Cabinet Member decisions

Proposed decision –

To approve, subject to a funding allocation being awarded by the Department for Education (DfE), the acceptance and deployment of capital grant funding for phase 3 of the School Based Nursery programme 2027 to 2030

Reason for the decision

The local authority may submit a bid to the Department for Education (DfE), by 30th September 2026, putting forward the projects it proposes to develop in Phase 3 of the national School Based Nursery Programme.  Should funding be allocated, the decision seeks the Cabinet Members approval to accept and deploy the grant funding to deliver the new school-based nurseries.

Background

The DfE has operated two phases of its school-based nursery programme (SBN).  Phase 1 was only available to schools with surplus accommodation that could be converted for less than £50k – five schools in Kent successfully applied.  Phase 2 widened to schools with more expensive proposals, but these needed to be well advanced, for example already having planning consent for a new building.  The schools made applications directly to the DfE, and the funding arrangements are between the schools and the DfE.  The DfE has already announced the successful phase 2 schools, with 9 of the 300 nationally being in Kent.

Phase 3 is a three-year programme.  It invites local authorities to develop multi-year funding proposals to deliver new and extended school-based nurseries between 2027 and 2030.  To be eligible for the grant, the SBN project must result in the creation of additional early education and childcare places.  These places should support the delivery of the government’s early education and childcare entitlements.

The government remains committed to expanding SBNs across England and has pledged almost £325 million of further funding between 2027 and 2030 to support future phases of the programme.   Local authorities can apply for as much capital funding as needed to create or repurpose spaces for nursery provision.  The use of surplus space is not a requirement for phase 3 of the programme. 

The local authority is currently working with approximately 30 schools county wide to develop each school’s costed proposals.  The local authority is then required to submit a bid to the DfE by 30th September putting forward the projects it deems are most likely to secure DfE funding.

Financial Implications

Phase 3 of the school based nursery programme is expected to be fully funded from the DfE through the School-Based Nursery (SBN) Capital Grant 2027-30. There is nearly £325 million of funding available with local authorities expected to bid for required funding for each individual project. There is no limit to the number of projects a local authority can bid for but each is assessed on its own merits and the DfE are not expecting individual projects to cost more than £1 million (or £0.5 million if repurposing existing spaces). Local Authorities will be required to justify costs for all projects with the DfE considering relative value for money when assessing the bids. This funding can also be used in conjunction with other funding sources (for example Trust reserves) where applicable.  

The grant cannot be used to reimburse costs already incurred before the grant is awarded, and unforeseen capital expenses will also not be covered by DfE. The DfE recommends that every

project bid includes a contingency in its cost planning to account for unforeseen expenses that is proportionate with the level of risk inherent in the project(s). Project level technical advisor fees can be funded from the capital grant up to 10% of the SBN project value. There is no KCC General Fund requirement expected for this decision, other revenue costs are expected to be met from existing resources.

The DfE also require the bids to span 3 financial years with the following funding distribution:

• 20% of total funding in Year 1 (April 2027 to March 2028) 

• 30% in Year 2 (April 2028 to March 2029) 

• 50% in Year 3 (April 2029 to March 2030) 

The DfE will inform the local authority of the totality of the grant in Spring 2027.

How the proposed decision supports the Council’s Strategic Statement

Aim 3: Supporting residents that need help.  Phase 3 of the School Based Nursery Capital Programme supports Aim 3 as it provides greater focus on prevention and early intervention and supports the ambition that every child has the chance to grow up safe and secure. 

Options

Option 1 – Accept and deploy any funding allocated by the Department for Education under Phase 3 of the School-Based Nursery Programme 2027–2030 (recommended proposal to be progressed). This would enable the Council to secure external capital funding to increase early years and childcare provision etc.

Option 2 – Decline funding allocation. This was rejected because this is an opportunity to receive capital funding from the DfE to further increase early years places across the county, especially in areas identified as being deprived and/or with lower, present capacity. 

As Cabinet Member for Integrated Children’s Services, I am asked to agree to:

1.    Delegate authority to the Corporate Director of Children, Young People and Education to:

(a)       Accept and deploy any funding awarded under the School Based Nursery Programme 2027-2030;

(b)       Finalise the programme of schools and projects included within the approved funding allocation, and to make amendments to projects where required by the Department for Education, affordability, deliverability or programme requirements;

(c)       Approve capital expenditure on individual school-based nursery proposals, including reallocating funding between approved projects, provided that the total capital expenditure remains within the amount determined by the DfE capital allocation, and in cases involving capital expenditure above £1m, such approval to be made in consultation with the Cabinet Member for Education and Skills; and

(d)       Take relevant actions, including but not limited to, negotiating, finalising and entering into contracts and legal agreements as required to implement the decision.

