Medway Council already overspending by £16m this year
Here we go again. Plus King Charles Hotel plans get go ahead, Medway gets seven new creative doctors, news in brief, and more
The biggest story through most of last year was how close Medway Council was to going bankrupt. They eventually avoided it by government intervention, but as a new report shows this week, the cliff remains perilously close. Further down, we have news of a big new development on the King Charles Hotel site in Gillingham, Medway’s seven new creative doctors, news in brief, and more.
Medway Council already overspending by £16m this year
It feels as if the time to panic about Medway Council’s finances comes earlier every year.
After a fairly tense budget-setting process in February, which saw the council gain last-minute approval to use exceptional borrowing powers to keep things ticking over, it’s already time to start worrying about next year.
Already, things aren’t looking good.
Following this year's first round of Revenue Budget Monitoring, Medway Council is set to overspend by £16.5m, which is quite a large figure.
Despite borrowing nearly £15m this year to meet the existing budget gap in Medway, another similar figure has arisen this year. Given Medway’s reserves currently stand at £10m, there is, at the very least, £6m that can’t currently be funded in Medway Council’s budget.
So, where have the extra costs come from?
As always, the usual suspects are to blame: adult social care, children’s services, and education account for the vast majority of the gap.
The big figures from the report:
Adult social care is set to overspend by £7.3m, most of which is down to an increase in complex needs, supported living disability services, and homecare for older people. While the report is at pains to stress that work is being done to reduce these costs, there is inevitably only so far that you can go.
Children’s services are currently overrunning by £1.8m, nearly half of which is down to the continued use of agency staff. Other costs come from a new children’s home not opening on time and increased use of legal services.
Education reports an overspend of £2.6m, £1.7m of which is down to staffing, and £800k from SEN (Special Educational Needs) transport services.
Another £2.8m pressure comes from temporary housing following a continued increase in homeless presentations and increased costs of private sector rents.
Corporate management is on course to overspend by £1.8m, which is largely due to the vague Medway 2.0 and Transformation Map programmes, which are supposed to deliver long-term savings.
Happily, there are some savings to be found too. The Highways budget is set to underspend by £410,000, which will baffle anyone who has attempted to drive down Chatham Hill in the last few months.
Of course, this kind of process is nothing new. It is common for a council to report overspending in the early part of the year, which is brought down by belt-tightening for the rest of the year.
Medway's problem is that we are getting near to a point where there isn’t much more belt-tightening to be done. Most overspending within the budget for this year is on statutory services that must be provided, leaving little wiggle room for further cuts or savings.
It might not be long before Medway Council has to return to the government with another begging bowl, hoping that the new government will be a little more receptive to their pleas.
The report will be fully discussed at next week’s Medway Council Cabinet meeting.
Kings Charles Hotel plans get go ahead
Following the demolition of the former nightclub on the King Charles Hotel site in Gillingham in 2018, the land has sat empty while the owners seemingly pondered precisely how best to use the site.
Medway Council refused plans to build flats on the land in 2019, leading to a more commercial use for the site.
Now, new plans have finally been approved by Medway Council, and we hope you like conferences.
Plans have been granted for a 1,170-capacity conference venue and an extension of the hotel, which will be raised by a storey to add 24 additional rooms.
Medway Council seem happy with the plans, though it remains unclear exactly how much demand there is for such extensive conference facilities in Gillingham.
The report from planning officers raised concerns about the centre's level of parking, with 119 spaces on-site. However, it is deemed that the impact will be limited as high-capacity events will only be occasional on the site.
Curiously, the report does note that the full capacity can only be attained for standing events, which begs the question as to whether the owners intend to use the site for more creative uses like live music beyond conferences.
Medway gets seven new creative doctors
Seven Medway figures will be awarded honorary doctorates this week as part of an ongoing process to recognise those who have contributed to Medway's culture and creativity.
The individuals awarded cover a broad cross-section of Medway’s cultural scene:
Zandra Rhodes is one of Medway’s most recognisable creative figures, with a lengthy career in fashion and textiles.
Alice Oseman is the creator of the Medway-based LGBT+ comic Heartstopper, which became a Netflix sensation.
Simon Cook is the principal of MidKent College behind the recently launched Medway School of Arts and chairs the Medway Place Board.
River Medway is a drag artist whose appearances on Ru Paul’s Drag Race brought Medway to national attention.
Ranj Singh is a Medway doctor, television presenter, author, and columnist.
Carol Stewart is the chair of Creative Medway and chair of Medway African and Caribbean Association.
Bill Ferris was Chief Executive of Chatham Historic Dockyard Trust, overseeing its transformation into a mixed-use heritage site and creative hub.
The doctorates are being awarded by Medway’s three universities, the University of Kent, Canterbury Christ Church, and the University of Greenwich. Whether or not River Medway decides to be known as Dr Medway remains to be seen.
In brief
🏗️ After Medway Council approved plans, the former Manor Club in Chatham will be redeveloped into flats. While the developer initially agreed to build 50 flats, with 25% being affordable, on the site, they claimed this wasn’t viable, so they now have permission to build 61 with no affordable provision.
🏫 Medway Council also approved plans for a new Special Educational Needs school in Gillingham. Sport England raised concerns about the plans, though, as a playing field will be lost, so the government will decide instead.
🏪 Carpetright in Gillingham is set to close after the store wasn’t saved as part of a rescue package. Rival Tapi bought several outlets and the brand but was not interested in the Gillingham Business Park store.
More Authority
Over the weekend, we interviewed Zaid Mahmood, the former Student Union President for the University of Kent, about how he got the role, how data analytics have helped improve the student experience, what effect the government has had on international students and student finances, and more.
“We are lobbying the university constantly to improve the student experience”
Zaid Mahmood was the then Student Union President for the University of Kent when we recorded this interview at The Deep End on the Medway campus. Since it was recorded, he has since moved on to a different role, but the discussion still provides an illuminating conversation about how he got the role, how data analytics have helped improve the student experience, what effect the government has had on international students and student finances, and more.
Correction
Our Friday edition reported that independent Medway councillors Satindar Shokar and Stephen Hubbard hadn’t attended any meetings since January. However, they did turn up for the council's annual meeting in May, which, while not a proper meeting, technically counts. We’re happy to correct the record.
Footnotes
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Music that soundtracked the creation of this edition: All Hell by Los Campesinos!, Pottymouth by Bratmobile, and Live at the Annandale Hotel by Life Without Buildings.
Underspending on roads?? Forget Chatham Hill. Check out Rock Avenue j/w Montgomery Road. Reported numerous times and repeatedly ignored. Main route into Medway Hospital is disgusting. Potholes so deep now that cars are almost being grounded. Pull your finger out Medway
Oh goody, more unaffordable flats- just what Medway needs...