A county council is facing a projected three-year budget deficit of £83.6 million during its “most difficult financial outlook” ever.

East Sussex County Council has addressed its “substantial and growing gap” between costs of services, needs of residents and the council’s expected income.

In a report, it has set out proposed cuts to bridge the gap, which stands at a budget deficit of £55.3 million for the year ahead.

First on the list is a substantial cut to its housing support fund, the East Sussex Floating Support Service. This service is available to residents above the age of 16 who are at risk of losing their home, are already homeless or living in temporary, poor quality or unsuitable accommodation.

The proposal suggests that the funding would be cut from £4,372,615 to £500,000, a reduction of 88.5 per cent.

Under the proposals, on-site support in supported accommodation for vulnerable adults, including homeless people, would also be cut, leading to possible closures.

It is a similar picture for supported accommodation for adults with mental health needs, where services could be reduced and possibly closed.

The Phoenix Centre in Lewes, which provides day care to adults living with dementia, strokes and other age related health conditions, has also been earmarked for closure, alongside the Milton Grange day service which provides community care to older people living with complex mental health and physical needs.

Linden Court in Eastbourne, a day service for people with learning difficulties, could also close if the report is approved.

Other cuts include the closure of a service which provides professional training for adults with learning disabilities, the cessation of the funding of drug and recovery services and the introduction of a booking system for recycling sites.

The council has said the dire financial situation is due to “a rapid escalation in both demand and costs”, specifically children’s social care, special educational needs and disability, home to school transport and adult social care.

It also reported that the county’s demographic has a “significant impact” due to the high numbers of over 65s and over 85s which brings a “higher need for care and support”, leaving the local authority “at a tipping point”.

Other factors include high levels of deprivation and low resources.

A spokesman for the council said: “Since June the council’s financial position has deteriorated.

“This is due to continued increases in demand for services and the cost of delivering them - a picture mirrored nationally.

“This is both a stark and urgent position. Unless additional funding is forthcoming, the council will not be in a position to set a balanced budget in February without action, over and above steps already being taken.

“We are faced with hard, short term choices which do not reflect how we would want to approach evidence-based, longer term planning to meet the needs of our communities and services.”

Proposed savings will be discussed at a cabinet meeting on Thursday at East Sussex County Hall in Lewes.