Medway Council faces bankruptcy, says report

Medway Council could face bankruptcy, according to a report

It is "very likely" Medway Council will face bankruptcy, a financial report has warned.

The document projects the Kent authority could face budget shortfalls of almost £40m within two years.

Labour, which won control from the Conservatives in May's local elections, said it was doing all it could and bankruptcy was "not an inevitability".

The Conservatives have questioned increases in costs listed in the report.

The medium-term financial outlook report to be discussed by the council's cabinet next week estimates the administration will face a £38m budget gap in 2024/25 on top of £17m it needs to find for this financial year.

Gaps of £49m in 2025/26 and £65m in 2026/27 were estimated if current trends continue.

The report rates the risk of bankruptcy as "very likely", as is the possibility of a Section 114 order being issued.

That would see Medway Council unable to spend on all but essential services, BBC Radio Kent reported.

Council leader Vince Maple said: "It's regrettable we find ourselves in this situation due to the financial circumstances we were left by the previous administration.

"It is not an inevitability and we are committed to doing what it takes to avoid a Section 114."

He said the council would make savings where possible and, with other councils, he would be pressuring central government to increase funding.

Conservative group leader Adrian Gulvin, who has been involved with previous administrations' budget management, questioned some of the estimations in the report.

He said: "I would be quite interested where all these enormous increases in costs came from. What's the justification?

"We had faced various levels of pressure on our budgets, but we always managed to get it under control.

"When things became difficult we ran a pretty tight budget and did not make any extravagant spending decisions. I won't take the blame for where we are now."