Cabinet - Wednesday 11 February 2026, 5:00pm - Folkestone & Hythe webcasting

Cabinet
Wednesday, 11th February 2026 at 5:00pm 

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to the meeting of the cabinet.
Cllr Jim Martin - 0:00:04
This meeting will be webcast live to the internet.
For those who do not wish to be recorded or filmed,
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For members, officers, and others speaking at the meeting,
it is important that microphones are used
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may hear you.
Would anyone with a mobile phone
please switch it to silent mode as they can be distracting?
I would like to remind members
that although we all have strong opinions
on matters under consideration,
it is important to treat members, officers,
and public speakers with respect.
Thank you very much, everyone.

1 Apologies for Absence

Apologies for absence.
No apologies this evening, everybody is present.
Ms Jemma West - 0:00:48
Fantastic stuff.
Cllr Jim Martin - 0:00:51
And minutes.
To consider and approve as correct record

2 Declarations of Interest

of the minutes of the meeting held on the 21st of January, 2026.
Any issues or problems?
Cllr Tim Prater - 0:01:04
Happy to move, Leader.
Cllr Jim Martin - 0:01:07
Could I have a seconder?
Oh, Councillor Blakemore to second.
All those in favour, please indicate.
Thank you very much, everyone.
Just missed those questions.
Oh, sorry.
In my eagerness to proceed.
Sorry, item two, declarations of interest.
Does anyone have a declaration of interest to make?

3 Minutes

Very good, okay, thank you very much.
Item three, we've done, thank you.

4 Crisis Resilience Fund Policy

And we will move to the first substantive item,
item four, crisis, resilience fund policy, pages 23 to 46.
and will be led through this by Councillor Prater.
Thank you.
Cllr Tim Prater - 0:01:51
Thank you, leader.
Before I start, I'd like to apologise to Kevin and everybody else in the room.
Of the 11 reports on the agenda this evening,
10 of them have got my name on the front.
I'll try harder in future to make it the full set,
but I'd also like to say I am definitely ceding anything
with the words HRA in it to Rebecca behind me.
I'm not doing them.
So, I'll just go through this.
We're moving this report.
We're noting the demise of the discretionary housing payments, which the Government
ceased to fund in England from the 31st of March of this year.
However, from the 1st of April, DHPs will be replaced by the housing payment strand
of the Crisis and Resilience Fund, CRF, which are again funded by Government and is passed
on to us to disperse.
The DHP element is to be replaced by the housing payment element, or CRF, and therefore this
Council must have a policy to implement this scheme.
I'd like to say that this is a radically new
and different stream, which is much more generously funded
by government, but it really isn't.
There isn't any significant attempt to disguise it,
nor make it any more generous.
In each of the last three years,
this council got 205 ,129 pounds from government for DHP.
And as the report notes, in the next two years,
government will give us a £205 ,129 towards the Crisis Resilience Fund. It's not even
had an inflationary increase, so we'll be able to support less households less well
than in 2023. In the last two full financial years, we supported over 500 awards with discretionary
housing payments, with funding frozen but their costs higher, and I imagine we'll be
to fund fewer in the next two financial years.
However, the new scheme will exist, is discretionary, and so this policy on who can apply
and for what and how it will be judged is required.
This policy, like the income stream, it bears a remarkable resemblance to its predecessor.
It would be harder to spot differences between the former policy for DHPs and the new ones
for CRFs except for the different TLA.
The majority of CRF Housing Fund awards
will provide short -term housing cost support
and they shouldn't be considered a permanent solution.
They are an emergency fund to be used to alleviate hardship
to allow claimants time to find alternative solutions
to their shortage in income for their housing.
The policy has been published with this report
and I'm delighted to say that there is an easy read version
for those that prefer the three -page summary
to a 14 -page policy.
The policy and report's been put together
by Andrew Hatcher, leader of, I think I mentioned before,
our multi -award -winning revenues and benefits team.
It's that team that will apply this policy
and run the scheme, as they have for years
with discretionary housing payments.
As ever, my thanks to him for the papers,
his team's ongoing work, and for his being here
this evening, ready and eager to answer any questions
you have on the detail of this report,
for the policy and CRF.
Move the recommendations and the adoption of the CRF policy
from the 1st of April, 2026.
Cllr Jim Martin - 0:05:07
Thank you very much, Councillor Prater.
I'm very happy to second and open it forward to both.
Councillor Spillane.
Yes, good evening.
Cllr Jeremy Speakman - 0:05:18
Page 32 on the policy,
12 .2 under overpayments.
It says, once a CRF housing fund award has been made to a claimant for rent in advance
or a deposit and used for that purpose, legislation does not provide for it to be refunded.
Presumably, we're talking about deposits for rent in advance and that sort of thing.
And aren't those normally refundable?
There is a new mechanism for, I assume, I don't know how much we would expend in terms
of rent deposits which are refundable, but they're saying you're not looking for it to
be.
So is it basically just written off?
Because it's administratively too difficult, I don't know.
Cllr Jim Martin - 0:06:01
Can I come to you for an answer, Andrew?
Thank you.
Of course, leader.
Mr Andrew Hatcher - 0:06:04
Yeah, within regulations that DWP sets us,
there's certain things we have to do,
can and can't do within the policy.
One of those is once the deposit's paid,
essentially it's paid, and you can't get it back.
Because of the way the funding works,
it's all in here anyway, and in reality,
most people who are moving are probably not gonna get
that money to be fed back into that year's pot
within the 12 month period of the scheme.
The way we manage it is if they've applied,
most of the rent inverse deposits are for people
that are households that are currently
in temporary accommodation currently.
They'll also be trying to get them
into a longer term solution.
What would happen is if they were to then move on,
say in two years time to a further accommodation,
because we have it on record,
we generally wouldn't give them a second application
for this if they applied because we said,
well actually we'd give it to you last time,
providing you've looked after your property,
you should get your deposit back
and that's then funding going forward.
So that's the way it operates.
So you wouldn't keep getting to print a thousand deposits
again and again and again.
It's to get them going and then they're on their footing
going forward for their housing situation.
Councillor Bicha.
Cllr Jim Martin - 0:07:14
Yes, thank you.
And thank you very much for the easy read version,
Cllr James Butcher - 0:07:20
which was much appreciated.
And so, as I understand it, the payments are discretionary.
We have some funding to meet those.
And then if there are claims above that,
then we have to find other sources
if we've made the decision to award those.
So, in general, do we exceed the allocation that we have?
Andrew, please.
Yes.
Mr Andrew Hatcher - 0:07:44
Yes, in the last few years,
I've got a couple of words in the paper.
We have exceeded, I think it's stated in,
got to find the right part of the paper now.
In 4 .2, yes, I think it was, yeah.
So we have exceeded year on year slightly more,
and it's going to be in case this year.
What we have done for those years is,
because we receive a set of funding from KCC,
the household support fund,
we've taken some of our funding from that
to top up the fund, and that's what we're doing this year.
We may be able to do that for next year,
we don't know yet because although
a household support fund doesn't exist,
Christ Resilience Fund also replaces that as well,
we'll put it all in together.
In case you haven't decided or informed us yet
of what our funding situation is for that,
if we get money from that, we will put some aside
for this situation because I think
the funding will be difficult.
We have changed the policy slightly
to try and manage that fund.
But as the year goes through, if we don't have that money,
finance are aware of the pressures on that budget
and we'll have that conversation, I think,
as the year goes on.
But yeah, we'll manage it as best as we can.
It's normally sort of midway through the year,
you have a good idea of where the spend is
and the demand is.
But yeah, it's something the finance team are aware of
and we'll have ongoing conversations as part of that.
And I apologise, there's an ad here.
Are we seeing demand go up year on year?
Applications have been, they've gone down a little bit
the last couple of years because I think the way
we've promoted it's been a bit more tailored
towards the homeless provision because that's where
our targeted spend is because there's sensible spend
to reduce temporary accommodation costs as well
so it's twice for the council in terms of financial impact.
You think if you never know with what can happen
in the world what the impact, what the applications will be.
As Councillor Prater I think alluded to in his introduction,
the difficulties are the fund doesn't go up
and yet rent advance and deposits do.
So although you get less applications,
the strain on the fund is still increased
because there's more demand for fewer applications.
Cllr Jim Martin - 0:09:57
Just taking account of the second point that you made,
recommendation three does allow some flexibility
in terms of if the KCC money is forthcoming,
then we'll be able to do some more.
Yep.
Yes, that's correct.
Mr Andrew Hatcher - 0:10:11
as well as there might be other strands of work as well around financial support for
other realms beyond housing as well. But yeah, until the agency have made a decision on their
sharing of that funding throughout Kent, we wait to hear.
Cllr Jim Martin - 0:10:27
Great, thank you. Are there any more questions or queries on this? We, Councillor Prater
moved the report. I seconded it. All those in favour, please indicate. Thank you very
Thank you very much, everyone.
Item 5, FOLKA.