2.    Delegate authority to the Director of Infrastructure, in consultation with the Corporate Director for Children, Young People and Education, to take relevant actions necessary to deliver the approved capital projects, including but not limited to, finalising, entering into and varying contracts and legal agreements as required to implement the decision.

Proposed decision – That the Cabinet Member for Education and Skills, be asked to:

1) APPROVE an additional £400,000 from the Children’s, Young People and Education Modernisation Capital Programme to enable the replacement of mobile buildings at Dover Grammar School for Girls.

2) DELEGATE authority to the Director of Infrastructure in consultation with the Director of Education and SEND, Head of Law (or other officer with delegated authority) to enter into any negotiations, and contracts, contract variations or other legal agreements, as required, to implement the decision

3) DELEGATE authority to the Director of Infrastructure to be the nominated Authority Representative within the relevant contractual agreements and to enter into such variations as envisaged under any of these contracts.

Reason for the decision

Decision 26/00001 approved £1,400,000 to replace two mobiles at Dover Grammar School for Girls.  Since approval, project costs have increased, resulting in a funding shortfall. An additional £400,000 is now  required to enable delivery of the project.

Background

KCC has a mobile refurbishment/replacement programme as part of the modernisation programme. The condition of each mobile building on a maintained school site has been assessed. From the assessment, two mobile blocks at Dover Grammar School for Girls have been identified as needing replacement in the next 12 months.

Decision 26/00001 approved £1,400,000 to replace these mobiles.

Since the decision was made, planning permission has been secured and a contractor has been appointed to finalise the design. However, Kent Fire and Rescue Services (KFRS), who are a key consultee, have raised a concern about access for a fire tender to the location of the mobile replacement should there be a fire.

As a fire tender cannot get within 40 meters of the building, KFRS are expecting that a system is put in place to limit fire spread across the site. This decision is not driven solely by a life safety (“people first”) evacuation approach. This means that systems such as sprinklers are being required to protect the building as well as control fire propagation. KFRS are a consultee to the Building Control Officer, and Building Control approval cannot be granted unless these issue are resolved.

KFRS are a consultee for the appointed Building Control Inspector, their approval is a requirement to achieve final Building Control approval for the building. The additional £400,000 requested will be required to cover the costs of the sprinkler system, including the tank and will increase the contingency, should this be required.

Options (other options considered but discarded)

Refurbishing the mobile units has again been considered and rejected. The condition of the buildings is such that refurbishment works would not provide good value for money, even with the increased capital costs being requested.

At feasibility stage other locations for the new building were explored and rejected.  These have been reconsidered, but again rejected:

·           to replace the existing mobiles - replacing the Music Mobile would be cost prohibitive due to significant works required to a retaining wall. Additionally, the sprinkler system would still be required for the second mobile class block.

·           the boundary edge - although this would mitigate the requirement for the sprinkler system, it would require a two storey structure with a lift, additional access works and as a number of mature trees would need to be removed, significant bio net gain would have to be planned for. Additionally, a new planning application would be required. No savings would be made.

The option of doing nothing remains discarded. The current buildings are life-expired and the space they provide is required by the school.

How the proposed decision supports the Council’s Strategic Statement

The proposal supports the following:

Aim 2 objective 2 in that the rebuilding of the mobile classrooms with fit for purpose facility is a responsibility expected by, and is in the best interest of Kent residents.

Aim 2 objective 2 in that this proposal is part of a strictly managed capital programme.

As Cabinet Member for Education and Skills, I agree to:

1).      INCREASE the funding for the replacement of two modular classroom blocks at Dover Grammar School for Girls by £400,000, from £1.4 million to £1.8 million, to fund the installation of a sprinkler system and associated contingency costs.

2)       DELEGATE authority to the Director of Infrastructure in consultation with the Director of Education and SEND, and the Head of Law to take relevant actions, including but not limited to negotiating, entering into and finalising the terms of  relevant contracts, contract variations or other legal agreements, as required, to implement the decision; and

3)       DELEGATE authority to the Director of Infrastructure to be the nominated Authority Representative within the relevant contractual agreements and to enter into such variations as envisaged under any of these contracts.

