00:00The government is giving Medway Council £23 million more.
00:05But the council was expecting more.
00:08They've now got a nearly £8 million gap to fill.
00:13The local authorities says the increase they've received
00:16is not enough to stave off effective bankruptcy
00:20without exceptional financial support from Whitehall to balance the books.
00:25When we first wrote to them some time back now
00:29we said we anticipated the EFS for Medway and it's different for every council
00:34would be a three year programme. We're in year three of that.
00:37So it was an ambition to hopefully not have to use EFS.
00:41We regrettably will have to use it I believe now.
00:45But we'll do so in a way recognising that the figure is reducing year on year.
00:49This would not be the first time Medway Council has asked the government
00:53for additional financial support.
00:55They say they're facing extraordinary pressures around adult social care
01:00and they say they're trying to find efficiencies and savings
01:03in that last two months before their budget is due.
01:07It's very key that word exceptional, exceptional financial support
01:10which is designed to ensure that the council effectively has a pathway
01:15borrowing to allow the council to have a pathway back to financial sustainability.
01:19But the current medium term financial statements show that that's never going to happen.
01:22Effectively it's going to be borrowing, borrowing, borrowing
01:25up until the council effectively is reorganised as part of local government reorganisation
01:30with no clear plan in terms of how this authority will get out of that.
01:35So we're deeply concerned.
01:37Medway Council hopes income generation and efficiency savings will help financially.
01:44But with the council set to vote on the final budget in February,
01:49time is of the essence.
01:51Oli Lida at Gunwolf.
