By Local Democracy Reporter Simon Finlay
Under-pressure Kent County Council (KCC) has passed its budget plans for 2024-25 amid continued concerns for its long-term financial viability.
Members voted it through by 46 to 15 (with one abstention) at County Hall in Maidstone this afternoon.
By securing approval, KCC survives for another year but the pressures will be just as great in 12 months’ time.
The books have been balanced by a range of measures including a review of frontline services and a council tax increase of just under 5%.
But the council has also been forced to dip into its reserves again.
Savings are being sought across the board including a workforce review, shaving costs to services such as the community wardens and phasing out funding for youth services to bring in the new ‘family hubs’ model.
At County Hall today, Conservative KCC leader Roger Gough said the authority is under a “severe and growing” set of pressures which have become “more intense in recent years”.
The growing costs of three “key policy areas” – adult social care, children’s services and home to school transport – as well as inflation have all been among the driving factors, he said.
He added: “So to address that, we have to make major structural and lasting change. In particular, it is breaking that growth, that unsustainable growth, in those three key policy areas.
“If it continues in the way that it has, we will not be able to sustain our future as a council.”
In a statement released after the meeting, Cllr Gough added: “We have lobbied hard, with the support of the County Councils Network and MPs, at meetings with government, in correspondence with the Secretary of State, and in many high profile and frank media interviews, to convey the perilous financial state of local authorities across the UK.
“We are grateful that the government has been willing to listen and do something so unusual as to make extra funding available so late in the settlement process.
“The extra funding we have received is helpful, but it is not a gamechanger for this budget and has only gone a very small way towards easing the pressure, particularly when we look ahead to the next few years.
“The stark reality is that the extra money from government only represents 15% of the budget gap we have had to fill in order to present a balanced budget today.
“There is no cavalry coming over the hill, this is down to us.”
Although the controversial proposal to shut four of the county’s household waste recycling centres is not in the 2024-25 budget, a saving of £988,000 is earmarked for 2025-26.
The subject was not part of the formal debate on the budget but a single line in papers on page 126 states there is an ongoing “review of the number and operation of HWRC sites”.
The issue of the tip closures sparked a revolt from Tory members last year and a planned consultation was shelved.
Margate Labour member Barry Lewis said: “Despite all the public protest, the Tories are hell-bent on shutting the tips. They’re just not listening.
“Next year, when we have the KCC elections in 2025, the public can bring in an administration that will get rid of this plan.”
Deputy KCC leader Peter Oakford pointed out in his closing remarks that the tip closures and possible disposal of library buildings are in the budget papers for planning purposes only and would be discussed at greater length in the future.
Cllr Oakford had earlier told members that the council faced an £86.4m shortfall at the beginning of the budget process.
By law, the authority must be able to balance its budget or face having to effectively declare itself bankrupt as has happened at Birmingham and Nottingham in recent months.
But leader of the Liberal Democrat group Antony Hook said that “behind this blizzard of cuts are people, families” and urged the KCC cabinet to be “more imaginative” in how its members look for savings.
John Betts, acting corporate director of finance, said KCC faces rising costs and warned the continued dipping into reserves is now a “significant risk”.
In papers before members, he said: “It is acknowledged that setting a balanced budget for 2024-25 has been incredibly challenging, due to the ongoing and escalating cost pressures the council faces, alongside insufficient funding in the local government finance settlement.
“Together these mean that the council can only set a balanced budget with further and significant savings and income (including the use of one-off measures in 2024-25 which will need to be replaced in 2025-26 and 2026-27).
“The combination of drawdowns and transfers at the end of 2022-23 have reduced the adequacy of reserves since the assurance given when approving the 2023-24 budget.
“The levels of reserves are now considered to pose a more significant risk to the council’s medium to long term sustainability than levels of capital debt. This is a significant change from previous assurance statements.”
A KCC statement said an earlier draft budget saw a budget gap on £50m but this was plugged by spending controls such as renegotiated energy prices, securing additional dividends from trading, increased charges and striking new contracts with suppliers. This has shaved £30m.
There was also one off measures such as use of reserves and the sale of assets which could realise £20m.
Labour submitted a medium term “alternative budget” based in the main by bringing certain services in house, particularly in the area of social care – but it was overwhelmingly defeated.
Former Conservative leader of KCC, Sir Paul Carter said it would hasten the authority towards a section 114, the declaration by an authority it can no longer provide statutory services.
Sir Paul said: “The best way of summarising Labour’s alternative budget is well intentioned but exceedingly naive…the fastest route to a 114.”
An amendment introduced by Cllr Mike Baldock of the Green Party/Independent group, which recommended following Swale council’s decision to reduce KCC staff’s hours of work and changing working patterns, was also heavily defeated.
Savings from the wage bill could be ploughed into restoring youth services or reversing planned cuts to the community warden services, he said.
He added: “It’s good for the people of Kent.”
Labour’s Jackie Meade did warn that the council could lose experienced staff when it is already having trouble recruiting.
Tory Cllr Rory Love said the proposal was a “cynical” and “despicable” way to treat staff.
All other amendments put forward by the opposition were rejected, including a Lib Dem suggestion to turn County Hall into a part-time wedding venue as an income stream.
