The black hole in the city council’s budget is “the worst in 25 years” despite efforts to shrink it, a councillor said today.
The situation was branded “lamentable” by Green councillor Ollie Sykes, who told Brighton and Hove City Council’s cabinet he intends to call in the working budget for more scrutiny.
Papers put before today’s cabinet meeting (Thursday 15 October) show a forecast overspend of nearly £24 million in the general budget plus £19 million in further risks.
But Labour’s finance lead hinted the council expects a government bailout of £30 million to help it balance the books.
The Housing Revenue Account, made up of council tenants’ rents, has a predicted overspend of £1.1 million and the Dedicated Schools Grant is expected to go £7.3 million in the red.
The targeted budget management forecast graph submitted as part of the report to cabinet shows the overspends going up, rather than down as they have done in previous years.
Councillor Sykes said: “This Labour administration has clearly lost control of council finances. We are in a worse position than at any time in the past 25 years. Worse than under Covid, when income fell off a cliff.
“Labour is overseeing a worse position than all its neighbours.
“That is in terms of overall projected revenue budget overspend, overspend on adults services and children’s services, and also in terms of financial control and delivery of savings.”
Councillor Sykes argued Brighton and Hove is performing worse than neighbouring councils East and West Sussex, Southampton and Portsmouth when it comes to projected overspend and particularly in pressure areas of adult and children’s social care.
Council deputy leader Jacob Taylor said East Sussex County Council may look better off but had already “baked in” £56 million into its current budget of the £70 million it received in exceptional financial support from the government last year.
The report to cabinet confirmed exceptional financial support – or a bailout – of up to £30 million from the government is required to achieve a balanced budget.
The Labour finance lead said Brighton and Hove is currently achieving 71 per cent of its planned budget savings.
But, Councillor Taylor said the savings are being overtaken by the demand, complexity and costs of the “core care budget” particularly adult social care.
Demand for community, residential and nursing care is above the original budget predictions, with a forecast overspend currently standing at £12.5 million.
A recovery plan for adult social care comes to £10 million with £5 million achieved and a further £3.4 million anticipated to be achieved.
Councillor Taylor said the government is now trying to address the main causes of financial instability in local councils.
These are the cost of homelessness and temporary accommodation, adult and children’s social care and special education needs and disabilities (SEND) budgets.
He said: “We are now faced, as a council, with options and the implied criticism from the opposition is that they would take a different option.
“We could do one of two things, we can cut our frontline services to the bone this year and next year, we can close all of our non-statutory services if we wanted to do that, and try to get to a balanced budget both in year and in future years.
“What would that do to the city? What would that do to our communities?
“We’re not going to do that. I don’t think the government really expect councils to do that.
“We’re not going to shut all of our libraries, all our nursery provisions, stop refurbishing our playgrounds, to try and hack back to a balanced position.
“What we’re going to do is set out a transformation programme linking with the changes made by the government to get the council in the medium term into a balanced financial position.”
Councillor Taylor said the exceptional financial support would be a bridge to get to the balanced point.
Council leader Bella Sankey said the situation is being constantly monitored and taken “exceptionally seriously”.
She said: “I think it’s ironic really that the Greens have come here today to suggest that we have lost control of the council’s finances.
“That is, sadly, something that they did when they were in administration and something we have sought to reverse in our period of administration.”
And yet year after year after year after year the Council Tax burden on households and businesses has been raised by the maximum possible…………………… 😐
This is common in councils up and down the country. Costs for services that councils have to legally provide have risen to such an extent that government support can’t match it.
Therefore, local authorities with high temporary housing need or adult social care need, have to make up the shortfall. Some might say that the Tories underfunded local government for 14 plus years.
The dilemma is to make up the shortfall, do you raise revenue or cut services. Do you spread the burden across those that can afford it or penalise those that rely on libraries etc. Remember a large chunk of your council tax goes on adult social care. You may well depend on that one day.
It’s easy to say ‘my bloody council tax has gone up again’ but not so easy to explain why!
” Do you spread the burden across those that can afford it ” ….. we can’t…
” Tories underfunded local government for 14 plus years ” ……. tired excuse that always blame the previous govenment.
” adult social care ” …… gravy train
To make up the shortfall the council need to deliver efficiencies. The problem is they can’t or won’t.
Business rates set by the government not the council. Council tax goes up by 3% under inflation the extra 2% is for adult care and police . Check your CT Bill
Maybe not spend £75,000.00 on ‘rain gardens’ .
That’s not how council budgets work, read the article dum dum
Dont insult people. It makes you look small….