Proposed decision

APPROVE, £1.4 million capital contribution to provide 2 FE core facilities at Water Meadows Primary School to the DfE School’s rebuild programme of the 1 FE school.

Reason for the decision

The DfE identified Water Meadows Primary School to be included in the Schools Rebuild Programme and is rebuilding the 1FE School. As the school has been identified to be expanded by KCC in the Kent Commissioning Plan in response to new housing developments in the vicinity, KCC has the opportunity to contribute funding to enable the inclusion of 2FE core facilities within the rebuild. This will future proof the school site and provide infrastructure capable of supporting a future expansion should additional pupil places be required. Delivering these facilities as part of the rebuild represents better value for money and minimises cost, disruption and inefficiency for retrofitting the infrastructure at a later date.

Background

Water Meadows is a 1FE Primary school on the outskirts of Canterbury City and is part of The Stour Academy Trust. It was successful in a bid to the DfE to be rebuilt under the Schools Rebuild Programme.

The Kent Commissioning Plan identifies Water Meadows Primary school to be expanded by 1FE to meet the needs of pupils generated from new housing developments adjacent to the school and in the planning group. The expected primary pupil yield from new developments in the planning group is 277 new primary pupils. A 1FE expansion provides 210 places across Year R to Year 6.

The new housing development of Land North of Hersden CA/22/01845 (800 homes) is adjacent to Water Meadows School and within the planning application includes 0.8h of land to expand the school by 1FE. The primary pupil yield for this development is 207 pupils. The application is currently awaiting a decision by Canterbury City Council. The decision is expected shortly and the s106 is in draft form.

Options (other options considered but discarded)

Option 1: Proposal being progressed)

Contribute £1.4m to enable the DfE to incorporate 2FE core facilities within the rebuild – this is the recommended proposal to be progressed as it future proofs the site and reduces cost and disruption to any future expansion should additional places be required. Water Meadows was identified as the appropriate site as it is adjacent to the new housing development.

Option 2: (not recommended)

Allow the DfE to rebuild the school as a standard 1FE school without the enhanced core facilities. Any future expansion would likely require additional works to a newly rebuilt school, resulting in greater cost, disruption and inefficiencies.

How the proposed decision supports the Council’s Strategic Statement

Aim 3: Supporting residents that needs help.

Aim 4: Building better communities. Ensure that the infrastructure needs of the county to support economic growth and quality of life are fully in place.

This project will ensure that there are sufficient school places in the local area and the school infrastructure is appropriate to mitigate the new housing developments.

Financial Implications

The DfE are leading on this project, and most costs are expected to be met directly by the DfE through the Schools Rebuild Programme. The estimated total cost of capital contributions from KCC to the DfE for this project is estimated to be up to £1,400,000.00 and includes c£1.1m of base build costs and c£0.3m of external works and associated infrastructure. The project is at design Stage 3 with the planning application submitted to Canterbury City Council. The determination date is mid-August. The budget includes a risk allowance of 15%.

Capital costs for this contribution are expected to be met from through the Basic Need Capital Programme, which is funded from a range of sources including Basic Need Grant, Developer Contributions, Prudential Borrowing (agreed for historic schemes) and other specific grants. For this specific project, KCC currently holds banked developer contributions totalling £1,020,300 towards Water Meadows Primary School 1 FE expansion. A Community Infrastructure Levy bid has been submitted to Canterbury City Council for the remaining £379,700; we are awaiting the outcome of the bid, and this is expected in October. If the bid is unsuccessful the wider Basic Need budget (currently £148m) will be required to fund the difference. This is expected to be manageable within the overall budget.

Further developer contributions are being sought for the future 1FE expansion.

There are no revenue implications for this design. However, there is a risk that if this project does not go ahead any abortive costs will need to be transferred to revenue.

As Cabinet Member for Cabinet Member for Education and Skills, I agree to:

1) APPROVE the allocation of £1.4m from the Schools Basic Need Capital Programme to provide 2FE core facilities at Water Meadows Primary School as part of the DfE Schools Rebuild Programme of the 1FE School;

2) DELEGATE authority to the Director of Infrastructure to take relevant actions including but not limited to negotiating, entering and finalising the terms of relevant contracts, contract variations or other legal agreements as required to implement the decision; and

3) AGREE for the Director of Infrastructure, to be the nominated Authority Representative within the relevant agreements, with authority to enter variations as envisaged under the contracts.

