East Sussex County Council To Take Out £70m Loan To Protect Frontline Services

East Sussex County Council has agreed to take out a £70 million loan in order to continue providing essential services such as adult social care and children’s services.

Council leaders say rising demand and increasing costs have created a predicted £56 million budget shortfall for the 2026–27 financial year.

The authority plans to spend £693 million on services in 2026–27, with significant increases in recent years for community care, special educational needs, disability support and caring for children in care.

Despite making savings of more than £156 million over the past 15 years, the council says it has had to rely on reserves for the last two years and now faces a £56 million deficit.

Conservative council leader Keith Glazier said East Sussex has been “particularly hard hit” by reductions in government funding.

Council leaders say taking out the loan will help avoid a potential 19 per cent council tax rise.

Instead, residents are being asked to pay an additional 4.99 per cent — an increase of £93.24, taking the average Band D bill to £1,960.29.

The move has raised concerns among opposition councillors, who questioned how the loan would be repaid.

Among those affected by the services is Eastbourne resident Peta Church, whose partner Terry has rapidly progressing dementia and attends Milton Grange adult social care centre.

The centre was threatened with closure last year but was saved following a campaign.

Peta said the support is vital:

“It means everything. My life would be completely different. If Terry was at home all day, I would have no freedom at all.

“I’m just one person — there are people all over Eastbourne and across East Sussex who need these centres and care services.”

A government spokesperson said it continues to work closely with East Sussex County Council on its requests for financial support, adding that the final 2026–27 Local Government Finance Settlement will provide £638 million in core spending power for the authority — an 11.2 per cent increase compared to 2024–25.