Crawley Borough Council has reported a £3 million overspend on homelessness and temporary accommodation costs for the last financial year, prompting concerns about the sustainability of its housing budget. The council leader, Labour’s Michael Jones, highlighted the severe financial strain placed on the council’s resources by the growing housing pressures.
During a cabinet meeting on Wednesday, Mr Jones stated that the cost of providing temporary housing is “not sustainable” and identified housing pressures as “a critical risk to the council’s financial resilience,” according to the Local Democracy Reporting Service. Effective solutions to address the rising housing costs are greatly needed to house and support the most vulnerable in the community.
The council’s financial figures for the year ending 31 March revealed a total overspend of £3.7 million. Although this figure is £148,000 less than projected in December, the council’s financial health remains unstable. In response to these challenges, the council declared a housing emergency in February, highlighting a staggering 20-fold increase in accommodation costs over the past five years.
Housing and Financial Pressures
The government’s plan to close four asylum seeker hotels and disperse residents into the community without adequate support is a major contributing factor to the current struggles. In March, Mr Jones addressed this issue in a letter to multiple government departments, emphasising that the lack of proper support for asylum seekers is exacerbating the housing crisis.
Despite these challenges, the council managed to offset more than £1.3 million of the overspend through income from investments. However, more sustainable solutions are needed to ensure the long-term viability of Crawley’s housing programmes, ensuring that those without safe and secure housing are looked after effectively.
Conservative leader Duncan Crow expressed concern over the council’s deteriorating financial situation, noting that it had “deteriorated significantly” since the budget for 2023-24 was set.
Many residents in properties across the country face substandard living conditions, including issues such as damp, mould, and inadequate heating. Addressing these disrepair issues is essential to improving the quality of life for council tenants and reducing the overall demand for temporary accommodation. By prioritising the maintenance and renovation of existing housing stock, the council can help prevent further deterioration and ensure that its properties meet the required standards.
