FINANCE

Medway requests emergency loan

Medway Council has asked the Government for an emergency loan to help the struggling local authority avoid effective bankruptcy.

Medway Council has asked the Government for an emergency loan to help the struggling local authority avoid being forced to declare effective bankruptcy.

The council, which is facing a £35.8m budget gap in 2024-25 and needs to find £12m for the current financial year, requested to borrow up to £14.6m in 2024-25 and a further £16.2m in 2025-26, and has also published proposals to increase parking charges and end a free swimming programme.

A council-commissioned report from the Chartered Institute of Public Finance and Accountancy (CIPFA) warned Medway was 'in a grave situation in relation to its financial sustainability'.

The Government has refused permission to allow Medway to increase council tax above the 4.99% limit.

Council leader Vince Maple said: ‘It is absolutely critical that we act now to bring the council back into long-term financial health.

‘If the Government supports our request for borrowing and if this important decision is agreed through the cabinet and full council processes, as well as putting in place the improvement plan outlined by CIPFA, it will help us head in the right direction towards becoming financially sustainable.'

FINANCE

Is the 'stick'-led approach in planning reform the best strategy?

By Ben Standing | 23 December 2024

New planning rules feature a heavy presumption in favour of development, but Ben Standing argues we must also engage communities to ensure local people feel ...

FINANCE

Goodbye to all that

By Martin Ford | 20 December 2024

Ann McGauran and Martin Ford take a look back at the highs and lows of a pacy and action-packed year for local government.

FINANCE

CCN backs reorganisation

By Dan Peters | 19 December 2024

The chair of the County Councils’ Network (CCN), Tim Oliver, has backed radical Government plans to abolish dozens of local authorities by 2027.

FINANCE

Reorganisation is necessary for ambitious devolution in counties

By Cllr Tim Oliver | 19 December 2024

The English Devolution White paper shows the extent of the Government's ambitions on devolution and reorganisation. Cllr Tim Oliver says the County Councils'...

Popular articles by William Eichler