Medway Conservatives are concerned by the news from this week’s Cabinet meeting of the £16m projected overspend of the Council’s revenue budget for this financial year. In February, the Labour and Co-Operative administration claimed that this year’s budget would put the Council onto a sustainable financial footing, and included £14m worth of exceptional financial support, approved by the then Conservative Government. The budgetary position has worsened, particularly in adult’s social care, since February, and now shows a significant projected overspend.
On current forecasts, the administration will need to use a significant number of reserves in order to cover the spending and fund their budget. It is worrying that this overspend wasn’t projected during the Budget build process, which could have then been built into the conversations with HM Government around the exceptional financial support. There is also a projected overspend due to a lack of progress on savings promised within the Medway 2.0 digital programme, which raises further questions about why this was included within the budget.
Later this year, attention will turn to the 2025 to 2026 budget, which within the medium term financial plan currently requires further exceptional financial support from government. Medway Conservatives urge the Leader of the Council to urgently lobby the Deputy Prime Minister for further revenue support funding in order for the Council. Ahead of the 2024 Budget, the then Leader of the Medway Conservatives Cllr Adrian Gulvin joined Group Leaders from across England in successfully lobbying the then Levelling Up Secretary for a further £600m worth of top up-funding towards adult social care.
The Leader of Medway Conservatives, Cllr George Perfect, met recently with the Shadow Local Government Secretary to discuss funding for local government, to ensure that the new government and Deputy Prime Minister are held robustly to account on funding for vital services.
Leader of the Opposition, Cllr George Perfect, said:
We are deeply worried about the projected overspend within the Council’s budget. The Leader of the Council was clear in February that this year’s budget was sustainable and deliverable. Just three months in, it’s clear that this was not the case, and the Cabinet need to urgently address this situation and bring the finances back into the envelope set by Full Council just a few months ago.
Deputy Leader of the Opposition and Shadow Cabinet Member for Finance, Property and Workforce, Cllr Gary Hackwell, said:
It’s concerning that there is currently a projected £16m overspend within the Council’s budget, which could necessitate the use of reserves in order to fund this year’s budget.
I urge the Leader of the Council as Portfolio Holder for Finance to urgently focus on remedying this projected overspend and driving the efficiencies to adult’s social care to support improving the financial position.
