Kent County Council weakened by reserve spending, papers say

New papers says the levels of reserves now pose a "more significant risk" than levels of debt

A council's financial position has "weakened significantly" due to being forced to dip into its savings, new papers have revealed.

Kent County Council (KCC) is "burning" through its reserves which papers state is making the authority less resilient.

KCC forecasts show the authority will have spent just under one quarter of usable reserves in two years to April 2024, dropping from £408m to £316m.

The authority has so far avoided having to issue a section 114 notice.

Councillor Harry Rayner, deputy cabinet member for finance, said a number of "discretionary" services - those outside the council's legal obligations - are now under review.

He added the authority will seek to replace reserves over five years.

According to KCC auditors Grant Thornton, the council must find £86m in efficiencies next year due to a shortfall in government funding amid rising costs and demand for services.

KCC has put Sessions House, also known as County Hall, in Maidstone, on the market to raise funds

On Thursday, papers are to be considered at the growth, economic development and communities cabinet committee.

The papers state reserve levels now pose "a more significant risk" to the council's financial resilience than debt.

"Levels of reserves are now considered to be the second most significant financial risk after capacity to deal with in-year budget pressures."

'Weakened significantly'

Published by leader Roger Gough and deputy leader Peter Oakford, the report said: "The financial standing of the council has weakened significantly as a result of the overspend in 2022-23 that was balanced by the drawdown of £47.1m from general and risk reserves.

One Tory backbencher said: "Some of us feel there is still an 80% chance we'll end up having to issue a section 114 notice.

"We're doing all we can to prevent it but you can't keep burning through the reserves without putting the money back."

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