William Eichler 22 September 2023

Medway Council bankruptcy ‘very likely’, report warns

Medway Council bankruptcy ‘very likely’, report warns image
Image: Number1411 / Shutterstock.com.

It is ‘very likely’ that Medway Council will be forced to issue a section 114, a financial report has warned.

The council’s Medium Term Financial Outlook report estimates the Labour-run administration will face a £38.7m budget gap in 2024/25 on top of £17m it needs to find for this financial year.

The local authority also faces budget gaps of £49.1m in 2025/26, £65m in 2026/27, and £71.8m in 2027/28 if current trends continue.

The financial report concludes that the chances of the council having to issue an s114 notice were ‘very likely’.

Medway Council leader Cllr Vince Maple emphasised that the report is ‘just a forecast’ and that the council has ‘a number of options that we can take in the coming months and years to help address the forecast gap.’

If this article was of interest, then check out our feature, 'Preventing future Section 114 notices'.

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