In August, the Medway Conservative Group raised concerns about the financial situation of the Council when there was a projected overspend of £16 million. In round two of the revenue budget monitoring for 2024/2025, released this week, it is now projected that the overspend will be £11 million. This precedes then an expected further budget gap for 2025-2026 of £26.2 million which will concern residents, potential investors and staff at the Council.
The Group are concerned to hear that officers believe that this poses a further significant concern to both residents who face the prospect of losing access to vital council services and employees of the council. The projection for 2025-26 represents a pressure of £26.2 million, which will once again further necessitate the Council requesting additional exceptional financial support from the Government, with further EFS likely to be necessary in subsequent years.
In August this year, the Group warned the administration about the rising cost of adult and children social care, and the need for Government to provide further support. However the draft budget for 2025-2026, has projected that the costs of the adult and social care department will increase by a further £16.2 million which will push the total spent on this department to £340.5 million.
The Group are also concerned that the recently delivered budget from the Government will also increase financial pressure on the Council, namely the increase in employers’ national insurance contributions as well as the uncosted rise in the minimum wage which will make it more expensive for the Council to hire contractors.
The administration must act quickly to find permanent and practical solutions to combat the overspend, particularly on adult and children social care.
Deputy Leader of the Opposition and Shadow Cabinet Member for Finance, Property and Workforce, Cllr Gary Hackwell, said:
“The figures in this report are extremely concerning, we are yet to hear anything from the Labour Government and administration which both seem by all accounts to be taking a very relaxed approach. I urge the Leader of the Council to lobby the Secretary of State to find a permanent solution to the worsening financial situation the Council finds itself in, and set a sustainable pathway in the years ahead..”
