Council leader warns of 'forced' service cuts due to homelessness crisis
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.
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 Devonshire Quarter; and reducing the council's events programme.
Councillor Stephen Holt, Leader of Eastbourne Borough Council, 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. 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. A capitalisation directive allows a council to use capital receipts and borrowing to meet revenue costs, but the loans must be repaid over 20 years at a higher interest rate. 18 other councils were also 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."
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