Green Councillor Criticises Brighton Council Budget Forecasts As Overspend Concerns Grow

A Green councillor has criticised the way Brighton & Hove City Council's latest budget forecasts are presented to senior councillors, describing the updated format as lacking clarity.

Councillor Ollie Sykes made the comments at a meeting of the council's cabinet on Thursday 16 July, following previous criticism of Labour's handling of the authority's finances.

He said the latest figures showed the council was facing a projected overspend of almost £20 million during the second month of the 2026/27 financial year, with a further £17 million in financial risks identified.

Councillor Sykes also raised concerns that the new-style finance report no longer included comparisons with previous years' overspends and forecasts.

He said:

"The administration's 'month two' finance paper unfortunately presents a toxic combination of lack of clarity, uncertainty and bad news.

"I don't remember a similar position before in Brighton and Hove City Council.

"But the main theme has to be Labour's budget control – or lack of it. At the last cabinet I said the council is running on fumes.

"Two and a half weeks later it's clear that even those fumes have run out. All of a sudden, Labour is projecting a £37 million overspend."

Councillor Sykes compared the current financial position to the pressures faced during the coronavirus pandemic, when the council forecast a £36 million overspend in 2020.

He also questioned the need for the council to seek a further £30 million in exceptional financial support from the Government, after borrowing £15 million last year.

The Green councillor called for greater cross-party working, saying residents wanted Brighton & Hove's two "progressive" parties to cooperate.

However, Labour deputy council leader Councillor Jacob Taylor defended the revised format of the financial reports, saying it was designed to bring key information about budget pressures together in a clearer and more concise way.

He acknowledged that the first financial report of the year showed the council was in a "worrying position", but said the purpose of the process was to identify risks early and allow action to be taken.

Councillor Taylor said:

"Clearly this council and many others continue to operate in an extremely challenging environment, where demand-led services, inflationary pressures and broader global economic uncertainty continue to place significant strain on our finances.

"The whole point of these reports is to identify the risks early to allow us to take corrective action or mitigations to strengthen our positions before they become unmanageable."

The council said the main pressures behind the projected deficit were rising demand for children's and adults' social care services, along with wider inflationary costs.

The budget for schools could also face a £6.6 million overspend, while children's care placements are forecast to be around £3 million over budget.

The council said it had budgeted for 25 children in care placements but was currently supporting 29 children, with efforts under way to increase the number of foster care placements.

Adult social care is forecast to overspend by £11.3 million, including £10.6 million linked to community care placements and support.

Temporary accommodation costs are also expected to exceed the budget by £1.3 million.

Councillor Sykes highlighted additional pressures within "city operations", including a projected £1.2 million overspend linked to concessionary bus fares, venues and events, and costs associated with the rubbish and recycling fleet.