Brighton and Hove: Council plan to avoid bankruptcy
The authority's published a plan showing how it's going to balance its budget
Cuts of 24 million pounds need to be made at Brighton and Hove City Council to avoid effective bankruptcy.
The authority's published a plan showing how it's going to balance its budget.
A finance boss at the council says this has been the most difficult budget to set in the authority's history.
And that means difficult decisions have to be made.
It's facing a budget gap of over 30 million pounds for the next financial year.
Council Tax will rise by almost 5 per cent in April and job cuts are expected but everyday services like street cleaning will be protected.
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".
The proposals outline how the authority will streamline management and ways of working, in order to save £2.4m and improve how it delivers services.
A proposed 4.99% council tax increase to meet pressures, including a 2% ring-fenced precept to respond to the increasing costs of adult social care, is also outlined in the proposals.
However, a council tax reduction scheme will be maintained for more than 19,000 households on low incomes along with care-leavers.
The budget will be debated by all councillors on 22 February.