Agenda item - Chair's Communications

119.1   The Chair provided the following Communications:

Good afternoon, colleagues. We have a big agenda today.

Today’s agenda reflects our determination to keep Brighton & Hove fairer, safer and more sustainable despite the pressures facing councils everywhere.

The centrepiece is our 2026/27 Budget – a net General Fund of £341 million, with a proposed 2.99% council tax rise and a 2% Adult Social Care precept. This is our Council Plan in financial form: targeting investment where it matters most – tackling homelessness and inequality, driving climate action, and improving neighbourhood services.

The challenge is real. We began this process with a £25 million gap next year and over £80 million across the medium term. Our reserves remain among the lowest of any unitary authority, so returning to financial sustainability must remain our top priority.

We’re delivering £12.4 million of savings, and launching a transformation programme to close the medium?term gap through reducing temporary accommodation costs, managing social care demand, increasing income, and investing in digital and service redesign.

To manage short?term pressures, we are also seeking £15 million of Exceptional Financial Support from government – not additional funding, but a vital flexibility to protect services and rebuild reserves while our transformation work takes root.

We’ll also consider the Housing Revenue Account and Capital Programme, supporting over 12,000 council homes. The focus is on safety, energy efficiency and new affordable homes, with every investment tested for value and sustainability.

Alongside the HRA, we have reports on the Transport Maintenance Programme, the A259 seafront arches – vital infrastructure for the city’s economy – and a proposed Lane Rental Scheme to reduce roadworks disruption.

Our Adult Social Care Improvement Plan sets out how we’ll strengthen prevention, stabilise the provider market and improve outcomes for residents, helping deliver both quality and financial stability.

We were deeply concerned to learn, as a result of the amended notice of motion passed last October and my letter to the East Sussex Pension Committee that (as per paragraph 3.10 of today’s report) the East Sussex Pension Fund holds approximately £29.8 million (0.58% of total fund assets) in companies identified by the Office of the United Nations High Commissioner for Human Rights (OHCHR). The list compiled by the OHCHR currently contains 158 ‘involved companies’, with involvement being defined as operating in illegal settlements in the West Bank. They are predominantly Israeli companies – construction organisations, banks, and financial institutions, but also include some multinational companies, for example AirBnB, Booking.com, Expedia and Motorola.

This means that that there exists almost £30 million of exposure to companies that operate in illegal settlements in the West Bank. Against this context it is important to understand Brighton and Hove City Council’s  role in investments held in the East Sussex Pension Fund. The council does not have its own Pension Fund and has no representation on the East Sussex Pensions Committee, and therefore no control whatsoever on investment policy and strategy. Nonetheless, given this concerning disclosure, I will be writing to the members of the East Sussex Pension Fund Committee: Conservative Councillor Gerard Fox (Chairman), Green Councillor Georgia Taylor, Conservative Councillor Ian Hollidge, Conservative Councillor Paul Redstone and Liberal Democrat Councillor David Tutt to ask them to divest of funds that expose the pension scheme to the companies identified by the OHCHR.

We have watched in horror at the violence that has ensued in Gaza the many thousands that have been killed and the disturbing statements by Israeli Government Ministers suggesting blanket persecution. We have also watched in horror at the terror unleashed on Israelis during the Hamas attacks of 07/10 and since. Our Labour Administration was among the first to call for a ceasefire in November 2023 and we have backed the Labour Government’s actions to get aid into Gaza, to apply arms embargos on Israel and to recognise the State of Palestine.

This agenda shows a council that is honest about the scale of the challenge but ambitious about the city’s future – restoring resilience, investing in the essentials, and improving outcomes for those who rely on us most.

Thank you to all Cabinet colleagues, opposition Members and officers for their hard work in bringing these reports forward. I look forward to our discussions and the decisions we’ll take this afternoon on behalf of the city we serve.