5 Folca - Update and Folca 2 Business Case

Update on FOLKA 2 and business case, pages 47 to 82.
And Councillor McConville is going to lead us through this.
Thank you, Chair.
Cllr Connor McConville - 0:10:58
OK, members, hopefully this isn't new to everyone.
We've been looking at these papers.
This has not come to cabinet now quite a few times.
There's a number of recommendations in the report.
I won't read them out altogether,
but largely due to some positive response from the ICB just before Christmas,
we're now much more confident than we were
in terms of being able to deliver a medical centre in FOLKA 2.
So the recommendations ask that we move ahead with that.
And also to note the positive marketing exercising with regard to FOLKA 1.
where a very positive bid has been received
and the proposed plans look very promising
for what they might want to do with FOLKA 1.
So to continue to proceed with the disposal of FOLKA 1.
It's been, I don't know, over six years actually
since Devlin's closed their doors on this site.
And probably about six years ago, I think to the day,
I got a call from Susan saying they wanted to buy the building.
Could have been slightly more than six years.
That's a long time to sort of been following this project.
Coming out of COVID, we started conversations with the then CCG,
who has now become the ICB.
So, you know, I for one was never totally sold on the fact
that this would ever happen.
So, the letter we received before Christmas was amazing news
and it actually looks like it might happen.
So, I for one, you know, I can't wait to see this happen
and I hope it does happen before we cease to be a council in 2028.
Just a few other details within the report.
If for some reason the Medical Centre doesn't take place,
you'll see that within the report that there is quite a robust business case
to go to a commercial -only venture for the building.
Although a lot of the figures are redacted,
hopefully from previous conversations,
we might remember positive conversations about, you know,
forecasts based on quite low occupancy rates
and those sorts of conversations that were had.
So the plan, the business case, is viable
should we have to go to a commercial -only venture
but I'd say based on discussions that we've had,
hopefully that won't be necessary,
but we always need to have a Plan B.
I think I was at overview on scrutiny last week.
I was expecting maybe some more challenging comments, I guess,
but the committee seemed to be much more on board with the project
than they have been where it's come to them previously over the years.
I think, you know, with some sort of confidence from the proposed bidder for FOLK 1,
you know, the main concern of potential demolition of that building has been sort of eased a bit.
So, I mean, they were quite supportive of the proposed route with disposal of FOLK 1
and, you know, very clearly in support of the medical centre going into FOLK 2.
So I was pleased to hear those comments from overview and scrutiny the other week.
I'd say happy to take any questions.
But as I say, to move all seven recommendations,
the main one being to delegate the Director of Housing and Operations to proceed.
Thank you very much, Councillor McConville.
I'm very happy to second.
and just to say that I think great credit
is due to Tony Vaughan, who brought us together
with the integrated care board at a very high level
Cllr Jim Martin - 0:15:13
with, as he described it, a kind of bang your heads
together kind of meeting.
And their new CEO, Adam Doyle,
I think move very, very swiftly to make this happen.
And so credit where credit is due,
and like you, I am absolutely delighted
to see some movement.
Just to reassure everyone,
it's not through the lack of hard work on our part
and the part of the officers,
that we have tried everything to get this thing.
So it's terrific to see a positive response
from our partners.
So very, very happy to open for debate.
Councillor Scoffin.
Cllr Stephen Scoffham - 0:16:02
Yeah, I'm just coming to this as an outsider, as it were.
I'm new to the party.
I've only been hearing about FOLK 1 and FOLK 2 for the last two and a half years.
And I know this is a discussion that goes back to the previous decade.
So congratulations to everybody who, as the leader says, has turned this over,
looked at it in different ways, come up with lots and lots of different figures,
gone back to the drawing board.
I've realised over the last two and a half years what an enormous amount of
work has been going on behind the scenes. What you see on the street is a building
that's just moribund and what's going on behind the scenes has been an enormous
amount of energy. So as I say, as somebody who's coming to the party
late, I just want to say how impressed I've been by the amount of work that's gone
into it and I'm really looking forward to seeing that building coming back
into life, 23 ,000 people coming backwards and forwards
to the medical centre, and all the benefits
that that brings to the town centre
will really make such a difference.
Yeah, completely agree.
Cllr Jim Martin - 0:17:03
Any other comments or questions?
Councillor Polly Blakenaw.
Cllr Polly Blakemore - 0:17:14
Yeah, this is a really positive report
and it lets us hope the ICB see it through
and we do end up with those two GB patches moving in there,
because I know how much they are desperate for that as well.
So really good to read.
I was going to first raise the thorny issue of parking.
Much as I'd like to think there'd be a reliable,
efficient, comprehensive bus infrastructure serving Volcker
within the next two or three years,
realistically, I think people are going to need to drive
especially with the GP practises in there,
and let alone the staff.
I don't know how many medical staff will be working there,
but it will, yeah, there'll be a great number, I'm sure.
So yes, I know this is something that was brought up
over for you in Scrutiny, which I happen to be at as well.
And I'm sure it is on the agenda, but just, yeah,
just a word to say,
thought what will need to be given to that.
Thank you.
Thank you.
Cllr Jim Martin - 0:18:20
Councillor Mike Blakemore.
As all has been said, really, actually, I was just going to also welcome this, and particularly
the Medical Centre, which I think is badly needed.
Cllr Mike Blakemore - 0:18:30
It will be good news for patients, but also for attracting staff to come and work here
in health in the district.
I think it's good, and as others have said, a great deal of hard work behind the scenes
to get us to this point.
And Councillor Prater.
Thank you.
Cllr Tim Prater - 0:18:48
Yeah, I think when the council bought the building in 2020, I think we've probably
all been a little bit horrified that in 2026 it wasn't open yet and working for Folkestone.
And that it has taken that long. It speaks volumes about how long it's taken us to get
to an agreement with the NHS on the space and the terms, first through FOCA 1, through
years of negotiation then, and they walked away from that, and then when that's proved
impossible for them.
Now, I really hope the NHS are going to sign up on the terms they've aggrieved
and move into there, because I think our patients have been patient enough.
And, you know, what's really exciting about this is it's not just a plan for use from
2028, but if we agree today, it's actually a real start on the project.
Phase 1 works to spend the levelling up fund and other grant funding for that will start
by the end of March.
So that starts separating Fokker 1 and Fokker 2, waterproofing, insulating it,
repairing it, clearing the building.
You'll see things happening up to that building from the end of March onwards.
And I think that we can all agree that what Fokker needs right now is a big building
project right by Sandgate Road.
Now, I also keep hearing people saying that the Fokker building, you know,
floating limit would be an excellent space for various different types of leisure,
from escape rooms to laser quests, gaming hubs, bowling, food markets and more.
And I absolutely and totally agree. It's a mixed medical and commercial facility. And
any operator that wants to come forward and look at running something like that in FOCA,
please pick up the phone and speak to Andy or speak to our agents or speak to someone
else. We are keen to speak to operators about that. We want FOCA to be an attraction and
a place that people come to.
And if people have got that business idea and that will be financially viable and
bring money in, we're listening.
We'd love to hear you.
And for the medical facility, absolutely what Mike said, it finally brings together
two, yeah, knackered surgeries into one purpose -built building that will actually
attract staff and allow people to be treated with the dignity that they should
have because it's in a space that can do the job that it's needed to.
so they can expand the services to better serve their patients.
And although I take the point on parking,
it's replacing Manor Road and Guildhall Street.
In terms of its central location accessibility,
there are more car parking spaces,
including Asda, Sainsbury's, Playdale Gardens,
Middleburg Square, Multistory,
the on -street parking in the Leeds and Sandgate Road
within a couple of minutes walk of Foulker
than there are at the moment for Guildhall Street,
and the closer than they would be
for the current Manor Road surgery as well.
It ain't perfect, but it's better than where you are at the moment.
Also, when people say, well, those spaces are free, actually Sainsbury's is free,
Asda is free if you shop there, and Playdell Gardens is free if you get a resident's
car park permit and you should get a resident's car park permit.
There are also a lot of disabled bays pretty much right outside the front door of Volker.
Taxi bays outside too, and almost every bus in town is now stopping within two minutes'
walk on Middleman Square.
Again, it's not perfect, but I can't imagine where else we could put it that we own that
is more perfect.
So it's not a slight improvement.
It's light years better.
And the reason that we're saying there and not somewhere else is because we only own
that one.
We don't have other options, and we are making this thing happen.
And finally, just to say that it's really that this is being made to happen, this is
a £30 million investment and this council is making in terms of bringing that life back
to the centre of Folkestone. And it's being done through a combination, we hope, of NHS
money in terms of then bringing that money forward, us bringing money forward, including
the sale of this building, let's not forget in terms of the investment strategy, we're
investing our house into FOCA and into Folkestone. The sale of this goes to off paying the debt
that will be involved in doing that.
It's a massive investment for Folkestone.
It's a massive investment for this council.
I'm delighted to see it come forward.
The team that have put this together
and have come up with a plan A, plan B policy response
to the way of dealing with this, hugely well done for that.
Really hope the NHS sign it,
and I really look forward to it opening in 2028
with a medical facility, I hope.
Cllr Jim Martin - 0:23:55
Oh, terrific. Councillor Fuller.
Cllr Gary Fuller - 0:24:02
Thank you, Chair. Just two things to briefly note. Again, to mention that it looks as though
the preferred bit of the focal one isn't looking to knock down the building, which is, you
know, was one of the key points that we were concerned about when discussing it in the
past. And secondly, without mentioning figures, obviously, but our projections have been cautious
to the point of pessimistic in terms of making the building a Volcker 2 viable in terms of
a sort of gang concern.
And that's really positive because actually, irrespective of the model we end up with,
and as Councillor Prita said, ideally we want them the mixed use medical and commercial,
but irrespective of the model, we will end up with a building that's actually going to
pay for itself as well, it's going to make the council money in the long term as well.
So we're not making a dangerous bet, so to speak.
Thank you very much.
Councillor Butcher.
Yeah, Mr Chair, I just wanted to re -emphasise something Tim was saying at the end there
Cllr James Butcher - 0:25:04
about the, yes, it's fantastic to see the building itself as an iconic building being
brought back into life.
But I think the, how well it links up with our wider economic strategy and bringing life
back into the town I think is really, really significant.
It's highlighted in section four about increased footfall.
And when we think about how people feel about
quality of life and where they live,
the vitality of the town centre
and the quality of public services
are really, really central to that.
So I think it's great to see for all sorts of reasons
and I think people are gonna really welcome
the sense of life and vitality that it brings.
Thank you very much.
Cllr Jim Martin - 0:25:45
If there are no further contributions,
Councillor McConville proposed, I seconded.
All those in favour, please indicate.
Thank you very much, everyone.

