Update on our financial position and progress

We have published our latest Targeted Budget Management (TBM) report, which highlights the continuing financial pressures facing councils across the country, particularly in demand-led services such as adult social care and support for vulnerable residents.

The report forecasts a £19.882 million overspend risk in 2026/27, driven largely by increasing demand and complexity in social care services.

Adult social care is currently experiencing a 6% increase in the number of people requiring support alongside a 5% increase in average care costs.

Continuing to make progress

Despite these pressures, we continues to make progress in transforming services, delivering savings programmes and improving the way services are provided to residents.

The report notes that our transformation programmes are progressing well and that work continues across the organisation to improve efficiency, strengthen financial sustainability and modernise services.

The report also highlights that, despite the challenging revenue position, we continue to maintain a significant capital investment programme. 

This includes investment in new council homes, improvements to leisure facilities and the development of ambitious plans for the city’s seafront and wider regeneration projects.

Continuing to invest in Brighton & Hove’s future remains essential to supporting economic growth, improving public infrastructure and creating opportunities for residents.

Government acknowledges growing pressures

The report also recommends seeking up to £30 million in additional Exceptional Financial Support (EFS) from government. This is necessary to protect frontline services while longer-term reforms to local government funding take effect.

The government has acknowledged the growing pressures facing local authorities and has signalled its intention to address some of the structural challenges in social care and council finance. 

However, councils continue to face immediate pressures that require support now.

Refusing to manage decline

Councillor Jacob Taylor, Deputy Leader of Brighton & Hove City Council, said: “Local government finance remains challenging, particularly as demand for adult social care and other essential services continues to grow. But this council continues to deliver for residents, protect key frontline services and drive forward improvements across the organisation.

“We welcome the signs that government understands the need to tackle the underlying causes of these pressures and reform the way local government is funded. In the meantime, additional support is essential to help councils manage these challenges while protecting the services that residents rely on. 

“We refuse to manage decline. The opposite is true: we want to lead the renewal of our city and of local government itself.

“Alongside protecting services, we are continuing to set out ambitious plans for Brighton & Hove's future and invest in the things that matter most to residents.”