On Tuesday, 26 September, Medway Council’s Cabinet will consider a report setting out its projections for the council’s finances over the next five years.
This includes estimates on income streams available and initial assumptions around pressures on the cost of services. This Medium Term Financial Outlook report provides the framework that underpins the council’s budget setting process for 2024/25 and beyond.
Last month, the council set out the severe pressures it is facing on its budgets, along with other local authorities up and down the country, due to the huge impact of the increasing costs of providing critical social care services for the most vulnerable members of our communities, as well as the impacts of soaring inflation, increased construction costs and cost-of-living pressures.
The council is now in the process of planning for its 2024/25 budget. In terms of anticipated income, although the government set out its expected level of financial support for next year in 2022, the actual figures will not be confirmed until the end of this year and assumptions have been made at this stage around other income streams. Each autumn, the council plans its budget for the coming year and between now and when its budget is set out in February 2024, the administration will be focusing on taking all steps necessary to bring forward a balanced budget.
In August, the council reported on its first round of revenue budget monitoring for 2023/24 that action is being taken to reduce its forecast overspend for the current financial year and to balance the council’s budget. This action includes exploring the reduction of non-statutory expenditure, limiting where possible statutory expenditure whilst still continuing to support the most vulnerable in our community, seeking opportunities to maximise income and reviewing the council’s asset base. This review will also form part of the planning for next year’s budget.
Number of options to address forecast
Commenting on the current situation, Medway Council Leader, Cllr Vince Maple, said: “We have set out clearly the enormous financial pressures facing Medway Council. Anyone listening to the news at the moment can’t fail to be aware of the financial difficulties all councils are facing, coupled with the cost-of-living crisis. Medway Council is one of the lowest funded unitary authorities in the country per head of population meaning that we are facing extreme challenges in setting our budgets for the coming years and with other councils, we will be pressuring central government to increase their funding for us and give us a fairer deal particularly to fund critical services such as adult health and social care and children’s services.
"Our Medium Term Financial Outlook is just a forecast and we have a number of options that we can take in the coming months and years to help address the forecast gap. This will involve difficult and bold decisions and we will keep Medway residents involved and updated on progress."