Kent councils with the biggest debts

New figures reveal which Kent councils have the highest level of debt – and those who aren’t a single penny in the red, as of Q2 2024/25.

Ashford Borough Council (ABC) is bearing the biggest burden, at £240 million, which is up from £157 million in Q2 2023/24, an increase of 53% in one year. Then comes Gravesham Borough Council who as of Q2 2024/25, had debts of £155 million. In Q2 2023/24, GBCs debt was £84 million, so their debt has increased by 84.5%. And in third place is Canterbury City Council whose debt at Q2 2024/25, stood at £189 million, whereas in Q2 2023/24, it stood at £158 million, so a 20% increase in debt.

Both Ashford & Canterbury have invested heavily in major regeneration projects – such as Whitefriars and the Riverside development in Canterbury, and Elwick Place in Ashford.

Meanwhile, Tonbridge & Malling and Tunbridge Wells councils have zero debt, according to government figures analysed by the Shepway Vox Team. Previously Swale had no debt in Q2 2023/24, but between then and Q2 2024/25, Swale’s debt rose to £10 million.

Our research also takes an area’s population into account – showing Ashford BC  has a debt equivalent to £1,736 per person. In Q2 2023/24, Ashford BCs debt per person was equivalent to £935, so it has increased by 86% per person.

High levels of council debt cause sustained impact on local services. Of course, the debt has to be repaid. This is done through each Council’s minimum revenue provision (MRP). 

A simple way to understand the MRP is, the amount a council has to set aside from its day-to-day budget to repay the money it has borrowed. This is usually paid out of Council Tax income, so effects front line services which can be provided. Let’s not forget the public pound has been eroded by inflation and interest rate rises over the last few years, this too impacts the MRP. As such because most Council’s MRP has risen through more debt, this means, increased MRP = less disposable income = less activity in the local economy by Kent Councils.

Nevertheless, we ask a simple question. When Kent is divided into unitary authorities, which is a matter of time only due to devolution, what happens to the debt?

Will it be written off?

Will the debts be consolidated, leaving the new unitary authorities no better off?

And why should Thanet for example, be forced to take on Canterbury, Dover and Folkestone & Hythe’s debts, if they become one unitary authority?

Devolution as set out in the White_Paper doesn’t answer these questions. So all we can do is wait and look on the bright side of life, after all it’s Christmas.

The Shepway Vox Team

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