Cabinet Member decisions

Proposed Decision:

To determine the future of Library provision in Folkestone town centre for a permanent Folkestone Library and Registration service and the future of the 2 Grace Hill building

Reason for the decision

-      A Key decision is needed to confirm the long term location of Folkestone Library in the town and to determine the future of the 2 Grace Hill building.

Background – Provide brief additional context

-      The Libraries, Registration and Archives Service (LRA) is a statutory and highly valued public service delivered through a network of 99 libraries, five register offices; five mobile libraries, an archive centre, the stock distribution and support function building at Quarrywood, the information service ‘Ask a Kent Librarian’ as well as the 24-hour accessible online service.

-      Folkestone Library is part of Kent’s statutory library service.

-      The temporary closure of the Grace Hill building in December 2022 was on the basis of health and safety grounds. The poor condition of the Grace Hill building has been exacerbated by the listed nature of its construction which has led to complexities to complete pro-active maintenance.

-      The repairs needed to reopen Folkestone Library in the Grace Hill building are now estimated to cost in the region of £2.9 million. This figure was compiled by a KCC surveyor in April 2024.KCC remains under significant financial pressure.

-      The building is listed as an Asset of Community Value (ACV) under the Localism Act 2011.

Since temporary closure, KCC has investigated various options in respect of the future of the library service within the Town. These investigations culminated in interim key decision 24/00116, which ruled out all options other than:

1)    Sell or issue a long lease [for 2 Grace Hill] to another party and then lease back part of the building

2)    Permanently leave the Grace Hill building and find an alternative town centre location for the library

Decision 24/00116 also authorised commencement of the ACV disposal process to allow open marketing to take place and for bids to be invited, for 2 Grace Hill.

The ACV moratorium period has now elapsed, and a period of 12 weeks of open marketing has also concluded.

The Council is now in possession of sufficient information for an informed decision to be taken on the permanent future of the library service in the Town.

Options (other options considered but discarded)

All options will be considered as part of the decision paper.

How the proposed decision supports the Council’s Strategic Statement

Confirming a permanent Folkestone town centre library location aligns with the Council’s adopted strategy by supporting visible community services and coastal regeneration priorities. It strengthens town centre vibrancy and access to education, which the plan highlights as key for tackling inequality.

The decision will meet the strategy’s “focus on value for money” through a robust financial appraisal, exploring cost efficiency and partner co-location opportunities.

As Cabinet Member for Community & Regulatory Services, in consultation with the Deputy Leader, I agree to

•                Reaffirm the Council’s commitment to delivering a sustainable, comprehensive town-centre Library and Registration Service in Folkestone.

•                Note the outcome of the 2 Grace Hill Asset of Community Value and marketing process, including the outcome of the KCC evaluation of Creative Folkestone’s proposal alongside other options for the library service.

•                Confirm 14 Sandgate Road as the location of the Folkestone town centre Library and Registration service for the foreseeable future. 

•                Confirm that the Council remains open to considering the location of the library service as part of its ongoing estates management best practice. With the next review now likely to take place in late 2028.

•                Confirm that the Council will progress with open market disposal of the Grace Hill building.

•                Delegate authority to the Director of Infrastructure, in liaison with the Deputy Leader, to finalise terms and enter contracts necessary to implement the decision regarding the Grace Hill building and the Sandgate Road building.

Proposed decision –

As Cabinet Member for Highways and Transport, I agree to give approval to progress the Sturry Link Road scheme through to delivery as indicated below and specifically I:

(a)  Give approval to progress the construction of the Sturry Link Road A28 roundabout and associated works utilising secured S106 funding in order to implement the planning permission for the scheme.

(b)  Subject to a successful Homes England bid, delegate to the Corporate Director of Finance the authority to accept Brownfield, Infrastructure and Land (BIL) funding from Homes England to deliver the A28 Sturry Link Road viaduct.

(c)  Confirm that other decisions in Record of Decision 18/00027 and 23/00066 remain extant.

(d)  Approval for any other further decisions required to allow the scheme to proceed through construction to be taken by the Corporate Director of Growth, Environment & Transport under the Officer Scheme of Delegations following prior consultation with the Cabinet Member for Highways and Transport.

Reason for the decision

Following a report to Environment & Transport Cabinet Committee in May 2018, a Record of Decision 18/00027 gave a wide range of authorities to allow the Sturry Link Road scheme to proceed. A further Record of Decision 23/00066 provided authority to progress with the Compulsory Purchase Order (CPO) process to secure the land required for the scheme.

To deliver the scheme, the Council has secured funding through S106 agreements and government funding. To fully cover the cost of the viaduct, the Council are in discussions with Homes England regarding the provision of Brownfield, Infrastructures and Land (BIL) Fund towards the scheme, to reduce the financial risk to KCC. This funding, if agreed, will consist of both a grant to fully cover the existing funding gap, and also provide a recoverable grant to forward fund the S106 contributions to the scheme which are not yet banked. It is appropriate therefore, to seek a further key decision to accept this funding, but also to progress with the A28 roundabout construction in the meantime. 

The proposed decision is a key decision as it requires expenditure of more than £1m of secured funding.

Background – Provide brief additional context

The A28 Sturry Link Road is a critical infrastructure improvement, designed to alleviate severe congestion at the Sturry level crossing and improve journey reliability along the A28 corridor. This new infrastructure will mitigate the traffic impact of the delivery of over 6,000 homes at Sturry, Hersden and Herne Bay, while also indirectly enabling growth at other strategic land allocations identified in Canterbury City Council’s Local Plan. By providing additional network capacity, the Sturry Link Road underpins economic development and sustainable housing growth across East Kent.

