We asked for this support because of a social and financial crisis created by rising levels of homelessness and spiralling costs associated with temporary accommodation placements.
The Minister of State for Local Government has acknowledged the need for sustainable funding for councils and this is a welcome sentiment. However, we need more than words. The reality is that without adequate, long-term funding, local services across the UK face significant cuts.
Here in Eastbourne, we've made incredibly tough decisions. We've already saved over £3.2 million in this year's budget and identified a further £4.4 million in savings for next year. These are extraordinary measures for a council of our size.
The unprecedented pressures of the homelessness crisis, particularly the costs of temporary accommodation (TA), have driven us to this point. At its peak, we were spending nearly half of every pound of council tax on TA. While our dedicated housing officers have worked tirelessly to reduce placements, the costs remain unsustainable. This is a national issue, not just an Eastbourne one.
It's important to understand that the support we've received is not ‘additional’ funding. It's a loan, which we must repay. This is not the sustainable solution we've been advocating for.
We firmly believe the government should properly fund local councils and this view is shared by the Chartered Institute of Public Finance and Accountancy which said:
"The growing number of councils having these arrangements approved means the support can no longer be considered exceptional.
“Covering recurring day-to-day revenue expenditure through capitalisation directions is unsustainable and represents poor financial management and most significantly poor value for money to the taxpayer."
However, given the circumstances, we're utilising this option as part of our strategic financial planning to protect essential services for our residents.
We remain committed to delivering vital services to our community. We will continue to advocate for a fair and sustainable funding model that allows us to meet the needs of Eastbourne residents now and into the future.
On an entirely different note, I would like to flag up an exciting consultation launched this week on proposals for a new approach to how council homes are allocated to residents on the housing register. This faster process would remove the bidding process and instead, immediately offer empty properties to the best suited families and individuals on the housing register. We are also consulting on Eastbourne parking permits. For details on all our current consultations visit www.lewes-eastbourne.gov.uk/consultations