East Sussex: Warning of council tax rise to cover increased costs

Council tax could increase to help cover East Sussex County Council's increasing costs as it warns of limited reserves

Council tax could increase in East Sussex to help cover the local authority's increasing costs.

A report to the county council's cabinet proposes no new cuts in 2024/25, but a tax increase of 4.99%.

The council would rely on using £14m of its limited reserves to meet a shortfall for the year and warned the deficit would grow in future years.

East Sussex County Council said the government's Autumn Budget Statement had no new funding for local councils.

The report to the council's cabinet warned that the local authority's deficit was expected to grow to £45m in 25/26 and £61m in 26/27, with the use of reserves no longer an option.

Cabinet members will be asked to recommend a £538m net draft budget to full council, which could include a council tax increase of 4.99% needed to cover the increase in costs and demand for services.

'Market pressures'

The increase, which includes the additional 2% for adult social care allowed by government, would equal an additional £1.62 per week on a Band D property.

A council spokesman said: "Despite extensive lobbying by the county council, the government's Autumn Budget Statement contained no new funding for local authorities to meet increasing pressures, but did include updates which will further increase costs.

"The cost of providing vital council services has risen sharply across the country especially for children and adults' social care, where the impact of Covid, complexity of need and cost of living pressures has driven up demand.

"Inflation, market pressures and high profit margins by some providers in children's services have also significantly increased costs."

A final decision on the 2024/25 budget will be made by full council on 6 February.

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