Eastbourne Borough Council is warning that it is facing extensive cuts to services due to the “colossal financial pressure” created by increasing levels of homelessness and temporary accommodation placements.
Despite saving more than £3 million from the 2024-25 budget and with £2.5 million of savings in the pipeline, the council is at risk of being unable to set a balanced budget.
Eastbourne Borough Council has led a year-long national campaign lobbying the government about the human and financial crisis created by spiralling homelessness and the high costs of temporary accommodation.
In Eastbourne, the council has been spending £4.5 million on temporary accommodation, which equates to 49p in every £1 collected in council tax.
The council is not alone in dealing with this emergency, many authorities have reported having to make severe cuts to services.
Cost-saving measures so far include transferring the operation of Eastbourne Downs Golf Club to Get Golfing, transferring the Bohemian pub, formerly the Stage Door, to a new operator, selling a number of council assets inviting expressions of interest in running parts of the Devonshire Quarter and reducing the council’s events programme.
Liberal Democrat council leader Stephen Holt said: “The rising costs of living, notably increased rent and mortgage payments, have caused a UK crisis that is impacting councils across the country.
“Over the last 12 months I have repeatedly warned that the increasing costs we are shouldering are wholly unsustainable.”
Councillor Holt said: “I took our concerns to Westminster and, with a cross-party group of over 50 council leaders, invited ministers and MPs to engage with us.
“While we remain unwavering in our moral and statutory commitment to provide accommodation for those in need, we continue our campaign and appeal to the new government for urgent solutions.
“Regrettably, the colossal financial pressure and a lack of sufficient government support over many years, means the council is forced to make significant cuts to services, otherwise the authority will not be able to set a balanced budget.”
Two “capitalisation directives” were agreed with the previous government. These allow the council to use capital receipts and borrowing to meet revenue costs.
But the loans must be repaid over 20 years at a high interest rate. Eighteen other councils have also been left with no other option than to accept this type of financial arrangement.
Councillor Holt added: “This council has worked incredibly hard to find savings and efficiencies and I want to pay tribute to colleagues and every member of staff who has worked so hard during this time.
“Yet we are forced to further reduce our services and council funding. I know the impact these measures will have on our residents and local groups which saddens me greatly.
“Councils everywhere are struggling to manage factors that are beyond their control and to date there has been little support or interest from central government.
“Along with hundreds of other council leaders, I hope the new government is serious about fixing these funding issues because the future of local government and the crucial public services we deliver are at stake.”
What about our local Eastbourne council looking into utilizing empty buildings such as the old derelict Telecom building left staying for years . Ok money spent wisely would generate a good return in the long run , as now councils are renting from private entities because of budgeting , financial pressures. housing for those living in supported accomodation that it costing high rent to councils and renters when these building can be made available to many . Also in Victoria drive you have the bordered up building again left empty next to that massive church of hat was demolished . I do t get why when we are living in a housing crisis these could be valid opportunities to develope bringing in revenue for the councils pot. We need private landlords but we dont ne ed greedy landlords that drive up rents and create other issues such as Mental health. Every person needs a safe place to feel secure . I feel councils need to develop different strategies and models a little bit outside of the box . Across the UK is a housing crisis , councils borrowing will only lead to greater debt over a long period that would drive up council tax and more people will b come on the homeless list , so more pressure added to local Authorities services including , housing , Mental health , GP surgurys which are all under enormous pressure .
Councils need to start deloping ways such as if a business has a large property with empty rooms , these rooms could be charged at a daily rate if left empty for a period of time. large property with empty rooms coming be housing people . Give incentives to people who hat offer to accomodation homeless people in there own homes. Set up schemes for these people to met and develop skills to work and liaise with local councils to assist with meeting people’s needs . I’m sure there are alot of people willing .