6 Investment Strategy 2025/26

And we move on to item six, investment strategy 2526,
pages 83 to 98.
Cllr Tim Prater - 0:26:09
And Councillor Proater will lead us through this.
Our agenda says that this is the item of the investment strategy 2526, but the eagle -eyed
amongst you will have seen the paper is rightly talking about the 2627 investment
strategy, as that's the one we're going to be looking at. This paper is essentially
the legally mandated annual review, which I massively thank Danny for doing, as well
as executing, and I'm more than happy to move it. The investment strategy excludes
is the Treasury Management Strategy,
which is coming up in a few items' time.
And the Treasury Management Strategy
essentially deals with the short -term Treasury management
investing and borrowing that we can do
because our income arrives at a different time to our bills.
So the investment strategy is more about
managing our investments in the things which we've got,
which are essentially long -term assets that we've bought
and schemes that we're supporting.
So within that, for instance,
property would include, I think,
Mountfield Road Industrial Estate
and Otterpool Parkland and Connect 38.
Shares held by us and then lending with them
would include investment like Opportunisas,
folks and parks and gardens,
where we've lent their money for Beach Hut schemes, et cetera,
and funding for No Use Empty schemes as well.
So there aren't really a huge number of investments
outside those.
The report's got the full details there,
but that's a fair chunk of them.
And I'm going to beat Stephen to it.
So to get there before him,
I share his delight that the section seven
on the environmental, social, and governance considerations
and the role that this policy will have us getting
as a council to net zero in 2030
and influencer of change in the wider district.
However, just because I know officers
have to wrestle with this bit,
I'm going to say it out loud for the purpose of councillors
because we're going to have to do some wrestling
at some stage too.
So for instance, let's look at Connect 38,
which is an office block in Ashford,
which was purchased about a decade ago as an investment.
It's a good investment.
It's now making a return to the council.
We're good landlords for the building.
I think it's fair to say,
and you can shake his head at me if he likes to,
that we can in no way say it's net zero.
Is that all right?
It's not a net zero building.
Is it close?
It's not currently in that zero button.
The carbon it emits will be counted against our carbon emissions.
Now, as it's not in our district, you could just make the case to dispose of it at the
right time, but that doesn't actually reduce any carbon emissions, it just makes them somebody
else's problem.
We'd also lose the income from the building, which plays a small part in supporting our
budget.
But also, Connect 38 by 2030 might possibly be
in our council area, and therefore,
the retained disposed question becomes even more muddy.
Do we get the carbon just off our books
but onto somebody else's books in the same council area?
How does that sit against our role
as an influencer of change?
Now, it might be that the right answer is to make sure
that we make that investment in Connect 38
to make it a net zero building by 2030.
But that's going to cost some money,
and somebody's going to have to come forward and say so,
and you're going to have to weigh that as an investment decision.
So the policy is absolutely the right thing to do, the right thing to say, and it's there
for a reason, which is to make sure that we're thinking about those drivers to change. However,
I don't have the right answer for that now. Sounds like Andy does, but let's not do it
tonight. But we will consider that. As I said, coming back to the report as a whole, I'm
more than happy to move the paper and the recommendations on it.
Cllr Jim Martin - 0:29:46
Thank you very much, Councillor Prita. I'm very happy to second the report and open it
up for questions or queries. Councillor Fuller.
Cllr Gary Fuller - 0:30:02
Just a very small one. I hadn't clocked it before, but I just noticed that in it, and
I may have missed this in the supplement, capacity, skills and culture is number eight,
but also investment indicators is number eight. So a very small one. It needs to be changed
Thank you very much, duly noted.
Councillor Butcher.
Cllr Jim Martin - 0:30:18
Just on the first section 8 about capacity, skills and culture.
Cllr James Butcher - 0:30:23
All members have been previously provided with training.
There was more training in winter 25.
I went on one of those training courses.
I'm not sure I was much the wiser at the end than I was at the beginning about what I appreciate
is a really, really complicated area.
So I think it's kind of fine to put it in there.
We've done the training.
I think the more important question is whether that has helped members be better able to make informed decisions,
which I'm not sure it does.
So I think I still have a question mark about how well we're helping ourselves to really understand
to the extent we need to these really complicated matters.
Okay. Thanks very much for that.
Cllr Jim Martin - 0:31:02
Any other questions or queries?
Councillor Schaffrin.
Cllr Stephen Scoffham - 0:31:06
Yes. Just I don't want to be pedantic, but I'm just sort of point out that paragraph two
Section 7 last line says it's our ambition to reduce the carbon footprint by 2030 across
the district as a whole.
That's a little bit of slippage.
It's 2041 for the district as a whole, 2030 for our own state.
Thank you very much.
Cllr Jim Martin - 0:31:30
Again, duly noted.
If there are no further questions or contributions,
Councillor Prater moved the report,
I was happy to second.
All those in favour, please indicate.
Thank you very much, everyone.

7 Capital Strategy 2026/27 and Minimum Revenue Provision Statement 2026/27

And we move on to item seven,
a capital strategy 2627,
minimum revenue provision statement for 2627,
pages 99 to 114, and we're going to be led through this by Councillor Prater.
Thank you, Tim.
Thank you.
Cllr Tim Prater - 0:32:10
I am again delighted to move this report of recommendations, because although I'd say
this paper probably looks and feels a little dry, its impact is hugely significant, and
it's no exaggeration to say that in the short to medium term this makes a huge difference
to our budgeted position.
And I can only thank Alan for his work on leading this and going through this process
and bringing this paper forward.
And absolutely offer that if you have questions on the detailed report, the new MRP policy
and the difference between straight line and annuity MRP, please do ask him.
However, if it makes a very marked difference in terms of what this counsel's
budgets look like over the short to medium term, effectively with all these things,
the cost then comes at the back as the, but that actually is when the benefit accrues
to you as well.
So that's the intention, is it more clearly matches the benefit of the expenditure
with when you actually pay for it.
Much of this report outside that which is discussing MRP is details not actually the
current or projected borrowing, but the limits to that borrowing that we must stay within.
So looking, so we have to look through our projected borrowing against those limits to
make sure that we remain within that throughout the projected period.
If that's too long and you didn't read it, the answer is this says it's all good.
Also, thank you to James, whose questions before this meeting pointed out an error in
table 11 of appendix 1, which will be corrected before it goes to Council.
The HRA financing costs shown in that chart are actually much lower than they're shown
in that chart.
That will be corrected.
I love the fact that my email has pasted that in, and the text underneath it says, a table
with numbers and a few percentages AI -generated content may be incorrect.
Could be.
But no, the paper is in front of you.
As I said, despite the fact it sounds dry,
this is weeks and months of Alan's life
to get us to a position to bring this paper forward.
And it makes a absolutely material impact on our budget.
And I'm more than happy to move the report
and all of the recommendations.
Cllr Jim Martin - 0:34:36
Thank you very much, Councillor Prater.
I'm very happy to second
and also to add my deep grateful thanks to Alan.
And we're just tackling it, you know,
the plethora of numbers.
But actually to come out the right side of the ledger
is just incredible.
So I know I've thanked you before, Alan,
but once again, thank you for doing the work
and bringing us this very good news.
So, very happy to open it for discussion or questions.
Councillor Spakeman.
Cllr Jeremy Speakman - 0:35:17
Yes, just very happy to see under the
Appendix 1 Capital Strategy, Capital Expenditure,
noting that Hyde Pool is being refurbished
to the tune of 2 million, which I think is great.
I wouldn't say it's well overdue,
but perhaps it's well overdue.
But certainly I think people in Hyde
will be very pleased about that.
I notice, I think, sorry to jump ahead,
I guess, but it comes up, I think, under the medium -term capital programme.
Further in the agenda, I think there's a further four million earmarked for the following year.
Is that then, are we looking at a sort of two -phase kind of development, or is that
all just an ongoing thing?
I mean, is it, you know, there's a sort of phase one, two million, and then the following
year it's four million.
If I've read that right, is that correct?
And I don't know quite what that means in practise or whether that's just jumping the
I've been busy, you see what I mean?
Alan, will you go and shed some light on that?
Yeah, sure.
Mr Alan Mitchell - 0:36:14
So, it's about the profile of the capital scheme.
So, by the time we actually get this going and then start to develop, the profiling that
we've got indicative in there at the moment is that it's over two years, it'll be two
million one year for me in the next year, six in total.
But that will be more defined once we've gone through the further work and actually identify
the scheme we're going to do, then we'll be able to refine that more.
Cllr Jim Martin - 0:36:39
So it will be a single contract, one continuous flow of work.
It's just that it's likely to take 18 months to two years, depending on what options we
go for.
But it will all be one continuous flow of work, so we won't stop and start.
Councillor Prater, will you indicate?
Only to say that.
Cllr Tim Prater - 0:37:01
It's the 6 million pounds is the amount that has been budgeted to give us opportunities
and options for what we do with Heithpool.
It's not been agreed yet.
It's not a decision of this Council yet, but it gives us the headroom to operate in.
And as has been said by others, it's just phasing when the money, when we're putting
making that money available, not because it's our best guess that we wouldn't be able
to spend six million quid before March 2027 at this moment.
Very good, yes.
Cllr Jim Martin - 0:37:32
Any other questions or queries?
Councillor Prater proposed the item
and I was very happy to second.
All those in favour, please indicate.
Thank you very much, everyone.
We move on to the next instalment
of the Councillor Prater show,

