Bulky waste
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‘Bankruptcy’ avoided through city council’s 2024-2025 budget proposals
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.
2024-2025 budget proposals
The proposals will outline how the council will:
- Deliver nearly £24 million in savings as part of balancing the budget, to avoid declaring a Section 114 notice and to protect essential services
- Redesign the organisation and streamline management and ways of working to save £2.4 million and improve how we deliver services
- Protect and improve essential everyday city services including street cleaning, improved weeds management, keeping public toilets open – including reopening Pavilion Gardens toilets - and maintaining all council-run nurseries and libraries
- Propose a 4.99% Council Tax increase to meet pressures including a 2% ring-fenced precept to respond to the increasing costs of adult social care
- Maintaining a Council Tax Reduction scheme for over 19,000 households on low incomes as well as care-leavers
- Prioritise spending to deliver the council vision of a ‘better Brighton & Hove for all’ including new sports and leisure facilities to improve health and wellbeing such as a new pool at Withdean
- Confirm capital investment in infrastructure projects to ensure we have a city we can be proud of, including everything from bus network improvements to Madeira Terrace, Kingsway to The Sea, tree replacement programmes and playground refurbishments and new swimming and leisure facilities
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."
Council Tax
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.
Find out more
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.