East Sussex Councillors Discuss ‘Unprecedented Financial Uncertainty’

County councillors have discussed a report warning of ‘unprecedented financial uncertainty’ in local government finances.

On Monday (June 27), East Sussex County Council’s cabinet discussed the authority’s latest state of the county report, which marks the beginning of its budget-setting process by setting out the challenges and needs of residents. 

In it, the council’s chief executive Becky Shaw warned that a number of factors — including the pandemic, the war in Ukraine, rising inflation and upcoming government reforms to adult social care — means the council is operating in an increasingly uncertain financial climate.

In light of this uncertainty, the council said it is currently unable to update its Medium Term Financial Plan (MTFP) — a document setting out the council’s expected costs and resources for the coming three financial years — as more information is required.

The pressures facing the council saw concerns raised by Liberal Democrat group leader David Tutt. He said:

“We know that the government is putting additional responsibility and additional pressures on us on a regular basis. 

“We know the effect of the adult social care legislation and the challenges that will bring for our assessment team. We know of the changes as a result of the SEND (Special Educational Needs and Disability) green paper. We know the difficulties we are having recruiting staff and we know from what was just reported that we won’t be able to deliver a Medium Term Financial Plan for the first time, at this stage of the year, in my memory. 

“I’m not blaming you for that. I am blaming, very firmly, national government for reneging on repeated promises to deliver a settlement that is reasonable and fair for local government. 

“What national government seem to be focusing on is anything that will keep Boris Johnson in office for a few more days, rather than looking at where real services are delivered at ground level.”

These comments saw some criticism from Conservative council leader Keith Glazier, who described them as ‘unhelpful’.

Cllr Glazier said:

“The politics that go outside of this we need to continue to lobby on, but listening to your introduction there, the people of East Sussex might wonder and worry about the state of the service that this council provides. 

“I will sit here this morning and say I am so proud of the work our staff have done and continue to do. The people out there are continuing to get good quality services delivered by really dedicated staff. 

“We do have some serious work to do between now and the end of the year before we set our next budget, but let’s not scaremonger with people out there. Let’s deal with the things we can affect, if we can lobby we will and hopefully we will get a sensible settlement.”

He added:

“The fact there isn’t a Medium Term Financial Plan now doesn’t mean that there won’t be one by the end of the year.

“What we have is so many uncertainties from government. Until we have that [detail] we would be crystal ball gazing.” 

Similar concerns were raised by other opposition councillors, including Labour’s Phil Scott, who said:

“The reality is that there is less and less and less and less coming into the coffers and yet local authorities are being asked to do more and more and more, whether that is East Sussex, whether that is Eastbourne, Hastings et cetera et cetera. 

“So I do concern myself about the level of services. I’m not suggesting for one moment that this authority does not provide excellent services.

“What I am saying is, is that people should be concerned that with less money coming it may get to the point at some stage where this local authority has to say what part of the business or what part of the services do you not want us to provide because we can’t afford it.”

The council is expected to receive more detailed financial plans in the autumn.