Minutes:
(1) The Leader informed the Council that Mr Simmonds had resigned as Cabinet Member for Finance, due to ill health. On behalf of the County Council, he thanked Mr Simmonds for the extraordinary contribution that he had made to Kent County Council as the Cabinet Member for Finance. Mr Simmonds had brought his great knowledge, experience and understanding of the financial world and carried out his Cabinet role in very difficult and challenging times.
(2) Mr Carter stated that his report would focus on Kent County Council’s Medium-Term Capital Programme.
(3) Mr Carter referred to the three year investment in the Medium-Term Capital Programme which equated to £790 million of investment in traditional areas such as schools maintenance, schools expansion and maintaining roads. Mr Carter was hopeful that Kent County Council could become more ambitious in the future in relation to the Medium-Term Capital Programme. Whilst retaining a prudent approach It was important to take advantage of favourable terms from the Public Works Loan Board in relation to long term borrowing at very reasonable rates. Which could be applied to projects that would in-turn create income, add social value and initiate potential to make significant capital gains for Kent County Council. Mr Carter referred to the Kent History and Library Centre in Maidstone as an example of an enabling development and highlighted other suggested income-producing opportunities for Kent.
(4) Mr Carter highlighted the substantial need to deliver new care homes across Kent and expressed the view that by utilising the preferential rates within the Public Works Loan Board, there would be potential for additional money to be borrowed against the rental income stream which would flow from the project, adding social value whilst continuing to meet the ever-increasing rise in demand.
(5) Mr Carter commented on the remarkable facilities that Ashford Borough Council had delivered at Farrow Court and on the housing benefit stream that they were receiving. He suggested that Kent County Council could apply the same working principle to extra care housing in Kent and could invest in new towns and villages .. He referred to Kings Hill and the benefits of this investment. .
(6) Mr Carter referred to the new powers announced by Dominic Raab (former Housing, Communities and Local Government Minister) which would allow Councils to establish new towns and villages through development corporations, subject to approval by Government. This would allow local authorities to determine the location of new communities and the potential to harvest a significant proportion of land value capture. Kent County Council’s Section 151 Officer would ensure that rigorous and robust business processes and plans were scrutinised to ensure that income would flow and capital growth would be available.
(7) Mr Carter concluded that Kent County Council should continue to explore options to increase the social value of the Kent County Council’s capital investments, to increase income streams, to maximise capital receipts and capital growth and support the delivery of infrastructure against housing growth.
(8) Mr Bird, the Leader of the Opposition, expressed his best wishes to Mr Simmonds.
(9) Mr Bird said that he was pleased to see the LGBT flag raised at Sessions House from 22nd to 25th June which demonstrated that the County Council was open and inclusive.
(10) Referring to the Medium-Term Capital Programme, Mr Bird agreed with Mr Carter’s comments and highlighted the importance of addressing the housing needs of vulnerable people living in Kent.
(11) Mr Bird referred to the Medium-Term Capital Programme and said that whilst remaining ambitious, it was important to continue to focus on addressing responsibilities such as road maintenance in Kent.
(12) Mr Bird suggested that there should be the opportunity for an informed debate in the autumn on the Capital programme.
(13) Mr Bird commented on Kent County Council’s challenges for Kent in relation to Brexit and the significant financial pressures being faced by the County Council..
(14) Mr Farrell, Leader of the Labour Group, expressed his thanks to Mr Simmonds for his service to the Council and the Cabinet
(15) Mr Farrell stated that he would submit a written response to Mr Carter’s oral report. ..
(16) Mr Whybrow, Leader of the Independents Group offered his best wishes to Mr Simmonds.
(17) Mr Whybrow referred to the importance of the Adult Social Care green paper and the frustration caused by its current delays from Central Government.
(18) In replying to the other Leaders’ comments, Mr Carter reassured Members that whilst Kent had resolved that no more than 15% of the revenue budget would be spent in servicing debt related to the capital programme, it was important to focus on income streams that would reduce borrowing costs on the authority..
(19) Mr Carter referred to the exceptional progress that had been made in relation to negotiations between the Department for Education, the Education and Skills Funding Agency and Kent County Council, to receive additional funding to contribute to closing basic need funding gaps. It was essential that Kent County Council commissioned necessary contracts to deliver school places on time.
(20) Regarding the Fair Funding Review which would set new funding baselines for Kent County Council alongside the introduction of 100% business rate retention in 2019-20, Mr Carter stated that the consultation documents would be received in autumn 2018.
(21) Mr Carter referred Members to the consideration later in the meeting that an additional £10 million be invested in road maintenance in Kent to ensure that potholes were fixed, and a good quality surface dressing applied to increase the life expectancy of roads.
(22) In conclusion, Mr Carter expressed his views on the need for a greater investment from government for road maintenance to enable roads to be maintained to a reasonable and safe standard.