Budget Blues in Brighton and Hove?
On 31st January 2024, Brighton & Hove City Council unveiled its budget proposal for the 2024-25 fiscal year, emphasising stability amidst a challenging financial landscape for local governments across the UK. Labour’s Finance Lead, Jacob Taylor was clear, “Brighton and Hove is not going bankrupt, a fate not all councils have managed to avoid”. With three local authorities having declared insolvency through Section 114 notices in the past year alone.
The budget strategy involves rigorous financial discipline, a path the Labour Council has pursued since its election in May 2023. To counter a looming £15 million overspend, measures such as reducing reliance on agency staff, a comprehensive recruitment freeze including the search of a new Head of Planning, and selling off assets, including caretakers' cottages and other council-owned properties outside Brighton, have been implemented.
The proposed budget for the coming year aims for unprecedented savings of £33 million, marking the council's most substantial cut in annual spending to date. The Leader of the council highlighted the importance of this financial prudence in avoiding the dire circumstances other local authorities have faced. The budget entails significant staffing reductions, with a projected saving of over £8 million, although many positions are currently unfilled due to the ongoing recruitment freeze. Furthermore, an internal reorganisation promises additional savings of £2.5 million by enhancing the efficiency of frontline services again this has a possible impact on the planning and development service.
Educational adjustments include absorbing the budget deficits of two schools into the council's finances, while cuts to Trade Union secondments have sparked opposition from UNISON and the Greens. Despite these cuts, the administration has managed to sidestep the thorny issue of parking fee increases and has committed to maintaining essential services such as council-run nurseries, library services, apprenticeships, discretionary adult social care, and street cleaning.
There is some glimmer of hope with a council tax reduction scheme proposed for 19,000 residents to alleviate the financial burden on low-income households and investing in public infrastructure projects including the re-opening of public toilets and exploring a 'Park and Ride' service.
The budget also proposes a 4.9% increase in council tax. Additionally, owners of empty and second homes in the city will face a doubled tax rate, expected to generate significant revenue for tackling housing supply challenges. This will of course provide sufficient challenge to the many landlords working in the holiday home market.
As the budget moves towards a final debate and vote at Hove Town Hall on 22nd February, Brighton and Hove City Council stands on a precipice of significant financial restructuring.
Silverstone Communications will be following the budget debate closely.
If you want to know how these changes could impact upon your project in the city our experts can help you.
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