East Sussex County Council warns more government support needed

East Sussex County Councillors have been told that a funding gap of around £13 million remains after Rachel Reeves’s Budget statement signalled extra costs for councils in the coming year.

The council now says that more support from the government is needed to ensure that further reductions in services and cuts in staff numbers are not needed.

A report put before councillors highlighted that increases in employer’s National Insurance contributions and a new higher National Living Wage would lead to higher costs alongside higher than expected inflation.

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Initially the council said it had a £57 million deficit for the forthcoming year but this had been decreased to £13 million through cuts to services and staff.

The council is also proposing an increase in on-street pay and display parking charges.

The report said: “There was welcome acknowledgement of the specific issues driving pressure on local authorities and the need for reforms in key areas, including increased focus on prevention.

“This recognition was accompanied by some short term additional financial support, particularly for adult social care and Special Educational Need and Disability (SEND).

“However, increases to the National Living Wage and National Insurance paid by employers will impact on our providers and the costs of commissioning services, particularly in the care sector, and higher than expected inflation will affect costs across a range of services.”

The council also warned that failure to recognise the county’s areas of deprivation, older population and smaller economy could lead to it being penalised in the government’s £700 million target of support for councils.

The council previously said it was facing a “substantial and growing gap” in its finances.

Cuts to services including its housing support fund and the closure of The Phoenix Centre in Lewes have been proposed.