A council leader has warned “painful” decisions will have to be made to balance the books of this year’s budget in the face of a £14 million shortfall.

Brighton and Hove City Council leader Phélim Mac Cafferty said this year’s budget is the “most difficult” he has seen in his time as a councillor.

His warning comes ahead of a meeting of the policy and resources committee next week, which will see 54 councillors decide on a course of action on how to spend the council’s £800 million budget.

A report detailing the proposals has been released to the public ahead of the meeting.

It includes a proposal to increase council tax by 4.99 per cent, two per cent of which is ringfenced to adult social care - the biggest area of the council’s spending - which means it is required to be spent on providing services to vulnerable, disabled and frail older people.   

It costs more than £2.3 million to run council services every day and council tax provides for only around £1 in every £5 the council spends on delivering services. The rest comes from fees, charges, rents, retained business rates and government grants.

Councillor Mac Cafferty said: “This is one of the most difficult budgets the council has faced in my 12 years as a councillor and we’re doing everything we can to protect vital council services.

“Every council team has been asked to find potential savings and this has been a hugely painful process. 

“We’ve been honest with the city by discussing the tough decisions and the complexity of the problems we face with our valued staff and trade unions, residents, partners, businesses and the city councillors from the other parties.

“Since the budget blueprint was published in December, we’ve been working flat out to make every penny go further. Contributions from across the city highlighted the most urgent needs and guided the difficult decisions, and whilst there will be services that will be impacted, vital services will continue to be funded. 

“This is alongside the priorities for residents across the city such as public toilets, and with emphasis on protecting the most vulnerable such as children’s nurseries. 

“However very sadly, because of the magnitude of the government cuts, millions of pounds still have to be saved now and in future years so there are other services that councillors will have to decide to stop or change. 

“It’s deeply upsetting that, like many other councils across the country, this is the financial situation we find ourselves in and that only difficult decisions remain.”

The shortfall has been blamed on increased demand on services, very high inflation, the ongoing impact of the pandemic and the cost-of-living crisis.

The council also said that over the last 13 years the government has cut its annual funding by over £110 million in “real terms”.

How much extra income the council will receive for 2023/24 against extra spending:

Total increase in the council’s costs for 2023/24

  • Inflation, the general increase in prices - £28 million
  • Growth in demand for services - £15 million

Total extra council funding and taxation for 2023/24

From government grants, council tax increases and retained business rates - £29 million

Total shortfall

Extra spending totals £43 million; extra funding and taxation £29 million; therefore, the shortfall is £14 million.

Cllr Mac Cafferty said: “I didn’t stand for office to cut services to our residents or to make staff redundant. But with funding being reduced in real terms by £14 million, we still have many difficult and painful decisions to make.

“We also have to set a balanced budget, something we are legally required to do. We will continue to work our hardest to protect local public services as much as we can and continue to help the most marginalised in our city.

“We’ll also continue to lobby government with the loudest voices for the funding we know Brighton and Hove needs and deserves.”