Proposed decision –

Cabinet is asked to:

a)    NOTE the revenue and capital forecast outturn position for 2026-27 detailed in the report, and accompanying appendices

b)    AGREE the revenue cash limit adjustments in 2026-27 to update the base budget position (per Appendix)

c)    AGREE the subsequent revenue and capital cash limit adjustments (per Appendix)

Reason for the decision

The forecast capital and revenue outturn position for the Council needs to be noted by Cabinet.  The revenue and capital budget changes need to be agreed by Cabinet.

Background

The report on the Council’s forecast financial position at the end of 2026-27 will be reported to Cabinet on 1 October 2026. The report provides detail of our forecast capital and revenue positions, reserves monitoring, Treasury Management and Prudential Indicators.

Cabinet is asked to note the Q1 position and to agree revenue and capital cash limit changes as detailed in the report.

Options (other options considered but discarded)

N/A

How the proposed decision supports the Council’s Strategic Statement

The Council’s strategic statement, Reforming Kent 2025-28, recognises the significant financial and demand pressures the Council faces, balancing the need to manage spending, deliver savings and generate income, whilst delivering positive outcomes for Kent residents, businesses and local communities.

The Council’s strategic statement acknowledges the significance of adults social care and SEND on the wider KCC budget position and therefore the need for the financial position to presented to Cabinet for consideration on a regular basis. The forecast outturn report for 2025-26 provides the detail of the financial position and the relevant information on the delivery of savings, reserves position and Treasury Management.

Cabinet agree to:

a)    NOTE the revenue and capital forecast outturn position for 2026-27 detailed in the report, and accompanying appendices

b)    AGREE the revenue cash limit adjustments in 2026-27 to update the base budget position (per Section 3)

c)    AGREE the subsequent revenue and capital cash limit adjustments (per Appendix 2 and 3)

Proposed decision

To procure a Specialist Highway Support Services Framework to provide independent cost consultancy, specialist utility support and programme review services to support the delivery of highway and transportation schemes across Kent.

To delegate authority to the Director of Highways and Transport to take the necessary actions to award the framework and enter into the associated contractual arrangements, including any permitted extensions.

Reason for the decision

The existing Independent Cost Consultancy contract expires in March 2027. The proposed framework will ensure continuity of essential specialist support services required for the development and delivery of highway and transportation schemes. The framework expands the existing arrangements to include specialist utility support and programme review services, providing greater flexibility and resilience across the capital programme.

Background

The Major Capital Programme Team has utilised independent cost consultancy services for over 15 years to support the delivery of highway and transportation schemes. These services were formalised through contract arrangements in 2018 and have supported 69 projects to date.

The existing arrangements provide independent assurance of project costs, support business case development and assist with NEC contract administration. The proposed framework broadens the scope to include specialist utility support and programme review services required to support the delivery of increasingly complex infrastructure projects. To date, Utilities support and Programme Review services have either been provided through sub-consultancy arrangements or sourced separately on an ad-hoc basis. The proposed framework will consolidate these services into a single contractual arrangement, providing a more consistent and efficient approach to procuring specialist support.

Options (other options considered but discarded)

Alternative options considered included utilising the existing Professional Services Framework (PSF) and alternative third-party frameworks. These options were discounted as the PSF was not designed for these specialist requirements and does not provide Specialist Utility Support or Programme Review services. In addition, they would not maintain the necessary independence between design consultants and cost assurance functions.

A do-nothing option was also considered but discounted as access to these services is an ongoing requirement beyond the existing arrangements expiring in March 2027.

How the proposed decision supports the Council’s Strategic Statement

The proposed framework will support the delivery of infrastructure investment across Kent by providing independent assurance of project costs, programmes and commercial arrangements. This will help ensure that publicly funded projects are developed on a robust basis, represent value for money and can be delivered efficiently and effectively.

As Cabinet Member for Highways and Transport, I agree to:

APPROVE the procurement and AWARD of a Specialist Highway Support Services Framework to provide independent cost consultancy, specialist utility support and programme review services to support the delivery of highway and transportation schemes across Kent.

DELEGATE authority to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to take relevant actions necessary to implement the decision, including but not limited to undertaking the procurement process, awarding the framework agreements, finalising the terms of, and entering into the relevant contracts and any associated legal agreements

DELEGATE authority to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to exercise any extension option(s) provided for within the framework agreement.

