New budget plans and bus subsidies

KCC has set out its latest plans for the 2018-19 budget, reflecting some important developments in the Local Government Financial Settlement announced just before Christmas.

In many respects, the financial challenge facing the Council remains massive.  The budget gap that KCC has to plug is some £113m, reflecting a £45 million reduction in government grant, the impact of price increases and growing demand for services, especially in children's and adults social services. Much of this will be met by spending reductions driven by greater efficiency, effective commissioning and the like.

There was also one major disappointment in the pre-Christmas announcement, that an earlier government Transitional Grant, worth some £5.3 million to the Council, is not being continued.

However, the Local Govenrment Financial Settlement also included - more positively - the news that Kent, working with the County's 12 District Councils, Kent Fire and Rescue Authority and Medway Council, will be one of the national pilot areas for Business Rate Retention. This will bring in £5.6 million in the coming financial year.

Secondly, government has raised the 'referendum cap' - the amount by which Councils can raise Council Tax without having to call a local referendum - from 2% to 3%. This is in addition to the 2% precept that the Council is able to raise for social care. In line with most other County Councils, KCC will propose in its budget to increase the coming year's council tax by just under 5%. This will not be welcome to residents, but our pre-budget consultations have suggested a willingness to see some increase to protect services.

In its budget proposals, the County Council will no longer be proposing a £2.25 million reduction in subsidies for bus travel, but instead will propose a reduction of only £0.45 million. The Council nonetheless believes that there is a need to review existing bus subsidies and look for other and better ways to support transport for elderly and isolated residents, and will be investing £0.5 million in developing this approach. This will be carried out through a 'big conversation' with Parish Councils and local communities in the coming months.