Appendix 2 East Sussex Local Government Reorganisation Interim Plan

Section 1: Interim Plan key information
Please state which county area this Interim Plan is submitted in relation to:	East Sussex
Is this interim plan jointly submitted by all councils in the relevant area? Please state the councils who have supported this joint submission.	This is a jointly submitted plan by: East Sussex County Council Eastbourne Borough Council Hastings Borough Council Lewes District Council Rother District Council Wealden District Council
What proposal does this interim plan put forward:	An agreed proposal for unitary(s) within the existing County boundary. The proposals will be developed in accordance with the final criteria set out by Government.
If the interim plan covers a single proposal please clearly identify how many unitary authorities are proposed for the area.	Given current govt guidelines we submit an interim plan working towards proposals for a single unitary based on existing county boundaries, subject to further development of the evidence base and any change in the population criteria, and public consultation. We do remain open, at this point, to alternative options should the government indicate flexibility in the current criteria, or if residents demonstrate a clear desire for us to consider an alternative configuration.
Please provide any details of voluntary arrangements that have been agreed to keep all councils involved in discussions as this work moves forward and to help balance the decisions needed now to maintain service delivery and ensure value for money for council taxpayers, with those key decisions that will affect the future success of any new councils in the area.	This is a joint endeavour in which all Councils have a shared ambition to work collaboratively to co-design the new unitary authority/s, whilst acknowledging and respecting the corporate roles, responsibilities and risks of the current authorities. Through our current structure, there is a well-established history of partnership working across East Sussex. Existing partnership working arrangements are many and varied. Reorganisation provides the opportunity to build upon these and develop best practice with the potential to evolve place-based co-located services. We have set up a joint governance structure to support the development of our proposals that includes representation from all six councils; this includes an executive board of Leaders of the councils (chaired by Cllr Nicholson, Leader of Lewes DC), a Chief Executives board and specialist working groups. We have set out key principles that will shape our work as we go forward to develop a coherent new structure for local government across Sussex which: 1. Improves outcomes for residents and communities 2. Maximises and makes best use of resources now and for the future 3. Is Member led and developed in collaboration with a range of stakeholders, including public sector partners, business and VCSE 4. Supports the staff in all councils as they are crucial to delivery during transition and beyond 5. Enhances local democracy, local identity, transparency, accessibility, local decision making and accountability (including through scrutiny) 6. Supports and drives decision making and public service reform at both Sussex and local level 7. Provides a stronger and unified voice to help attract investment and tackle priorities Our agreed approach is that: 1. This is a joint endeavour in which all Councils have a shared ambition to work collaboratively to co-design the new unitary authority, whilst acknowledging and respecting the corporate roles, responsibilities and risks of the current authorities 2. We will work together to deliver proposals which are in the best interests of the whole area 3. We will be evidence led 4. We will learn from others’ experiences of Local Government Reorganisation and Devolution 5. Decisions made by all sovereign bodies until vesting day will have the interests of the future Council as an explicit consideration 6. There will be full transparency over resources including transition funding and agreed allocations reflecting costs incurred 7. There is a commitment to appropriate levels for decision making, engagement and local member roles including in non parished areas 8. There is a commitment to robust scrutiny arrangements in transition/formation and beyond 9. A comprehensive workforce plan to provide maximum stability is to be created as a priority 10. Subject to further clarification from government on the criteria and implementation timescales, we have agreed a working assumption that the date for creation of a new shadow authority will be April 2027 with any new unitary Council(s) taking effect from April 2028
Has the area as a whole identified any barriers or challenges where further clarity or support would be helpful?	The councils are all committed to support the local government reorganisation agenda that the Government has indicated it wishes to pursue. However, the scale of the challenge at a time of significant policy reform across a range of functions and the very significant financial challenged faced by all the constituent authorities is a significant risk in terms of delivering a sustainable and effective organisation, whilst continuing to deliver critical services. Growth in need and demand for statutory services such as adult social care, children’s social care, SEND and housing/homelessness has increased over the last few years at the same time that costs have risen, which has meant we have had to take difficult financial decisions in order to balance our budgets. We have insufficient reserves available across the councils to be able to offset the set-up costs of a new unitary authority and are concerned about the impact on our communities if we need to use our service budgets to fund these costs. The experiences of merging the back-office functions of Lewes District Council and Eastbourne Borough Council and have shown that it can take several years for the full financial benefits to be realised, which is likely to leave us with a challenging short-term position. We are keen to move at pace to ensure that our residents and businesses benefit from the improved outcomes, we expect the new unitary to deliver. This interim plan is predicated on our understanding of the criteria set out in the statutory invitation. Should the government signal some flexibility in the current criteria we may wish to consult our residents on their views about alternative options. That being said, the scale and timescales for this work remain very challenging, particularly when set against other financial, policy and legislative changes to which we also need to respond and the need to continue delivery services. There are a number of things it would be helpful to receive from the Government. · Capacity funding support – the specific need is being worked on and we will need the Government to fully fund the costs. · Clarity about the application of criteria – including the population threshold. It is imperative that the framework is clear so local and national time, leadership capacity and effort is not wasted. · Speed of decision making – we all want and need to do the work at pace, it is in the interests of our residents that we do so but it will need a matching commitment from the Government to operate at pace, make decisions and provide timely feedback. · Effective and joined up discussions with government departments as well as MHCLG. Streamlined and joined-up access to the right people especially so there is consistency with advice being given to other authorities on the DPP. · Temporary protection from any negative impacts of the Government’s proposed funding reforms. Our ability to manage negative financial adjustments which flow from any new distribution methodology will be severely limited. We would also welcome early discussions on the amount of the grant funding each council would receive on day one to assist with early financial planning.
Please provide details of any arrangements proposed to coordinate potential capacity funding across the area.	The Councils are committed to the principles and ways of working detailed above and will use existing governance structures for the work on our proposal to make best use of existing capacity. As described below detailed work on the programme and project management, workstreams and funding will be the next phase of our work.