8 Treasury Management Strategy statement 2026/27

item eight, Treasury Management Strategy Statement,
The 2627, pages 115 to 140.
Tim.
Thank you.
Cllr Tim Prater - 0:38:01
I trailed this report a few items ago under the investment strategy.
And as I said, it broadly deals with how we manage our borrowing, often long -term,
and our cash investments, which are a mix of long and short -term investments.
It's another report which needs updating annually, and you'll see it contains
detailed figures in there which gives you details of what our current borrowing and
investment position is. Again, this policy has a detailed section on our approach to
environmental, social and governance considerations on pages 7 to 9, and you'll see that that's much
longer than even the investment policy. Broadly, that's because investment guidance,
stack it from CITFA, means that we must make sure that all investments are secure, liquid,
and yield, are the first things we'll do. Basically, we need to make sure that the money
is safe. Beyond that, however, the policy outlines a clear ethical dimension, which
was only first introduced really a few years ago, but is now becoming much more extensive
and more detailed. That doesn't mean that it covers everything yet. It's not everything.
I genuinely think the team has gone as far as we can right now and much further than many councils have gone on this.
And as the products become available in the market and money markets,
then that actually guarantee how that money is invested, then that will give us more options.
Until that, it's quite opaque sometimes where money in mixed funds sits.
So I'm really, again, really pleased to see the consideration which has gone into extending
that section and give lots more detail around that. And I'm really happy to move the paper
and recommendations. And again, thank you, Danny, for all of the work on that paper.
Cllr Jim Martin - 0:39:56
Thank you very much, Councillor Prita. And I'm very happy to second the report and open
in up for questions or queries.
Councillor Lakemore.
Cllr Mike Blakemore - 0:40:10
Yeah, I was going to ask about the point which Tim made there
about environmental, social and governance considerations,
because it's often said around ethical investments
that they're very difficult,
either because how do you tell
whether they're really ethical or not,
and because you have a certain duty
to get a return on your investment,
so that can make it difficult.
But I just wonder whether it's possible to say
whether there has been a real world impact for us
in terms of making ethical investments,
or whether we think that landscape is likely to change,
and in other words, this is a policy,
but what does the practise look like already,
or what's it likely to look like, if that's possible?
Cllr Jim Martin - 0:40:51
Can we conjure up an answer in the time available?
Jonathan, you look like you're bubbling with the answer,
Jonathan Smith - 0:40:57
if you could, thank you.
Actual bubbling, yeah, interesting.
Thank you, Lita. Thank you, Councillor Blakley.
I think what we'll do is we can speak to our Treasury advisors.
Obviously, we have professional advisors in this space.
We can see what we can do and maybe report back to you in terms of practical terms,
but that's probably the best we can do for the time being.
But, yeah, we'll certainly speak to them and get some advice and report back.
Councillor Butcher.
Cllr Jim Martin - 0:41:21
Yeah, just to follow up on that,
Cllr James Butcher - 0:41:27
I suppose there's investments that have a positive environmental impact,
And then we've got under the policy, the council will not knowingly invest directly in businesses.
And it goes on to list the businesses we won't knowingly invest in.
I just wonder how we test that out.
How do we cheque that we're not investing in any of those things?
Cllr Jim Martin - 0:41:46
Jonathan, are you?
I'll take this one.
Mr Alan Mitchell - 0:41:52
So generally, when we look at our counterparties,
one of the things that we do as part of the due diligence is look at what their ESG standards
are and what their duties are and what their charters are and what you'll find is that
most of those will set some sort of, well actually this is our criteria, this is what
we operate to. So that's kind of like in terms of the counterparts for you as part of the
due diligence that we undertake. The reason that we say knowingly is obviously stocks
and shares and the companies they invest in continue to change. So what we do is, you
in part while to like Treasury Management strategies
that we have regular conversations with them
and we discussed to counter parties
and they will bring to our attention
anything that they think might be significant.
Cllr Jim Martin - 0:42:41
Okay, Councillor Prita.
Cllr Tim Prater - 0:42:43
I would say within that section,
I think the back part of that gives some answers
to what we can do and where things have moved on
at that stage.
So as it says, the council does invest in pooled fund
and therefore doesn't have full influence over the activities of companies that part
edition now provide.
But what we can do is take the following approach.
So for a direct investment, the Council is looking to ensure that counterparties,
which might be the government and might be other local authorities, have got their
own responsible investment policies or environment policies in place.
I can't absolutely promise you that the UK government isn't investing in nasty stuff
somewhere, but if they say they're not, then that's what we've got.
We can take that forward.
So for direct investments, that's plausible.
For indirect investments, I think we're looking towards fund managers who've actually
got their own responsible investment policies in place at that stage and have signed up
to policies, signed up to policies and frameworks like the United Nations Principles for Responsible
Investment.
Again, we can't do the due diligence and say absolutely everything in those things have
met their own standards that they have signed up for, but they've said that they will meet
to those standards, and then they are operating on that basis.
It's on their, you know, you take the due diligence as far as you can at that stage.
So when we've made that investment, we can't be absolutely sure.
We can only hope that they hold themselves to the standard which they have said that
they are going to hold themselves to.
So there's an element of trusting people, as particularly in terms of government,
and that comes hard some days.
Cllr Jim Martin - 0:44:19
I've just got the cancer of scoffing and I'll come back to you.
Yeah.
Cllr Stephen Scoffham - 0:44:25
Well, I'm delighted that this is these page and a half or whatever on ESG is there.
And very pleased to see it.
And this is a great development.
So that's a...
I really welcome that.
I recognise it's a tricky area and you need to be prudent and you need to be careful and
you're not going to be able to exclude everything.
You will not be able to be 100 % confident.
The green economy is growing.
It is a very good investment opportunity.
I am not an expert on these things, but what I pick up is that there are increasing opportunities
within that sector, both social and environmentally friendly activities are good returns.
So I just wonder whether the language around the policy could be shifted a little bit.
It's a little bit of sort of the avoidance, the caution and the prudence come across very strongly.
Earlier on we were reading about how this council can be an influencer
and that sort of positive opportunity to say we're doing this because we believe in it
and because we are setting in a sort of,
are putting up, nailing our flag to the mast
and saying this is what we think matters,
I think we could probably read,
just to change some of the verbs,
a rather lot of woulds and coulds and shoulds
into slightly more positive language.
But I recognise that the policy is really well written
and I recognise that it's something that is new
and thank you very much for inserting it.
Councillor Prater, I'm certain you'd have been disappointed
if I hadn't commented on this discussion.
Thank you very much.
Cllr Jim Martin - 0:46:02
Councillor Butcher.
Yes, I was just going to get clear in my head
Cllr James Butcher - 0:46:08
about when we're investing and someone's making a claim,
we're saying, OK, they're saying they invest in certain ways.
Does that get audited at their end, do we know,
and do our investment processes get audited?
So it's whether are we just taking something at face value
or have we got some sense that their claim has some validity to it?
Jonathan or Alan, if you had an answer.
Cllr Jim Martin - 0:46:31
Thank you, Nida.
Jonathan Smith - 0:46:33
I mean, so many of the funds that we invest in, for example, they'll put out ESG reports
on their websites, so there's a lot of other funds that are invested in that information
that's available and that's considered.
Certainly some of the pooled fund investments that we've invested in, some of these considerations
were thought about when we invested in these specific pool
funds, in fact, some of the funds that we are invested in,
a number of local authorities are all invested
in those funds, and a lot of these considerations were made
when we, as I said, when we entered into those specific
investments.
In terms of the point you raised there about the auditing,
we have to, again, there is some level of reliance
on the information we do receive.
There's obviously a limit to how far we can go
in terms of what is available in terms of the assurance
that we do get.
But certainly we do, as I said,
the considerations such as some of the ESG reports
that are available with fund managers and provided,
you know, those are considered
when we are investing in particular funds.
And obviously we do take advice as well
from our treasury advisors as well to support us on this
and they're aware of our policy.
And so, yeah, we take that advice from professional advisors.
And Alan, you've got something to add.
Cllr Jim Martin - 0:47:50
Yeah, thank you.
Mr Alan Mitchell - 0:47:52
So just to give you some fair assurance, so the Financial Conduct Authority regularly
reviews ESG reports and they will ensure that they are scrutinised and ensure that they
are reporting what it should be, and that's fund managers, life insurance, as well as
equity and compliance and that, so that the FCA actually reviews those regularly as well.
Thank you very much.
If there are no further questions or contributions, Councillor Prater moved.
I was very happy to second.
All those in favour, please indicate.
Terrific.
Thank you very much.
And we move on to item nine, general fund budget and council tax resolution 2627, pages

