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Two Sussex councils in “exceptional financial hardship” are set to get more support from the government. Worthing Borough Council and Eastbourne Borough Council have been granted financial flexibilities through ‘capitalisation’, allowing them to borrow money or sell assets to meet day-to-day revenue costs. Both councils have acknowledged their significant forecast budget deficits, with Worthing council warning that “difficult choices lay ahead” to balance its books at the end of last year.
In its most recent budget report, it stated that increased demand and inadequate funding for housing needs were among the reasons for the strain. Eastbourne Borough Council has blamed its financial struggles on the costs of homelessness, having spent nearly £5 million in a year on temporary accommodation - almost a third of the council’s entire annual spending on local services. It has already pursued a number of measures to cut spending, including the closure of The Beachy Head Story.
However, councils have been instructed not to dispose of community and heritage assets. Worthing Town Hall (Image: Google) Both councils will both receive an extra £2 million each from the government. READ MORE: Takeaway allowed to open until 4am despite concerns about it being in high crime area The Ministry of Housing, Communities and Local Government (MHCLG) confirmed that more councils had requested exceptional financial support this year than since the process was established in 2020.
The Government has now removed a one per cent premium previously applied to borrowing from the Public Works Loan Board. Instead, the MHCLG said officials will “work with councils on improvement and actions they can take to help manage their position to ensure value for taxpayer money”. Worthing Borough Council is due to decide on its budget for 2025/26 next week at its full council meeting.
Local government minister Jim McMahon said: “We are under no illusion of the state of council finances and have been clear from the outset on our commitment to get councils back on their feet and rebuild the foundation of local government. “We are working with local leaders, encouraging councils to come in confidence where needed to seek help and be assured we will offer a relationship of partnership – not punishment – in our joint mission to improve public services for communities and create economic stability as set out in our Plan for Change.”.