The Interim Proposal: The establishment of one unitary authority (subject to the caveats on page xy and z)

Section 2: Geography and improvements to local government

Please set out the following key information and any supporting evidence in relation to the proposal you intend to put forward. In providing any information and supporting evidence, please clearly identify how the proposal meets relevant aspects of the statutory guidance and criteria for unitary local government contained in the schedule of the invitation for local government reorganisation.

1. What are the size and boundaries of new councils being considered or proposed:

Given current govt guidelines we submit an interim plan working towards proposals for a single unitary based on existing county boundaries, subject to further development of the evidence base and any change in the population criteria, and public consultation. We are working on an assumption that the population of East Sussex is 555,500, above the 500,000 threshold is considered large enough to achieve efficiencies, improve capacity and withstand normal financial shocks according to the Government’s criteria. By using our existing boundaries as the building blocks for a new unitary we will be able to respect and preserve local identities while realising the operational benefits of a larger authority. The county of East Sussex is a historic administrative unit, which means that there is a strong identity with the county amongst residents. The six councils have established working relationships, using our local partnerships to deliver improved outcomes for our communities. This provides an ideal foundation for the formation of a new unitary council.

We do remain open, at this point, to alternative options should the government indicate flexibility in the current criteria, or if residents demonstrate a clear desire for us to consider an alternative configuration.

2. How do options or potential proposals offer the best structures for delivery of high-quality and sustainable public services across the area.

This interim proposal has the advantage of being the least disruptive, both to existing services and to joint working with partners, recognising that this is at a time when the public sector is under significant pressure as a result of increased cost of and demand for support from our local communities. This approach would create less disruption to key statutory services such as adult social care, children’s social care and education which already operate on an East Sussex footprint. As a result, more energy could be invested in exploring opportunities for a better place-based operating model that would also offer greater flexibility and resilience for other services such as housing.

Many existing services are shared across part of or the whole area, for example the successful Joint Waste Partnership, Building Control Partnership, Procurement Hub and even the coming together of Lewes and Eastbourne councils. We can take learnings from these approaches and apply them to other areas of service delivery, in particular better integration with current County Council functions, to build a more resilient and streamlined new Council.

The Sussex Integrated Care System uses the East Sussex footprint for its strategic place-based planning, which means that the proposal would also provide continuity for work on health and care integration. The area has significant pockets of deprivation, with Hastings having some of the most deprived neighbourhoods in the country. By joining together, we can better target our resources to enable our most deprived areas to flourish and to contribute to the wealth of the whole county and ensure long term financial stability.

There are a number of partnership boards focused on delivering on an East Sussex footprint that draw on our strong relationships between the private sector, public sector, VCSE sector and academia, including Team East Sussex, the Environment Board, East Sussex Children and Young People’s Trust and East Sussex Safer Communities. A new unitary council would have the opportunity to develop these existing relationships to drive forward change. Existing partnership working has already identified some priorities for our local area, which we will draw upon in our work to shape the work of the new unitary and our joint working with other Sussex authorities and the new MCCA.

