Council secures government support but faces significant spending challenges in coming years.
Medway Council has approved its Capital and Revenue Budget for 2026/27 following discussions at a full council meeting. The budget reflects the authority’s efforts to balance competing demands across statutory services whilst navigating ongoing financial pressures that have characterised local government funding in recent years.
The council’s Core Spending Power is set to increase by 16.2% from 2024/25 to 2026/27, which represents growth above the average rate. However, this positive headline figure masks underlying complexities. Despite the increase, Medway faces a projected decrease in funding of £7.920 million compared to assumptions made in the draft budget presented to cabinet in November 2025.
Council Tax will increase by 4.994% for the coming financial year, a measure necessary to help fund critical services. Adult social care accounts for £184 million of the council’s spending plans, whilst children’s services require £221 million. Housing, including the cost of temporary accommodation, adds approximately £90 million to expenditure. By the time these statutory services are funded, the majority of the budget has already been allocated.
Medway Council continues to rely on Exceptional Financial Support from central government to balance its books. For 2026/27, this support totals £10.1 million—the third consecutive year the authority has required such assistance. Whilst the amount is lower than previous years, the council remains dependent on this funding to deliver a balanced budget.
The council is also borrowing to manage day-to-day operations, having exhausted internal cash reserves. More than £13 million has been raised through property disposals, with further receipts expected as the council seeks to reduce longer-term borrowing requirements.
Looking ahead, the financial outlook remains challenging. Without further government support or significant service transformation, Medway faces projected budget gaps of £8.6 million in 2027/28, rising to £24.7 million by 2030/31. The council’s leadership has expressed confidence that this will be the final year requiring Exceptional Financial Support, though critics argue the budget demonstrates continued over-reliance on borrowing and one-off measures rather than sustainable solutions.
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Key Takeaways
- Medway Council approved its 2026/27 budget following formal council meeting discussions
- Council Tax increases by 4.994%, with adult social care and children’s services consuming the majority of spending
- The council continues to receive Exceptional Financial Support worth £10.1 million for the fourth consecutive year
- Future projections indicate significant budget gaps unless transformation programmes succeed and demand moderates
- The authority is borrowing for day-to-day operations after internal reserves were depleted
What This Means for Kent Residents
Residents should be aware that Medway faces sustained financial challenges despite headline funding increases. Whilst the approved budget maintains current service levels, future years present significant pressures. Charges for council services are likely to increase, and those relying on adult social care and children’s services should monitor any service changes as the council implements cost-reduction measures and transformation programmes.
