Worthing Borough Council's budget deficit covered

Cabinet member for resources John Turley (Lab, Gaisford) told Worthing’s joint strategic sub-committee on Tuesday, December 5, that reserves were now projected to cover the council’s forecast £1.54million revenue budget shortfall.

The council’s total overspend for 2024-25 was forecast to be roughly £2.7million. In November it was down to £1.54million through savings found in the budget. Now the council has revealed its reserves were forecast to cover that shortfall, balancing its budget and leaving an overspend of roughly £200,000.

Budget details were heard behind closed doors again on Thursday, December 7, at Worthing and Adur councils’ joint strategic commitee meeteing.

Worthing opposition leader Kevin Jenkins (Con, Goring) said budget meetings had not been held behind closed doors for at least 20 years, and added the current Labour administration filing a late budget last year contributed to the current position.

Mr Turley said the council was making a budget with no ‘resilience’ and would need to wait until the government’s settlement at the end of the year to determine final budget numbers.

He said the council’s financial position ‘only just’ covered the deficit and the review into council services and assets to find savings was ‘ongoing’, adding another ‘unexpected shock’ could send the budget back into the red.

Neighbouring Adur District Council has said its finances are on track after ‘difficult decisions’ were made.

At the end of June this year, the council was forecasting it would be £254,000 over budget for the financial year because of unexpected increases in costs.

Since then, officers have identified further opportunities to reduce costs and make savings so that by the end of September around £287,000 of savings had been found – resulting in a forecast underspend of more than £30,000.

A council spokesperson said: “Tackling homelessness and supporting those unable to afford their rent because of the national restrictions on housing benefit is expected to cost the council more than £530,000 over what had been budgeted for.

“However, delaying some projects has saved the council an estimated £344,000, while increased car parking income, lower maintenance costs and higher interest rates on its investments have also helped.”

“The council is facing tight financial restrictions caused by a reduction in central government funding and increasing pressure outside of its control from inflation and cost of living challenges, like every other local authority in the country.

“It is continuing to prioritise its spending through new tighter controls on expenditure, making savings in staffing and resources, and postponing or cancelling some less vital work in favour of funding frontline services for the community.”

Adur council leader Neil Parkin said: “This continues to be a very challenging time for the council financially because of factors outside of our control. We have had to make some difficult decisions so far in 2023 but this has meant that we have gained a firm grip on spending and can be confident about our services over the coming months.

“This council will continue to focus its resources on supporting those most in need across our community, keeping the wishes of our residents at the heart of everything we do.”