Kent’s financial situation is coming under serious fire. The leader of the opposition, Councillor Harry Rayner, has warned that an overspend could go as high as £136 million, putting future payments at risk of being withheld. Rayner, who was a deputy cabinet member under the last Conservative central government, has already blasted this funding proposal as a “rotten deal.” He called it “virtually… a debt contract with the federal government.”
Kent is clearly making admirable efforts to close its own deficit. All of this work has brought unprecedented scrutiny from government officials, who are watching more carefully and creating the possibility for withheld payments. As you can see, the situation is dire. Kent was one of 38 councils that signed up to the government’s five-year Safety Valve Agreement (SVA) in FY 2022-23. This settlement was intended to allow councils to cope with their increasing financial burdens and deliver balanced budgets.
Councillor Rayner told us that the deal will see the council having to prove it’s made serious moves to curb its £9m deficit. Not succeeding in these benchmarks would mean more negative financial impacts including withholding vital funding. The pressure to adhere to the terms of the SVA adds another layer of complexity to Kent’s financial management strategies.
Kent joined together with 37 other councils across the United Kingdom to sign on to the SVA. This action shows an ongoing and alarming trend as local governments seek to address their own budgetary woes. The deal delivers important new assistance to enable these councils to get their financial situations under control. Simultaneously, it imposes draconian accountability measures.
Like most places, Kent is in a very difficult financial environment. The council’s leaders should focus on strategies that will help them comply with their SVA and address the root causes that have led to the major deficit. To combat this overspend, we need to first invest focused energy and strategic planning. Failing to lead in these dimensions would be a grievous sin.
