Reform "Cutting KCC Bills"

The Reform UK leadership at Kent County Council have been accused of using “smoke and mirrors” tactics in repaying a £50 million loan early to cut interest payments.

Kent County Council cabinet member for finance, Cllr Brian Collins, announced that the council's debt to Barclays Bank had been wiped out with a discount of £5.5m.

Cllr Collins said it meant a net saving of £670,000 per year in interest or over £1,800 per day.

Cllr Collins made his announcement by opening a giant turquoise blue envelope with a red ribbon, containing a large cardboard cheque for £50,000,000 made out to “Long Term Debt”.

In a short time since the May 1 landslide, Reform has brought “sound financial and fiscal responsibility” and keep a promise to the people of Kent, he said.

The £44.5m to pay off the the loan came out of “general cash reserves”, said Cllr Collins, and admitted he did not know what the original loan by KCC had been for.

The deputy KCC leader prefaced his speech to the chamber by saying at the time of the election, the long term debt sat at £732m and was projected to be up to £741m by the end of this financial year.

Cllr Collins said that with the £50m repayment and other loans maturing, the debt figure could drop by £82m to around £650m.

But leader of the Conservative opposition group at KCC, Cllr Harry Rayner, said: “Today’s KCC cabinet meeting was nothing less than a financial stunt, smoke, mirrors and a cardboard cheque.

“Reform needs to look at the current overspends in adult social care and children’s services.”

An official KCC statement read: “In its new Strategic Statement, a vision for Kent over the next three years, the Reform administration sets out its ambition to reduce the KCC debt burden, and release more money back into front line services.

“At more than £700m the authority’s long term debt is significant. Whilst managing the repayments is possible, doing so inevitably takes away vital money from day-to-day front line services with the current annual interest costs at around £32m a year.”

The statement quoted Cllr Collins saying: “It is no secret that we are having to do more with less and that we continue to face huge financial challenges.

“This brave and significant move shows that we are not afraid to ask difficult questions, or to challenge the status quo and historic assumptions around the finances of KCC.

“The enormous debt that KCC faces has built up over many decades, and is a result of decisions taken by previous political administrations. Servicing such debt impacts on vital services that residents need and deserve, so the huge savings made from this early repayment will ensure we can invest more back into front line services.”

KCC leader, Cllr Linden Kemkaran, thanked her deputy for presenting his announcement “in such a memorable way”.

Cllr Collins added: “The Government needs to sit up and wake up to the financial crisis that continues to grip every local authority across the UK.

“This debt repayment, and the long term financial benefits it will bring, perfectly demonstrates our determination to leave no stone unturned to ruthlessly get spending under control.”