Proposals to set a balanced budget have today, Wednesday 31 January, been published by Brighton & Hove City Council.
Despite previously predicting an overspend of almost £15 million this financial year - which has now been brought under control - and facing a budget gap of over £30 million for next year, alongside reducing our capital financing costs, a savings package of nearly £24 million would enable us to set a balanced budget for 2024-25.
Council Leader, 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.”
Over the past 14 years central government funding has reduced by almost £100 million 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.
The proposals will outline how the council will:
Deputy Leader and Finance Lead, 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."
The budget proposes a 4.99% Council Tax increase to meet these pressures, including a 2% precept ring-fenced to responding to the increasing demands and costs of Adult Social Care.
Council Tax only accounts for around one fifth of overall council spending with the rest coming from grants, business rates, fees, charges, commercial rents and other income streams.
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 Brighton & Hove for 2024-2025 will include the precepts from the Sussex Police & Crime Commissioner and the East Sussex Fire Authority which are not yet confirmed.
The budget will be debated by all councillors on Thursday 22 February at Hove Town Hall.
Find out more about the council's current budget on our budget webpages.