Councils “narrowing the financial gap but difficult choices lie ahead.”

A report to be considered by the councils’ Joint Strategic Committee next week highlights how the work being done this year is already having a significant positive effect on the councils’ budgets for the rest of the decade.

A statement said that significant reductions in the central government grant over many years, combined with challenges from inflation and cost of living pressures, mean the old ways of funding the councils’ vital services are no longer fit for purpose.

It continued “One of the greatest financial challenges for the councils is the rising bill for housing vulnerable people. An increasing number of local people are coming to the councils for help after being made homeless, while the councils are also having to pay more and more in supported accommodation costs for people with complex issues that are housed here by other agencies.”

In total, these two housing challenges alone are expected to cost the councils an additional £660,000 in Adur and £1.5 million in Worthing this year.

That has left the councils with what are projected to be major shortfalls in their budgets over the next five years.

By finding ways of reducing costs and increasing income since July, officers say they have been able to trim almost £250,000 from next year’s current shortfall for Adur District Council and more than £430,000 from that of Worthing Borough Council.

The councils are working through options to close the remaining budget gap of £916,000 for Adur and almost £2.5 million for Worthing for 2025/26 to balance the books by the end of March.

Among the steps being taken are reviews of how the organisation manages its assets and properties, can better generate income, purchases goods and services and attracts external investment. This is with the objective of getting the most social and economic value for every pound the councils spend. These include reviewing commercial waste charges, beach huts and parking fees, and the way the councils’ bereavement service operates.

Officers are also exploring the possibility of allowing more public advertising in Adur and Worthing and offering licences to businesses wanting to operate on the coastline.

The councils say they are reviewing their list of projects and intend to drop or delay some to increase the focus on frontline services. Investments that are the least profitable could be sold off in favour of ones that most benefit the communities of Adur and Worthing, and developers could be encouraged to fund improvements to the borough’s green spaces.

Cllr Sophie Cox, the leader of Worthing Borough Council, said: “As councils for the community we want to help every one of our residents to thrive, but the difficult financial situation that we and others find ourselves in means we have to do things differently.

“We’ll continue to work hard over the coming months to develop a new model with our communities and adapt to become sustainable and more resilient in the years ahead.”

To read the full report visit https://democracy.adur-worthing.gov.uk/documents/s13481/2024.10.01%20JSC%20Budget%20Report.pdf