Council tax in Brighton and Hove is set to rise by nearly 5% next spring as the city faces a significant budget deficit. This would be the second year in a row that local residents see such a hike, as the council grapples with growing financial pressures.
The city council is forecasting a £105 million shortfall over the next four years, with £37 million required to balance the books in the coming financial year alone. The council’s finance representative addressed the issue during a recent meeting, highlighting the ongoing challenges that the authority faces.
Higher Taxes, Fewer Services
Despite an increase in council tax, local services are not expanding to match the extra funds being collected. The core issue, according to the finance lead, is the rising demand for social care, which has significantly outpaced the financial support provided to local authorities. This has left councils across the country with a difficult balancing act between essential care services and other community needs.
It was explained that the upcoming rise would be split, with a general increase of 2.99% alongside an additional 2% earmarked for adult social care. This breakdown mirrors last year’s approach, which aimed to address both the council’s operational costs and the growing burden of care services.
The growing costs of social care have become a pressing issue for councils nationwide. In 2010-11, local authorities spent, on average, 41% of their general fund on social care services for adults and children. That proportion has now risen to 61% in the current financial year, reflecting the mounting pressure on these essential services.
In Brighton and Hove, the situation is even more acute, with a larger share of the budget being devoted to care services. The council stressed that the increase in social care costs is not due to inefficiencies but is a response to a rising national demand. As more of the budget is allocated to care, funding for other services—such as leisure, parks, and cultural programmes—has become increasingly constrained.
Public Involvement in Budget Decisions
As the council prepares to draft its next budget, officials are keen to involve the public early in the process. Events are planned to take place at a local library, and a new online tool will be launched to give residents a chance to experiment with the council’s budget allocations. By adjusting the funding levels for different services, the tool will allow residents to see how changes in one area can impact other parts of the budget.
Council leaders believe this approach will help the public better understand the complexities of managing local finances, particularly the difficult trade-offs required to balance the budget.
Calls for Greater Transparency
During the recent council meeting, questions were raised about the transparency of the budget process. A local councillor asked when high-level budget discussions—referred to as “star chamber” meetings—would begin. There were also concerns about when the detailed budget proposals would be made available for review by both councillors and the public.
The finance lead acknowledged the need for clarity and explained that while the star chamber process is not a legal requirement, it remains an important part of the council’s budget planning. He expressed a desire to release budget information as early as possible, ideally ahead of the government’s financial settlement announcement, which is expected in November.
Strain on Local Finances
The council’s total annual budget for 2024-25 is projected to be £924 million, with the largest expenditures going towards education, adult social care, and housing-related services. An additional £211 million allocated for capital projects brings the total to £1.1 billion. However, the rising cost of delivering social care is eating into funds that would otherwise be available for non-essential services.
Over recent years, local councils have had to make increasingly difficult decisions about which services to prioritise. As statutory services like social care take up a larger portion of the budget, other areas—such as parks, cultural initiatives, and community facilities—have seen their funding reduced or, in some cases, eliminated entirely.
These non-statutory services are often the ones most visible to the public, leading to a perception that residents are paying more in council tax while seeing fewer improvements in their communities.
The Road Ahead
As the council begins its budget preparations for the coming year, it faces significant challenges. The growing demand for social care, combined with limited government funding, leaves local leaders with little room to manoeuvre. The proposed council tax increase, while unpopular, appears to be one of the few available options to bridge the gap between rising costs and limited resources.
Efforts to engage the public in the budgeting process, through both in-person events and digital tools, may help build understanding about the difficult choices ahead. However, with residents already facing financial pressures and frustrations over service cuts, the road ahead is unlikely to be smooth.
All eyes will now turn to the government’s upcoming financial settlement, which could offer some relief to local authorities struggling with rising costs. In the meantime, Brighton and Hove must prepare for another year of tough budget decisions and limited financial flexibility.
For now, it appears that further increases in council tax may be inevitable as the city works to maintain essential services in the face of growing financial challenges.
