Brighton and Hove City Council forecast to overspend by £10m
NHS spending, community care and temporary housing support are amongst areas that could be affected
Brighton and Hove City Council is on course for a £10 million overspend in the current financial year if it takes no action to make savings.
A report covering the first two months – April and May – said that £6.5 million of proposed savings in the 2024-25 budget are also potentially at risk.
The report to the council’s cabinet said that managing the financial challenges could affect some services because of "recovery plans" and other actions.
The pressure points in this year’s budget spending include £1.6 million on services provided jointly with the NHS.
The budget for schools is at risk of a £456,000 overspend – and 46 schools require a "licensed deficit" totalling nearly £11 million. The report said that the council did not have enough money to cover the shortfalls.
Other risks come from "demand-led budgets" such as for community care and temporary housing, contributing to a £4 million forecast overspend.
Health and adult social care budgets are under pressure because more people have increasingly complex demands.
Last year the number of households presenting as homeless went up by 20 per cent and so far this year it has already increased by 30 per cent.
Spending on temporary housing is running at 20 per cent higher than budget.
In Brighton and Hove the price of overnight accommodation has increased by 12 per cent since 2023-24 resulting in a forecast £2.5 million overspend.
Emergency nightly booked accommodation is forecast to overspend by £1.6 million. By the middle of last month, 263 households were in nightly booked housing. The budget was for below 200.
A change in the private rented sector, with landlords selling up and ending tenancies is contributing to increased homelessness.
If matters do not improve, councillors and officials may have to consider recruitment freezes and other spending restrictions.
The report said: "It is important to note that early projections in each financial year are likely to indicate higher forecast risks as there are significant underlying demand pressures to be managed down.
"Pay awards currently tend to be above budget assumptions and there are large annual savings targets required to balance the budget.
"Implementing and addressing these risks is often complex and can have varying lead-in times.
"There is also limited trend data available at this stage and very limited time to react to emerging information in order to develop recovery measures."
The cabinet is due to meet at Hove Town Hall at 4.30pm on Thursday 18 July. The meeting is scheduled to be webcast on the council’s website.