Check where the funding came from
Genuinely no head of procurement, can’t keep em and deals signed at Xmas on emergency powers this is what you get, asset stripping, debt and often just the system and the engine moving to the centre / centre left including capital and decision making.
My take of the debate and it was just a 15 minute talk amount mates was that this was literally mismanaged. New Brighton & Hove Labour have turned over and old leaf, borrow borrow borrow, invest in revenue and less in capital, it’s too much, and the revenue is diverted to the same class system different actors. It’s a joke.
We need to be like Spain and France! Mass Protests For Change, have people seen this city, I love it, but am growing more and more embarrassed.
Those ill people we see are a product of this system and those empty debates. To keep the status quo. How they can sleep at night. It’s like the horror movie You!! Fake as…
There have been some great people in this cities history, some really gave back to the public and now council with the land acquired. We’re blowing that legacy. Do better!
As usual, I’ll thought out Daniel. Do for once, please furnish us with a solution. Do import a bit of your knowledge, other than I will avow my bitterness by shouting at the council or government.
Let’s block the streets with tractors and form barricades. That’ll solve the problem.
Except it won’t. It’ll only compound it.
I’ve an idea. Stand to be a councillor.
Let the electorate judge you. Until then.
Councillor Taylor thinks having his picture taken with a few buttons undone will help deflect away from the fact that he can’t balance budgets. Thankfully he doesn’t run a brewery otherwise he wouldn’t be able to organise drinking events at the brewery! Why are people voting for these people?
From all the news articles, it looks like most of their money is wasted and spent on fighting litigation they know they’re going to lose.
Most of the stories in the news are where the regulators and court hearings all go against Brighton and Hove City Council, Whan it was obvious even before litigation started they would fail.
Yet they persist in pursuing individuals rather than settling for a much smaller and appropriate amount of money. It looks like their risk assessments of situations are fundamentally flawed.
I bet if someone did a freedom of information request regarding this, it would probably match the black hole for settlements,. That’s without the cost for every hour spent on officers dealing with the cases in the Council .
Whats the betting it starts with
Put up the parking fees
Put up the tourist tax
More traffic wardens
Increase council tax by 5%
Tighten up care provision if people can afford it even if they are entitled.to it.
Instead of
Make cuts to the bloated number of council workers and increase productivity.
Liaise with the Govt and take a pension holiday as the local council pension funds are all over funded.
Yet here Councillor Taylor is, driving the biggest financial disaster since the i360 in paying £65m – nearly three times over the odds – for an undersized replacement King Alfred leisure centre unfit for families and the disabled. How do you sleep at nights, Councillor Taylor?
This council Finance Lead is out of control if he’s supposed to be some sort of financial expert and a Director of the Bank of America. Have we ever seen more reckless spending and borrowing since the days of Jason KitKat? Nearly all wasted on vanity projects no one asked for at the expense of the basics the council exists to deliver.
I’ve never met councillor Taylor, but I can see his heart is in the right place, along with his budgeting approach.
But let’s also be honest here. The way all projects are funded nowadays is based on an outdated approach. This seems to be true which ever political party is in charge.
For example, ring-fencing parking money to only be spent on transport policy, has resulted in a massive income for that inflated transport department, and they spend huge amounts of wasted revenue on projects which have no real priority or useful outcome. And yet we still have bumpy roads with potholes.
The continuing Thatcherite model – where every service has to be outsourced – equally results in ridiculous bureaucratic waste. An example of this would be where a sea front bench needs a worker with a paintbrush, but instead, several reports are written by sincere staff in various departments, then overseen by accountants, before councillors finally agree to a budget for the next season, and where a company employing a sub-contractor – with a paintbrush – can finally attend to the problem. That worker, maybe a year later, then finds the bench has rotted, and is now unpaintable without some carpentry work – and so the simple maintenance job inevitably escalates.
There is a problem with the way councils are expected to deliver, but it’s largely down to self-imposed rules, out-sourcing practices, and internal bureaucracy, as much as it’s down to a lack of revenue. The current council response seems to be to find a new way of taxing – to increase their revenue. And that’s not really solving the issue.
Another example of recent waste would be what happened in Palmeira Square with the garden redesign, and with the ongoing arguments over the floral clock and its potential replacement. So far, after all the hot air, after the park being fenced off for months, costs of ‘consultation’, and after the money spent, there is nothing better there than we had before.
I’m not saying that Council budgeting or project-managing are easy. I’m saying the funding process within a top-heavy institution is so wrong.