North Norfolk £500k defict due to increasing homelessness

North Norfolk District Council (NNDC) has revealed a £515,000 deficit in its general fund, with officials branding it a “growing concern”.  

The issue has been blamed on the growing costs of temporary accommodation for homeless families, with the number of people needing help “growing sharply” since 2019.  

While councils use their own properties to house homeless families first, when supply runs out authorities have to turn to costly hotels and B&Bs.  

READ MORE: Anger at Norwich City Council spending on temporary housing

And NNDC is far from being in the worst position, with the District Councils Network warning it is threatening to “overwhelm” budgets.   

Temporary homes in England are costing the taxpayer £1.7bn a year.  

North Norfolk District Council spending more on temporary accommodation (Image: EDP)

Speaking ahead of a cabinet meeting on Monday which will discuss the issue, Tim Adams, leader of NNDC, said: “There is a challenging position emerging.  

“While we are not at immediate risk of bankruptcy because of this it shows the housing crisis is such a big issue. We have around 70 families in temporary accommodation at any one time.  

“Continuing to use B&B and hotels just isn’t sustainable for people’s needs long term.  

“But I’m not as worried about our finances as I am about these families that need our help, people who don’t know where they’re going to go because their [tenancy is ending].

“I’m confident we are robust enough to deal with it in the short term but there needs to be a government policy of council house building across the country, unfortunately, there’s only so much we can do locally.”  

With 70 families in temporary housing, the number of people needing help is 45pc higher than August last year when 48 households were receiving support.

In 2019/20 the cost the council had to cover was around £200,000, the current estimate for 2023/24 suggests the figure will be three times that at £600,000.