Funding for a Kent council is to increase by £18 million next year - amounting to an extra £150 of funding per household.

Medway Council’s core spending power - a projection of how much it takes in through grants, central government funding, and council tax - is to rise next year by 6.8% from £264.4 million to £282.5 million.

The figures are part of the provisional local government settlement, a draft version of the amount of money councils expect to receive for next year.

The government had said it would be looking at the allocations it made to councils and adjusting them to provide greater funding to deprived areas.

It also intends to introduce multi-year financial settlements, rather than annual ones, but this year remains the standard one-year settlement.

It has created a new set of updates which aim to simplify funding for councils and target areas most in need through a Recovery Grant.

Additionally, it has made £3.7 million of funding available for councils which provide social care - of which Medway is one - to strengthen community care and invest in prevention schemes.

As part of the provisional settlement, Medway Council is to receive nearly £22 million as part of the Social Care grant, an increase of just over £3 million.

In total, the government will be providing £69 billion to local councils in England - £61.1 million will be coming to Medway.

The report expects the authority to raise just less than £170 million in council tax next year.

Minister of State for Local Government and English Devolution, Jim McMahon (Lab), said: “We know councils are calling out for help which is why we have prioritised this vital increase in funding, but we must stop taxpayers’ money being thrown into a broken system.

“As a former council leader I know too well that councils have suffered from short-term solutions. But we will fix this outdated system, turning to our partners in local government, working hand in hand to bring ambitious reform and do the long-term, necessary work to rebuild the foundations, and crucially, trust.”

Medway Council again faces significant financial difficulties, and is expecting to need to request £26.5 million in exceptional financial support (EFS) from the government to set next year’s budget in February.

EFS is where the government allows the authority to borrow money to pay for day-to-day spending - something not typically allowed - in return for putting in place cost-saving measures which ensure long-term financial stability.

In February this year, the government agreed to allow Medway Council £14 million in EFS to create its budget, with an expectation next year’s budget would require a further £16 million.

Rising costs of social care are part of the reason the Towns’ authority’s EFS need has increased.

If the council is unable to obtain the new EFS from the government, it is likely it will be unable to create a balanced budget and will have to issue a section 114 notice - effectively declaring the council bankrupt.

This will mean control of council spending will go to the government, and all non-essential spending will stop.

The council also needs to reduce a projected £11 million overspend for this financial year.

However, Medway Council has invited the Chartered Institute of Public Finance and Accountancy (CIPFA) to make recommendations for the second year running about how to reach a stable financial footing.

It hopes this move will make the government more likely to support their proposals and grant the EFS.

The financial settlement for councils will be finalised in the new year, after which Medway Council will understand what funding it will have to construct its budget on.

The authority will then put together a balanced budget to be agreed in February.