Council finances on 'sound footing' despite 'government underfunding'

Over the past 15 years, the council has faced a dramatic reduction in government support, driven largely by the phased removal of the revenue support grant.  This has coincided with wider economic challenges, including high inflation, rising homelessness, increased demand for temporary accommodation, and the ongoing impact of the cost‑of‑living crisis.

Despite these pressures, the council has delivered a major financial turnaround through its Strategic Finance Programme.

Councillor Stephen Holt, Leader of Eastbourne Borough Council, said:

"Like many councils, we have faced a perfect storm of rising demand and government underfunding. This was particularly true with the pressures around the cost of temporary accommodation and homelessness.

"But through rigorous financial management, difficult decisions and a clear focus on long‑term sustainability, we have put our finances back on a sound footing. To my knowledge, we are the only council in the UK who have both exited Exceptional Financial Support and repaid the full amount to central government. I'd like to thank everyone for their support, and their understanding."

A key requirement of the council's temporary Exceptional Financial Support (EFS) arrangement was a series of independent assurance reviews led by the Chartered Institute of Public Finance and Accountancy.

The council has now fully addressed all recommendations and among the council's achievements are:

• Over £7 million of savings delivered to date, with the full £8.5 million programme on track for completion by 2026/27
• 92% of planned savings for 2025/26 already achieved, with the remainder built into the 2026/27 programme
• A balanced Medium Term Financial Strategy, ending the council's reliance on Exceptional Financial Support
• Full repayment of all EFS borrowing, strengthening the council's financial position. 
• Improved governance and oversight, including stronger procurement, risk management, internal audit processes and business continuity planning

Councillor Holt added:

"The assurance reviews have been invaluable in helping us strengthen our financial foundations.

"We have acted on every recommendation, delivered significant savings and ensured that Eastbourne is now in a far more resilient position. This gives us the stability we need to protect essential services and plan confidently for the future."

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