could confirm whether or not the council would be seeking EFS.
Cllr Tutt said: “I was surprised that I heard through the comms and the press that East Sussex were looking at seeking exceptional financial support from government. I would like him to confirm if that is the case today, so people are very clear about what is happening.
“Because if it wasn’t something we are planning to do I can’t understand why we are spending £40,000 with CIPFA to assess the current state of the finances.”
In response, Cllr Glazier said: “I can answer that very clearly and very straight that actually should we need to go into special financial arrangements we would have had to undertaken a CIPFA review.
“It is much better that we do that in case we need to, rather than wait and be in a queue and not actually be in the position to accept or take that forward. It is actually forward planning as opposed to being reactive when we find ourselves in that position.
“Are we going to be looking for it? Who knows. If you know the outcome of the spending review then we’ll use your crystal ball, because it is certainly not showing up on mine.”
Cllr Tutt had also highlighted how another report, discussed during the same meeting, showed how the council had overspent by £21.9m in the 2024/25 financial year.
He said: “Looking at the financial situation, the budgets have been overspent. Now we warned that they would be at the time the budgets were set. We were reminded by Cllr Bennett that we must not set a budget that isn’t deliverable and yet the budget hasn’t been delivered. Children’s services, £13.6m overspent. Adult [social care] £10m overspent.”
Ms Shaw’s report says the council’s total strategic reserves are projected to be £4.5m by 2029, which “excludes any additional draws required to balance budgets in 2025/26 or beyond.”
As things stand, the council’s Medium Term Financial Plan (MTFP) predicts a £36.5m deficit for the 2026/27 financial year. This deficit could increase cumulatively to £56.2m by 2027/28 and to £70.8m by 2028/29, the report adds.
Image Credits: ESCC .
It is the actions of an incompetent Tory government that has brought this incompetent Tory county council to this position. Why were last May’s elections cancelled, denying the wrath of the people of East Sussex on those who have mislead us? Why is the complicit Labour government wasting tax payers’ money on half-baked local government disorganisation when they have more pressing matters in the economy to deal with?