Tough decisions will be made quickly to help Medway bridge the vast hole in its budget, council leader Cllr Vince Maple has pledged.

He met with Medway's cabinet on Tuesday night at Gun Wharf, where members noted the council's bleak financial situation amounts to a predicted overspend of £17 million for 2023/2024.

With only £10 million in reserves, the council would effectively be made bankrupt if spending continues at the same rate - but the authority is yet to confirm where cuts will be made.

"This is not a report any of us would want to receive," said Cllr Maple, "but the reality is this is where we are after 13 years of revenue support grant funding going down by 91%."

He said restructuring services, and replacing temporary staff with permanent employees, could make a positive impact in the longer term, but the council would need to take "difficult decisions".

"We won't be alone in having reports of this nature, particularly as an upper-tier authority," he added. "We need a new deal from the government.

"Whoever wins next year, whatever the colour of the rosette, we need a better deal for Medway residents."

While the latest report was only "round one" of budget monitoring he said some decisions would need to be made early in the monitoring process.

"We have said publically again and again we need to take hard decisions, and we will do that," he added, noting those decisions would be made "sooner rather than later".

Deputy leader Cllr Teresa Murray stressed the budget affected services for the most vulnerable people, and said balancing it shouldn't involve "nibbling around the edges of services".

Instead she said longer-term savings and more efficient spending was necessary, adding: "Local government has been starved of funding and we're here trying to make the best of a difficult situation."

She also took the chance to level criticism at the previous Conservative administration, and overspending on the new Splashes leisure centre project.

"It isn't helped by projects in the past being allowed to run out of control," she added.

Cllr Tristan Osborne also noted the low levels of reserves had been inherited from the administration's Conservative predecessors - who he hoped "look in the mirror when they wake up".

As well as noting the revenue budget report, the cabinet approved recommendations to transfer £500,000 from the Independent Fostering Agency budget to the internal fostering budget, and to "instruct the corporate management team to implement urgent actions to bring expenditure back within the budget agreed by full council".

A capital budget monitoring report was also put before the cabinet – outlining a major predicted overspends within regeneration, culture and environment, and the children’s and adults’ directorate.

Separate discussion was given to the withdrawal of the £170 million Housing Infrastructure Fund (HIF) grant, which had been intended to support development on the Hoo Peninsula.

A report to cabinet said the decision meant the council will now need to stop investment in six road schemes and public access to open spaces, as well as options to improve public transport.

Cllr Murray stressed the reason for the funding being withdrawn was the fact Medway's Local Plan had not been completed, which she said was "a lesson to all of us", but also praised the efforts of officers to secure the return of £3.2 million spent on the HIF project since January 2023.

However, the cabinet also heard some aspects of the HIF scheme had resulted in projects going ahead, including some strategic environmental management schemes (SEMS) – with planning permission obtained for Cockham Community Parkland and Hoo Wetlands Reserve, while the council would also press forward with plans for community parkland at Deangate

Cllr Maple said the council was "more determined than ever" to deliver the Local Plan, but admitted: "It's desperately disappointing that we find ourselves in this situation."

The Cabinet approved recommendations to instruct officers to explore other funding sources "to deliver aspects of the HIF programme where possible", and noted the Local Plan will now be developed in the absence of HIF.