9 General Fund Budget and Council Tax Resolution 2026/27

141 to 276, and Councillor Praise will lead us through this.
I do not know the agenda.
We're powering through, and I promise not to speak to all 130 pages or so of this.
I'm, of course, delighted to move the general fund budget, which is before us this evening,
and which will, with a few late amendments, some additional detail from county council
and other authorities we preset for, form the basis of the budget that is put before
the Council in two weeks' time.
That will also include an adjustment from the final financial settlement from the government,
Cllr Tim Prater - 0:49:18
which they saw fit to change three days ago, but on the other hand, as it's a financial
change in our favour, we'll take it and that will make it in the paper.
You'll see that from the report that various elements of this report already visited
scrutiny on a number of occasions, and I'd like to welcome their constructive
questioning and feedback on that.
And where we've taken that feedback and those questions, we've brought them back
into the budget which is now being presented.
Another key section of this report is Section 11, because it's one of the most
important parts of the report, because that's where Alan, the Section 151 officer,
has to give his professional opinion on if this budget is achievable and safe.
In many counsels, that's becoming increasingly hard for people to say in brief.
But I'm delighted that Allen could be confident to say he's content that the budget
being presented is adequate, the level of reserves held throughout the MTFS period
are adequate to meet the counsel's financial obligations and have due regard to foreseeable
risk.
It's short, and it's great to hear.
And the longer that those reports are, the more that somebody is trying to hide something.
So, it's really good that that was a short and unequivocal statement.
This is, again, the right time to give my thank yous to Alan and to Jonathan and to
Daniela and the team for bringing all of this together.
It's a huge commitment to bring together, alongside other little things like introducing
the entirely new finance system, which goes live on the 1st of April.
Just before running through the government financial settlement for this year, I'd
say it was okay for this Council. It was terrifying waiting for it. And it's great to see three -year
budgeting return, which allows our forward forecasting to be a little more certain. I
mean, we have a certain amount of certainty. On the 1st of April, we, 2028, we blew back
our existence. But, you know, leaving aside that uncertainty.
Where I would say, though, is that where the settlement is not as good for us is in years
two and three of that settlement, where rising costs and inflation are not met by any increasing
support. Although, as I said a few days ago, they did improve that position a little, they
ain't fixed it.
So we are going to be faced in years two and three where a position whereby our income
remains broadly flat, but our expenditure, assuming inflation still happens and assuming
people still want paid rises and assuming contracts still increase their, there's contract
information on those contracts, our expenditure will rise. So although in year one it's okay,
in years two and three it will get progressively more difficult all the way through. And that's
a, I'm not trying to give myself a hook to get myself off next year, but I'm just, I'm
giving myself a hook to let you know that that's coming in a year's time.
So as I said, I'm not going to talk to all of the 130 -odd pages of this budget, but what
And I wanted to just outline quickly is what it allows us to do and what we're going to
be able to do with that.
So some of the highlights of that is that for the third year running, the third year
of this three years of this administration, it's a balanced budget.
It's not funded from general reserves.
We were told our predecessors were financially prudent and that we would mess this up.
We have put together three balanced budgets on the trot.
We do so with a sub 3 % council tax increase on our portion of council tax again,
as we have for the last two years.
And that's lower than the council tax rise that Kent County Council will set tomorrow.
Within that, we've also funded the £5 million investment into new council -owned temporary accommodation,
which will provide emergency housing to those who need help most,
and which will reduce our costs long -term and improve the quality of what we offer.
We're dealing with FOCA.
We've accepted the offer from FOCA 1,
which was discussed earlier,
which will be turned into retail and out of flats.
And that receipt will be invested into FOCA 2.
And again, as we discussed earlier,
that receipt is part of the 13 million pound investment
in FOCA 2 in the medical centre and commercial,
and we'll get it open with a business plan
that actually pays for itself
and makes money in the long term.
We're readily enabled within this budget
to fund a £2 .4 million grant to receive folks to the sports centre reopened, and also to
massively reduce its energy costs in doing that so it becomes more financially sustainable
as a business and there's no ongoing cost to this council beyond that grant. This budget
also allows us to fund the £6 million to rejuvenate Hyde swimming pool and look at
options, improving the facilities and extending its lifespan for decades for only a fraction
of the cost that a new pool would have cost. Of course, we priced up a new pool and it
was a multiple of 6 million pence. The budget still allows for and we're still determined
to bring a new leisure facility to Martello Lakes. We said we would and there'll be more
on that in coming months and this budget allows for it. There's also more money in there for
and Mike and the team are going to be bringing forward
how the proposals, how to allocate that.
At the moment it says a headline in there
and then the breakdown of that will happen
over the next couple of months.
And hopefully give councillors some more control
of it as well.
But Mike will be bringing those things forward.
So I'm delighted not to go through 430 pages,
but I'm even more delighted to move the report
and all of the recommendations listed on that report.
and I will leave it there and take questions, comments, et cetera.
Cllr Jim Martin - 0:55:06
Thank you very much, Councillor Praiser, and thank you for your part in this quite remarkable
budget, I have to say. Just on a kind of a personal note, I remember when our first budget
it was painful.
I mean, it was really, really painful.
And great credit to Jonathan, who, if you remember,
was working 16 hour days to try and put it all together.
That is something that we could get us over the line.
And, you know, last year, if you like,
was a kind of steady as she goes kind of budget.
This year, we've got a little bit of flexibility.
There are, you know, storm clouds on the horizon, which we know about, that Tim has outlined.
But to be, from where we were to where we now are is a terrific, is a terrific really,
all I can do is say thank you to the officers, thank you to the members who supported the
various strategies that we've had.
And it's something that's kind of dawned on me.
This all takes flipping time.
I would have loved in the first few weeks
if we could have been where we are now,
but it just takes time.
And so congratulations to everyone.
