West Sussex County Council Faces £16.3 Million Budget Gap For 2026/27

West Sussex County Council is forecasting a £16.3 million budget shortfall for the 2026/27 financial year, the council has confirmed.

The figure, shared by Cabinet Member for Finance Jeremy Hunt, is based on a proposed 4.99% council tax increase, £26.6 million of planned savings and budget cuts, and an anticipated £10 million shortfall linked to the government’s Fairer Funding Review.

Council Leader Paul Marshall said:

“Setting a balanced budget is extremely challenging as we face severe financial pressures caused by funding shortfalls, inflation, and rising demand for services, particularly in adults’ social care and children’s special educational needs and disabilities.

“There remains uncertainty around the impact of government funding reforms, with a potential loss of around £30 million over the next three years.

"Our final allocations won’t be known until December, but we’re preparing as best we can to ensure services are cost-effective and provide good value for money.”

The situation is slightly better than predicted earlier this year, when a £27 million gap was forecast.

Planned savings include:

• £7.9 million from adults’ services

• £6 million from children and young people

• £4.7 million from environment and climate change

• £4.6 million from highways and transport

A major ongoing concern remains the Dedicated Schools Grant (DSG) deficit, which could reach nearly £200 million by the end of the year.

Mr Hunt criticised the government’s ongoing underfunding of Special Educational Needs and Disabilities (SEND) provision, warning that the council is effectively providing an interest-free loan to the Department for Education.

The council’s budget and Council Plan for 2026/27 are due to be approved at a full council meeting on 20 February 2026.