Kent County Council has reported a £44.4m deficit in its budget for the last financial year, which it plans to bridge using wholly reserves.
A report by KCC Corporate Director of Finance Zena Cooke, to KCCs Cabinet on the 29 June made it evidently clear that due to increased spending pressures – associated with latent demand, increased complexity post-Covid-19 and rising inflation – the council has overspent its 2022/23 budget by £44.4m.
The departments where KCC has overspent are Children’s, Young People and Education and Adult Social Care and Health, with the areas exceeding their budgets by £32.7m and £24.4m respectively.
The Revenue and Capital Budget Outturn 2022-23 report details KCCs overspend will have to be plugged using the council’s entire Risk Reserve, totalling £25m, while drawing down £22.1m from the General Fund Reserve for the remaining amount.
The report states the council’s General Fund and Earmarked Reserves balance respectively stood at £37.6m and £317.5m as at 31 March 2023.
Back in Nov 2022, the Leader of KCC Roger Gough (Con) made it clear KCC face “sleepwalking into financial disaster” and would be heading for section 114 notice [effective bankruptcy] territory within a year or so.
Things are not looking good for KCC. Some might say that s114 notice “in the next year or so” Roger Gough predicted, is looking more likely by the month.
The Shepway Vox Team
Journalism for the People NOT the Powerful
