Emergency financial controls are in place as Brighton and Hove City Council tries to reduce a forecast budget overspend of £11 million.
Increasing demand for children and adults social care – and rising costs – were among the pressures on council spending this year, councillors were told.
The council is also liable for almost £5 million as its share of an overspend on services that are jointly commissioned with the NHS.
At the council’s Strategy, Finance and City Regeneration Committee last Thursday (13 July), chief finance officer Nigel Manvell offered some hope in the form of an “assumed recovery” of £8 million before the end of the financial year.
He said that another issue putting pressure on the budget was the nationally set local government employers’ pay offer which was higher than expected at 6 per cent.
Mr Manvell said: “Recruitment and spending controls have been applied and that is an attempt to immediately start to address this forecast position and attempt to reduce costs.
“Directors will continue to work on developing financial recovery measures and other corrective action wherever they can.
“There is a need to review the capital programme and consider potential delays or potential reductions to the programme which could help to reduce the revenue financing costs in the future.”
Labour councillor Jacob Taylor said that the situation showed “a country in crisis and an economy virtually in freefall”.
He said: “Almost every area of public service, whether it’s national or local, is creaking under the strain of a broken economy and a national Tory government either unwilling or unable to take control and deliver what ordinary people actually need in their lives.
“We’ve got an NHS that’s in near-permanent crisis at the moment because of chronic underfunding, and that results in increased pressures on adult social care.
“Also, in adult social care, we have providers that are increasing their costs within a system that doesn’t work.”
Councillor Taylor said that Labour councillors owed it to residents to ensure that council finances were managed and came in on budget – and more difficult decisions were coming.
Green group convenor Steve Davis said that Councillor Taylor’s opening statement reflected an “incredibly difficult period” and called for unity.
He said: “It was either the government’s fault we ended up in this financial position or it’s the Greens. Make your mind up.
“What disappoints me is for 13 years we stood side by side with you (Labour) against the yoke of Tory austerity. It’s the one cause we stood together on as progressive parties against this vicious vile attack on public services.
“With that controlled demolition of public services and £130 million of cuts over 12 years, try to balance a budget.”
Councillor Davis asked if the NHS could “shoulder” any more of the £5 million burden in services shared with the council and whether the measures would address future problems.
Mr Manvell said that the council shared the “pain and gain” with the NHS on joint services. Adult social care chief Rob Persey said that talks were under way with the NHS.
Mr Persey said: “The integrated care board is in a challenging financial position themselves this year.
“They are having to manage a £60 million deficit but recent history shows we do manage to negotiate some bits through the year on this.”
Interim chief executive Will Tuckley said that the money-saving measures would be revised as “circumstances determine”.
He said: “It is entirely appropriate for us to take these measures given the scale of these projections in terms of the overspend at the year-end. It’s worth saying we will be monitoring this extremely closely.
Conservative group leader Alistair McNair said that inflation was a worldwide issue and the after-effects of the coronavirus pandemic were unprecedented after the “necessary” years of austerity.
This is just the result of the current round of austerity.
The central government needs to step up and provide funding for public sector pay rises instead of expecting already decimated services to pull money from elsewhere. I would not be surprised if this year’s local government pay offer is rejected by the unions because of this – no sense getting a pay rise* if you then lose your job due to your employer having no money to pay you!
*pay cut in real terms
Who voted to put up “white eliphant” i 360.?
Conservative and Green councillors, not Labour they did not support it
Halt all the current Transport projects including VG3. The Transport Dept is seriously overstaffed and not fit for purpose – it has its own agenda, often detrimental to the wants and needs of residents and businesses. Pare down the management structure.
For too long this department has operated without control or accountability and with reputation of being profligate. It really has to stop
Hear Hear Mr Beasley !
Most big transport changes aren’t funded from the councils bank account but seem to get money from national government. I don’t think they can spend the money on anything else. We are lucky to get the money to make the city better without having to take money from local essential services.
More excuses from Davis – who has blocked ‘unapproved’ people from his twitter account. What’s going on Steve? You and colleagues screwed up – now you must face the consequences
Start with chief executives pay halved as an example
I360 remind me how much they borrowed from council? And how much have they paid back?