West Sussex County Council has forecast a £22.8m overspend on its budget for 2024/25.
The figures were shared during a meeting of the cabinet where Jeremy Hunt, cabinet member for finance, described the situation as ‘really challenging’.
Some £12.8m of the overspend looks set to come from adult services with another £8.4m from children’s services.
Of the other portfolios, only two were not in the red – highways, which has a projected underspend of £300,000, and the leader’s portfolio, with an underspend of £80,000.
Mr Hunt said: “These results are challenging, especially when you consider that, as part of this year’s budget, we invested an additional £80m plus into our front-line services to address the ever-growing pressures, including inflation.
“However, these pressures are continuing to increase, both in numbers and complexity, not only in West Sussex but across the country as a whole.”
The council has a Corporate Contingency Budget of £23.4m which could balance things out if used now.
But the preference is to keep hold of it for the time being as ‘it is likely that further unforeseen pressures will occur during the year’.
One of the unavoidable pressures on the council’s coffers is the need to pay an increase in staff wages.
While a rise of 3% has been included in the budget, unions have yet to agree.
Mr Hunt warned that every 1% increase above the 3% would cost the council around £3m per year.
The 2024/25 budget includes £26.4m of savings – £10.7m rolled over from previous years.
Some £3.5m of those are judged to be at ‘significant risk’ and are not expected to be delivered this financial year.
Mr Hunt said: “We continue to urge the government to look at the whole picture of social care, particularly adults, before we see councils – good councils – up and down the country, finding themselves unable to continue to fund these ever-growing costs.”
Mr Hunt said: “We continue to urge the government to look at the whole picture of social care, particularly adults, before we see councils – good councils – up and down the country, finding themselves unable to continue to fund these ever-growing costs.”
