The Overview and Scrutiny Committee are scheduled to discuss the De La Warr Pavilion Trust performance, the Housing Renewal Financial Assistance Policy, and the draft budget challenge proposals for 2026/27. The committee will also review its work programme for the coming year.

Draft Budget Challenge Proposals 2026/27

The committee will be asked to consider and recommend to the cabinet proposed savings and growth proposals for the 2026/27 budget, ahead of a public consultation. The report pack highlights that the council has a legal responsibility to set a balanced budget annually, and that the funding landscape for local authorities remains challenging. The Draft Budget Challenge Proposals 2026/27 report pack notes that the Section 151 Officer¹ is responsible for reporting on the robustness of estimates and adequacy of reserves.

The report pack also notes that the external auditors have previously reported to the Audit Committee their focus on the financial sustainability of councils despite Local Government Reorganisation (LGR). The auditors highlight LGR as a key risk in the work planning for 2025/26, and will be keeping a close eye on any schemes or projects which look like they are evidence of reserves being run down in advance of LGR.

The report pack states that Heads of Service were asked to identify 10% savings on their gross budget (excluding where expenditure is directly funded from earmarked grants or subsidy). The Appendix A for Draft Budget Challenge Proposals 202627 lists a number of potential savings, including:

• £50,000 from implementing permanent staff savings related to the Environment Strategy.
• £35,000 from implementing permanent staff savings related to Regeneration.
• £50,000 from proposed business improvement efficiencies resulting from LGR.
• £105,000 corporate saving on management costs (10%).
• £100,800 from removing the budget provision for planning enquiries agency staff.
• £51,000 from reducing the planning establishment by 1 FTE vacant post following a reduction in planning application numbers.
• £12,000 from reducing external consultancy support for conservation advice by 80%.
• £1,070 from removing the conservation grant to Rye Harbour Nature Reserve.
• £27,950 from a 0.6 FTE grounds maintenance staff vacancy.
• £7,000 from removing Rye sports centre car park from the Biffa contract.
• £5,000 from reducing the repairs budget in Residual Highways.
• £6,570 from reducing the member training budget.
• £1,000 from reducing costs associated with canvassing activity.
• £1,380 from reducing the mileage budget due to less canvass work.
• £12,000 from Firmstep function reduction.
• £11,000 from GGP hostings fees and licensing savings.
• £2,450 from moving from Adobe to Foxit as PDF editor.
• £25,000 from a licensing review of all corporate accounts.
• £11,710 from implementing permanent staff saving related to Print and Design.
• £10,040 from implementing permanent staff saving related to Customer Services (12 hours).
• £19,804 from implementing permanent staff saving related to Customer Services (19 hours).
• £2,000 from regrading a role in the Environmental Health/Food Safety Officer team.
• £10,000 from letting the housing office on Sackville Road
• £44,000 from increasing estate income by 2%.
• £5,000 from new service charge income.
• £28,000 from directly recruiting two Revenues Officers.
• £48,000 from reducing agency support by one officer within the Benefits team.

The Appendix B for Draft Budget Challenge Proposals 202627 lists a number of potential growth and invest to save proposals, including:

• £60,000 for a RV Park for Bexhill.
• £60,000 for a RV Park for Camber.
• £10,000 for RV Park x2 insurance etc.
• £300,000 for temporary accommodation costs, including provision for Pathways Supported Accommodation.
• £20,000 for Cyber assessment Framework (CAF) alignment.
• £50,000 for additional cyber security measures.
• £22,150 for Ascendant Modules software.
• £4,000 for Noise App.
• £4,000 for Housing App.
• £30,000 for a new Housing Enforcement Officer.
• £49,500 for additional resources required in HR.
• £2,400 for Co-pilot Paid Licence trial for 10 users.
• £1,000 for additional letting of housing office on Sackville Rd - £1000 required for repairs / improvements ahead of letting.

The Appendix C for Draft Budget Challenge Proposals 202627 outlines discretionary fees and charges proposals.

Housing Renewal Financial Assistance Policy 2026

The committee will be asked to consider and recommend the Housing Renewal Financial Assistance Policy (Disabled Facilities Grants) to cabinet for approval and adoption by full council. The Housing Renewal Financial Assistance Policy 2026-2028 report pack states that the Regulatory Reform (Housing Assistance) (England and Wales) Order 2002 requires councils to adopt and publicise a policy setting out its obligations to provide assistance to any person for the purpose of improving living conditions in their area.

The council only receives sufficient funding from HM Government (through the Better Care Fund paid to East Sussex County Council (ESCC) and distributed to the council) to mainly provide mandatory Disabled Facilities Grants (DFGs) in accordance with the Housing Grants, Construction and Regeneration Act 1996. DFGs are available to disabled people when works to adapt their home are assessed as necessary and appropriate to meet their needs.

The main change in the proposed policy is increasing the discretionary grant from £30,000 to £40,000. The report pack notes that officers have fed back to the government, through the current consultation, the need to increase the maximum mandatory amount of £30,000.

The Appendix A sets out the financial assistance tools for providing housing renewal assistance. The Appendix B gives details of DFGs awarded in 2024/25.

De La Warr Pavilion Trust Performance Update 2024/25

The committee will be given the opportunity to note the performance report of the Chief Executive Officer of the De La Warr Pavilion Trust (DLWPT). The De La Warr Pavilion Trust Performance Update 202425 report pack includes a report from Stewart Drew, Director and CEO of the De La Warr Pavilion (DLWP) Charitable Trust, setting out the activities and achievements of the organisation during the financial year 2024/25.

The report pack notes that in January 2023, Rother District Council secured £19,192,000 from the government's Levelling Up Fund[^3] 2 to enable the delivery of cultural-led regeneration to improve the lives of the most vulnerable and disadvantaged people in Rother. The report pack also notes that the DLWP has been severely impacted by the sharp rise in energy prices with costs rising from £75k pre pandemic to c.£216k in 2024/25.

The report pack states that between 1 April 2024 and 31 March 2025, the Pavilion welcomed 358,622 visitors. The report pack also notes that the DLWP continued to partner with Flatland Projects, awarding a fellowship for a young curator and supporting the Artist Studio Development programme which provides 5 local emerging artists with mentoring and subsidised studio space at Beeching Road Studios.

The Appendix B is a recent history and background to the council's relationship to the DLWP, which is reproduced from the 2024 report.

Work Programme

The committee will review its work programme for 2025-2026. The Work Programme lists the following items for consideration:

• Local Government Reorganisation and Devolution
• Performance feedback from organisations awarded Council grants
• Outcomes of the Tourism Strategy
• Economic Regeneration Strategy
• Review of Progress Against the Recommendations of the Health and Well-Being Task and Finish Group (Year 1, 2024)
• Review of Progress Against the Recommendations of the Health and Well-Being Task and Finish Group (Year 3, 2026)
• Health and Well-Being Board – Update Report