The council has forecast a 6m overspend in its annual budget for temporary accommodation by next April, following a 10m overspend the year before. This was largely attributed to its reliance on chain hotel rooms, claiming it was paying for about 250 hotel rooms at an average loss to the authority of 70 per room per night.
The new contract at the Radisson Red hotel on Tunnel Avenue aims to provide long-term, unrestricted accommodation to mitigate legal challenges and complaints from placements not being in the borough, potentially saving approximately 300,000 a year.
The report added that there were currently over 1,950 households in the council's care in temporary accommodation, the most the authority had ever seen. The council has reserved 70 rooms at the Radisson Red hotel for emergency accommodation.
#temporary-accommodation #budget-overspend #long-term-contracts #emergency-housing #financial-management
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