Agenda item

Report by the Chief Finance Officer

45.1     The Lead Member considered a Report by the Chief Operating Officer.

DECISIONS

45.2     The Lead Member RESOLVED to approve the response to Eastbourne Borough Council on proposed changes to their Local Council Tax Reduction Schemes for 2025/26 as set out below:

As you will be aware, in common with all local authorities, the County Council continues to face significant financial challenges, with the Council facing a budget gap of £55.3m in 2025/26, growing to £83.6m by 2027/28, with limited reserves to draw upon. The proposal would increase the projected deficit to £56.1m in 25/26, adding to the already challenging financial position. Council Tax is the County Council’s most important funding stream (65.4% of net budget in 2024/25) and we rely on certainty of this income to enable us to effectively plan services for the future.

We wait for the government to provide further details of funding through the Budget Statement of 30 October 2024, but the Council has been left with no choice but to seek savings to a range of services to help manage the deficit. On 26 September 2024, our Cabinet approved the launching of public consultations for a range of savings proposals: Agenda and draft minutes for Cabinet on Thursday, 26th September, 2024, 10.00 am | East Sussex County Council

Residents needing support often receive services from both the County Council and yourselves, with the County Council’s support often being targeted to specific needs. For the Eastbourne area, there are potential impacts on older people’s services at Milton Grange and learning disability services at Lindon Court, as well as proposed reductions to housing related support services that will impact vulnerable residents in Eastbourne. We continue to explore further savings options, as current plans do not bridge the gap between the cost of meeting the increasing demand for our services and the available funding.

East Sussex County Council (ESCC) recognises the impact the ongoing cost of living crisis is having on local communities, particularly, those who are vulnerable, both financially and for other reasons. For example, ESCC continues to seek to support low-income residents via the Financial Inclusion Partnership. However, any further reduction in its council tax base will only increase the magnitude of savings required to address the budget gap, in many cases increasing the pressure on partners, including district and borough councils.

Should the decision be made to implement the change to the Local Council Tax Reduction Scheme, ESCC would ask EBC to seek to maximise any action that maintains, or increases, the overall Council Tax collection rates.

REASONS

45.3     Eastbourne Borough Council are consulting on proposals to change their Local Council Tax Reduction Scheme which will see a reduction on Council Tax income received by the County Council. Whilst the proposals address particular concerns within the authority, the impact of the reduction in income will be felt for County Council services that support the needs of residents across the Eastbourne area and the whole of East Sussex. The response to the consultation reflects the adverse financial impact of the proposed changes on what is already a significant financial challenge facing East Sussex County Council.