William Eichler 24 January 2024

Homelessness costs could spell ‘end of local government’

Homelessness costs could spell ‘end of local government’  image
Image: Pressmaster / Shutterstock.com.

The increasing cost of homelessness could lead to more councils being forced to declare effective bankruptcy and the ‘end of local government’, council leaders have said.

A meeting of 50 council leaders in Westminster yesterday warned of an impending ‘national crisis’ if more isn’t done to help councils meet the rising costs of temporary accommodation.

Cllr Stephen Holt, the summit’s chair and leader of Eastbourne Borough Council, said after the meeting: ‘Our first summit was attended by council leaders of all political parties, all with the same problem that we can't continue to provide vital frontline services and achieve a balanced budget unless we get immediate financial support.’

Temporary accommodation costs in Eastbourne have increased from £1.4m in 2018/19 to £4.9m in 2023/24 – 30% of the council's total £15m spending power.

In a statement issued yesterday, Eastbourne BC warned ‘the situation was even more severe in many other local authorities, making more s114 notices inevitable in the coming weeks.’

According to the BBC, Michael Jones, Labour leader of Crawley Borough Council, told the meeting: ‘I don't think it is over-dramatic given the pressures facing councils to tell the Government that they are presiding over the end of local government if they fail to take the urgent action needed.’

A Department for Levelling Up, Housing and Communities (DLUHC) spokesperson said that councils were ‘ultimately responsible for their own finances’, adding that the Government was willing to talk to any that were concerned about their financial position.

‘We recognise councils are facing challenges and that is why we have announced a £64bn funding package – an above inflation increase at an average of 6.5% – to ensure they can continue making a difference, alongside our combined efforts to level up.’

If this article was of interest, then check out, 'Can local government take much more?', 'Preventing future Section 114 notices' and 'How to fix local government finance'.

SIGN UP
For your free daily news bulletin
Highways jobs

Governance Officer - Basildon Borough Council

Essex County Council
Up to £20.3700 per hour
Governance Officer - Basildon Borough CouncilBasildon, Essex £20.374 PAYE / £26.129 UmbrellaTemp-to-Perm36.25 Hours per Week Closing Date
Recuriter: Essex County Council

Service Manager – Experts at Hand

Wigan Council
£68,885- £70,904
You will play a central part in delivering our boroughwide Progress with Unity movement Wigan, Greater Manchester
Recuriter: Wigan Council

Educational Psychologists

Wigan Council
£53,554 - £63,638
Would you like to join a forward-thinking and supportive team of Educational Psychologists committed Wigan, Greater Manchester
Recuriter: Wigan Council

Senior Educational Psychologist

Wigan Council
£65,423 - £68,884
Would you like to join a forward-thinking and supportive team of Educational Psychologists committed t Wigan, Greater Manchester
Recuriter: Wigan Council

Assistant Educational Psychologist

Wigan Council
£37,265- £41,616
We are looking to recruit two 2-year fixed-term, full-time Assistant Educational Psychologists Wigan, Greater Manchester
Recuriter: Wigan Council
Linkedin Banner