A hiring freeze coupled with tougher than usual spending controls have helped to reduce the council’s forecast overspend for the current financial year.
Brighton and Hove City Council finance officials forecast an overspend of about £11 million two months ago.
But an updated report to the council’s Strategy, Finance and City Regeneration Committee included a downward revision, with the forecast overspend now totalling £8.9 million.
The report said that a recruitment freeze and spending controls had been in place for the past two months and might have to be continued and even escalated.
The council’s income has dipped, with lower than expected revenue from planning fees and commercial rents. In addition, more people are claiming a reduction in their council tax.
Demand-led budgets such as home to school transport, with a projected £500,000 overspend, are also putting pressure on the council’s finances.
According to the report, more children need to travel alone, more over 16s are using the service and the lack of local special school places have all added to those pressures.
Increased running costs and a shortage of drivers and escorts for children with special educational needs and disabilities (SEND) have also fuelled rising costs.
The report included a forecast overspend of £1.8 million on community care – and the council was also expecting a £1.8 million overspend on temporary housing.
These are all statutory services that the council must provide.
The spending update is due to be discussed by senior councillors less than a fortnight after a stark warning from the council’s external auditor Grant Thornton.
The auditor told a meeting of the council’s Audit and Standards Committee that the council’s financial sustainability was a “significant weakness” at a meeting on Tuesday (26 September).
Grant Thornton director Darren Wells told the committee that the council was at “a tipping point and the position is as bad as I think it can be”.
Councillors were advised to act now to ensure that Brighton and Hove does not end up bankrupt like Birmingham, Slough and other councils across the country.
A report to councillors said: “The budget process for 2024-25 aims to take a different approach and to take a more fundamental look at the council’s cost base and the affordability of services and capital investments in the context of statutory responsibilities.
“The council’s reserves and working balance are low relative to most authorities and therefore not addressing the in-year overspend and the underlying cost base may lead to a position where it does not have sufficient resources to balance its budget, particularly given a very large predicted budget gap of £25.3 million next year.”
Planned savings of £14 million were programmed for the current 2023-24 financial year when councillors voted on the annual budget in February.
But forecasts suggest that £4 million of these savings may not be achieved this year.
The council’s Strategy, Finance and City Regeneration Committee is due to meet at Hove Town Hall from 4pm on Thursday (5 October). The meeting is scheduled to be webcast on the council’s website.
A really difficult position to be in, someone will be upset regardless of whatever choice is made.
They should roll out more communal bins, that would boost productivity at city clean massively and probably help the council perform better at rubbish collections. Those trucks should be on the road 16 hours a day minimum, would reduce the amount of vehicles needed and clear the pavements of green bins and probably save a small fortune very quickly. Although saying that, the do need to double the size of the recycling bins they are always overflowing.
Afraid the problem is not that when it comes to CityClean. Far bigger structural issues.
Who would drive the refuse tricks for the sixteen hours a day? You’d need to double the number of drivers & training HGV drivers is expensive not to mention they can earn a lot more elsewhere. Then there’s the issue of noise caused by the trucks working unsociable hours. Collecting & emptying smaller glass bins already causes a lot of noise issues. The noise from more communal ones would be worse
In West Sussex the glass goes in the same bin as the other recycling – one bin for everything, and much quieter.
They should stop all of this lefty woke nonsense – recruiting for Inclusion Managers and Administrators and suchlike.
That’s the NHS…Jesus, you love getting your organisation’s mixed up. It’s been weeks since you last said anything, and you’re still doing it!
Benjamin, you are, as usual, wrong.
https://www.brighton-hove.gov.uk/jobs/job-details?job_id=36729
There was an advert for an ‘Inclusion Manager’ (£50k) a short while ago.
And my name’s not Jesus…
Confused, the role you’ve published is inclusion in schools so assisting with challenging pupils and managing difficult behaviour. This isn’t really a new role in schools.
I’m glad you said it Sarah, I hate having to regularly correct them whenever they say something silly. I feels like I’m punching down.
Do you work for Brighton and Hove City Council’s communications department?
Seems you are always supporting them abd their decisions.
Always is dramatic as I’ve only posted two comments on this website ever.
I get bored of reading misinformation or endless council bashing in the comments. The above is clearly misleading as it isn’t about ‘woke nonsense’ as implied but a role in schools. I’m intrigued to learn how staff working from home impacts the council finances. Will the adult social care bill magically go away if everyone comes in?
There’s plenty to criticise the council for I360 or Carbon Neutral funding being some examples in my opinion. But there doesn’t seem any ability to debate without over simplifications of issues or everything is a conspiracy style posts.
Perhaps the council would be more financially viable by not working from home.
Why would working from home make any difference to the financial status of the council?
And occasionally answering their phones and responding to emails
The not answering phones is all about saving money. Less staff needed on the frontline. It’s called channel shift & it’s all about efficiencies which are better known as cuts. It’ll have a negative impact on tbe most vulnerable but who cares, it’s an easy way to save money
Getting them to empty the bins would be a start….