Council leader gives stark warning on homelessness

Eastbourne Borough Council has said the rising cost of housing the homeless could prevent a balanced budget

The leader of an East Sussex council has said the increasing costs of tackling homelessness could stop it setting a balanced budget and lead to extensive cuts to services.

Stephen Holt, leader of Eastbourne Borough Council, said the authority has been spending £4.5m a year on temporary accommodation.

He has described the situation as "a crisis" and "a colossal financial pressure".

The government said it would develop a new strategy to tackle the problem, working with local government leaders.

Mr Holt said the situation in Eastbourne had developed despite £3m being cut from the budget set for the financial year 2024/25, and another £2.5m of savings already identified.

Several council-run events have been cancelled and assets transferred to private sector operators.

Mr Holt 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.

“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.”

Eastbourne Borough Council said it was spending £4.5m a year on temporary accommodation for the homeless

In February, the council received a £6m loan from the government, and in October 2023 Eastbourne hosted a summit of local authorities on the rising problem of homelessness.

A council which cannot set a balanced budget must declare a section 114 notice, preventing it from further spending until it can balance its books.

Several local authorities across England have had to declare such notices, including Woking, Croydon for three years in a row, Nottingham and Birmingham.

A spokesperson for the Ministry of Housing, Communities & Local Government said: “Homelessness levels have sky-rocketed and too many families are living in temporary accommodation in our towns and cities, including in Eastbourne.

“We will take the action needed to tackle this issue and develop a long-term, cross-government strategy working with mayors and councils to put Britain back on track to ending homelessness.”

The department also said it was taking action against the causes of homelessness, with an increase in affordable housebuilding and abolishing no fault evictions.

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