Medway Council faces predicted £11m overspend
- Published
A council in Kent has said it is facing a predicted overspend of £11.2m.
Labour-led Medway Council has revealed its reserves stand at just over £10m, meaning savings alone will not balance the books.
Vince Maple, the council leader, said it would have to make "difficult decisions" over finances.
Councillor George Perfect, the Conservative opposition leader, said he was "very concerned about the challenges Medway was facing".
Medway Council received £14.7m from the government earlier this year as exceptional financial support.
Mr Maple told BBC Radio Kent that council tax was likely to go up by 4.99% next April, alongside a review of council services such as weekly bin collections.
He said: "Medway, like virtually every council in the country, is having to make difficult financial decisions.
"Some of those decisions we don't want to take, but have to in order to balance the books."
The council has warned that rising costs in temporary housing and adult social care continue to affect its ability to work at a surplus.
In October it said it might have to sell off Temple Manor, a 13th Century manor house, and a host of properties to help balance its books.
Opposition leader Mr Perfect said: "We have concerns that the leader of the council has not necessarily got a grip on the situation.
"People within Medway will be confused why we're considering giving council staff a pay rise which is above inflation."
The cabinet papers also revealed Medway Council will need government support for the 2025/2026 financial year.
The council said it would require £26.2m as exceptional financial support to balance its budget.
It will need to provide a balanced budget by February if it is to avoid effective bankruptcy.
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