Eastbourne Borough Council facing 'colossal financial pressure’ due to levels of homelessness
A council in the South East of England has warned it will have to make extensive cuts to services due to increasing levels of homelessness.
Eastbourne Borough Council is facing ‘colossal financial pressure’ created by increasing levels of homelessness and temporary accommodation placements.
The authority has already made savings of more than £3 million from the 2024/2025 budget and plans to make a further saving £2.5m of savings, but says is at risk of being unable to set a balanced budget.
In Eastbourne, the council has been spending £4.5 million on temporary accommodation, which equates to 49p in every £1 collected in council tax.
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.”
Councils are facing “unsustainable financial pressure” in dealing with record levels of homelessness, the public spending watchdog raised in July.
England remains an outlier in the UK as the only one of the four nations without a strategy or target for statutory homelessness, which the National Audit Office (NAO) noted is the case despite its recommendation for one seven years ago.
The NAO said homelessness numbers “are at a record level and expected to increase”.
The latest figures, to December 31 last year, showed a new record high of 145,800 children in temporary accommodation, up by a fifth on 20 years ago when records for this measure began.
There were a total of 112,660 households in temporary accommodation in England, of which 71,280 were households with children, by the end of last year.
A Ministry of Housing, Communities & Local Government spokesperson 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.”
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