Reason for the decision

The decision is required to authorise capital funding to replace the ageing, life-safety critical ventilation system in Chestfield Tunnel, following previous failures and the risk of further unplanned tunnel closures and consequential disruption to road users and additional cost.

Background

-      In June 2024, a safety critical failure with the ventilation system fans was uncovered during a routine inspection. This led to the Coastbound closure of the Whitstable to Herne Bay section of the A299 Thanet Way, whilst emergency works were undertaken to repair some of the fans.

-      The ventilation fans are specialist pieces of equipment which are manufactured and reconditioned to order, and specialist teams are required to deliver and install them.

-      Chestfield Tunnel relies on 32 jet fans (16 per bore), 5 of these were refurbished following the 2024 failures and of the remaining fans, 22 are 27 years old. Whilst the aged system has an increased maintenance and testing regime, the fans have exceeded their service life and are at risk of failure.

-      The proposed solution is a fan replacement with deflectors and Fan relocation. This will improve the effectiveness of airflow and smoke control. In addition, Fan relocation will improve access for future maintenance.

-      It is more expensive than the basic like-for-like and deflector-only options, at £2.78m, but avoids the significantly higher cost, technical complexity, construction risk and prolonged closures associated with the larger fan or passive portal deflector options. It therefore represents the most proportionate, deliverable and future-proofed option.

-       

Options (other options considered but discarded)

-      A longlist of 39 options was developed and evaluated in a scoring workshop, from which four were shortlisted for safety risk assessment by WSP (Designers)

-      Option 1 – like-for-like replacement. This is the do-minimum option. It offers no improvement in smoke control over the current situation, and the constraint on maintaining the lighting driver near Fan 2 persists. £2.31m

-      Option 2 – deflectors. As Option 1, but with angled louvre deflectors fitted to each fan to increase the effectiveness of the airflow. This improves smoke control relative to the baseline and to Option 1, with minimal additional construction complexity. £2.39m. although less costly than the preferred option, it does not address future maintenance access constraints.

-      Option 3 – larger fans. Requires significant electrical and control system redesign, structural works, and a long 24-hour bore closure of around 19 weeks. Between £5.78m - £6.41m

-      Option 4 – passive portal deflectors and wind walls. Like-for-like fans supplemented by passive deflectors and wind walls at the portals, requires extensive computational fluid dynamics analysis with an uncertain outcome, and introduces new hazards. £7.71m

-      Both option 3 and 4 are more costly than the preferred option

How the proposed decision supports the Council’s Strategic Statement

-      The decision supports Aim 2 by focusing on practical outcomes rather than a like-for-like replacement. A specialist team has assessed the options and selected a proportionate, deliverable solution that improves tunnel safety, performance and long-term maintenance.

-      It supports Aim 4 by helping to improve road quality and reduce disruption. The preferred option will improve smoke control and ventilation reliability, while planned traffic management will minimise the impact of works on residents, businesses and road users.

-      It also supports economic growth and quality of life by maintaining the A299 Thanet Way as a critical transport link and reducing the risk of future unplanned tunnel closures.

-      If this scheme does not proceed it is very likely by 2030 that there will need to be unplanned closure of the tunnel until the funding is available and the scheme can progress.

As Cabinet Member for Highways and Transport, I agree to

PROCEED with the replacement of the Chestfield Tunnel Ventilation System.

AUTHORISE the associated financial commitment, subject to the completion and approval of a satisfactory commercial business case demonstrating affordability, value for money and compliance with KCC procurement requirements.

DELEGATE authority to the Corporate Director of Growth, Environment and Transport, in consultation with the Cabinet Member for Highways and Transport, to take all necessary actions to implement the decision, including the procurement and award of contracts, subject to approval of the commercial business case.

Proposed decision

1.    CEASE activity related to key decision 25/00068 and halt the continuation of development of the Junction 11 waste transfer station scheme

2.    APPROVE the procurement and award of a Transfer Services contract to secure a commercial waste transfer solution through a compliant competitive process.

3.    DELEGATE authority to the Director of Environment and Circular Economy to undertake all relevant actions to facilitate the procurement process.

4.    DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment, Coastal Regeneration and Public Health, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision: and

5.    DELEGATE authority to the Director of Environment and Circular Economy, in consultation with the Cabinet Member for Environment, Coastal Regeneration and Public Health, to award extensions of the contract in accordance with the relevant clauses within the contract.

