Kent County Council has warned of ‘extremely tough choices’ ahead as the local authority faces £50m to £70m of unbudgeted inflationary costs this year.
The county council has joined other authorities across the country warning of the budget pressures caused by rising inflation and increasing demands on local services amid the cost-of-living crisis.
‘The deep-felt impacts of rising inflation, following swiftly off the back of the punishing pandemic, is also presenting Kent County Council (KCC) with significant financial challenges,’ said Peter Oakford, KCC deputy leader and cabinet member for Finance, Corporate and Traded Services.
‘Soaring inflation and increasing demand pressures are affecting our delivery across the board, from home care to road maintenance; from waste disposal to home to school transport. Increased energy and fuel costs are hitting frontline services, from staff travelling to provide domiciliary care to increased energy prices in social care settings.’
The council estimates that around £1.3bn of its annual budget is subject to inflationary pressures. It predicts that this year alone it will see £50m to £70m of unbudgeted inflationary costs.
It also warned that its capital programme has been ‘severely impacted’ with materials and building costs increasing by over 30% and the impact on borrowing of the rise in interest rates.
‘We constantly strive to make the most efficient use of taxpayers’ money to provide the services our residents need most and, since 2010, we have achieved savings in excess of £820 million as we responded to cuts in government funding, coupled with an increased demand and complexity for many of our services,’ said Cllr Oakford.
‘However, presenting a balanced budget is getting harder every year. There is no avoiding the fact that we are going to have to make more extremely tough choices this year, and in the years to come. The fuel price hike and inflation increase is hitting us hard, as it is everyone who lives in Kent.’