We have a strong local voluntary, community and social enterprise (VCSE) sector. The East Sussex VCSE Alliance was founded in 2021 to support and strengthen existing joint working between organisations working in East Sussex. The East Sussex VCSE Alliance includes the three Voluntary Actions for the county: Rother Voluntary Action, Hastings Voluntary Action and 3VA which covers Lewes, Eastbourne and Wealden. Our strong VCSE sector has helped support our communities through difficult times, helping to improve resilience and improve connectivity. Continuing to work on an East Sussex footprint would provide stability and allow us to maximise the benefits of these longstanding and highly valued relationships.

We would use the opportunity to harness community engagement, building on existing models of community-based working, set up to provide support during the pandemic, embracing broader community engagement practices. This will enable us to ensure that support continues to be tailored to local needs, reflecting the different strengths and challenges faced by our communities across the county and strengthening the economic, social and environmental resilience of our communities.

3. What are the indicative efficiency savings opportunities for the options or potential proposals:

The six councils are very ambitious about significantly improving the way residents, communities and businesses are served by the new council by taking a more holistic approach of the needs and assets. As we work up the proposal, high level work will be undertaken to identify potential areas for service redesign and the associated costs and savings. This fundamental redesign will make an important contribution to increased efficiency and value for money. Examples of this will include alignment of commissioning and procurement activity relating to both services and systems. We will actively seek out opportunities where there are new synergies, including in line with the Procurement Act 2023, to support our long-term goals in the run up to vesting day. Some of our most significant contracts in terms of cost have longer durations, so it will take time for these to be aligned.

Locality based working is a key part of our shared ethos and we want to ensure that residents will be able to access readily the services that matter to them, especially given the issues with transport connectivity in the county. As the proposal is developed an initial assessment will be undertaken of the potential for the rationalisation of existing property assets and well as improving digital access to services. Community engagement approaches to service design will help us to get this right for residents and deliver as much value for money as possible in service delivery.

We will conduct an assessment of the potential value of savings as we refine our proposal for the new unitary council. councils have a strong track record of streamlining some back-office functions and maximising the productivity of teams through shared services arrangements. Further work will be undertaken to understand which approaches might provide the best long-term models for the new unitary council.

The greatest impact on our communities is likely to be from the greater opportunities for providing holistic support for individuals and families with multiple needs, and for neighbourhoods that the unitary model provides. We know how crucial it is to provide the right support at the right time to improve outcomes for those people who need our support, and that this way of working provides best value for money.

We will embrace the opportunity to deliver savings as we develop new ways of working, however it is very unlikely that this process will deliver sufficient savings, particularly in the short term, to address the gap between the level of funding received by the area and the cost of meeting the needs of our local population.

4. What are the indicative costs and arrangements in relation to any options including planning for future service transformation opportunities?

An early indicative estimation of our transition costs is some £30-35 million, based purely at this stage on the experience of other councils undertaking similar exercises. Further work will be done to bring forward actual costs for our full submission in the autumn covering areas which include:

· Community engagement

· IT system consolidation and cybersecurity

· Staff reorganisation costs (including transition resource)

· Legal and governance restructuring

· Investment required to achieve effective service redesign to release efficiencies

There is not the ability to fund this from existing Council budgets, funding from Government will be required. Eastbourne Borough Council has received Exceptional Financial Support to balance its budgets as a result of rising levels of homelessness and spiralling costs associated with temporary accommodation placements. East Sussex County Council’s budget report for 2025/26 states that unless it receives a significant and permanent increase in funding for 2026/27 it will need to consider applying for Exceptional Financial Support.

Engagement with our communities both on what and how the council delivers will be critical to creating new ways of working which reflect what matters most to residents and business. As we develop our proposal we will identify the workstreams required to redesign local support systems with partners to ensure that the new unitary council is as efficient and effective as possible. Our customers will be at the centre of service redesign under these workstreams and this will afford the opportunity to review and revisit local needs; empowering, co-designing and producing services that best meet local needs.

There are a large number of systems that will require alignment across key statutory front-line services such as Revenues and Benefits, Environmental Health, housing, planning and waste. Similarly significant work will be required to align back-office systems across HR, Finance, Legal, Property and Member Services. We will seek to unlock the full potential of agile working and advanced technology. We are keen to use AI and data analytics to improve service delivery and predict future demand, following the many examples of best practice being developed by councils in these areas. However, we recognise that there are differing levels of digital and data maturity across the councils and that it would take significant investment to put in place the infrastructure needed to match the capabilities of councils leading in these fields, such as Essex County Council. We also remain alive to the risks of digital exclusion.

