Report of the Cabinet

Recommended · This went to the meeting on Tue 10 Feb 2026. What was decided is in that meeting's minutes.

The Cabinet of East Sussex County Council recommends that the County Council approve a net revenue budget of £693.2m for 2026/27 and a 4.99% Council Tax increase, which would take the annual charge for a band D property to £1,960.29. p147p149p152

The Council faces an unfunded revenue gap of £55.6m for 2026/27; savings of £6.3m are proposed for delivery next year, out of £8.0m identified for the period 2026/27 to 2028/29, and the Chief Finance Officer reports that remaining reserves are at the absolute minimum level required. p102p77p98

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• p771.41 In total, potential further reductions of £3.5m have been identified across all departments. Added to those set out earlier last year this means a total of £8.0m savings have been identified for the period 2026/27-2028/29, with £6.3m proposed for delivery in 2026/27. The detailed proposals are set out at Appendix 4a. The provisional Local Government Finance Settlement has not removed or reduced the requirement to identify savings wherever we can, given the legal requirement to balance the budget. Given the hard decisions already made, and current pressures on services, additional savings are expected to have further significant impacts on our residents, partners and staff, as well as affecting the organisation’s capacity to respond to new demands and transform services. These are not proposals we would wish to make, but at this point there are no desirable options.
• p981.51 In accordance with Section 25 of the Local Government Act 2003, the Chief Finance Officer (CFO) has a legal duty to report on the adequacy of reserves and the robustness of estimates when setting the budget. Given the current financial position and the significant depletion of service and strategic reserves, the CFO considers the remaining reserves to be at the absolute minimum level required to safeguard the Council against unforeseen risks and volatility. Any further draw on reserves to support the planned revenue budget would compromise the adequacy of reserves and leave the Council exposed to an unacceptable level of financial risk. Consequently, no additional use of reserves can be recommended to bridge the budget gap for 2026/27, so the only recommended option to set a balanced budget will be the flexibility granted under the government’s Exceptional Financial Support (EFS) framework.
• p1021.55 For 2026/27 the Council is facing an unfunded revenue gap of £55.6m. Whilst the Council has some reserves, the use of these at this stage would expose the Council to an unacceptable level of financial risk. Therefore, to address this position, the Council has submitted an indicative request for up to £70m of capitalisation to MHCLG. This includes a £12.5m contingency, which has been earmarked to cover emergent financial pressures, as well as investment aimed at bringing the Council back into financial balance over the MTFP period. Any use of this fund will be subject to robust internal controls and be supported by a robust business case demonstrating a clear and measurable return on investment that contributes to financial recovery and long-term sustainability. This approach ensures compliance with the principles of the EFS framework, safeguarding resources while prioritising investments that strengthen the Council’s financial position.
• p1471.82 The Cabinet recommends the County Council to:
• p149(2) approve the net Revenue Budget estimate of £693.2m for 2026/27 set out in Appendix 2 (Medium Term Financial Plan) and Appendix 3 (draft) (Budget Summary) and authorise the Chief Executive, in consultation with the Chief Finance Officer, Leader and Deputy Leader, to make adjustments to the presentation of the Budget Summary to reflect the final settlement and final budget decisions;
• p152(ii) the amount calculated by East Sussex County Council as the basic amount of council tax (i.e. for a band D property) for the year 2026/27 is £1,960.29 and represents a 4.99% (2% of which relates to the Adult Social Care precept) increase on the previous year;