Council deficit could rise to over £79m by 2029

East Sussex County Council faces its "most challenging financial position ever", a report has warned.

On Tuesday cabinet members will consider the latest "state of the county report" - a document which begins the authority's annual budget-setting process.

Chief executive Becky Shaw has warned that the demand for and costs of the council's services have continued to grow, but available funding has "not kept pace", reports the Local Democracy Reporting Service.

The council's Medium Term Financial Plan (MTFP) predicts a £36.5 million deficit for the 2026/27 financial year, increasing to £56.2 million by 2027/28 and £70.8 million by 2028/29.

The report says: "Pressures on services have continued to grow as the needs in our communities increase and become more complex, costs have escalated due to national factors beyond our control, and the funding we receive from government and can generate locally has not kept pace.

"We expect these pressures to be ongoing in the coming months and years.

"The gap between the funding we have and the cost of providing statutory services has now grown unsustainably and we have been realistic and honest about the substantial challenges this creates."

Ms Shaw says the authority is preparing its response to these pressures "from the most challenging financial position the council has ever faced".

To set its budget for 2026/27 the council will need to consider further savings, the use of its remaining reserves, and a bid for Exception Financial Support (EFS) from the government, Ms Shaw says.

"None of the above options are desirable but the council will have no option but to undertake some combination of the above if it is to maintain financial sustainability and protect services to the residents of East Sussex."

These measures are likely to come alongside further increases to council tax, the report adds.

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