Kent County Council audit: clean opinion, deep financial risks

Kent audit signs off the Tories’ final year — but warns of structural risks the new Reform UK leadership must now tackle

Grant Thornton will issue an unqualified opinion on Kent County Council’s 2024/25 accounts, yet flags significant weaknesses in financial sustainability driven by adult social care pressures and a mounting schools deficit. Certification is on hold pending Whole of Government Accounts work.

The audit covers 1 April 2024 to 31 March 2025—a period when the Conservatives ran Kent County Council. Control then changed at the 1 May 2025 elections: Reform UK won 57 of 81 seats and formed the new administration, ending decades of Tory dominance. That context matters: the numbers under review are the last set under Conservative control; the delivery risk now sits with Reform.

Clean Opinion, Open Audit

Auditors will report at the Governance & Audit Committee on the 30 Oct 2025  no material adjustments to the draft statements and plan to issue a clean opinion. However, the formal audit certificate cannot be issued until national Whole of Government Accounts (WGA) procedures conclude—work the firm says does not affect the 2024/25 statements. No statutory powers were used (no Public Interest Report, court actions or Section 24).

Financial Sustainability: The Two Red Flags

The first red flag is Adult Social Care and Health (ASCH), where the 2024/25 overspend hit £46.4m and £32.8m of planned savings were not delivered. The auditor warns that unless demand and costs are brought under control and savings land, reserves will erode. A Key Recommendation is re-issued to “explore further efficiency” and reduce the overspend.

The second is the Dedicated Schools Grant (DSG): an in-year overspend of £54.5m in 2024/25 pushed the cumulative deficit to £97.5m by 31 March 2025. Even with the DfE “Safety Valve” deal, the Council forecasts a residual deficit of 30m+ by 2028—risking a hit to the General Fund if the national accounting override expires as planned. A second Key Recommendation presses for a plan that tackles both the legacy deficit and in-year High Needs pressure.

Governance & Controls, Progress, But Gaps To Close

Auditors note improvements in tracking Internal Audit actions (implementation rates rising to 62% by July 2025), but urge momentum to continue (IR2). They also want the new decision-making app rolled out and embedded with training by December 2025 (IR3), and Governance & Audit Committee attendance strengthened after only 4 of 13 members attended all meetings in 2024/25 (IR4). On commercial basics, the Council must name contract owners, train them, and complete the contracts register by March 2026 (IR5).

Two accounting/control issues were highlighted directly from the statements work: the lack of a formal, documented year-end impairment review for assets under construction; and an over-optimistic Adult Social Care doubtful-debt methodology. Management has committed to address both.

Misstatements: Individually Immaterial, Collectively Instructive

No adjustments were required, but auditors logged unadjusted items including: a £3.4m projected pensions liability entry (reserve-only), £3.0m depreciation not charged in year of acquisition, £3.2m schools cash projection linked to bank reconciliations, and a £19.3m more-prudent view of ASC doubtful debts. Presentation fixes included updating audit fees to PSAA scale, adding “standards issued not yet adopted,” correcting EFA 2023/24 comparatives and tidying officer-pay narrative.

Capital & The Wider Picture

Delivery slippage eased only slightly: 43% of the 2024/25 capital programme was rephased (from 47% in 2023/24). Auditors say causes remain familiar—contractor delays and third-party consents—and encourage continued grip on scheduling and forecasting.

Political Handover, Financial Inheritance

The new Reform UK administration inherits this risk profile and the auditor’s to-do list. The authority’s own report also acknowledges the political shift, noting Reform’s majority (57 councillors) in May 2025—a reminder that while the audit year belongs to the previous Conservative leadership, execution from here will be judged on Reform’s stewardship.

Minutes From A Notional Meeting At County Hall

Linden Kemkaran (Leader): “So, Amanda, the auditor says we’re fine—except for the finances?”

Amanda Beer (Chief Exec KCC): “Leader, the absence of calamity is not the presence of sustainability. One may pass an exam while still failing the subject.”

Benjamin Watts (Deputy Chief Exec): “Meaning the opinion is clean, but Adult Social Care is, um, overspending?”

Amanda Beer (Chief Exec KCC): “Positively expansive, Benjamin. A £46.4 million overspend is not a bookkeeping footnote; it is a lifestyle choice. If savings do not materialise promptly, reserves will.”

Linden Kemkaran (Leader): “And the schools deficit?”

Amanda Beer (Chief Exec KCC): “A deficit that grows even as one reduces it—rather like dieting with biscuits. When the accounting override ends, gravity returns.”

Benjamin Watts (Deputy Chief Exec): “Should Governance & Audit members attend more often?”

Amanda Beer (Chief Exec KCC): “Committees are like lifeboats, Benjamin—most effective when boarded.”

Linden Kemkaran (Leader): “What must we do?”

Amanda Beer (Chief Exec KCC): “Apart from ” f**king suck it up” Leader, deliver what is promised: embed the decision-making app, name contract owners and train them, document impairments and bad-debt provisioning, and—above all—bend the cost curves in Adult Social Care and High Needs. Do that, and the numbers will follow.”

Conclusion – What To Watch Next

A clean opinion isn’t the destination; it’s the starting whistle. The coming months will show whether plans turn into measurable reductions in ASCH overspend and DSG pressure, while governance fixes, contract ownership, and capital discipline actually stick. If those shifts land—and the audit formally closes—Kent’s story moves from risk management to recovery; if not, reserves and credibility remain exposed; and the residents of Kent will just have to “f**king suck it up”.

The Shepway Vox Team

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