Budget proposals focus on temporary accommodation crisis

We have published our draft budget proposals for 2026/27, setting out a clear strategy for tackling the city’s temporary accommodation crisis and addressing the most challenging financial position the council has ever faced. 

Temporary accommodation remains our single largest financial pressure. Costs are forecast to rise by £11 million this year due to increasing demand and continued reliance on high-cost emergency placements such as B&Bs. This model is financially unsustainable and often results in poorer outcomes for our residents. 

Safeguarding and improving services

The draft budget also proposes a range of measures to safeguard and improve services as well as raising more commercial revenue.

This includes:  

• reforms in adult social care, including managing provider uplifts, strengthening reviews, and expanding prevention and reablement 
• reducing reliance on high-cost placements in children’s social care through the Families First transformation 
• increasing the supply of more affordable temporary accommodation 
• rationalising our operational property estate 
• increasing income through greater commercialisation 
• delivering savings through improved procurement and contract management 
• improving efficiency and productivity through digital transformation 

The draft budget also continues to invest in priority services for the city, including progress on the King Alfred Leisure Centre, new council homes through the Housing Revenue Account, capital investment to expand temporary accommodation, further improvements to housing repairs and maintenance, government funded Families First and early years programmes, and work to improve waste and recycling performance. 

Further investments directly responding to local priorities include extending mental health counselling in the city’s secondary schools, launching a new parking scheme in Hollingdean requested by residents and a new supporting living accommodation development at Brickfields. 

Generating additional income

We're also looking at additional ways to generate future income, including introducing a new commercial graffiti cleaning service and funding new sports facilities across the city. 

There are also ambitious plans for the Brighton Centre to capitalise on the city’s reputation as a leading hub for live music and the arts.

To specifically address the temporary accommodation crisis, the proposals set out a major programme of reform to reduce reliance on nightly placements and improve support for people at risk of homelessness. 

This includes increasing affordable temporary accommodation, reducing unit costs, strengthening prevention work and helping people move more quickly into stable long term housing. 

Together, these measures are expected to deliver over £5 million in savings while improving outcomes for residents. 

Additional support requested

To help manage the scale of these pressures in 2026/27, we have requested Exceptional Financial Support (EFS) from government. EFS provides short term flexibility to borrow additional funding to stabilise the budget while the council continues the wider transformation work needed to bring spending back onto a sustainable footing. 

We're clear that EFS is a temporary measure that creates the headroom required to make long term improvements. 

Alongside the draft budget, we have developed a comprehensive Medium Term Financial Strategy for 2026–2030, supported by a major transformation programme. 

Clear and determined plan

Councillor Jacob Taylor, Deputy Leader and Cabinet Member for Finance and City Regeneration, said: “This is not just about financial management. It is about ensuring people can stay in the city they call home, close to their families, schools and support networks. 

“No one should have to move miles away because the system is under strain. 

“We are investing in new social homes, reducing our reliance on expensive private rentals, and ensuring families have safe, stable places to live. This budget puts housing first and helps to fix a system that has been failing residents.

“Our proposals set out a clear and determined plan to increase the supply of affordable homes and support people into long term stability. We are asking the government to work with us, because tackling the housing crisis and the budget must go hand in hand.”

We will continue to call on government for greater flexibility around borrowing and the use of resources to accelerate the delivery of affordable homes and reduce reliance on emergency accommodation. 

The final budget will be considered by councillors later in February.