Kent Councils Face £2.3 Billion Debt Spike Amid Financial Strain

Kent’s local councils are experiencing severe financial strain, as new figures reveal their collective debt has surged to an alarming £2.3 billion, an increase of more than £164 million in just one year. This 7.58% rise has prompted experts to express significant concern over the sustainability of local governance in the region. While some councils have managed to reduce their deficits, the overall financial burden has grown considerably.

A substantial portion of this debt is attributed to borrowing, primarily from the Public Works Loans Board, which is an arm of the Treasury. Councils have invested in vital infrastructure and facilities, hoping these investments will yield long-term benefits. These initiatives include new housing developments, shopping centres, and various public service enhancements.

Interestingly, two councils in Kent, **Tonbridge & Malling** and **Tunbridge Wells**, are among just 32 in the UK that report no debt, highlighting a stark contrast in financial management across the region. This disparity raises critical questions about the upcoming reorganization of local councils, which is set to merge financially burdened authorities with those that have maintained a more cautious fiscal approach.

Rising Debts and Financial Pressures

According to the **BBC Shared Data Unit**, councils across the UK have collectively added £7.8 billion to their debts over the past year, bringing the total to £122.2 billion. This translates to approximately £1,791 owed per resident as of April 2025, up from £1,677 the previous year. Within Kent, **Medway Council** has emerged as a significant concern, carrying a debt of £612.2 million, which has increased by £118.4 million—an alarming 35.99% rise over the year. The council has been granted “exceptional financial support” by the government, allowing it to borrow additional funds to avoid bankruptcy.

Vince Maple, the leader of Medway Council, stated, “Like councils across the country, Medway is under financial pressure due to the rise in cost and demand for providing essential services like social care and housing alongside more than a decade of reduced government funding.” He emphasized that the borrowing undertaken is aimed at financing long-term capital investments that support Medway’s growth.

Despite the challenges, Maple noted that maintaining financial stability while delivering essential services remains a top priority. The council’s financial recovery efforts are guided by the **One Medway Financial Improvement and Transformation Plan**, which aims to enhance fiscal responsibility amid rising demands.

Debt Management and Future Outlook

The financial landscape for councils is complex. **Kent County Council** carries the largest debt at £732.6 million, although it has decreased by £39.3 million in the past year. This equates to approximately £454 per resident. Comparatively, **Ashford Borough Council** has a per capita debt of £1,886, with total debts reaching £260.8 million. The council’s debt levels are primarily due to investments in housing and regeneration projects, emphasizing the need for these ventures to generate sufficient revenue to manage the associated costs.

Other councils are also grappling with rising debts. **Swale Borough Council**’s debt has surged by 160% over the year, climbing from £5 million to £13 million, attributed to increased capital spending on housing and waste management. Similarly, **Thanet District Council**’s debt rose by £17.5 million, reaching £37.1 million, as it invests in housing projects to address local demand.

The current financial pressures have sparked debates around the restructuring of local councils. This reorganization aims to streamline governance but poses challenges, particularly for councils like Tonbridge & Malling and Tunbridge Wells, which currently have no debt. As they prepare to merge with councils carrying significant financial burdens, concerns grow about the impact on their fiscal health.

Jonathan Carr-West, chief executive of the **Local Government Information Unit**, highlighted the long-standing issues facing councils, noting that many have high debt levels due to reduced government grants and the need to generate their own revenue. He explained, “The key question we need to look at is not necessarily the council’s overall level of debt, but its ability to pay back that debt and how that compares to the level of revenue those assets are bringing in.”

As the situation continues to evolve, the implications for local governance and public services remain significant. The upcoming reorganization could exacerbate existing financial challenges, particularly for councils that have successfully managed their resources. The need for sustainable financial strategies is more pressing than ever as local authorities navigate this complex landscape.