William Eichler 06 February 2024

Medway requests emergency £14.6m loan

Medway requests emergency £14.6m loan  image
Image: Number1411 / Shutterstock.com.

Medway Council has asked the Government for an emergency loan of £14.6m to help the struggling local authority avoid being forced to declare effective bankruptcy.

The council is facing a £35.8m budget gap in 2024-25 and it needs to find £12m for the current financial year.

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

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

Medway Council has instead requested to borrow up to £14.6m in 2024/25, and a further £16.2m in 2025/26.

It has also published proposals to increase parking charges and end a free swimming programme.

Council leader Vince Maple said: ‘Medway is not alone in its financial position, with the Local Government Association reporting that one in five councils could be in severe financial hardship in two years. 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.’

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

SIGN UP
For your free daily news bulletin
Highways jobs

Part Time Pre-School / Nursery Assistant (term time only)

Essex County Council
Up to £23344 per annum + pro rata - equal to £12.10 per hour
Part Time Pre-School / Nursery Assistant (term time only)Permanent, Part Time£23,344 per annum, pro rata - equal to £12.10 per hourLocation
Recuriter: Essex County Council

Head of Planning and Place

Bassetlaw District Council
Up to £74,377.
Our recently adopted Vision 2040 provides a clear set of priorities to direct our resources Worksop, Nottinghamshire
Recuriter: Bassetlaw District Council

Bicester Garden Town Programme Manager

Cherwell District Council
Grade M
Cherwell District Council
Recuriter: Cherwell District Council

Senior Practitioner, Children and Families Hub

Essex County Council
Negotiable
Senior Practitioner, Children and Families HubPermanent, Part Time£43,477 to £52,302 per annum FTELocation
Recuriter: Essex County Council

Social Worker - Children in Care Specialist Team, West Essex

Essex County Council
£34712 - £46751 per annum
Social Worker - Children in Care Specialist Team, West EssexPermanent, Full Time£34,712 to £46,751 per annumLocation
Recuriter: Essex County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.