Agenda item

(Item 6 – report by the Cabinet Member for Regeneration and Economic Development, Mr Mark Dance and Bryan Sweetland, Cabinet Member for Environment, Highways & Waste, Mr Bryan Sweetland and John Simmonds, Cabinet Member for Finance & Procurement and David Cockburn, Corporate Director Business Strategy & Support,. Mike Austerberry, Corporate Director Enterprise & Environment and Andy Wood, Corporate Director Finance & Procurement.)

Cabinet received a report of the Members and officers named above, the purpose of which was to explain the current conditions under which the Kent Thameside Strategic Transport (Homes & Roads) Programme was being developed and implemented, with particular focus on available funding, management of risk and the proposals for governance arrangements of the programme. 

The report sought agreement on various aspects of the programme that had significantly changed since the original decision was taken in February 2008 (07/01108) in order to legitimise the continuation of the project in the form it had now taken.

Barbara Cooper, Director of Economic & Spatial Development and Stephen Dukes Economic Development Officer, Business Strategy and Support were in attendance to speak to the report.

The Cabinet Member for Regeneration and Economic Development, Mr Mark Dance introduced the report and reminded those present of the intention of the programme, which was to stimulate housing growth that would not otherwise occur.  He reported that both the Gravesham and Dartford District Councils fully supported the programme.  He referred to the news that Paramount Pictures would be investing in the area and his belief that this would be beneficial to the project contained within the report.  He reminded Cabinet that risks had been identified and were well versed but that the investment by KCC would be no more than the expected return from S106 and CiL.

Barbara Cooper addressed the Cabinet.  She described the report under consideration as a reassertion of the Council’s commitment to the ‘Homes and Roads’ programme and a new agreement to the changes that had necessarily been made to react to external influences such as the financial climate.  Most of the issues covered within the section 106 to which this project was linked were protected but there had been significant challenges to the delivery of the Homes and Roads element.  The transport element had now been reduced in size and cost where appropriate, thereby allowing a reduction in the tariff to Land Securities, as a result of which the developer planned to begin house building on the site next year.

In addition DFT and CLG had agreed to start development work on the two main junctions within the programme and KCC, GBC and DBC had committed a proportion of the New Homes Bonus from sites within Eastern Quarry.

While positive progress had been made there remained a funding gap of £32m.  KCC would manage the programme but would only be willing to commit to spending what it was predicted to be realised through the CIL and S106 and other funding sources.

The report had previously been considered by the two relevant cabinet committees; Policy and Resources and Environment, Highways and Waste and both had endorsed the decision but expressed concern about the risk involved.  This was acknowledged by the decision makers and the DCLG and DFT had been informed of the Council’s concerns regarding the funding gap.  DfT had responded that they could not commit any funding as the need for funding was for a period beyond 2 CSR’s.

It should be noted that the scheme may continue to adapt and change in the future, as the Council and it’s partners, react again to external influences such as the announcement of the Paramount Cinema development on the Swanscombe Peninsula any potential expansion to the Bluewater shopping centre.  However Kent County Council was the only body capable of taking this risk and managing this programme and must take this route if housing growth in the area is to be stimulated.

The Leader of the Council, Mr Paul Carter, agreed that the decision being considered was the right thing for Kent County Council to do.  However he sought and received assurances that the risks would be monitored carefully, rigorously and often.  Should prudential borrowing be needed at some point during the management of the project to cashflow improvements, the risks of doing so must be considered in full again at that time. 

He suggested that a letter be sent to ministers at the DCLG to further reiterate the County Council’s message that it would not spend what it would not collect.  This would provide KCC with a reference point when discussing with ministers in successive governments or when circumstances had changed in another way. 

Despite the risks Mr Carter acknowledged the need for house building in this area to be stimulated and welcomed the opportunity for KCC to help to achieve this but the government must be clear, by way of the letter mentioned above, that KCC would not be responsible for substantive gap funding for the roads and homes project.

The Cabinet Member for Highways, Environment and Waste, Mr Bryan Sweetland addressed the Cabinet.  He agreed with the Leaders sentiments regarding fiscal prudence but reminded Cabinet that for some improvements KCC would not be the delivery agent i.e the Highways agency would be responsible fopr the the junctions at Bean and Ebsfleet albeit with KCC as the accountable body.

He urged that all parties involved be required to sign an agreement which set out clearly the terms on which work would be undertaken and which defined the responsibilities of those involved.

Mrs Cooper confirmed in response to a question from the Cabinet Member for Customer and Communities, Mr Hill, that the housing development on the Eastern Quarry site would not be affected by the proposed Paramount development referred to earlier but that it was accepted that it would have a significant impact on transport and the developer in question would have to make a significant contribution to the transport network, which may positively impact on the funding gap.

RECORD OF DECISION