Hastings councillors discuss Local Government Association report into financial challenges

On Monday (August 7), Hastings Borough Council’s cabinet discussed a long-awaited report, following on from a Local Government Association (LGA) peer review of the authority’s finances in March.

The final report paints a difficult picture, warning that the council could, if serious steps are not taken, be forced to issue a section 114 notice within the year. Such a notice is often compared to bankruptcy proceedings.

The report reads: “The issuing of a s114 notice is an extremely serious matter; it will severely impact the council, both in terms of its ability to deliver for residents as well as its wider reputation.“All necessary steps should be taken now to reduce expenditure and make savings promptly. The peer challenge team are of the view that the council has the means to address the budget and savings problems if it works together to swiftly implement the cost reduction programme, and promptly realises planned savings.”

The report goes on to make 13 recommendations for how the council can improve its financial position. These recommendations, all of which have been accepted by the council, include: undertaking a comprehensive spending review; providing more detailed financial planning and reporting; and taking action to reduce its spending on homelessness.

Speaking at the meeting, Labour council leader Paul Barnett said: “Inviting in the LGA was part of a strategy to ensure that the actions the council was already taking, in response to the growing and quite frankly alarming rise in homelessness in the town, were credible and sufficient.

He added: “I think the important thing to note this evening, as we sit here in August, is that there was a presentation at the end of their three days here … and at that presentation they outlined clearly what their recommendations were going to be.

“The final report, although it has some changes in detail, doesn’t contain any surprises that we weren’t told in March. One of the promises I gave at that presentation was our response to their recommendations and challenges would start the next day, in fact it started that evening.

“So I am not surprised that … what is contained in our response report this evening is nearly 100 actions that have been taken or are planned to be taken. Many of them were taken immediately following the LGA’s departure at the end of March.”

In discussing the report, cabinet members highlighted what they considered to be the biggest challenge facing the council’s finances — the amount of money it is spending on temporary accommodation.

The amount the council spends on temporary accommodation has risen sharply over the past few years as more and more people seek help.