Adur and Worthing councils must make £6m savings in three years

In five years the councils will have an estimated budget shortfall of £9.3m, unless savings are made now

Adur and Worthing councils must make £6m of savings over the next three years, which they have blamed on "a perfect storm" of inflation and unexpected additional costs.

A report said that by March 2023 inflation will have cost the authorities an extra £1.2m.

By then they will have had to save £2.7m, equivalent to 10% of their combined annual budget.

The recent bin strike has also cost an extra £250,000.

Additionally, the dispute meant the councils lost £78,000 in commercial revenue.

The report said the authorities would rely increasingly on council tax and business rates, but that the government has delayed announcing reform of local government finance, creating uncertainty over how much it will receive.

Council tax funds 70% of services, but it cannot be increased by more than 2% without a referendum.

The recent bin strike cost Adur and Worthing councils £250,000

Looking more long term, the estimated budget shortfall in five years will be £9.3m, although savings made now could reduce that to £3m.

The report concluded the councils have "a good track record in innovation, working creatively in partnership", but "innovation in funding, investment and commercial income will be ever more important".

The report was presented to the executive members of Adur District Council and cabinet members of Worthing Borough Council.

They have all agreed to start early preparations for the next budget, which must be agreed by April 2023.

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