Councils in West Sussex put £125million of investment on hold amid challenges
Adur and Worthing councillors have blamed economic climate, skills and supply shortages
Last updated 13th Oct 2022
Adur and Worthing councillors have heard that some major improvement projects and investments will have to be postponed due to the current economic climate, skills and supply shortages.
Both Adur District Council and Worthing Borough Council are expected to spend over budget this year. Current projections suggest an overspend of £2.3million at Worthing and £239,000 for Adurafter using reserves.
On Tuesday (October 11th), members of Worthing Borough Council’s joint strategic sub-committee heard how this, coupled with ‘an environment of high inflation and increasing interest rates’, was affecting council investments and projects.
In Worthing £51.2 million of investment planned for this year has been ‘reprofiled’, or deferred, until future years. This makes up ‘a large proportion of the current programme’, according to a council report. In Adur £73.8 million pounds worth of projects and investments have been reprofiled.
Some of the projects were discussed in July but since then the financial position of both councils has ‘significantly worsened’ due to inflation and increased interest rates. Projects will now be prioritised depending on the economic and social benefits they could bring.
Although the councils can borrow to fund projects, rising interest rates mean the costs of doing so have increased and external funding ‘is now an important source of finance.
Paul Brewer, the councils’ director for digital, sustainability and resources, said: “The pressures on the councils’ finances are significant and so therefore the capital budgets proposed here have been reduced to ease the burden on the repayment of debt, which is a key part of our overall approach to the budget challenge.”
Finance officer Sarah Gobey also noted a ‘backlog’ of projects, partly due to the pandemic. She said a more detailed strategy with specific projects would come forward in January.
Adur council’s cabinet member for finance and resources Angus Dunn (Con, Hillside) said the plan was ‘prudent’ and ‘sustainable’.
“Understandably it’s a little more constrained than perhaps we would like,” he said. “But that’s where we are and we can only play the ball that’s in front of us. The delivery of previous or ongoing capital projects had to catch up with us eventually. We’ve done very well I think to deliver what we’ve actually delivered over the last couple of years given the pandemic.”
Despite the challenges, 75 Worthing schemes have been completed or are progressing satisfactorily this year and a further 24 are due to be completed in the coming months.
In Adur, 57 schemes have been completed or are progressing well this year but 13 are being ‘closely monitored’ and one has ‘significant challenges’.
Some examples of the major projects planned over the next few years include a £4.4million investment in IT by both councils, investments in affordable and council housing stock and a £34million health facility under way in Worthing.