Arun District Council facing ‘challenging financial climate’

Officers at Arun District Council said that extra expenditure or ‘growth’ should be minimised and prioritised in order to prevent financial hardship in the future.

This could see investment diminish if a project or service is not required by law; sees few financial returns; or increases day-to-day spending.

Projects which repair council owned assets, such as buildings, could also suffer as they are labelled as a ‘low priority’.

The council’s 151 officer – who ensures council affairs are administered properly – told the corporate support committee: “We’re facing a budget deficit in approximately two years time.

“As a council we have got to try and reduce the amount of risk by constraining committed growth that projects into future years. Because obviously anything that we agree to now will make the future position worse.”

During a meeting on Tuesday (18 January)  Hugh Coster (Ind, Aldwick East) said the strategy was ‘entirely laudable’ but wanted to know how it had been decided.

Officers said the decision was based on a financial prospects report in October and advice from the section 151 officer.

A report before the committee pointed out that the council is facing ‘increased costs and reductions in income’.

“In common with other local authorities, Arun is facing a challenging financial climate and it is therefore essential that systems are in place to ensure that scarce resources are allocated in the most effective possible way,” it reads.

When the council’s budget is given final approval in February, Arun’s share of council tax is expected to increase by £5 a year or two per cent per year – the maximum allowed.

Fees and charges made by the council are also expected to increase by ‘at least 2.5 per cent’.

It is the first time ADC will make a budget under the new committee system, which it adopted in May 2021.

Each committee will approve the budget for relevant services that the council provides, from tourism to green spaces, waste collection, and housing.

On Tuesday the corporate support committee duly approved a budget of £6.59 million for elections, customer services, ICT and other services for the 2022- 2023 financial year.

A capital budget to replace phone and computer equipment was approved at £200,000 – up from £120,000 in 2021-2022.