As Medway Council gathers today for its Annual General Meeting (AGM) on 13 May 2026, the atmosphere in the St George’s Centre is a world away from the triumphalism we saw three years ago. Back in 2023, Labour promised a “fresh start” for our towns. They stood on the steps of Gun Wharf and promised a new era of transparency, fiscal responsibility, and local pride.
Today, as voters across the rest of the UK head to the polls in local elections where Labour is projected to face a historic drubbing, Medway stands as a cautionary tale. We are the living proof of what happens when the rhetoric of the campaign trail hits the reality of Labour’s inability to manage a budget.
The £53 Million Payday Loan: Borrowing from the Future
The most damning indictment of this administration is the sheer scale of the emergency borrowing. When Labour took control, they inherited a challenging financial landscape. But rather than taking the “tough decisions,” they have opted for a strategy of “borrow and hope.”
Over the last three years, Medway Labour has been forced to request a cumulative total of over £53 million in “Exceptional Financial Support” (EFS) from the government. Let’s be clear about what EFS actually is: it is a high-interest payday loan for councils that cannot balance their own books.
The breakdown of this failure is staggering:
- 2024/25: £14.7 million borrowed.
- 2025/26: A revised request of £28.4 million.
- 2026/27: A further £10.1 million in principle.
This isn’t “one-off” support; it is a chronic dependency. This £53 million must be paid back by you—the resident—at interest rates significantly higher than standard government lending. While the leadership claims this was “planned,” the reality is that the council is now functionally bankrupt without these annual bailouts.
The £44 Million Care Home Gamble
Nothing illustrates Labour’s “spend first, think later” mentality better than the £44 million borrowing plan for a new care home provision. While we all want high-quality care for our elderly, borrowing £44 million in a high-interest environment—while already in receipt of emergency government bailouts—is the height of fiscal irresponsibility.
Instead of working with the established private and voluntary sectors to expand capacity, Labour has decided the council should become a property developer and care operator. They are gambling your money on a project where the business case is paper-thin and the risks of construction overruns are massive. This isn’t just a care home; it’s a £44 million mortgage on your children’s future.
The HRA Controversy: A Lack OF Scrutiny
Then we have the recent Housing Revenue Account (HRA) controversy. At the last council meeting, I raised serious questions about the lack of scrutiny of the administration’s attempt to buy a portfolio of properties from another Social Housing provider. Labour Councillors handed the administration £46M before the necessary due diligence has been completed. You can read more on this in my blog Why Scrutiny and Financial Realism Must Come Before Political Ambition.
The Debt Mountain: Interest Payments Paralyse Services
The total debt for Medway Council has now ballooned to an eye-watering £592 million. This mountain of debt isn’t just a number; it has real-world consequences for every street in Hempstead, Wigmore, and beyond.
The council is now spending roughly £25 million every single year just on interest and debt repayments. Think about that: £25 million of your council tax is being handed over to lenders before a single pothole is filled, a single library is opened, or a single park is maintained.
The School Streets Scandal: A £1.6 Million Shakedown
If you want to understand the DNA of this administration, look no further than the “School Streets” scheme. On paper, the goal is noble: protecting our children. In practice, it has become a cynical vanity project designed to extract fines from hardworking motorists.
In the last year alone, this scheme has generated £1.6 million in fines. Is it about safety? The data suggests otherwise. In the years before the scheme, there were almost no recorded accidents at many of these sites. Yet, Labour has pushed ahead, ignoring the concerns of local residents who are now hit with £70 fines for simply trying to navigate their own neighbourhoods.
Three Year Verdict
The AGM is traditionally a ceremonial affair. But today, it must be a day of accountability.
Medway Labour has had three years. They have the majority, they have the mandate, and they have the keys to the safe. What have they done?
- Borrowed over £53 million in emergency loans just to survive day-to-day.
- Increased total debt to nearly £600 million, costing £25 million a year in interest.
- Gambled £44 million on a care home project they cannot afford to finance.
- Lack of proper scrutiny on a £46M property portfolio, risking the future of social housing.
- Imposed a 4.99% council tax hike while using School Streets as a £1.6 million cash grab.
As voters across the UK reject Labour today, Medway residents can see why. The “Medway Model” is one of high taxes, record debt, and a total disconnect from the priorities of ordinary people.
Three years in, the “Fresh Start” is a fiscal disaster. Today, at the AGM, the message to Medway Labour is simple: The excuses are gone. The debt is yours. And the residents of Medway will not forget who broke the books.
