Kent County Council budget approved in mammoth eight hour meeting

By Local Democracy Reporter Simon Finlay

Reform UK at Kent County Council (KCC) has passed its budget after a mammoth eight hour meeting yesterday (February 12).

It went through by 48 votes to 26, with one abstention, to applause, whistles and a standing ovation.

Residents’ council tax will be raised by 3.99%, which is 1% lower than the maximum the government sets without a referendum.

Deep concerns remain about the soaring costs of adult social care (ASC) and the provision of special educational needs and disabilities (SEND).

‘History’

KCC deputy leader and head of finance, Cllr Brian Collins, claimed the financial position of the council his party inherited from the Conservatives last May was “deeply concerning”.

Cllr Collins said: “We are all witnessing history. I am honoured and proud, I stand before this chamber and present the first budget of a Reform UK-led county council.

“This is not just a change of administration, it’s a change of direction.”

Long-term debt stood at more than £730m and Reform pledged to make reducing it a priority and aims to bring it down by a further £80m by the end of the financial year, he noted.

Cllr Collins said the cost of adult social care (ASC) stands at £787m, almost 50% of KCC’s annual £1.6bn budget.

The council says it is committed to “drill down” into how ASC is delivered and commissioned, and by the end of the year, the overspend should start to come down.

Cllr Collins added: “There is still a lot of work to do but the direction is right and the ship is turning slowly and firmly.”

Of the budget, he declared: “Some people call it risky, I call it bold.”

‘Challenging’

In his report to members, KCC chief finance officer Dave Shipton said setting a balanced budget has been “especially challenging” due to escalating costs exceeding funding from central government and local tax.

In his report, he said setting the council tax increase at 3.99% in 2026/27 “principally creates a long-term financial risk” as it is irreversible and loses £10.1m in revenue with a possible knock-on in future years.

The documents also warn that if the budget is not delivered, drawdowns on reserves could leave the council “financially insecure”.

It may also have consequences in accessing government Exceptional Financial Support (EFS), as the council would have been expected to take “all reasonable steps” to manage pressures.

If EFS is not available and the council’s reserves are inadequate, the “only option” would be a section 114 notice, effectively a bankruptcy declaration.

Mr Shipton said that although a total drawdown of reserves will be £29.8m, of which £16m comes from earmarked funds no longer required, there will be adequate reserves for 2026/27.

The budget risk register identifies at least £410 million of financial hazards across various directorates, with ASC the dominant pressure.

The register sees it as “single largest financial risk to the council” while demand rises faster than the money coming to pay for it, and efficiencies are reliant on changes in the way the service is commissioned and delivered.

The new Reform administration inherited overspends in ASC of £45m in 2024-25 and is going over by a forecasted £50m by the autumn of this year.

ASC has adopted a new strategy of reducing sector growth by limiting provider uplifts (fee increases set by providers) and limiting demand, but it comes with the “risks around provider sustainability, service capacity, and delivery of statutory duties”.

KCC leader Linden Kemkaran said the budget is built on the “simple principle” that the people of Kent remain “at the centre of every decision we make”.

She told the packed chamber: “Every pound we spend, every project we deliver and every efficiency we identify must be judged through the lens of what it means for our residents, our businesses and our communities.

“Families in particular are facing enormous pressures and they rightly expect us to manage public services with responsibility and honesty.

“At the same time, we must acknowledge the reality that much of the council’s spending is already committed through contracts, statutory duties and essential services.

“Change is happening but it will take time and must be done responsibly. The budget strikes a careful balance; it recognises our statutory obligations – those services we are legally required to provide – and it responds to the priorities our residents consistently raise with us.”

She said that she would have liked not to have raised the council tax at all or even reduced it but the council’s financial position prevented it.

Government funding and risks

While the council is also overspending in the high needs block (HNB) of the dedicated schools grant (DSG) and special educational needs and disability (SEND), the sector has been thrown a lifeline by the government’s £5bn rescue packages to fund around 90% of council deficits.

Although the government will take over the top-up funding of special needs in 2028, it was feared KCC or the authority which replaces it after local government reorganisation would face inheriting all or part of the deficit.

There are dozens of areas at risk of exposure in the budget and critics point to the council’s dwindling reserves becoming perilously low. Reserves have to sit at 5% of the overall budget.

The register warns: “Unbudgeted expenditure could weaken financial resilience and increase the risk of overspends or the need for emergency measures.”

Opposition leader, Cllr Hook said: “This is a casino budget. It contains KCC’s highest ever exposure to financial risk – £410 million of immediate risk in this year (up 60% from last year) and what do we have to protect us against this tidal wave of risk? Reserves scraping the minimum 5% floor.

“They say it is ‘unlikely all the risks will hit us at the same time’ but with reserves this low, it doesn’t need all of them. Only some of them need to bite to be ruinous.

“There is a forecast of £36.5 million overspend for Reform’s first year in control. Which, outside of this budget, must be plugged from dwindling reserves.

“They are putting our risk levels on steroids, while burning the safety net of reserves.”

A series of opposition amendments were heavily defeated, including one from the Lib Dems for scrapping taxpayer-funded political assistants to save £140,000.

The Green Party said by “refusing” to make any uplift to fees for key nursing homes, Reform is risking NHS services and condemning the elderly to more corridor care through which people may die.

Labour co-leader Alister Brady said his party’s government gave KCC more than £50 million in extra cash this year and further increases over the next two years.

He said: “The government bailing you out – lifeline after lifeline. So, let’s stop pretending the government isn’t helping. Because the truth is simple: without this Labour government’s support, Kent County Council would be on the verge of bankruptcy after a year of indecision and chaos.”

Independent Cllr Maxine Fothergill said that the budget is “technically balanced” but has significant risks.

She added: “In the context of the statutory pressures outlined in the papers, it is entirely appropriate that all non-statutory expenditure is carefully scrutinised.”