Council staff yesterday received a communication stating that Medway Council’s financial situation has significant worsened, with the overspend now exceeding £7m.
This has resulted in a spending moratorium so severe that even basic necessities such as printer ink cartridges are being refused to council staff.
Cllr Teresa Murray, Medway Labour & Co-operative Group Deputy Leader said, ‘This completely contradicts Alan Jarrett’s recent assurances in the press that Tory financial prudence has achieved a balanced budget and replenished reserves.
‘The truth is that there is a £7m overspend halfway through the financial year because the government has cut local government spending to the bone.
‘The news comes just after Medway Tories voted to award themselves a 14% pay rise in allowances in a debate where the leader praised the Tories’ performance and refused to accept responsibility for the recent terrible Ofsted report into children’s social care.
‘Council staff will now find it even harder to deliver the council services that council tax payers have paid for and have the right to expect. The Tories have the wrong priorities and won’t accept responsibility for the consequences of supporting ten years of Austerity.’
Back in May the Labour Group has raised concerns about the council’s lack of cash reserves, when Chartered Institute of Public Finance and Accountancy (Cipfa) warned that Medway Council will have fully exhausted their reserves in four years