We will work with the Government and local partners to look at what system level and public service reform changes can be accelerated to improve outcomes for our residents and businesses as we shape new ways of working. We recognise that delivering the greatest improvements for the people we serve requires wider public sector reform.

Section 3: Democracy & Devolution

1. Please provide a summary of local engagement that has been undertaken and any views expressed on an option or proposal, along with your further plans for wide local engagement to help shape your developing proposals.

Local engagement will be one of the critical aspects of development of the proposal for a new unitary council. We want to ensure that residents and other stakeholders are effectively engaged in the development, transition and transformation process, so that a new authority is supported, in its direction and ambition. We will make a strong commitment to wide engagement across our communities, workforce, partners and other stakeholders throughout the process. A detailed communications strategy will focus our work to keep all stakeholders informed and involved as we develop the proposal and plan, design and implement changes.

We recognise that broad and meaningful engagement is essential for establishing the identity, vision and values of a new unitary council in East Sussex. Engagement will also influence the development of the future culture and behaviours the new organisation. The voices of our residents, communities, workforce and partners will inform all stages of our transition and transformation programmes.

We have, already begun conversations with the key stakeholders and partner agencies who work closely with us across East Sussex and will continue to do so as we go forward. These have included:

Preliminary discussions have been held at several existing East Sussex partnership groups such as Culture East Sussex and Developers East Sussex. These boards are already working within our new council geography so are supportive of the direction of travel for the unitary.

Briefings have been held with representatives from the East Sussex Association of Local Councils. Much of the discussion with town and parish councils have been positive however there is concern about local representation amongst town and parish councillors which will need particular attention in an engagement strategy for transition.

Discussions taken place with local chambers of commerce and other business community representatives to make them aware of how the changes may impact on them.

Effective engagement and collaboration will shape the identity, vision, and values of the new council. By involving residents, partners, staff, the voluntary and community sector, town and parish councils, and businesses, we aim to develop a proposal for, and build, a council that truly reflects the needs and aspirations of the East Sussex community. Residents and service users, including young people, want a structure of local government that reduces cost and duplication of activity, improves efficiency, integrates high-quality services, increases community involvement and offers best value for money.

Engaging with the public therefore will be at the heart of developing the proposal. We will offer residents comprehensive information utilising newsletters, local newspapers and online tools and then provide public meetings and workshops with opportunities for residents to voice their opinions and contribute to the decision-making process. Online platforms, including social media and dedicated forums, will offer additional avenues for feedback and discussion. Our goal is to take a customer/citizen first approach to ensure that every citizen of East Sussex, regardless of background or ability, has the chance to participate and be heard.

We know from early engagement with some of our partners that there is a broad commitment to the benefits of a single unitary model. It represents minimal disruption to existing high-quality services and allows the creation of stronger, simpler and more effective partnerships with many other partner organisations, including the South Downs National Park, Sussex Police and Fire & Rescue as well as devolved Government agencies such as the Environment Agency, and our local integrated care system.

Continued collaboration with key partners and involvement in the development of the proposal is essential for the success of the new council. We will work closely with NHS Sussex, our local educational institutions, the South Downs National Park Authority, High Weald National Landscape Partnership and other public sector partners to ensure seamless service delivery. Regular communication and joint initiatives will strengthen these partnerships, fostering a collaborative environment that benefits the entire community. By sharing information and resources, we can develop robust and sustainable proposals that address local needs and priorities.

A significant proportion of our staff live in East Sussex and are part of the communities they serve; they can therefore provide a unique insight as both provider and recipients of council services. The proposal will set out how any transition to a new unitary council will be managed with the utmost care and consideration for our staff, and how detailed transition plan will be developed and implemented, ensuring that staff are supported throughout the process. We will engage with trade unions to address any concerns and provide training and development programs to help staff adapt to new roles and responsibilities. Support mechanisms, including counselling and career advice, will be available to assist staff during this period of change.

The voluntary and community sector plays a vital role in the fabric of East Sussex. VCSE organisations will play a role in the development of the proposal, we will engage with them to define their role within the new council and explore opportunities for collaboration. Support and funding mechanisms will be established to ensure these organisations can continue their valuable work. By working together, we can enhance the services provided to our residents and build a stronger, more resilient community.

Town and parish councils are integral to hyper local delivery of services. We will develop a comprehensive engagement plan to involve these councils in the development of the proposal, which will also set out how they would be involved in the transition process. Clear roles and responsibilities will be defined, and support and resources will be provided to help them adapt to the new structure. Regular communication channels will be established to ensure ongoing collaboration and information sharing.

