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RESOLVED
 
i)              
The changes detailed in this report in the Council’s
financial position in 2025/26 and medium-term financial strategy
were noted

 
ii)             
Subject to recommendation iii), approve that the Council remains in
the West Sussex Business Rates pool in 2026/27 and to delegate
authority to the Director of Resources in consultation with the
Cabinet Member for Finance and Resources to (a) agree the
operational details of the pooling arrangements with participating
authorities, and, (b) enter into any required documentation to give
effect to this proposal.
 
iii)            
Authority was delegated to the Director of Resources in
consultation with the Cabinet Member for Finance and Resources to
withdraw from the West Sussex Business Rates pool for 2026/27
should the robust modelling undertaken once the Provisional
Settlement is announced and the details of the business rates reset
are known result in an unfavourable outcome for the Council in his
opinion.
 
 
REASONS
 
i)              
The Council needs to acknowledge the effects that inflation, cost
growth and reduced income will have on its financial position both
in the short and mediumterm. Deficits
are predicted in the medium-term unless action is taken on fees and
charges, and savings are made. Given the level of uncertainty in
the projections, the economy and proposed Government action, the
report does not recommend direct action to drastically reduce
expenditure but does recommend the need to consider decisions like
these when setting the 2026/27 budget in January 2026, should the
Provisional Settlement in December 2025 be more unfavourable.

 
ii)             
Having a West Sussex Business Rates pool should benefit the County
and therefore the district by retaining locally generated business
rates, using it to further support the economic regeneration of the
wider West Sussex area. However, there is a significant risk in the
context of Fair Funding and Business Rates reset that the modelling
may not be favourable if continuing with a pool.
 
ALTERNATIVE OPTIONS CONSIDERED BUT REJECTED AS
IDENTIFIED IN THE REPORT
 
Making wholesale cuts to popular non-statutory
services such as Parks and Countryside, planning enforcement and
cultural and leisure services were considered. This was rejected
because the scale of the proposed deficits in the future is very
uncertain. While designed to protect services, this approach does
risk the Council having greater difficulties balancing its
financial position in the future and this will have an impact on
reserves, unless income is increased through fees and charges