Council tax in Bexley could face a hike as the council looks to plug 'significant' spending pressures due to homelessness in the borough.

The council's budget process took a step forward last night, January 29, at a cabinet meeting ahead of potential confirmation of the final plans.

Increases to council tax and business rates are set to be agreed at a cabinet meeting in February - but in a report discussed last night it said a one per cent hike would generate an extra £0.9m for the council.

Due to dwindling government grants, the council will need to generate income locally through council tax, business rates and charges for services.

Council leader Teresa O'Neill said: "Our focus is on living within our means and making sure we use the money we have to deliver the maximum benefit for the borough and our residents.

“People know that the economy is going through a challenging period, but we will continue to show that we can do a lot of good with the money we have. We are also continuing to plan carefully for the future and ensure we put money aside to ensure we can cope with the unexpected.”

The council must be financially self-sufficient by 2021, according to a spokesman.

 

Cllr O'Neill said: "Our focus is on living within our means and making sure we use the money we have to deliver the maximum benefit for the borough and our residents.

“People know that the economy is going through a challenging period, but we will continue to show that we can do a lot of good with the money we have. We are also continuing to plan carefully for the future and ensure we put money aside to ensure we can cope with the unexpected.”

Homelessness is one of the biggest spending pressures facing the council and the problem is set to rise.

The number of households in temporary accommodation has been gradually increasing over the last four years, from around 550 at any time in 2013/14 to on average 1,200 in the current year.

The council estimates that going forward these numbers will increase further and by around thirteen each month, meaning that an extra £4.2million has been set aside.

"We focus on improving the things we can control and I’m proud of what we’ve achieved both in balancing the budget and improving services,” said councillor Don Massey, deputy leader of the council. “We’ve gained a great reputation for managing our budget, attracting inward investment, innovating and working with others to improve the borough – and that’s what we plan to keep doing.”

Councillor Daniel Francis, leader of Bexley Labour, said government cuts have put more pressure on council services.

He said: "As a result, Bexley has seen an enormous increase in homelessness with over 1200 families placed in temporary accommodation, pressures on budgets to support local schools and cuts to community safety and street cleansing budgets.

"The financial pressures outlined in this budget show first hand how the administration has failed the people of Bexley by refusing to build affordable housing and supporting its Government's slashing of school budgets and services supporting the most vulnerable in society."

Increasing numbers of high needs children mean the council faces a £0.8 gap on funding them, requiring an additional £0.6m