Medway Council to ask government for exceptional financial support

Medway Council had asked the government for permission to increase council tax above usual limits

Medway Council is asking the government for "exceptional financial support" to avoid effective bankruptcy.

A report commissioned by the council from independent financial specialists says the authority is in "a grave situation" in terms of financial sustainability.

The council revealed in November it was facing a black hole of £35.8m.

The government refused the council permission to increase council tax above the current 4.99% limit.

Instead, councillors are hoping the government will allow them to borrow an additional £14.5m to try to balance the books.

The budget proposals for 2024/25 have been published on Monday and see a council tax rise of 4.99%.

There are also cuts to services and an attempt to raise more money through parking charges.

This includes increasing pay-and-display charges, the introduction of parking charges at country parks, and stopping free swimming for under 16s and over 60s.

The council previously warned it may have to issue a section 114 notice, which is when a council effectively declares itself bankrupt because it cannot produce a balanced budget.

Medway 'not alone'

Council leader Vince Maple said permission to further increase council tax would have meant the council could achieve financial sustainability more quickly.

He warned the council may still need to issue a section 114 notice if the borrowing arrangements were not permitted.

Mr Maple added: "Medway is not alone in this position, with the Local Government Association reporting that one in five councils could be in severe financial hardship in two years.

"We are having to take some incredibly difficult decisions now to ensure we can deliver the services that we know local people need and value, and have tried to minimise the impact where possible - particularly for our most vulnerable residents. "

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