Financial challenges at Eastbourne Borough Council and consultation - FAQs

Latest update (November 2024): 'Painful' decisions but public toilets and Sovereign Centre protected

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.

Following a public consultation and decisions made at Cabinet in November 2024, these savings have now been identified. Further detail on how these delivered will be made available in the coming weeks.

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 did not remove the need for extensive savings.

Where are savings being made?

Every council service has been 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.

This consultation ended on 31 October 2024 and the proposals were agreed at Cabinet in November 2024. The consultation report is available here: Consultation on savings proposals

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 were considered, along with the consultation report at Cabinet on Wednesday 13 November 2024.

What discretionary services did the council consult over?

Public toilets: moving to a community toilet scheme

The council's community toilet scheme is promising to exceed all initial expectations.  The response from local businesses and other groups has been fantastic and we are grateful to all of them.

It will involve certain businesses and community venues offering their toilets for use by the public or operating some of the council's current public toilets.

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. 

Discussions are continuing but we hope to launch the new scheme soon.  It will see almost all council toilets staying open - including those on the seafront - and many other toilets made accessible to residents and visitors. 

It's all very exciting, especially when you consider that over 60% of public toilets have closed, usually because councils can't afford to keep them open.

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 will focus our activity on the town centre and seafront which are high footfall areas. We will in-turn reduce street cleansing in other parts of the borough 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 are reviewing this discretionary service with a view to reduce costs while delivering a targeted service enhancement.

The review focusses 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 will reduce 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 will 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. It has been agreed that we will bring charges in-line with other local car parks.

We will also extending the hours of operation from 8am-6pm, to 8am-8pm (10pm at College Road, Hyde Gardens and Wish Tower car parks).  

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

Swimming lessons, school swimming and structured sessions such as lane swimming have been secured at the Sovereign Centre for the long-term.

The team is also exploring options for other activities in the centre, such as clip and climb, a soft play area and greater gym capacity.

At a time when the council is managing unprecedented financial challenges due to the homelessness crisis and many local authorities have closed all their swimming pools, we are obviously pleased that residents will continue to have access to the six lane gala swimming pool and other 'dry-side' activities.

The decisions taken are of course regrettable, but the costs of running the Sovereign Centre have continued to increase - the 2024/25 projection is £425,000.   This is in large part due to the age of the building. For example, the plant and equipment supporting the fun pool is now end of life.

On Monday 9 December 2025, Scrutiny Committee will be considering the recommendations regarding the Sovereign Centre. The agenda and papers are available here: Agenda for Eastbourne Borough Council Scrutiny Committee on Monday, 9th December, 2024, 6.00 pm  

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

We are delighted to confirm that our community grant to Citizen's Advice will be maintained. Citizen's Advice play a pivotal role in helping people in the town to access benefits, housing and expert advice and prove a lifeline to many every day.

Unfortunately, from April 2025 we will have to reduce our budget for grants to our voluntary sector partners (including Rent Support Grants). However, 100% Rent Support Grant will remain in place for community centres.

Additionally, we hope to soon announce more support for local groups through the community infrastructure levy.

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 inviting sponsorship to open the splash pad for 2025 onwards. If we aren't able to find sponsorship, we will need to close the splash pad. 

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.