The city council faces a “very difficult position” with a forecast budget black hole of more than £25 million next year.

Brighton and Hove City Council’s budget is predicted to have a funding gap of £25.3 million for the financial year 2024/25, according to its own forecasts.

It comes as BBC data reveals that the council is planning to make savings of £14.17 million in an effort to plug the gap.

Council deputy leader and finance lead Jacob Taylor pointed at the “catastrophic situation that this Conservative government has left the country in, following years of under-funding of local government”.

He told The Argus: “Many of the services that people rely on and care about most are delivered by local councils - and this Conservative government has continually failed to fund them properly over the last 13 years.

“With recent inflationary pressures, councils around the country are reaching crisis point, including many Conservative-run authorities.”

Cllr Taylor recalled a recent conversation with a resident in Moulsecoomb, who he said asked: “How come there’s no money for anything, whilst everyone at the top seems to be getting richer?”

“She’s right - since 2010, this Tory government has continued to underfund the vital services delivered by local authorities, whilst at the same time the number of billionaires has more than doubled,” Cllr Taylor said.

“Brighton and Hove City Council, like many other local authorities, now faces a very difficult position.

“The Labour administration has already started our budget-setting process for 2024/25 and we will be working hard to establish a plan that is financially sustainable and which protects the vital frontline services that our residents need.

“If the Tory government had any sense or compassion, they would listen to local authorities and grant a better settlement in the upcoming Autumn Statement.”

The Argus: The Labour council has blamed underfunding from the Conservative government for the deficitThe Labour council has blamed underfunding from the Conservative government for the deficit (Image: Sussex News and Pictures)

The council previously said it will look to maximise revenue to avoid having to make cuts to services.

The Brighton and Hove Green Party has slammed Labour for trying to blame the former Green administration for the state of the city’s finances in recent months, rather than cuts to council funding from Westminster.

Councillor Sue Shanks, the party’s finance lead, said: “The financial difficulties this city faces are the result of national economic crises and overbearing central government control and cuts of our funding.

“If the council is serious about turning around this problem it needs to recognise the real causes and be honest about them with the city rather than playing political games.

“Instead of Tory economic disaster or Labour tinkering around the edges we need a radical redesign of how our economy works that ensures local councils are properly funded to deliver the services people depend on every day.”