Brighton and Hove Council has appealed to the government for urgent financial assistance after revealing that the cost of providing temporary accommodation is expected to reach £11 million. The authority has applied for Exceptional Financial Support (EFS) to create breathing space in its 2026/27 budget. EFS is a mechanism that allows councils to borrow additional funding in the short term while they work to bring their finances back onto a sustainable footing.
Rising Costs Place Strain on Council Finances
The council has warned that temporary accommodation is now the single largest financial pressure in its budget. Costs are forecast to rise sharply due to growing demand for emergency housing and continued reliance on high-cost options such as bed and breakfasts and private short-term lets. Without additional support, these rising expenses could undermine the council’s broader efforts to balance its budget while maintaining essential services.
The council’s draft 2026/27 budget highlights plans to increase the supply of affordable temporary accommodation, reduce reliance on emergency placements, and improve long-term stability for households. However, officials have made it clear that government backing will be crucial to ensure these measures succeed.
Partnership with Government Key to Housing Stability
Councillor Jacob Taylor, deputy leader and cabinet member for Finance and City Regeneration, stressed that the issue extends beyond financial management. “This is about ensuring people can stay in the city they call home, close to their families, schools, and support networks,” he said. “No one should have to move miles away because the system is under strain.”
Taylor highlighted that the council is already taking steps to invest in new social housing and reduce dependence on expensive private rentals. The proposed budget places housing at the centre of recovery efforts, aiming to address long-standing weaknesses in the city’s temporary accommodation system.
“Our proposals set out a clear and determined plan to increase the supply of affordable homes and support people into long-term stability,” Taylor added. “We are asking the government to work with us because tackling the housing crisis and balancing the budget must go hand in hand.”
Reducing Dependence on High-Cost Placements
Brighton and Hove Council argues that increasing the supply of lower-cost temporary housing will not only manage current demand but also provide more secure and stable living conditions for vulnerable households. By reducing the reliance on hotels and short-term private rentals, the council expects both financial savings and improved outcomes for families.
Officials also noted that early, targeted investment could prevent even higher costs in the future, particularly if homelessness continues to rise across the region. The council hopes that with government support, it can implement a strategy that combines immediate relief with long-term housing stability.
Next Steps
The request for Exceptional Financial Support will be reviewed as part of the council’s final budget discussions later in February. Councillors will decide whether the proposed measures offer a realistic path towards stabilising finances while meeting housing obligations.
If approved, the funding would provide temporary relief, enabling Brighton and Hove to maintain essential services and continue investing in affordable housing initiatives. The situation reflects a wider challenge faced by councils across the UK, where rising homelessness and housing shortages are driving temporary accommodation costs to record levels.
For Brighton and Hove, securing government support is seen as critical to protecting residents, reducing emergency housing costs, and creating a more sustainable housing system for the future.
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