East Sussex Council Faces £56m Budget Shortfall, Looks To Government For Support

East Sussex County Council is facing a projected near-£56 million deficit in its next budget, with senior councillors warning that current reserves will be insufficient to cover the shortfall.

Conservative vice chair Nick Bennett described the situation as a “stark” financial position, citing rising costs and growing demand for services, particularly in social care.

He said the council has begun applying to the government’s Exceptional Financial Support (EFS) scheme to help manage the gap.

The council is also exploring new savings measures for 2026-27.

The EFS scheme allows authorities in the most challenging financial positions to access extra support, often through loans or asset sales rather than additional grant funding.

Council leader Keith Glazier said the criteria for the scheme are still under review, adding:

“We don’t yet know what may or may not be on offer.”

Meanwhile, opposition leaders described the financial outlook as deeply concerning.

Liberal Democrat group leader David Tutt called it “a very depressing set of circumstances,” while Labour group leader Chris Collier highlighted the need for a broader discussion on potential support options.

A recent review by the Chartered Institute of Public Finance and Accountancy noted that the council had shown “sustained financial discipline” and a willingness to take “politically unattractive decisions,” but also warned that unallocated reserves risk being exhausted.

East Sussex County Council is set to merge into new unitary authorities across Sussex in 2028, a change that may affect long-term financial planning.