Brighton council officers issue politicians with stern warning over budget deadlock

Councillors have been warned they could be deemed “personally liable” for costing Brighton and Hove council money if they fail to set a town hall budget.

Elected members on the local authority will reconvene budget talks tonight (Wednesday March 5) at 6pm after last week’s stalemate.

Ahead of the meeting, legal officers have warned another deadlock could have “significant financial, administrative and legal implications” on the local authority.

They add that if councillors continue to block the setting of a budget, they could be deemed individually liable – and face potential prosecution.

The confidential document also warns of serious “reputational damage” to the local authority, adding: “Reputation and credibility is hard to earn but, once lost, difficult to regain.”

The stalemate has been created as the Green minority administration (21 councillors) wants a 4.75% council tax rise which would trigger a city-wide vote costing up to £900,000.

The Conservatives (18) want a freeze in the rates while Labour (14) advocates a 2% rise.

If a budget is not set by March 11 then the government could intervene and decide the council’s spending for 2014/15.

The last time the government intervened in setting a town hall budget was Doncaster in 2013.

A note circulated to councillors by legal officers this morning added that local government secretary Eric Pickles was unlikely to intervene straight away.

However, it stressed that the longer the council was left without a budget, the more pressure it would put on the council and other agencies, such as fire and police, which also benefit from the rates.

The note said: “If the budget is set after that date, the Act says the failure to set a budget within the deadline does not, in itself, invalidate the budget.

“However, such delay may have significant financial, administrative and legal implications, including potential individual liability of any member who contributed to the failure to set a budget.”