Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 19, 2025

Purpose:

Content: 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