County Budget and Council Tax

In this financial year, East Sussex County Council will have a balanced budget. This is a legal requirement. In order to achieve this, we will have to use £14.3m of reserves.

In 2025/26 there will be further investment in services of £54.9 million to meet growing demand and cost pressures. This will be funded by Council Tax, Business rates, grants and reserves. Some cuts in non-statutory services will be needed to balance the budget. These likely cuts will be ones that no one wants to make but are necessary to balance the budget.

The gross spending by the council is £1,138m overall with £409m for adult social care and £411m for children. This includes schools which are directly funded by the government; ESCC passes the money on. These gross figures include income from fees and charges, contributions from the NHS and other agencies along with some specific grants. The net spending is £579m, of which £280will be for adult care and £154m for childcare.

The increase in spending is largely driven by the increasing costs of care mainly through inflation and meeting more complex needs. Between 2020/21 and 2024/24 there was a 116% increase in the average weekly cost of Looked After Children Placements.

In addition, the Council is facing further pressures due to the impact of the rise in employer National insurance contributions and the higher minimum wage.

As in recent years, Council Tax is due to rise by 4.99% of which 2% is dedicated specifically to Adult Social Care.

Local Government Reorganisation

The Government announced today East Sussex, West Sussex and Brighton will be in the first wave for local government reorganization. This will mean no elections this year as is also the case in Hampshire, the Isle of wight, Norfolk, Suffolk, Essex, Thurrock, and Surrey. Elections will be held in 2026 for a Sussex Mayor.

Roy Galley

6th February 2025

Roy Galley.cllr.roy.galley@eastsussex.gov.uk

01825 713018