Kent Council Passes Budget, Faces Warnings of Big Financial Risk

Kent's local government, now led by Reform UK, has approved its first budget. However, some council officers and other political groups are worried. They say the budget could lead to big money problems for the area.
By Newsroom | Local Government, UK Politics |

The stakes are high in Kent, England, as the local council, now led by Reform UK, has passed its inaugural budget. Opposition leaders and even a senior council officer have raised alarms, warning of significant financial peril and instability. The budget's approval comes amidst promises of reform and a commitment to lower taxes, but critics argue these plans are built on shaky ground, potentially leading to a worsening financial situation for the county.

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Context:

Kent County Council (KCC), England's largest local authority, transitioned to Reform UK leadership following local elections in May 2025. This marks a significant shift, ending decades of Conservative governance. The council's first budget under this new leadership was presented and subsequently passed.

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  • The budget was passed with 48 Reform UK councillors in favour, against 26 opposing votes and one abstention.

  • This vote occurred after a period of internal turmoil within the Reform UK group on the council, with several councillors leaving the party bloc.

  • Reform UK had previously pledged not to increase council tax, but the approved budget includes a 3.99% rise.

  • Council leader Linden Kemkaran defended the budget, calling it "responsible" and a "sensible, low-tax budget," while acknowledging the need to raise council tax due to "the dire legacy we inherited" and rising service demands, particularly in social care.

  • The council's head of finance, David Shipton, legally required to provide input on the budget, issued a statement highlighting that raising council tax below the level that would trigger a referendum poses a "long-term financial risk" due to forgone income.

  • Opposition leaders, including Liberal Democrat Antony Hook, have described the budget as a "casino budget" and a "gambler's budget," pointing to a forecast overspend of £36.5 million (later reported as £46.5 million in November 2025).

  • Concerns have been raised about the council's "dwindling reserves," which critics fear could be depleted to cover day-to-day spending and budget shortfalls.

  • The council's risk register reportedly rates the likelihood of risks associated with the budget as four out of five, citing pressures from rising demand, workforce shortages, and inflation.

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Evidence:

Reports from various news outlets highlight the significant concerns surrounding the budget.

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  • Antony Hook, leader of the opposition Liberal Democrats, stated the budget is "built on broken promises to the taxpayer" and a "casino budget" where Reform "have already lost control this year with a forecast overspend of £36.5 million."

  • David Shipton, head of finance, noted that the council tax increase below the referendum threshold "poses a long-term financial risk as a result of the council tax income forgone."

  • Linden Kemkaran, Reform UK council leader, defended the budget as "carefully thought through," stating that some call it risky but she calls it "bold." She also noted that without improvement, there is a "risk that the general reserve available in 2026-27 would be below the recommended 5% to 10% target range."

  • The risk register highlights "pressures from rising demand, workforce shortages and inflating costs" as contributing factors to the perceived risk.

  • A report in November 2025 indicated an overspend of £46.5 million, with scrutiny on Reform's management of the authority.

  • Other opposition figures have labelled the budget as "potentially reckless" and a "real gambler's budget," with the Labour chief stating Kent County Council is "heading for financial danger."

Warnings of "Extreme Risk"

Opposition parties and a senior finance officer have vocally warned about the precariousness of the newly passed budget.

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  • Liberal Democrat leader Antony Hook described the budget as carrying "extreme risk" and warned of more potholes and road collapses due to underfunded infrastructure.

  • The head of finance, David Shipton, issued a formal statement indicating that the decision to limit the council tax rise "poses a long-term financial risk."

  • The risk register, a formal council document, reportedly assigns a high likelihood rating (four out of five) to identified risks within the budget.

  • Critics argue that the budget relies on selling assets to cover immediate spending, a strategy that "leaves a financial hole for the following year" as "you can only sell an asset once."

Budgetary Balancing Act and Promises

Reform UK leaders maintain that the budget is a necessary and responsible step to address inherited financial difficulties while attempting to meet resident priorities.

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  • Linden Kemkaran presented the budget with pride, stating it "begins to repair the council’s finances" and balances "statutory obligations" with resident priorities.

  • She also expressed a personal preference to avoid a council tax increase but cited the "dire legacy we inherited," alongside increased demands and costs, as reasons why it was not possible.

  • The proposed 3.99% council tax rise is noted, a deviation from pre-election pledges to avoid tax increases.

Financial Overspends and Dwindling Reserves

Concerns are mounting over the council's financial management, with reports of significant overspends and depleting reserves.

  • A forecast overspend of £36.5 million was cited by opposition figures shortly after the budget's passage.

  • Later reports indicated an overspend of £46.5 million by November 2025, with an observation that the overspend had worsened since Reform took control.

  • Critics point to the risk of general reserves falling below the recommended 5% to 10% target range if current trends continue, creating a significant financial vulnerability.

Expert Analysis

While formal expert analysis from external bodies is not yet available in the provided data, internal financial assessments and opposition critiques offer a stark view.

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  • The council's head of finance, David Shipton, whose role requires providing an objective assessment, highlighted the long-term financial risk associated with the budget's council tax strategy.

  • Opposition leaders, such as Antony Hook (Liberal Democrats), Paul Thomas (Independent group leader), Harry Rayner (Conservative leader), and Alister Brady (Labour chief), have collectively warned of the budget's recklessness, potential for financial danger, and its reliance on unsustainable financial practices.

Conclusion:

The passage of Reform UK's first budget for Kent County Council has been met with widespread warnings of "extreme risk" and potential financial instability. While the ruling party asserts the budget is a necessary measure to address inherited financial challenges and fulfill resident priorities, opposition groups and a senior finance officer highlight concerns regarding projected overspends, dwindling reserves, and the long-term financial implications of the council tax strategy. The situation suggests a significant divergence in assessment regarding the budget's viability and Reform UK's stewardship of the council's finances, with future financial health appearing to be a subject of intense scrutiny.

Sources:

Frequently Asked Questions

Q: Did the new leaders of Kent Council pass a budget?
Yes, the Reform UK councillors voted to pass their first budget for the council.
Q: Are people worried about this budget?
Yes, some council finance staff and leaders from other political parties have warned that the budget is risky.
Q: What are the main worries?
People are concerned about the council spending more money than it has and using up its savings too quickly.
Q: Did the council tax go up?
Yes, the budget includes a small rise in council tax, which was not what the party promised before the election.
Q: What do the leaders say?
The leaders say the budget is needed to fix money problems they inherited and to provide services.