URL: https://democracy.adur-worthing.gov.uk/ieDecisionDetails.aspx?ID=1309

Decision Maker: Joint Strategic Committee

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: Before the Committee was a report by the Interim Director for Core Services, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as item 7.   This report presented an update on the budget setting process for 2026/27 for both councils as well as updating on the progress of the implementation of the financial strategy. Progress on the financial strategy was being impacted in the short term from budget pressures caused by external factors particularly housing demand.   The Local Government Finance Policy Statement announced final decisions on the Fair Funding 2.0 reforms and published a finance policy statement setting out the key parameters for local government funding from 2026-27 to 2028-29. Ministers had confirmed they will go ahead with most of the changes proposed in the original consultation, in particular:   ? Major changes to the main funding formula with a stronger link to levels of deprivation and population ?  Resetting the baseline for retained business rates in full in 2026-27 ?  Abolishing the New Homes Bonus ? Simplifying and consolidating several grant pots, including grants for homelessness prevention and rough sleeping   Ministers have made several significant changes to the original proposals:   ? Updating the Index of Multiple Deprivation data and methodology in the main funding formula to reflect housing costs more strongly. ? Removing the remoteness uplift from the main funding formula, except for adult social care costs. ?  Reducing the weighting in the funding formula for visitor and commuter population. ? Preserving Recovery Grant allocations at 2025-26 levels for the whole of the spending review period. ? Introducing a more generous funding floor for councils that have responsibility for social care and currently receive the Recovery Grant.   MHCLG had confirmed that the council tax referendum threshold will remain at 3% or £5 (whichever is greater) for district councils. Social care authorities will continue to be able to raise an additional 2% precept.   The Government will provide new burdens funding for the ongoing revenue cost of operating weekly food waste collections . However, the funding will be rolled into the finance settlement and distributed via the main funding formula rather than via a specific grant. This meant there would be no transparency about how much burden funding was provided and a likelihood that some, if not all, councils would be underfunded for the costs of introducing a full food waste collection service.   Whilst some assumptions had been made on the potential funding that may come from the new fairer funding process, there was a significant level of uncertainty on the local impact of the new assessment formula. The allocation across individual councils would not be visible until the provisional settlement which was not expected until the week commencing 15th December.   Despite the considerable work being done to implement a more resilient and sustainable financial strategy, it was clear that it is unlikely to provide the funding required to close the significant budget gap in Worthing and so the proposed route for requesting exceptional funding support (EFS) which is outlined in the policy statement is necessary. Members are being recommended to request the chief executive formally write to the Ministry for Housing, Communities and Local Government (MHCLG) to request this continued support for Worthing for 2026/27.       Decision:   1.     That the contents of the report including the working 5-year forecasts as at appendix 1 be noted.   2.     That the chief executive be requested to write to MHCLG in order to request exceptional financial support for Worthing in order to get the help needed to balance the 2026/27 revenue budget and additional support for 2025/26.     Call In: The call-in deadline for decisions will be 5.00pm on 19 December 2025

Date of Decision: December 9, 2025