East Sussex County Council and Brighton and Hove City Council have already agreed to move forward. The next steps in the devolution process will see detailed preparation work to establish the new authority ramp up. It’s expected that a mayor will then be elected in May 2026.
Also discussed at the Cabinet meeting were the budget pressures faced by West Sussex County Council and the work needed to make best use of resources. Cabinet Members heard that significant work had taken place to reduce an estimated budget gap of £27m for 2026-2027 which was reported in February.
Assuming a decision is made to increase council tax by 5%, the meeting heard the current budget gap for 2026-2027 would have been £6.3m. However, as a result of the Government’s funding review of local government finance, we are facing an estimated £30m overall loss of funding. We believe this will be introduced over three years, so for 2026/27 we have had to allow for a reduction of government funding of £10m. As a result of this, our budget gap therefore stands at £6.3m, plus the additional £10m loss of funding, meaning that the gap now stands at £16.3m.
Leader of West Sussex County Council, Cllr Paul Marshall, said: “Setting a balanced budget is extremely challenging as we continue to face severe financial pressures, caused by funding challenges, inflation and a continuing rise in complexity and demand for services. We are particularly seeing this with adults’ social care and children’s special educational needs and disabilities.
“We are frustrated that there remains significant uncertainty around the impact of the government’s funding reforms with a potential loss of around £30m across the next 3-years. Our final allocations will not be known until December, but we are preparing as best we can with the information we currently have and working to ensure every service provides good value for money, is cost effective, and contributes to Our Council Plan priorities.”
To continue to provide vital services for the most vulnerable, the county council is proposing an additional £33.6m is built into next year’s budget. This is alongside budget reductions of £26.6m through savings and opportunities to reduce demand.
Cllr Jeremy Hunt, West Sussex County Council Cabinet Member for Finance and Property, said: “We have several new initiatives focused on complex service areas which are designed to continue make the council more efficient and enable better joined-up ways of working.
“Our goal is to avoid temporary and unsustainable quick fixes and short-term cuts. Instead, we are committed to designing and delivering services that focus on prevention, are future-proofed, and respond to the needs of the people of West Sussex.
“We will also continue to lobby government, along with our local government partners across the country, for fair and sustainable funding that supports the increasing pressures we face on service provision.”
The final financial details and allocations will be decided by all members of the county council on 20 February 2026 when they meet to approve the Council Plan and budget for 2026 to 2027.
Due to the planned establishment of new unitary councils throughout Sussex in 2028 through Local Government Reorganisation, it is proposed that the current Council Plan be extended until the abolition of the County Council.
The priorities set out in the plan are:
- keeping people safe from vulnerable situations
- a sustainable and prosperous economy
- helping people and communities fulfil their potential
- making the best use of resources
These priorities are all underpinned with a cross-cutting theme of protecting the environment.
It is also proposed that a new priority be added to the Council Plan to:
· maximise the benefits of devolution and local government reorganisation for our residents and communities.
Cllr Paul Marshall added: “We’re confident that these priorities continue to represent what we know is important for our residents and businesses in West Sussex.
“As a council that spends 83% of the government’s funding for the county to deliver 80% of the services needed by our residents, we recognise the importance the potential changes facing us through the government’s local government reorganisation programme, and our priorities need to reflect, and prepare us, for these changes.
“We are doing and will continue to do all we can to ensure our 900,900 residents and more than 42,500 businesses are in the best possible financial position as we prepare for this important future transition.”
Read more about the county council's budget and the future of local government in Sussex.