Just in simple terms, the contribution from Alan,
we've in two specific areas in terms of
looking again at the capital programme
and getting some surplus back from that
and his very detailed argument
with the government about how they had
our fair funding formula all wrong,
which is one, and again, it's just eased the pressure on us
going forward.
So rather than make myself hoarse
congratulating all the people around me.
Just a general thank you and believe me, everyone,
it is appreciated, it really, really is.
All of your hard work is noted
and really, really appreciated.
So well done, the officers.
Excellent.
So I'm happy to second, I don't think I mentioned that,
I'm happy to second and open for discussion.
Councillor Fuller.
Cllr Gary Fuller - 0:57:50
Thank you, Chair. Just to sound the note of caution, as it were, I'm keenly aware that
this settlement, based on the sort of net position, it still is in the situation that
over the next three years the average of inflation and the pay award could be double what the
net improvement or additional funding that we are getting.
So that is something we will need to be aware of and that is ignoring the issue of temporary
accommodation of course as well.
But I am also somewhat optimistic on this in the sense that we are aware of this now,
we are thinking about this now and that this report covers that as well.
So cautiously concerned, but also optimistic
in terms of the future.
And I'm just really glad that once again
we've delivered a balanced budget.
Or Tim has.
Councillor Fulla, your point is very, very, very well made.
Cllr Jim Martin - 0:58:49
And particularly on temporary accommodation.
Temporary accommodation has sent a lot of councils,
a lot of our neighbours into very, very difficult areas
financially and this isn't a place for the discussion on it, but we have a number of
ideas how we may manage the future around temporary accommodation.
Cllr Jim Martin - 0:59:15
Sorry, Councillor Speakman, I didn't see you.
Cllr Jeremy Speakman - 0:59:18
Yes, probably won't be surprised my portfolio waste management end and I picked up something
You're on Regulation and Community Services page 148, Movements.
Appreciate that it's actually a positive movement there, 83 ,500,
but I guess a lot of that's to do with the...
I suppose a bit of a windfall with the producer responsibility payment.
But there is a significant sum there of £215 ,000,
which I know a bit of the background.
I just wondered where that is in terms of...
I think it's to do with contract negotiations with our providers,
whether there's a sum that's, you know,
is going forward at that level,
whether it's a one -off payment, I wasn't quite sure,
or whether it's even retrospective.
Presumably this is going forward, is it?
Is there...
Paying on our rates.
Household waste collection, recycling, cleansing, etc.
Contract inflation, $215 ,000.
Yes, so, Chair, if I may, for you.
So that was to do with there's an error in their calculation in terms of what the inflation
on their contract should be.
So we're also contract bound to pay for that, as it were, even though it does go a little
bit.
But I believe that's an inflationing increase that will be built into the contract that's
then inflated, so it will affect going forward.
So it will be an ongoing period?
Yeah, maybe not at that level, but it will then be built into the actual...
Right. That's what I wasn't...
I wasn't sure if it was going to be that sum or whether that's just a kind of like a catch -up
and then it's a bit less than that.
Effectively it's a catch -up, but then it will be built into that contract grant.
As you go forward.
Okay, that's fine. Thank you.
Councillor Polly Brankmoor.
Cllr Jim Martin - 1:01:09
Thank you, Chair.
Cllr Polly Blakemore - 1:01:15
I just wanted to draw attention to the table at Appendix 1 on page 263.
I mean, this won't be news to others in this chamber,
to people in this chamber, but for others,
just worth pointing out that out of the council tax bill
that lands on the doormat in a few weeks' time,
it's less than 12 .5 % comes to FHDC.
70 % of that goes to the Kent County Council
and of course, lesser amounts to other preceptors.
But I think as the collecting authority,
there's an assumption that money's coming to us
and of course most of it isn't.
Your point is well made.
Cllr Jim Martin - 1:01:53
We may even do some comms on that
because it's, you know,
and in particular as Councillor Prater highlighted,
the percentage increases are less for us
than they are for KCC,
depending on what they decide tomorrow.
Any other questions or queries or?
Councillor McConville.
Cllr Connor McConville - 1:02:17
No, just to say I think this is probably the best budget that we've put forward in terms
of this administration.
Possibly the best, no, I'll go out and say it.
It's the best budget I've seen since I've been a Councillor, just in terms of what it
offers.
There's a lot of growth in there under quite challenging circumstances, and to echo the
congratulations to the finance team to be able to make some manoeuvres to free up some
funds to allow us to really tackle some big issues like temporary accommodation and community
funding.
So I can't wait to vote for it in Council.
Thank you very much.
Cllr Jim Martin - 1:03:09
Councillor Butcher.
Yeah, it was just to build on what Councillor Langmore was saying.
Cllr James Butcher - 1:03:16
And I think it works out, our Council tax rate works out to about 80p a day per household,
which, you know, when we get reports on the action plan,
all the service performance and the KPIs,
just seems to me incredibly good value for the huge amount of work that this Council is delivering.
Cllr Jim Martin - 1:03:37
I completely agree. But then again I would do, but I do completely agree.
OK. Oh, Councillor Mike Blakemore.
Cllr Mike Blakemore - 1:03:43
I was just, because Tim mentioned community grants, I just want to say I'm looking forward to, for the first time,
to be able to look at expanding the community grants that we provide.
A lot of the third sector out there are struggling and some of that central government funding
that they've relied on has either disappeared or has become harder and harder to get hold
of.
So it's fantastic that this council can play its part in supporting our community partners
and the partnerships that we have with them very, very strongly.
And I'm looking forward to be able to present that schedule to members and us to be able
to agree that hopefully.
Haven't been able to do it up to now
because we haven't had any more money to play with,
but it's very, very welcome that we can find the money
within what are still challenging times
to be able to do that.
Yeah, completely agree.
Cllr Jim Martin - 1:04:33
Sorry, Councillor Shrew, were you indicate?
Oh, you were.
Very good.
Okay, so Councillor Prater proposed.
I was very happy to second.
All those in favour, please indicate.
Okay, thank you very much everyone.
And we move on to item 10,
update to the General Fund Medium -Term Capital Programme 26 -27,
pages 277 to 296 in your pack.
And yet again, it is Councillor Prater.
I will let Rebecca do the next one.
Cllr Tim Prater - 1:05:08
Happy to move this report and the recommendations.
The major additions to it are clear
within the top lines of that report
as that gives us the ability to invest in folks in the sports centre and high swimming
pools so that the headroom to do that is within that report.
