West Sussex County Council Faces £30m Budget Shortfall Despite Potential Tax Hike

July 25, 2024

West Sussex County Council is confronting a significant financial challenge with a projected £30 million budget gap for the next fiscal year. This shortfall persists even if the council raises council tax by the maximum permitted amount.

Councillor Deborah Urquhart, the deputy leader of the council, highlighted the “great uncertainty and risks” concerning the authority’s expenses during a recent cabinet meeting. She noted that a 10% council tax increase is necessary just to maintain current service levels.

Pressures contributing to this situation include escalating costs in adult and children’s services, the need for highway improvements, and rising borrowing expenses. Presently, councils with social care responsibilities like West Sussex can only impose a maximum council tax increase of 4.99%.

Jeremy Hunt, the council’s cabinet member for finance, emphasised the critical need for government intervention. He urged either a fundamental change in how many services are provided or sufficient government funding to ensure the council can continue to meet residents’ expectations.

Without adequate funding, the council predicts a budget deficit of £60 million for 2025-26 and a cumulative deficit of £232 million by 2029-30.