Decision details

To ask Cabinet to approve the draft Council Plan, Council Tax levels, Revenue Budget and Capital Programme for 2026/27 for recommendation to the County Council (including Savings Proposals, Equality Impact Assessment, Engagement and Scrutiny feedback).

52.1     The Cabinet considered a report by the Chief Executive together with a summary of the consultation meeting held with Trade Unions which was received after publication of the Cabinet agenda.

52.2     It was RESOLVED to:

1) Recommend the County Council to:

i) Approve in principle the draft Council Plan 2026/27 at Appendix 1 of the report and authorise the Chief Executive to finalise the Plan in consultation with the relevant Lead Members;

ii) Increase Council Tax by 2.99% in 2026/27;

iii) Increase the Adult Social Care Precept by 2% in 2026/27;

iv) Issue precepts to be paid by borough and district councils in accordance with the agreed schedule of instalments at Appendix 5 (draft) of the report;

v) Approve the net Revenue Budget estimate of £693.2m for 2026/27 set out in Appendix 2 (Medium Term Financial Plan) and Appendix 3 (draft) (Budget Summary) of the report and authorise the Chief Executive, in consultation with the Chief Finance Officer, Leader and Deputy Leader, to make adjustments to the presentation of the Budget Summary to reflect the final settlement and final budget decisions;

vi) Note that the Council has written to Government to request Exceptional Financial Support in the form of a £70m capitalisation direction to support the budget in 2026/27;

vii) Amend the Treasury Management Strategy, as set out separately on the agenda, to allow borrowing to fund the revenue budget;

viii) Note the comments of the Chief Finance Officer on budget risks and robustness, as set out in Appendix 6 of the report;

ix) Agree the Reserves Policy set out in Appendix 6 of the report;

x) Approve the Capital Strategy and Programme at Appendix 8 of the report;

xi) Note progress with the Council Plan and Budget 2025/26 since quarter 2 set out in section 4 of the report;

xii) Note the Medium Term Financial Plan forecast for 2026/27 to 2028/29, set out in Appendix 2 of the report;

xiii) Note the comments from engagement exercises set out in Appendix 7 of the report; and

xiv) Note the schedule of fees and charges that have increased above 4% at Appendix 9 of the report.

2) Agree to continue lobbying as strongly as possible for sustainable funding to meet the needs of East Sussex residents, using all available avenues.

3) Approve the Highways investment in advance as set out in section 10 of the report.

Reasons

52.3     Factors beyond local control driving increased costs, and national funding reforms which have failed to recognise the growing needs of East Sussex’s population in funding allocations, mean our income is no longer sufficient to meet basic operating requirements. This is the case even after asking local people to continue to contribute through a Council Tax rise in line with Government assumptions. The recommendation to make a further increase is not made lightly, given that many household budgets continue to be under pressure, but it is essential given the funding gap we face. Support will continue to be available through local Council Tax Support Schemes for those residents eligible and we will continue to work with partners to signpost local people to sources of support with the cost of living, including access to benefits they may be entitled to.

52.4     Our tried and tested RPPR process will enable us to direct the substantial budgets we continue to deploy as effectively as possible towards priorities, in particular protecting services for the most vulnerable in our county as far as we can. We continue to invest significantly to maintain vital services and to ensure we capitalise on the opportunities presented by new technologies to get more from the resources we have. We will maintain our strong record of financial discipline and our focus on evidence-based approaches which maximise outcomes and make best use of resources.