Proposals by Brighton & Hove City Council to “set a balanced budget” have been published.
BHCC previously predicted an overspend of almost £15million this financial year, which, according to the council, has now been “brought under control”. Facing a budget gap of over £30million for next year, alongside reducing capital financing costs, BHCC has announced a “savings package” of nearly £24million to set a balanced budget for 2024-25.
Leader of BHCC, Councillor Bella Sankey, said: “There’s been a deeply worrying trend of local authorities across the country having to issue Section 114 notices and effectively declaring themselves bankrupt and others having to apply for emergency government support.
“It is really important that this council through careful planning and financial management has proposed a balanced budget for next year that would avoid effective bankruptcy.
“While it’s good news that we’re not in the same position and have managed to bring our in-year position under control, we’ve still had to propose significant savings to avoid having to call in government commissioners.
“Central government funding simply hasn’t kept pace with the growing demand and high inflationary costs of meeting the needs of our local community and a sustainable future funding solution is needed.”
According to BHCC: “Over the past 14 years central government funding has reduced by almost £100million in real terms – a 40% reduction over the period. Only £1 in every £5 of the council’s expenditure is raised through Council Tax, with the rest coming from government grants, business rates and other fees or charges.”
2024-2025 budget proposals
The proposals will outline how BHCC will:
- Deliver nearly £24m in savings as part of balancing the budget, to “avoid declaring a Section 114 notice”;
- Redesign the organisation and streamline management and ways of working to “save £2.4million and improve how we deliver services”;
- “Protect and improve” essential everyday city services and maintaining all council-run nurseries and libraries;
- Propose a 4.99% Council Tax increase;
- Maintaining a Council Tax Reduction scheme for over 19,000 households on low incomes as well as care-leavers;
- Prioritise spending to deliver BHCC’s vision of a ‘better Brighton & Hove for all’;
- Confirm capital investment in infrastructure projects such as Maderia Terraces Kingsway to The Sea and tree replacement programmes.
Deputy Leader and Finance Lead of BHCC, Councillor Jacob Taylor, said: “Deciding the budget is one of the most important decisions the council can make. We take how public finances are spent and managed very seriously.
“That’s why we’ve worked so hard to bring the council in on budget this year and propose a balanced budget next year.
“There can be no doubt that the scale of financial challenge has made this the most difficult budget to set in council history and that means difficult decisions have to be made.
“However, these proposals will keep public finances on track, prioritise spending on front line essential services, while continuing to protect our most vulnerable residents.”
Council tax
The budget proposes a 4.99% Council Tax increase, including a 2% precept ring-fenced for Adult Social Care. This would mean the average Band D Council Tax contribution to the council would rise by £94.03 to £1977.66 in 2024-2025.
The full amount for the average Band D Council tax for the Brighton & Hove area for 2024-2025 will include the precepts from the Sussex Police & Crime Commissioner and the East Sussex Fire Authority which are not yet confirmed.
Find out more
The full budget proposals can be read here
The budget will be debated by all councillors on Thursday, February 22 at Hove Town Hall.