Coronavirus: Local councils face 'significant' deficits

Image caption, Kent County Council says it is facing a shortfall of 拢40m

Councils across Kent and Medway say they are facing a 拢245m deficit as a result of the coronavirus pandemic.

Twelve district councils say they expect a 拢155m shortfall and Kent County Council predicts a 拢40m deficit.

Medway Council said it faced a shortfall of about 拢40m, the Local Democracy Reporting Service has reported.

The councils are facing loss of income from car parking, business rates, housing revenue and council tax.

Kent County Council's cabinet member for finance, Peter Oakford, told the council's scrutiny committee the deficits were "significant".

He said: "If sufficient government funding is not forthcoming, it will be necessary to utilise a proportion of general reserves to balance the budget in the current year."

The deficits come despite the government providing about 拢96m to Kent's local authorities, including 拢66m for the county council; 拢14m for Medway and 拢15m for the 12 districts, including Sevenoaks, Maidstone, Ashford and Thanet.

The 14 councils have made 拢129m extra spending commitments聽to key services, but simultaneously face income losses of about 拢212m over the next 12 months, according to Kent County Council.

The losses include 拢110m of council tax; 拢47m from fees and charges, such as 拢3m from car parking, 拢26m in business rates and 拢6.6m of housing revenue, the county council's committee was told.