COUNCIL leaders will meet next week to consider how the authority can invest more than £693 million on vital public services for people in East Sussex in the year ahead.

But reports to be considered by Cabinet lay bare the stark financial situation the council faces with it unable to rely on its own resources to deliver a balanced budget for the first time.

Despite making savings of more than £156 million over the past 15 years and being recognised as a well-run authority with prudent financial management, the authority is facing a £56 million deficit next financial year alone.

With reserves already depleted to lessen the impact of a funding gap in previous years, Cabinet will have to consider new savings of just under £3.1 million, on top of the £3.2 million from ongoing savings that will be realised in the coming year.

It will also be asked to recommend a 4.99 per cent council tax increase to Full Council – 2.99 per cent on council tax and 2 per cent on the Adult Social Care Precept.

As well as dealing with the result of sustained pressure on services, Government reforms hoped to have made funding for East Sussex fairer will in fact leave the county worse off because more money is being directed to other local authorities.

Even with changes to the way funding is calculated, Government grants fail to properly recognise the unique challenges and growing needs of East Sussex including it being a rural county with a large elderly population, having lower wages and some of the most deprived areas in the country.

Grants are also expected to fall over the next three years as part of the Government’s provisional settlement, increasing the pressure on the county council.

At its meeting on Tuesday, January 27, Cabinet members will receive an update on the council’s request to Government to allow an extra £70m of borrowing (known as Exceptional Financial Support) needed to sustain essential services and set a balanced budget.

The report says: “The scope for savings is now very limited and, having drawn on reserves in recent years to balance the books, those remaining cannot come close to bridging the funding gap. Council Tax would need to increase by over 19 per cent to cover the coming year’s gap, and well beyond that in future years, which would place a significant burden on residents.”

Whilst a record number of councils are expected to request Exceptional Financial Support this year, Cabinet will be told that the move “highlights the underlying funding issues” and “the need for appropriate national reforms to put statutory services on a sustainable footing for the future”.

Cabinet will also be asked to approve in principle the draft three-year council plan which sets out the council’s priorities.

It will set aims and targets including further improvements to bus services, spending £240m with local suppliers, replacing Exceat Bridge, launching a new loans programme to support businesses to grow and create jobs, developing our early help programme for families with young children to support them and prevent problems from developing and actively taking joined up health and care into communities to support people with complex needs.

The Council Plan will be finalised after budget allocations have been made and firm targets can be set.  The final document will be published in March.

Full Council will make a final decision on the 2026/27 budget on Tuesday, February 10.

The meeting of the Cabinet will be available to watch online at Agenda for Cabinet on Tuesday, 27th January, 2026, 10.00 am | East Sussex County Council

Ends.