Brighton & Hove City Council finances perilous, says leader

Brighton & Hove City Council's finances are "in an extremely perilous position", its leader has revealed.

Bella Sankey said the Labour-controlled authority would have a gap of £31m to make up in its budget next year.

Ms Sankey wrote to Chancellor Jeremy Hunt before he delivered his Autumn Statement, calling for more help for councils.

The government said councils' spending power has increased by £5bn in 2023.

In a statement on Friday, Ms Sankey said: "The council's finances are in an extremely perilous position.

"There was absolutely nothing in the Autumn Statement to provide relief for this council or local authorities who have faced a decade of heartless central government austerity or any real world financial help for struggling families.

"Demand for our services is increasing, especially in key areas like adult social care, children with special educational needs and disabilities (SEND) and homelessness, which is putting pressure on other services."

Ms Sankey claimed the amount the council received from the government had fallen by £120m in real terms, in the last 13 years, and warned services could be hit in 2024's budget.

"We're being forced to look at every one of the 400 services we provide and start the extremely difficult process of deciding what are priority services and what aren't," she continued.

"To put it bluntly, the less money we have the less services we can provide."

Several local authorities, including Woking in Surrey, have had to issue Section 114 notices in 2023, effectively declaring bankruptcy, but Ms Sankey said Brighton & Hove was not in that position yet.

She said: "We've had a staff vacancy freeze at the council for most of the year, worked quickly with officers to find in-year savings this year and have been working on budgets and savings for next year."

The government's provisional local government finance settlement is expected to be announced around 20 December.

A spokesman for the Department for Levelling Up, Housing and Communities said: "Local authorities have seen an increase in Core Spending Power of up to £5.1 billion or 9.4% in cash terms on 2022/23.

"Councils are ultimately responsible for the management of their own finances, but we stand ready to talk to any council that is concerned about its financial position."

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