Issue - meetings

21.1     The Deputy Chief Executive introduced the report, and set out that the report provided an opportunity for the Committee to review the November 2025 RPPR report to Cabinet, which included an update on the financial and policy context, updates to the MTFP and capital programme, and the CIPFA Assurance Review report.

21.2     The Chief Finance Officer provided an update on the Council’s financial position, explaining that the Council had a projected deficit of £55.8m and it did not have sufficient reserves to bridge this. Despite this, the CIPFA review had reflected good governance and financial management and the Council having a clear understanding of the financial challenges it faced. In light of the challenges Cabinet had requested further savings options be brought forward but these were not sufficient to address the deficit and the Council was therefore beginning the process for applying for Exceptional Financial Support (EFS).

21.3     At the end of November 2025, the financial policy statement and response to the Fair Funding Review 2.0 was announced, which modelling suggested would likely cause a real-terms loss in funding for ESCC, as well as many other county areas. This loss in funding was due to council tax equalisation being set at 100%, the Area Cost Adjustment only being reflected in Adult Social Care (ASC) and the new ASC formulas shifting weighting to working-aged people. In addition the Government was continuing the Recovery Grant, which ESCC did not benefit from. The Government indicated that it expected the number of authorities applying for EFS to increase. The Provisional Local Government Finance Settlement was expected in December 2025, which would provide more detail on the Council’s position. The Autumn Budget was also delivered in late November 2025, which included an announcement that the in-year SEND deficit being taken into Government departmental budgets from 2028-29, though this money will be top-sliced from available local government funding. This would also not address the existing accumulated deficit, currently sitting on local authority balance sheets through a statutory override, which was projected to reach £14bn nationally by 2028/29.

21.4     The Committee discussed the report and update on the Council’s financial position and that Government had recently published the new Indices of Multiple Deprivation which showed significant deprivation across the county, and in particular in parts of Hastings. Members noted that the reduction in funding the Council would receive would not support addressing the needs of the population of East Sussex.

21.5     The Committee commented that in the report the natural environment was a constraint to economic growth, and requested that this language be reviewed to reflect the benefits of the county’s natural environment and that economic growth must work alongside the needs of the environment. The Deputy Chief Executive agreed to review this language in future reports.

21.6     The Committee discussed the areas of greatest spend which were in on ASC and Children’s Services and suggested that it would be helpful to understand the level of spending figures for private sector and out-of-county placements, however it  ...  view the full minutes text for item 21