The People Overview & Scrutiny Committee met on 15 September 2025, to discuss budget planning and resources, and to review the Section 75 agreement for mental health services between Brighton & Hove City Council and Sussex Partnership NHS Foundation Trust. The committee agreed to note both the budget report and the recommendation to renew the Section 75 agreement for a further three years. Additionally, the committee considered a question raised by a member of the public regarding tenancy policy.

General Fund Budget Planning & Resource Update

The committee reviewed the General Fund Budget Planning & Resource Update 2026-27 to 2029-30, a report that had been presented to the cabinet in July. The report aimed to provide committee members with an understanding of the council's current budget position ahead of more detailed budget proposals in February 2026.

The report highlighted a projected budget shortfall of £39.765 million for 2026/27, and predicted budget gaps totalling over £95 million over the four-year period. These shortfalls are attributed to increasing demand for statutory services, such as temporary accommodation and adults' and children's social care placements, as well as anticipated reductions in resources resulting from the government's fair funding review¹ and changes to local government funding indices.

The report outlined a framework for financial sustainability, including:

• Strong in-year financial management
• A robust transformation plan for savings
• A stretch target for capital receipts²
• Rationalisation of the capital programme
• Principles against additional revenue spend or capital projects without compensatory savings or decreases

It also set targets for general fund reserves at £15 million and the risk reserve at £10 million, with the aspiration of achieving this over three years.

The report assumed a council tax increase of 2.99% over the four-year period and a 2.00% adult social care precept³ (or equivalent in grant funding) in 2026/27. It also factored in potential losses of £7 million to £24 million due to the Fair Funding Review and Business Rates Reset.

The report included an indicative timetable for developing and approving the 2026/27 budget and medium term financial strategy.

Mental Health Services S75 Agreement

The committee considered a report regarding the proposed renewal of the Section 75 agreement⁴ for mental health services between Brighton & Hove City Council and Sussex Partnership NHS Foundation Trust. The report recommended renewing the agreement for a further three years.

The Section 75 agreement has been in place for over twenty-three years and allows the council to commission health services and NHS commissioners to commission social care, enabling joint commissioning and commissioning of integrated services. It also allows the council and the NHS to establish and run a pooled fund.

The report noted that the agreement serves as a significant tool in achieving the Integrated Care System's ambition to transform adults' and older adults' community mental health services and reduce health inequalities. It contributes to improved mental health and wellbeing and easier access to more responsive mental health services.

The current agreement reflects integrated arrangements for the delivery of community mental health services across the city. The council retains sole responsibility for the governance and management of its Community Care Budget for assessing and commissioning care and support under the Care Act 2014⁵. The Section 75 agreement preserves the integrated working arrangements between NHS and council staff within single teams, including joint funding arrangements for some of the workforce.

The report outlined several benefits of the Section 75 agreement, including:

• Joined-up care
• Shared goals
• Better value for money
• Person-centred care
• Continuity of care
• Support for national policy

Challenges associated with the agreement include:

• Governance and accountability
• Financial and budgetary issues
• Dependence on local leadership
• Development of neighbourhood mental health teams
• Demand

The Section 75 pooled budget for Mental Health Services is £29,757 in total for 2025/26, including a contribution of £8.314m from Brighton & Hove ICB and £21.443m from Brighton & Hove City Council.

Public Questions

The committee considered a written question from Lee Catt regarding tenancy policy:

Why is there not a vulnerability policy and/or strategy and a reasonable adjustment policy being used in line with the Spotlight report on attitude, respect, rights, and the vulnerability within social housing. If there is one, where is it, when was it published, why is it not easy to access, and why is it not being used in all cases?