We use essential cookies to make our site work. We'd also like to set analytics cookies that help us make improvements by measuring how you use the site. These will be set only if you accept.

For more detailed information about the cookies we use, see our cookies page.

Essential Cookies

Essential cookies enable core functionality such as security, network management, and accessibility. For example, the selections you make here about which cookies to accept are stored in a cookie.

You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics Cookies

We'd like to set Google Analytics cookies to help us improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify you.

Third Party Cookies

Third party cookies are ones planted by other websites while using this site. This may occur (for example) where a Twitter or Facebook feed is embedded with a page. Selecting to turn these off will hide such content.

Skip to main content

KCC - Path to Financial Recovery

A report published last week describes how Kent County Council (KCC) aims to Secure Kent’s Future and fill the forecast £37m budget gap in 2023-24.

Meanwhile the Deputy Leader and Cabinet Member for Finance, Peter Oakford, has addressed speculation that the authority is on the verge of declaring bankruptcy, saying: “I can assure everyone that we are most definitely not in that position.”

KCC’s Budget Recovery Plan, which will be discussed at a Cabinet Meeting on 5 October, looks at the actions needed to bring this year’s budget back into balance and to set the course for getting the council back to financial sustainability, securing the services that residents in Kent need the most, within the resources available from central government and local taxation.

The council is facing an enormous rise in the cost of, and demand on, its services. The most significant pressures are in adult social care, home to school transport, and children’s services.

The report highlights that, although making the necessary savings this year is achievable, these are mostly one-off measures. The key challenge is putting in place actions to minimise future spending increases and mitigating savings and income where increases are necessary over the medium term in order to safeguard the future financial stability of KCC.

Work is underway to tackle the areas where budget pressures and overspend are most acute, which is primarily in social care services and home to school transport. A concentrated focus now includes:

  • Every area of KCC to restrict spending where possible.
  • All services to identify future targeted savings.
  • Review of spending from reserves.
  • Review of all assets with a view to possible disposal (surplus property already identified).
  • Review of spending growth and savings opportunities in adult social care and children’s services.
  • Review of strict compliance with existing policy.
  • Managers to avoid non-committed spending for remainder of this financial year.

The Corporate Management Team and Senior Officers are taking significant management action to ensure the necessary savings are made by the end of this financial year and, more importantly, are focussing on those actions that will help close the budget gap for the next financial year.

Peter Oakford said “Our plan to Secure Kent’s Future sets out a clear path to ensure that we do everything within our power to reach stability and continue to deliver services that residents need.

“However, the enormous financial pressures faced by local authorities across the country need to be addressed by central government. Our message to government is very clear. The current mix of the funding county councils receive, and the responsibilities they have, is unsustainable. 

“Government needs to fully fund rising cost pressures on social care. If they were to do that, we, and a lot of other local authorities, would not be in the position that we are in today.  Additional funding needs to be sustainable as the increased costs we have faced relate to ongoing care and transport packages for individuals which are unlikely to reduce during their duration.  One-off funding will not address the structural deficit we currently have on care and home to school transport spending.

“I believe that if government don’t start looking at funding in this area, then an awful lot of upper tier authorities across the UK will be in a death spiral, because they will just have to stop providing any service that isn’t statutory.

“It is really important to all of us that we continue to deliver a good service to everyone in Kent, that we fight the battles that we have to fight, and that we bring this council out of the other side of the challenges that we currently face.

“If we work together, we can do it but, as this report shows, it’s going to be very difficult indeed, with some difficult choices along the way.”

KCC’s challenges as a council are similar to, but proportionately larger in scale given Kent’s size, to many upper-tier local authorities the length and breadth of the country. 

As the Gateway to Europe, there are some pressures unique to Kent that collectively compound the pressures KCC is facing. The border challenge and asylum system create additional pressure on the county’s children’s services compared to other local authorities. KCC has a range of important responsibilities for Unaccompanied Asylum Seeking (UAS) Children under the Children’s Act.  The well documented failings with the National Transfer Scheme for UASC therefore place additional pressure on Kent, as it holds the corporate parenting responsibility when the stated policy intent of the Government is for all local authorities nationwide to share that responsibility. 

Leader of KCC, Roger Gough said “My priority as Leader is to make sure that we not only deliver on this budget recovery plan but, in doing so, we absolutely ensure that we secure the future of the county, continue to provide the services that our residents need and, most importantly, set KCC on a path to financial stability and resilience in the future.

“The government needs to understand that the rapidly rising cost of providing vital statutory services has had an enormous impact across everything that we do. As a local authority we are having to direct funds away from the areas that residents tell us they most value, in order to fund social care and all the other services that we legally have to provide.

“For now, we are doing the very best that we can with the money we have, and I am confident that the actions being taken in every part of the council will ensure we manage to balance the budget into 2024-25 and beyond.”

Peter Oakford added “The media myth that we are close to declaring an S114 is just that – a myth. There is no getting away from the stark reality that our finances, like every local authority up and down the country, are massively challenging.

“However, when you manage an annual budget of £1.3 billion, a gap of £37 million, although a very substantial amount, is something that I know we can control. “