Financial challenges at Eastbourne Borough Council and consultation - FAQs

Why is the council forced to make savings?

The authority has repeatedly warned that the costs of homelessness and temporary accommodation placements are causing an unprecedented strain on council finances.

In Eastbourne, the council has been spending £4.5 million annually on temporary accommodation, which equates to 49p in every £1 collected in council tax. This is unsustainable.

Despite cutting more than £3m from the 2024/2025 budget, additional savings of over £2.7m are needed.

Why is homelessness getting worse?

Homelessness is a complex issue, but in recent times the cost of living crisis, rising interest rates and inflation has left many people unable to afford increasing mortgage and rent payments.

What is the council doing to solve the homelessness crisis?

Eastbourne Borough Council has led a year-long national campaign lobbying the government about this social and financial crisis.

Council officers are also doing everything possible to reduce the number of people in temporary accommodation. 

The council remains unwavering in its moral and statutory commitment to provide accommodation for those in need and will continue to campaign and appeal to the new government for urgent help.

Has the council received any government support?

Two capitalisation directives were agreed with the previous government. 

A capitalisation directive allows a council to use capital receipts from selling assets 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.

What could the new government do immediately to help?

Councillor Stephen Holt, Leader of Eastbourne Borough Council, recently said:

"We need real financial support to alleviate the immediate budgetary risks and challenges and looking ahead, we are calling for an end to right to buy, reform of the housing revenue account, removal of the 2011 cap on the local housing allowance* and the ability to borrow from the Public Works Loan Board at 0%.

"So many district and borough authorities, of all political colours, are in the same boat because the system of funding local government is broken and very sadly, it's vulnerable people in communities who are suffering most." 

*Councils receive a subsidy from the government every time someone is placed in temporary accommodation. However, the subsidy was frozen at 2011 rates and remains fixed at that level. If the government uprated the subsidy to levels reflective of temporary accommodation costs in 2024, it would help councils manage in the future.

Sadly, even an immediate change to this subsidy would not remove the need for extensive savings now.

Where are savings being made?

Every council service is being reviewed and scrutinised for savings.

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.

At the Cabinet meeting on Wednesday 18 September 2024 a series of service cuts were confirmed including a £100,000 reduction in grant funding for Towner and the closure of the Beachy Head Story heritage centre.

Cabinet also agreed the transfer of operation of conferencing and catering at Devonshire Quarter, changes to the operation of the theatres, sales of assets and further efficiencies in events and seafront services. 

In November 2024, the council will be inviting expressions of interest for organisations wishing to take on the running of the Beachy Head Story.

Cabinet also approved a consultation over nine discretionary service areas. Councils are not required by law to provide discretionary services, but are required by law to provide statutory services, such as housing and refuse collection.

Are asylum seekers adding to Eastbourne Borough Council's costs?

No.

The Home Office meets all these costs.

Is it possible the council will enter bankruptcy?

Councils can't technically become bankrupt, but if they are not able to set a balanced budget, a Section 114 notice will be issued.

A S114 notice has a range of implications, including no new spending and strict limitations on existing expenditure.

Are other councils reporting budget cuts?

Yes. 

Sadly, there is a steady stream of councils in the news reporting concerns about setting a balanced budget and the need for extensive cuts to services.

Can you tell us more about the savings in Eastbourne?

Following further assessments and consultation with employees and stakeholder groups, a second round of savings will be on the Cabinet agenda on Wednesday 13 November 2024.

What discretionary services is the council consulting over?

Public toilets: moving to a community toilet scheme

Across the UK, over 60% of public toilets have closed, usually because councils can't afford to keep them open.

However, we understand the importance of public toilets across the town, both to residents and tourists, and are doing everything we can to maintain this access.

Last year, the cost of providing public toilets was over £300,000, with another £100,000 spent on repairs due to vandalism, and these costs increase each year. Many council-owned public toilets are old and expensive to maintain.  

We are proposing to move to a community toilet scheme. This would involve certain businesses and community venues offering their toilets for use by the public or operating some of the council's current public toilets.

The response from businesses and community groups has been very positive and we are grateful to them all.

A number of organisations have expressed an interested in joining the community toilet scheme and several other potential venues have been identified. At a Full Council meeting on 25 September 2024, it was confirmed that discussions were taking place about the creation of between 15 and 20 community toilets. As of 9 October 2024, over 20 discussions are taking place.

All Changing Places toilets would remain open, as would a set of public toilets on the seafront.

Community toilet schemes have been put in place in other parts of the UK and have proven to work well and improve the range and quality of toilets available for public use. 