Local businesses are key to the economic vitality of East Sussex. Our engagement strategy will include consultations with business leaders to understand their needs and priorities. We will implement economic development initiatives to support local businesses and provide services such as grants and advisory support. By fostering strong partnerships with the business community, we can drive economic growth and create a thriving local economy.

2. Early views as to the councillor numbers of each new unitary authority that will ensure both effective democratic representation for all parts of the area.

We have reviewed the models in place across existing county unitary councils with similar geographic characteristics as well as the outcomes from recent Local Government Boundary Commission for England reviews. We are assessing different models that would enable councillors to continue to engage effectively with local communities and partners and dedicate sufficient time to their case work. The ratios of 4,000 - 5,000 electors per councillor (similar to the models being applied in North Yorkshire, Cornwall, Somerset and County Durham) are being carefully reviewed.

We have a mixture of sparsely populated rural areas, market towns and continuous urban development along the coastal strip, each of which comes with its own challenges in terms of case work. The county council currently has 50 single councillor divisions representing an electorate of just under 420,000. There are currently 183 councillors across 108 wards at lower tier authority level with between 1-3 councillors per ward.

Recent LGA corporate peer reviews have been complimentary about the support provided to councillors across the councils in East Sussex and we would look to build on this work and learning from other county unitary areas to ensure councillors are fully equipped to provide effective support to their local communities.

3. How the proposal will ensure effective governance and decision-making arrangements which will balance the unique needs of your cities, towns, rural and coastal areas, in line with the Local Government Boundary Commission for England guidance.

The governance and decision-making arrangements would be an evolution of our existing models which are designed to balance the needs of our towns, rural and coastal areas. Our local area currently has 85 parishes and 12 towns and we want to ensure that the new unitary council maintains the existing relationships with our parish and town councils and this has influenced our early views on councillor numbers. It should also be noted that the currently non-parished areas of Eastbourne and Hastings are also giving active consideration to the introduction of town councils which would ensure all parts of the county would benefit from democratic representation at that level.

We will seek to build upon existing ways of working within our councils, such as community budgeting, and will build on learning from other councils that have recently made this transition including North Yorkshire, Wiltshire, Buckinghamshire and Somerset. This includes exploring options such as area committees that have been used successfully elsewhere to ensure that the distinct needs of our district and borough areas are met.

4. Early views on how the proposal will ensure new structures will support devolution ambitions.

We would seek to build on our strong foundations, using our track record of working together to drive growth and prosperity through a stronger and unified voice whilst tackling shared challenges. With our partners across Sussex we will gain a strengthened regional and national voice to enhance partnerships across the public, private and voluntary sectors committed to improving outcomes for everyone. We will work closely with the incoming Mayor and our partners across Sussex (and beyond) to deliver the benefits of devolution alongside Local Government Reorganisation – including transport and local infrastructure; skills and employment support; housing and strategic planning; economic development and regeneration; environment and climate change; health, wellbeing, and public service reform; and public safety.

The new unitary council will have a clear vision and take a local strengths-based approach to meeting the Government’s missions. Working with the Mayoral County Combined Authority we will build on the strengths of our communities and places, to maximise opportunities for inward investment, economic growth and innovative new solutions to our deep-rooted socio-economic challenges. We have a wealth of evidence about the needs and strengths of our communities and places, which can be used to support this work, such as our Local Skills Improvement Plan and Joint Strategic Needs Assessment programme. By consulting with our communities, we will be able to grow this evidence base and use our understanding of what matters to residents to shape the way in which a new unitary will support their needs. The county boundary aligns to established economic geographies and the UK’s statistical framework for regional and local data (NUTS3), preserving this footprint will allow us to continue to track progress on improvements to outcomes over time.

Our existing partnerships such as Team East Sussex, our local economic partnership, are well-established and have worked together to deliver strategic improvement programmes for many years. As a new unitary council would provide both continuity and the opportunity to strengthen these partnerships, we would be able to use these to support local delivery of the MCCA’s work programme.

It should be noted that the size of the proposed unitary council, represents just under a third of the population of Sussex, which should help support the aim of achieving balance between the size of council areas within the Sussex Mayoral County Combined Authority.

Section 1: Interim Plan key information

Section 2: Geography and improvements to local government

Section 3: Democracy & Devolution

Section 4: Implementation preparation and planning

Section 5: Other supporting material