Medway Council avoids bankruptcy with public service cuts expected

Medway Council's budget has been passed after the Government gave the Labour administration permission to borrow money.

Transcript

00:00 It may look quiet now, but last night this building was packed with councillors,

00:05 debating the future of Medway Council's finances.

00:08 But what does this mean for you?

00:10 Well, for a start an increase in council tax by 4.9%, as well as increased parking charges.

00:17 Most controversial though was the decision to cut back on free swimming for under 16s

00:23 and over 60s, a move derided by opposition parties who say it will make swimming more expensive

00:30 for Medway's poorest.

00:32 Swimming is vital to the health of our nation.

00:34 Swimming caused such a big splash that the Conservatives tabled an amendment

00:39 calling for Medway Council to dip into funds to keep it going.

00:43 The leader of Medway Council says that given the challenges facing local government,

00:47 difficult decisions are inevitable.

00:50 The exceptional financial support that we were granted yesterday was not just for Medway,

00:55 19 councils across England were given that.

00:58 So I'm grateful for local government support from DELUC,

01:02 but actually they need to think carefully about how they funded local government

01:06 for the last 14 years.

01:08 Despite lashing out at central government, it was borrowing allowed by central government.

01:13 That has meant the budget went ahead.

01:16 Yes, I firmly believe that we need to go to government and say that we,

01:21 you're not funding us enough.

01:22 But in order to do that, you've got to be able to honestly say

01:26 that we've left no stone unturned.

01:29 One person disagreeing with both leaders is the former deputy leader of the Conservative group

01:35 who resigned yesterday over her party's handling of financial affairs when they were in power.

01:40 It needs to be that call for a referendum to increase the council tax

01:44 because I think that is the only way when you look at the budget papers,

01:47 you'll see that the option for the capitalisation and increasing the council tax

01:52 is the only way that we can get sustainability moving forward.

01:57 A spokesperson for the Department of Leveling Up said,

02:00 "Nearly three quarters of the support announced this year relates to six councils

02:06 where there has been severe local failure,

02:08 forcing us to step in.

02:11 Councils are ultimately responsible for their finances

02:14 and will see their overall funding for the upcoming year increase to £64.7 billion."

02:20 With increased charges and fees and cuts to services,

02:23 residents in the five towns will be left wondering what the administration means to them.

02:29 Oliver Lewis of the SACs reporting for KMTV.