The Chartered Institute of Public Finance and Accountancy (Cipfa) have warned that Medway Council is one of eleven local authorities that will have fully exhausted their reserves in four years unless they are topped up.
Cllr Vince Maple, Leader of the Labour Group on Medway Council said, ‘After almost a decade of Tory Austerity councils are facing a funding crisis. Medway has seen a 44% reduction in reserves since 2015, even after cutting vital community services such as Sure Start.
‘The government has clearly not learned their lesson from the failure of Conservative-run Northamptonshire Council, but Medway’s financial situation is not helped by the current administration’s poor record on budget priorities. It’s simply unacceptable for any council to spend council tax payer’s money on vanity projects like fireworks displays, Japanese roundabouts, and Dynamic Bus Facilities that are completely unfit for purpose, at the expense of investing in basic services.
‘The fact is that councils are unable to run decent services on a shoestring budget. While the government shamelessly enables corporate tax avoidance, residents are expected to fill the funding gap though increasingly regressive council tax, putting more financial pressure on families and working people every year.’
Cllr Tristan Osborne, Councillor for Luton and Wayfield and Medway Labour Audit Spokesperson said, ‘The reduction in council reserves comes at a time the council has undertaken risky acquisitions and has spent money on roundabouts, giant TV screens, fireworks and ideas for giant Medway signs opposite the M2.
‘This also comes at a time a recent audit report highlighted deficiencies in corporate credit card management and we have had a spate of emergency capital spend items at council.
‘The fact Medway Council is amongst the worst in the country for using its reserves should be a red flashing red light to anyone concerned about the increasing flytipping and number of potholes in Medway.
‘It highlights that we are at huge headwind risk should Brexit result in a downturn in the economy, which will have to lead to increased council tax and parking fees to cover for any future budget black hole.’
While the government shamelessly enables corporate tax avoidance, residents are expected to fill the funding gap though increasingly regressive council tax, putting more financial pressure on families and working people every year. Cllr Vince Maple, Leader of the Labour Group on Medway Council
The fact Medway Council is amongst the worst in the country for using its reserves should be a red flashing red light to anyone concerned about the increasing flytipping and number of potholes in Medway. Cllr Tristan Osborne, Councillor for Luton and Wayfield and Medway Labour Audit Spokesperson