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Kent County Council set to receive £11m in government emergency bailout cash

By: Simon Finlay, Local Democracy Reporter

Published: 15:13, 25 January 2024

Updated: 15:14, 25 January 2024

A government bailout to local authorities in England could mean a “welcome” £11million to cash-strapped Kent County Council (KCC) - but leaders warn its financial pressures remain.

Levelling up Secretary Michael Gove announced a package of £600m to town halls struggling to meet bills for the services they provide.

Levelling Up Secretary Michael Gove has announced a package of £6000m to town halls

The money was promised after three Kent MPs had written to the Prime Minister with concerns councils cannot balance the books with the current levels of government funding.

Local authorities, like KCC, with responsibilities for adult social care and children’s services will be given priority but they must demonstrate they are run efficiently.

This morning at KCC’s cabinet meeting, Conservative leader Roger Gough described the boost as “not a game-changer but enormously worth having”.

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He and other council chiefs have been lobbying for extra money.

Despite the extra cash, KCC will still have to find tens of millions of pounds of savings in 2025-26 and dip into its reserves to meet its statutory obligations.

Read more!
Kent County Council, based ad County Hall in Maidstone, is still facing huge financial pressures

The Local Government Association (LGA) said the extra funds was around £1billionn short of what is needed.

KCC deputy leader Cllr Peter Oakford told fellow members that despite the extra cash being welcome, the challenges the council faces remain.

Thanet Labour councillor Barry Lewis said: “It’s like someone robbing you and then telling you you should be grateful for not taking everything.

“Any refund is welcome, of course, but it’s never going to solve the problem of underfunding of councils over 14 years of Tory government.”

Liberal Democrat group leader Cllr Antony Hook said: "It's better than a poke in the eye with a sharp stick but it doesn't come anywhere near the tens of millions that need to be found."

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Mr Gove said: “We have listened to councils across England about the pressures they’re facing and have always stood ready to help those in need.

Lib Dem leader Cllr Anthony Hook said the money was welcome but doesn’t go far enough

“The additional £600m support package illustrates our commitment to local government. We are in their corner and we support the credible and often unsung work they do day-to-day to support people across the country.”

Earlier this week, it emerged Conservative Members of Parliament Damian Green (Ashford), Greg Clark (Tunbridge Wells) and Gordon Henderson (Sittingbourne and Sheppey) were among 46 to raise concerns in a joint approach with the County Councils Network (CCN).

LGA chairman Shaun Davies said: “The LGA welcomes that the government has acted on the concerns we have raised and recognised the severe financial pressures facing councils, particularly in providing services to the most vulnerable children and adults through social care services and delivering core front-line services to communities.

“We will continue to work with government to achieve a sustainable long term funding settlement and updated distribution mechanisms, as well as legislative reform where needed, so that local government can play its full part in delivering inclusive prosperity and growth through investment to support people, places, and the planet.”

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© KM Group - 2024