Apart from that, you'll see a number of other areas, a number of other things which are
going to be exciting things to see in the district and are important things to do, but
they are very much the biggest numbers in the report, and I move the report and the
recommendations.
Cllr Jim Martin - 1:05:44
Thank you very much, very happy to second
and open it for discussion or questions.
Okay, jolly good.
So we have a proposer, we have a seconder.
All those in favour, please indicate.
Thank you very much everyone.
And now, oh sorry, question?
Just a comment.
Cllr Gary Fuller - 1:06:08
Just on item 11 as we're about to start that,
I forgot to declare an interest because of course
we're discussing council rents,
which means I need to leave for this item.
Thank you very much, Councillor Fuller.
Cllr Jim Martin - 1:06:21
Okay, so we move on to item 11,
housing revenue account revenue
and capital original budget 26 -27,
pages 297 to 318.
And Councillor Shroob will lead us through this.
Thank you.
Cllr Rebecca Shoob - 1:06:42
So, as been said, this covers the revenue and capital budgets for the HRA for 26 -27.
So, on the revenue side, I'd like to highlight the rents and service charge proposals.
The rents proposed to go up in line with the rent standard 2026, and that's CPI plus 1%,
with affordable rents capped at the local housing allowance rate,
and that is all in line with our HRA business plan.
The service charges are proposed as per the de -pooling project,
which we've discussed at length previously,
and that, as you'll remember, we agreed full cost recovery
alongside the Tenant Support Fund.
The report also covers the capital budget and again this is in line with our HRA business
plan and I'd highlight in particular the million pound investment which would be 50 % grant
funding looking to upgrade the heat network at Bradford Court.
So I'd like to move the recommendations, thank you.
Cllr Jim Martin - 1:08:00
Thank you, Councillor Shrew.
Very happy to second and open for any questions or queries.
Councillor Butcher.
Cllr James Butcher - 1:08:15
I was just wanting to note all the investments that we're making in new builds and improvements.
I think it's a great work.
I think it links back to what others have said about the budget.
I think it's fantastic to see that level of investment
in improving the affordable accommodation options
that we've got for people in the district.
I think as we've often commented,
Cllr Jim Martin - 1:08:37
one of the legacies of this administration
will be our performance on housing.
And I think you're quite right, that just sets it all out.
So, well done everyone.
Okay, any other questions or comments to make?
So, Councillor Shroob proposed.
I was very happy to second.
All those in favour, please indicate.
I wonder if someone could just give Gary a nod.
Cllr Jim Martin - 1:09:11
Thank you very much.
Item 12, General Fund Capital Programme,
budget monitoring 2425 for the third quarter, pages 319 to 332.
And Councillor Prater will lead us through.
Thank you.
Cllr Tim Prater - 1:09:28
I'll keep this quicker.
I'm happy to move the report and the recommendation in it to note the figures.
There's nothing hugely, I think, exciting with this to note that capital is being spent quite quickly on the levelling up scheme amongst other things,
which is a lot of the government money, as we've said many times.
And that's quite fast -moving, and there's quite a lot.
There's going to be some delay there about whether some of the delay there is whether
the Kent County Council, who are doing the works, completely invoiced before the
31st of March or after the 31st of March. So, yeah, there's some movement there,
but I'm not aware of any really significant delays within the capital programme
beyond that, unless anyone stares at me and goes, there is a really significant
delay.
But that's the position as it stands at the moment.
Where there is movement, it's mainly just invoices
following the other side of the line
and other moving money to follow that.
Cllr Jim Martin - 1:10:25
Thank you very much, Councillor Prater.
And you moved to report, jolly good.
And I'm very happy to second.
Any questions or comments?
It is a work in progress, obviously.
Okay, so we have a proposal, we have a seconder.
All those in favour, please indicate.
Thank you very much, everyone.
And now we move on to item 13, general fund budget monitoring, third quarter, pages 333
to 346.
And Councillor Prater will lead us through this one.
In shock news.
Cllr Tim Prater - 1:11:04
Again, really happy to move this report and the recommendations.
People will have read the report.
I will be noting that we're at the end of quarter two.
We were forecasting an overspend in year.
We're now showing a projected £1 .4 million underspend to the end of the year.
Now, there's a lot of movements detailed in your report which makes that happen.
But I think a lot of it, it's fair to say, is the planned moving in of earmarked
reserves to spend on the areas that they have been earmarked to spend that money on. So
often, I think that's happened at the end of the year in the past, and they're sort
of behind, that they are, so you get a huge swing at the end of quarter four when those
changes were made and those things brought forward.
Is everything okay?
There's been a huge swing at the end of the year. And what's happening here is we're trying
to see more of them coming and bring them forward earlier so that you've got a better
idea of where the expenditure is profiled against things like spending those reserves.
However, I think it's worth noting that the changes to the MRP policy that you've agreed
this evening are not included in this forecast, and that will have a material and positive
effect in year. But we're going to need to wait until the end of quarter four to understand
that, but just to say if these numbers shift again, expect that that's coming.
That said, I'd like to hope from here that there will be underspends in here. We'll see.
Depends what asteroids hit between now and then. And that will give us some scope to
build reserves against things like future temporary accommodation costs. It will give
us some scope against potential local government reorganisation costs, give us a buffer against
the higher year two and year three costs that we've discussed are coming as well at that
stage and other options. But when we know those totals, when we see where we get to
do at the end of quarter four, we'll be talking about that in more detail and exactly where
that's going.
But I just say, as a picture, I think what we're trying to do is make sure you've got
a reasonably clear idea when we sit. I think this is closer now than we have been in previous
years where quarter three is then moved significantly to quarter four. I'd like to hope that that
movement is less significant, except that bear in mind that the NRP change written there
is significant and we'll move the dial for that. So I'm just writing it. But again, happy
to move the report and the recommendations.
Cllr Jim Martin - 1:13:40
Very happy to second the report and its recommendations and open for any questions or comments to
members.
It is just, again, another work in progress monitoring
which is delivering some reasonably optimistic news.
So we're all very happy about that, I'm sure.
Okay, so we have a proposer, we have a seconder.
All those in favour, please indicate.
Thank you very much.
So our next item, general fund revenue budget monitoring,