Reason for the decision

KCC currently relies on a split transfer arrangement to manage kerbside waste arising from Folkestone and Hythe, using Ashford Transfer Station and a temporary contractual arrangement at Ross Way. Neither facility is capable of accepting the full range of materials or meeting operational requirements.

The contract at Ross Way will end in 2028, and there is a need to secure a compliant, resilient and long term solution to ensure continuity of statutory waste disposal services.

Key Decision 25/00068, taken in October 2025, previously approved the project and funding to build a waste transfer station on a site near J11 of the M20 in Folkestone and Hythe, subject to KCC being able to fulfil all of the requirements of the planning consent for this development.

Since October, there has been a key change relating to the discharge of planning conditions that impacts the previous key decision:

Planning permission for the development includes the need for additional land outside of the land parcel secured by KCC to accommodate tree screening and ecology requirements. Prior to the October 2025 decision being taken, Folkestone and Hythe District Council had confirmed that they would purchase this additional land and put in place appropriate ownership arrangements that would enable KCC to discharge its planning conditions, subject to the necessary approvals and agreements. Folkestone & Hythe District Council has been unable to secure that land within the timeframe required by KCC, meaning the planning conditions cannot be discharged and the development cannot proceed in its current form. Consideration was given to whether the screening and ecology requirements could be accommodated within the footprint of the KCC acquired site, however it was concluded that this is not possible within the space available. As a result of not being able to discharge the required planning conditions required under the previous key decision a review of the available options has been conducted.

This review and associated market engagement activity has identified commercial capacity to bulk and haul most of this material, therefore there is now a route to market through a compliant competitive process.

This proposed decision therefore replaces and updates decision 25/00068.

Background

-      As the Waste Disposal Authority, KCC has a statutory responsibility to arrange for the disposal of household waste collected by District and Borough Councils, known as Waste Collection Authorities. This is typically delivered through transfer stations where waste is received, bulked and transported to final treatment or disposal facilities.

-      Currently, waste from Folkestone and Hythe is managed through:

o    Ashford Transfer Station, operated by FCC Environment, manages food and residual waste

o    A temporary arrangement at Ross Way, Folkestone, operated by Veolia manages dry mixed recycling and street cleansing arisings.

-      Neither facility has sufficient capacity or capability to manage the full range of kerbside materials, resulting in operational inefficiencies, increased haulage distances and additional costs as both residual and food waste are transported outside the district. 

-      A previously approved proposal to develop a KCC operated facility within the district cannot proceed due to planning constraints as outlined above.

-      Market engagement carried out in May 2026 has identified that there is now commercial interest in and capacity to manage this material. The service will therefore be competitively procured through a flexible two-lot contract structure (with and without food waste), and the commissioning approach has been shaped by market feedback to ensure value for money.

-      The proposed contract will:

o        provide receipt, bulking and onward haulage of approximately 40,000 tonnes of material per annum;

o        be structured to allow flexibility across material types through a two-lot approach with and without food waste;

o        include KPIs, performance measures, environmental compliance requirements and social value commitments;

o        ensure no waste is sent to landfill; and

o        support operational efficiency and reduce unnecessary vehicle movements.

-      The contract term will consider the life cycle and investment in vehicles and plant, local government reform and the required continuity in service to ensure a reliable and consistent statutory service alongside best value principles.

-      Any extension will be considered based on performance and value for money. A benchmarking exercise would be conducted 18 months prior to any extension to assess ongoing competitiveness and service quality.

-      The contract will ensure that providers adhere to environmental legislation, permitting requirements and best practice is delivered.

-      Key risks to this approach include potential limited market competition including the ability for commercial contractors to secure the required planning permission to be able to accept food waste, sector cost inflation (particularly haulage) and compliance with environmental permitting requirements. These risks will be mitigated where possible through procurement design, contractual mechanisms and ongoing contract management. Local Government Reorganisation introduces uncertainty, which has been addressed through proposed contract flexibility

Options (including other options considered but discarded)

Option 1 - Do nothing (discarded)
Continue with or extend existing arrangements. This is not viable due to capacity constraints, operational limitations and the expiry of current arrangements in 2028.

Option 2 and 3 – Extend developer contribution collection periods to 2045 (option 2) or 2040 (option 3) to close the funding gap to develop the Junction 11 scheme (discarded)

Previously approved but no longer deliverable due to inability to secure the additional land required to satisfy planning conditions and the associated programme and financial risks.

