Budget Reductions And Council Tax Increase As West Sussex Council Balances Books

A maximum increase in council tax, £3.6m from reserves and budget reductions of £15.7m will help West Sussex County Council to balance its books in 2024/25.

The council tax increase will see the council’s portion of an average Band D bill rise by £81.54 to £1,714.95 for the year.

During a meeting of the cabinet on Tuesday (January 30), members gave the thumbs-up to the new budget, which will see the council spend an estimated £2billion on day-to-day services.

Jeremy Hunt, cabinet member for finance, said the authority was in a ‘sound financial position’ despite the pressures and challenges being faced.

In July, the council was looking at ways to close a predicted £45m budget gap – a challenge made even more difficult by the rather low amount of funding allocated by the government – £14.5m.

Mr Hunt said:

“Whilst the funding offered to us by government is welcome, unfortunately it remains a long way short of what we need in order to cover the cost of vital services for our residents.

“A spiralling increase in demand and cost of services, particularly in social care, home to school transport, and funding the National Living Wage, has made preparing next year’s budget even more challenging.”

The £15.7m removed from the budget includes £600k being taken from the reserve set aside for the removal of Ash trees and £3.2m of efficiency savings over the next two years in a range of contracts that are managed by adults social care.

Staffing costs in children’s social care will drop by £240k, and a reduction in the number of children being placed in care is expected to lead to savings of £900k.

The Dedicated Schools Grant – which is the main source of income for schools in the county – continues to be a big issue.

The grant for 2024/25 is £850.3m. While this may seem like a lot, a deficit of £74m is forecast by March, increasing to £154m by March 2025.

A report to the cabinet said the deficit relates to the high needs block and the high numbers of young people with Education Health and Social Care Plans.

Capital investments of £131.6m have been included in the budget, covering areas such as schools, highways, and the environment.

Also included was £81.9m of revenue spending including an extra £31.2m for vulnerable children and young people, £18.3m for adults’ social care, £4m for road works, and £27.8m to cover inflationary costs.

The proposed budget will be put to a meeting of the full council on Friday February 16 for final approval.

In the meantime, the fight goes on to persuade the government to provide more funding to councils.

Since 2018, six councils have issued section 114 notices, essentially declaring themselves bankrupt, with Middlesbrough Council applying for financial help earlier this year to avoid the same fate.

West Sussex leader Paul Marshall said:

“We know people in our communities, especially the most vulnerable, rely on our services and we will continue to do all we can to protect those services and invest in our county.

“Alongside our MPs, we are committed to continuing to apply pressure to government to properly fund local government so we can deliver the vital services our residents, businesses, and local communities need and deserve.”