14 HRA Budget Monitoring Quarter 3

Third quarter, pages 333 to 346.
That's the one we just done.
Yep, absolutely.
14, I was just hoping there would be one more episode.
Sorry, so item 14.
I'm plunged into it with my own notes.
HRA, budget monitoring,
from quarter three, pages 347 to 356.
And are you doing this, Tim, or is Rebecca?
Councillor Shroop, please.
Thank you.
Cllr Rebecca Shoob - 1:14:58
So the report, as you'll see, details a small underspend
for the HRA revenue budget,
and a large capital budget underspend,
which is due largely to developer delays
in completion of new builds.
but I would like to stress that those new builds are progressing.
There is also provision for 5 million for acquisitions of temporary accommodation,
which was agreed not that long ago
and is unlikely to be spent entirely in the current financial year.
So a large part of the underspend on the revenue side
is also due to that reprofiling of the capital programme,
and so not needing finance from the revenue contribution.
So I'd like to move the recommendations, thank you.
Cllr Jim Martin - 1:15:50
Thank you very much, Councillor Shrewb.
I'm very happy to second and open for questions or comments.
It is a fairly concise and a very clear report,
Councillor Shrewb, thank you very much for that.
Okay, so we have a proposal, we have a seconder.
All those in favour, please indicate.
Thank you very much everyone.
And unless I've lost track completely,
that is our last item.
So thank you very much for your attendance this evening.
Thank you.