Option 4 – Change to a design, build, finance, operate model (discarded)
Not viable due to the inability to secure the additional land required to satisfy planning conditions and the associated programme and financial risks.

Option 5 – Procure a commercial facility to deliver the service (recommended)

Previously discarded, however re-evaluation of the options since previous assessment and engagement with the market has identified commercial capacity to process some, if not all, of this material. The capacity of commercial providers to bulk and haul food waste is not yet developed but may come on stream later this year. Should it not be possible to procure a local solution for food waste, it has been concluded that transportation to neighbouring boroughs will be possible.

Following market engagement in May 2026 the recommendation therefore is to undertake a full procurement exercise to appoint a suitably qualified provider to deliver transfer services within the district. This provides a compliant, efficient and longer-term solution within the timescale required that ensures service continuity and value for money.

How the proposed decision supports ‘Reforming Kent’ Strategy 2025-2028:

This decision is compliant with the Strategic Statement and supports the delivery of Reforming Kent: Aim 2 - Objective 6: We will ensure there is an effective waste management and recycling service that is value for money and improves rates of recycling through a simpler and efficient process.

Financial Implications

-      The forecast cost of the Junction 11 scheme including the required land purchase was c£14.5m. It was proposed that £8.3m of this cost would be met long term through developer contributions although a significant proportion would have needed to be forward funded. £5.3m of this cost would have been met by KCC capital investment and the remaining c.£900k from the waste reserve.

-      The estimated contract value is based on approximately 40,000 tonnes per annum and the suggested market engagement rates which it must be noted are not guaranteed until the formal procurement of a contract is concluded.

-      The current annual budget for 2026/27 for the management of all waste streams for Folkestone and Hythe is £740.5k. This includes haulage and tipping away charges that are levied.

-      The forecast annual budget for 2027/28 based on the updated rates and assuming that a contractual solution for food waste is achieved is c.£1.553m. This reflects the anticipated increase in costs associated with transitioning to a more sustainable long-term waste management arrangement for Folkestone & Hythe. The increase is consistent with forecasts already incorporated within the Medium Term Financial Plan (MTFP) and is therefore expected regardless of the specific solution ultimately implemented.

-      If a contractual solution for food waste is not achieved then the forecast annual budget for 2027/28 increases to c.£1.729m.

-      Approximately £722k of previously incurred development costs will become abortive once the Junction 11 scheme ceases. These costs are currently unfunded. Avoiding further escalation of this exposure is a key consideration in the recommended approach.

-      If the most economically advantageous compliant tender exceeds the available budget, and there is limited scope to reduce costs due to the operational nature of the service, this would result in both an in-year, and year on year financial pressure. These pressures would be realigned in the MTFP with relevant offsetting savings or income requirements needing to be identified.

-      Cost pressures are anticipated to be related to:

o   Increase in costs across the haulage and waste sectors;

o   legislative requirements, such as Simpler Recycling.

-      These will be managed through procurement and contract mechanisms to achieve value for money.

-      Any tonnage fluctuation above or below the budget will be managed as part of the monthly financial monitoring process.

-      Additionally, the proposed procurement route may require up to £250,000 investment in infrastructure upgrades if food waste is excluded from the commercial contract. These upgrades are proposed at an alternative existing KCC site to enable food waste to be transported there and will attract tipping away charges albeit at a lower rate than currently due to the smaller volumes. It is intended that this cost will be met in full from the waste reserve, thereby avoiding any direct impact on the Council’s revenue budget

-      The procurement option results in higher ongoing revenue costs compared to a Council-owned facility but removes the requirement for significant upfront capital investment and associated delivery risk. Approximately £722k of development costs relating to the previous scheme will become abortive.

As Cabinet Member for Environment, Coastal Regeneration and Public Health, I agree to:

CEASE activity related to key decision 25/00068 and halt the continuation of development of the Junction 11 waste transfer station scheme

APPROVE the procurement and award of a Transfer Services contract to secure a commercial waste transfer solution through a compliant competitive process.

DELEGATE authority to the Director of Environment and Circular Economy to undertake all relevant actions to facilitate the procurement process.

DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment, Coastal Regeneration and Public Health, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision: and

DELEGATE authority to the Director of Environment and Circular Economy, in consultation with the Cabinet Member for Environment, Coastal Regeneration and Public Health to award extensions of the contract in accordance with the relevant clauses within the contract.