Press Release – East Sussex County Council
02/246/MH25 September 2002
Dramatic and Damaging Threat to the County Council Finances

East Sussex County Council Cabinet yesterday approved its response to the Government’s proposals to alter dramatically the way government grant is distributed to local authorities.
Some two-thirds of the Council’s spending on services is met by government grant. The wholesale changes proposed by government could see the County Council lose up to £44m. in grant. Even if the government only implemented the middle options under consideration, the County Council would still lose some £26m. in grant. Losses of grant at this level could require major Council tax rises or major cuts in services or some combination of the two.
The Cabinet noted that the Government’s aim behind the proposed changes was to introduce a new system which was fairer, simpler and more intelligible. The Cabinet also noted that the effect of the changes would see regions in the North and Midlands gaining at the expense of the South East. Indeed, East Sussex could be the worst affected County Council in the whole country.
Deputy Leader Councillor Daphne Bagshawe, who has Cabinet responsibility for East Sussex finances, said: “The Government’s own figures show that if these proposals go through East Sussex could lose as much as £44m. In itself this would require major service cuts or a major tax rise of some 36%. Even if we assumed changes somewhere between these two extremes, we would lose some £26m. This is equivalent, in scale terms, to a Council tax rise of 23% or losing 900 teachers or stopping residential care for 2,500 elderly people or ceasing highways maintenance altogether.
“We simply do not believe that the Government believes that such an effect would meet its declared aims of producing a fairer system. The impact for East Sussex is particularly perverse when one bears in mind that we are one of the poorest areas in the whole Country (in terms of GDP).
“Overall, the potential results for us are both dramatic and damaging for our service users and our Council tax payers. I can only hope that the Government listens to our arguments and I am sure our various partners will also wish to alert Government to their concerns.”
Notes to editors:- The County Council currently spends some £440m. of which some £200m. is on Education and £100m. supports Social Services.
The Government has produced 47 different options most of which disadvantage the County Council.

NEWS &. INFORMATION FROM BILL.

In the last `Clarion' I did say "What do we get for our Council Tax?"; little did I imagine at the time, there is a possibility that Council Tax may go up by 35% in the future. It was worked out by one of our members attending the Quarterly meeting, this should work out at an extra £7 a week out of our pensions.

If this is so, it must be pushing some O.A.P's very near the borders of claiming Social, if not, over that border?. What was not mentioned, some of the services such as Water & Sewerage are based on rateable value of houses. Lets hope they do not jump on the band wagon and put up their charges! I suppose one could call a jump in our Council tax, as above, be classed as O.A.P's taking a cut in our pensions. Looked at, in this light. Instead of County taking their usual step of cutting soft services, such as care homes etc. Maybe they should consider cutting some of their in house expenses, which according to their `Draft Statement of Accounts', takes up half of all the money they receive from Government, Rates etc. etc.