Tax rise threat in the wake of virus outbreak

Kent’s 14 councils face a mounting financial deficit of £245million from the coronavirus crisis.

The 12 districts councils are expected to have a £155m shortfall from the pandemic, which amounts to around £12m on average for each of the authorities.

Kent County Council is now considering threatening Boris Johnson’s Government over a referendum on increasing council tax.

Medway Council will have to find ways to recoup a £40m deficit while Kent County Council (KCC) is predicted to have a £50m shortfall due to additional spending and loss of income from business rates and council tax.

KCC’s cabinet member for finance, Cllr Peter Oakford (Con), described the Covid-19 deficits as “significant.”

He says: “If sufficient Government funding is not forthcoming, it will be necessary to utilise a proportion of general reserves

Discussions are on the table about asking people to vote in a referendum to increase council tax, as authorities struggle with the fallout from coronavirus. Right: Cllr Peter Oakford

to balance the budget in the current year.

“The funding drawn down from reserves will need to be replenished as part of the following year’s budget to avoid a negative impact on the council’s future financial resilience.”

At a virtual KCC scrutiny meeting this week Labour group leader Dara Farrell asked whether a referendum would be considered to raise the threshold of council tax rise the council can set.

Cllr Oakford said he would support the move, saying there were no ‘financial sacred cows’, adding the council would have to also challenge Whitehall.

The Government has provided around £96m to Kent’s local authorities, including £66m for KCC; £14m for Medway and £15m for the 12 districts, including Sevenoaks, Maidstone, Ashford and Thanet.