Street cleansing: focussing activity on areas with higher footfall

The council is committed to the high standard of street cleanliness across the town. Under this proposal, we would focus our activity on the town centre and seafront which are high footfall areas. We would in-turn reduce street cleansing in other parts of theborough where on-street activity is lower.

We will continue to offer street cleansing on request in other areas when needed on a case-by-case basis.

Grounds maintenance: focussing on core activities and seeking community support in other areas

Grounds maintenance includes grass cutting and gardening in our parks, open spaces, gardens, seafront and cemeteries.

Providing a grounds maintenance service is complex and expensive. Annually, we receive a number of complaints from residents and visitors about the grounds maintenance service provided. As such, we will review this discretionary service with a view to reduce costs while delivering a targeted service enhancement.

The review will focus on providing core services, including:

• Maintaining prioritised spaces and areas across the town,
• Ensuring a safe environment for residents and visitors,
• Promoting biodiversity.

We will also work with community groups to explore jointly prioritised plans for key locations across the town.

Customer services: slightly reducing our face-to-face and telephone operating hours

Many of the council's services are now available to access via our website and there have been significant upgrades to the council's systems. 

We are looking at reducing our customer service team's face-to-face and telephone operating hours during quieter times. 

Many other councils have reduced their opening times without significantly impacting customers. 

Our customer service team's current operating hours are Monday to Friday, 9am to 5pm

Our revised operating hours would be: 

• Telephone: 9am to 4pm on Monday, Tuesday, Thursday, Friday (10am to 4pm on Wednesday)
• Face-to-face: 10am to 2pm, Monday to Friday.

We will also explore ways to improve our online services to provide 24/7 access to a wider range of services. 

Car parks: reviewing charges and hours of operation

We have not increased parking charges at council-owned car parks for the last eight years. Under this proposal, we would look to bring charges in-line with other local car parks.

We are also looking at extending the hours of operation. These are currently 8am to 6pm. We are considering increasing this to 8am to 8pm (10pm at College Road, Hyde Gardens and Wish Tower car parks).  

Sovereign Centre: considering reducing the number of pools available whilst protecting swimming lessons, school swimming and structured sessions such as lane swimming

We are also looking at different uses for the spaces such as soft play, a climbing wall or greater gym capacity.

Most council run leisure centres operate a single swimming pool. The Sovereign Centre currently has  three pools.

The age of the centre means that significant investment is required in key aspects of the infrastructure. For example, the plant and equipment supporting the fun pool is now end of life and requires replacement soon. The centre as a whole is expensive to run, and in 24/25 the Sovereign Centre is projected to cost £424,000.

Council officers and partners at Wave Active are evaluating alternative operating models at the Sovereign Centre to reduce costs.

We are considering reducing the number of pools available whilst protecting swimming lessons, school swimming and structured sessions such as lane swimming. We are also looking at different uses for the spaces such as soft play, a climbing wall or greater gym capacity.

Community grants: reducing our budget for grants to our voluntary sector partners (including Rent Support Grants) after April 2025

The council currently provides grant funding for a number of voluntary and community organisations. This includes through Rent Support Grants for groups that operate out of council-owned buildings.

We are looking at reducing the overall amount of grant funding we offer to our voluntary sector partners, with 100% Rent Support Grant remaining in place for community centres. Any changes would not come into effect before April 2025.

Eastbourne Town Hall: explore ways to reduce the costs and consider alternative uses for the building

With its rich history and deep connection to local public life, the Town Hall is an important symbol of Eastbourne. At nearly 140 years old, the building is costly to operate and requires significant investment to maintain. 

We are looking for ways to reduce the running costs and investment that would be needed over the coming years. This could include making the building available for other uses. 

The Splash Pad at Princes Park: identify options for future sponsorship for it to remain open

The Splash Pad at Princes Park currently costs around £25,000 a year to run. To enable the splash pad to continue to operate, we would need to identify sponsorship funding from one or more outside organisations. 

We are looking at sponsorship options to open the splash pad for 2025 onwards. If we aren't able to find sponsorship, we would need to close the splash pad. 

When will these decisions be made?

The consultation will stay open until Thursday 31 October 2024 at 5pm.

Cabinet will make any decisions on the future of these services on Wednesday 13 November 2024.

To respond to the consultation, visit lewes-eastbourne.gov.uk/EBCsavingsconsultation

Could the council use Levelling Up funding from government to avoid making any reductions to services?

No.

Levelling Up grant funding can only be spent on projects for which it has been specifically awarded.

Do the savings impact Lewes District Council?

No.