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

'Councils have no excuse for housing failures'

By Neil Merrick | 05 June 2025

Councils have no excuse for failing to improve housing after a watchdog highlighted complaints made by tenants rose by 474% in five years, a housing expert h...

FINANCE

A story of smarter SEND funding

By Natalie Kenneison | 05 June 2025

Natalie Kenneison says that despite soaring SEND deficits, a quieter story of progress is unfolding that shows what’s possible when councils take a structure...

FINANCE

Councils with climate action plans double

By Joe Lepper | 05 June 2025

The number of councils with climate action plans in place has almost doubled over the last seven years amid fears around the risk of flooding and extreme hea...

FINANCE

Councils' watershed moment

By Martin Ford | 05 June 2025

Next week’s Spending Review will have huge implications for the future finances of local government. Martin Ford looks at what we know so far, and the key qu...

Popular articles by William Eichler