New estimates by Brighton and Hove City Council revealed that they are now facing a funding gap that is £2 million wider than estimates just over a fortnight ago.
The council now says there are further “difficult decisions” to be made to protect core services.
Councillor Jacob Taylor, the council’s finance lead, said: “We are in a period of very high inflation and growing demands for council services and homelessness support driven by the cost-of-living crisis.
“This new announcement from the government falls disastrously short of meeting the huge inflationary costs and demand pressures facing the council next year.
“The council’s finances are in an extremely perilous position. There is nothing here to provide relief for this council or other local authorities who have faced a decade of central government austerity or any real-world financial help for struggling families.
“It means we will have to take some urgent and extremely difficult decisions in the coming weeks to protect essential services. To put it bluntly, the less money we have the fewer services we can provide.”
According to a council spokesman the government’s announcement of a £64 billion funding package will actually see them lose £1.6 million on previous predictions.
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The council claims that a government promise to give all councils at least three per cent more funding is being funded by re-distributing funds from other councils including in Brighton and Hove.
Cllr Taylor added that in 13 years of Conservative government the council’s budget had been slashed by £120 million in real terms.
Levelling Up Secretary Michael Gove defended the plans calling councils the “backbone of their communities”.
Previous estimates for the council deficit were set at £31 million for the forthcoming year at the beginning of this month.
Brighton and Hove City Council leader Bella Sankey previously wrote to Chancellor Jeremy Hunt to call for a fair deal for the city after his autumn statement.
The Department for Levelling Up, Housing and Communities were approached for comment.
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