Nearly £2 million in savings must be found to balance the annual budget amid rising pressure from high inflation, an Eastbourne Borough Council meeting was told last night.
Councils across the country are nervously awaiting what Chancellor Jeremy Hunt may announce in his Autumn Statement on 17 November to hear how deep the cuts will go.
Coun Stephen Holt (Lib Dem, Devonshire), Cabinet member for finance, said all local authorities were experiencing large budget shortfalls, notably borough and districts.
He told the meeting that Eastbourne will have to find £1.9 million in savings to balance the budget, adding: “We look forward to working cross-party and with the community to achieve this.”
Homira Javadi, chief financial officer, told the meeting: “The enemy is inflation.”
It meant, she said, rises in the costs of providing services but it also had an impact on businesses and residents in terms of the rising cost of living.
The first quarter, from April to June, gave an early insight into what is happening but the picture should be clearer after the Autumn Statement, said Ms Javadi.
Ms Javadi’s medium-term financial forecast report to the meeting noted that using reserves to balance the budget was “not a sustainable solution to the financial challenges we face”.
Council leader David Tutt, chairing the Cabinet, said: “There is a serious issue here for local government across the UK. The message every year has been to take more money away and put more pressure on local government.
“I am very uncertain about the future, not just here but across the country.”
Conservative opposition leader Coun Robert Smart said he fully recognised the significant uncertainty but asked if the council could give a full analysis of pay-related costs, which comprised more than £1 million in the council’s budget.
“Given the payroll is such an important area, the items are not very well highlighted. Could we have a full analysis?” he asked.
Coun Holt said he was happy to work with Coun Smart on the matter and provide more details.
The next Cabinet meeting is due to be held at 6pm on 14 December at the Town Hall.
:: Eastbourne Borough Council is controlled by the Liberal Democrats. It has 27 councillors representing nine wards in the town as follows: Liberal Democrats 16; Conservative eight; Independent three
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