The scheme will construct a 5-span viaduct over the River Stour and the Ashford–Ramsgate railway, linking from a new roundabout on the A28 in the south to the spine road being constructed as part of the Land at Sturry development in the north.

Planning permission was granted for the Sturry Link Road scheme on 7^th September 2021 and expires on 7^th September 2026. A Design and Build contract was awarded to Volker Fitzpatrick in February 2024. The detailed design is currently being finalised following a review via the Technical Approval Process and the approval of two non-material planning amendments to the scheme. There is a break clause between the detailed design and construction phase in the contract, should this be required.

The Compulsory Purchase Order (CPO) and associated Side Roads Order (SRO) was confirmed by the Secretary of State on 19 February 2025 following a Public Inquiry in October 2024. Notices have been served, providing access to the required CPO land plots from February 2026.

The original programme was for commencement of the works in April 2025 however due to delays in the Land at Sturry site coming forward this has now been rescheduled for April2026, with pre-commencement works to begin in early 2026. Archaeological investigation works were completed in November 2025, with reporting to follow.

Although the rescheduled programme reduced some financial risk to KCC by allowing time for further S106 contributions to be banked, it has resulted in an increase in the cost estimate for the scheme. The updated programme and spend profile to deliver the scheme still maintained a requirement on KCC for forward funding and also resulted in a funding gap. KCC have identified funding through a BIL funding grant from Homes England, which will cover the full funding gap and also cover the s106 contributions towards the infrastructure, meaning that KCC is no longer required to provide forward funding for the scheme. Full details of the finances are provided in the subsequent finance section.

The Homes England grant discussions are ongoing. Homes England with KCC are submitting a business case to MHCLG by the end of 2025. A decision is due early in 2026; however, a further legal agreement will be required between the parties prior to the award of funding.

To ensure that the scheme can progress without undue additional cost due to programme delays, it is vital that the planning permission is implemented prior to September 2026. This can be achieved through the construction of the A28 roundabout from April 2026 ahead of constructing the viaduct. KCC have already secured sufficient funding through s106 developer contributions to progress this element of the construction without further funding. Road space on the A28 at Sturry is severely limited. KCC have already booked the road space for the roundabout construction, and there is no road space available to delay this element of the programme closer to September 2026. The viaduct would then follow once the Homes England funding was confirmed and the grant agreement in place.

Options

Option 1 (recommended) – Approval to proceed with A28 Roundabout; Approval for delegation to accept BIL funding from Homes England

This option is recommended for the following reasons:

-      The project remains live and as such KCC will be able to implement the planning permission prior to September 2026.

-      The A28 roundabout is constructed within available booked road space and in line with published traffic management timescales.

-      The identified funding gap is fully covered by the proposed Homes England grant and there is a reduced need for forward funding from KCC.

It should be noted that this option, while recommended, has the following risks:

-      There is a possibility of programme slippage for the viaduct if the Homes England grant agreement is not agreed within a reasonable timescale. This will be mitigated by providing legal resource as required to expedite any action required by KCC. Discussions are taking place with Homes England to consider that any increased costs due to the delay of funding will also be covered by the BIL grant to further minimise risk to KCC. 

-      There is a risk that the funding from Homes England does not come forward, leaving a funding gap. However, this option still minimises financial risk, specifically the risk of abortive costs as an asset (the A28 roundabout) will be delivered regardless of the viaduct coming forwards. Further funding opportunities can then be explored during the ongoing construction of the roundabout.

Option 2 – Delay project but provide approval for delegation to accept BIL

While delaying the scheme may enable the programme to better align with the developer funded portion of the spine road, the option has the following significant drawbacks:

-      Planning permission could not be implemented prior to September 2026, meaning the planning would lapse. This would require a full resubmission to planning, causing further delays and additional approval requirements relating to Biodiversity Net Gain.

-      It is likely that a delay at this stage would either cause the loss of the main contractor or result in increased contractor costs of at least £4m which would be unfunded.

Option 3 – Delay project and not accept funding from Homes England

In addition to the consequences outlined in Option 2, this option would leave KCC open to a significant funding gap risk. KCC would also be required to forward fund the S106 contributions that have been identified but not yet banked to support the delivery of the infrastructure.

Option 4 – Cancel project

This option is not considered viable for the following reasons:

-      Cancelling the Sturry Link Road project would result in abortive costs of around £9m representing wasted investment in design, planning, and preparatory works. This figure includes the £6.5m spend to date, expected expenditure up to the point of decision, demobilisation costs and unavoidable costs associated with land acquisition.

-      The reputational damage to KCC would be significant and would harm the Council’s credibility with residents, developers and strategic partners.

-      The Canterbury City Council Local Plan relies on the Sturry Link Road to unlock housing growth, in particular for development sites with a limit on occupations without the link road. Other consented developments are able to build out regardless meaning that there will be traffic growth without any associated capacity enhancements.

-      The Homes England funding opportunity will be lost, leading to a significant funding gap for the project should it be pursued again in the future.

How the proposed decision supports the Council’s Strategic Statement

The Sturry Link Road scheme supports the new Strategic Statement’s priorities by:

·   Supporting local investment and job opportunities in Canterbury and the surrounding areas, by backing major infrastructure in Kent, driving investment and not allowing congestion to limit growth.

·   Ensuring that vital infrastructure to support communities and housing is delivered in advance, enabling sustainable growth and economic development.

·   Improving transport connectivity and resilience on Kent’s road network.

Financial Implications

The scheme is estimated to cost £47.5?million, with an additional £6.4?million recommended for risk and contingency, bringing the total to £53.9?million. This has increased from the original cost estimate included in the business case due to inflationary pressures. To date the scheme has spent £6.5m in undertaking surveys and developing the designs through consultation, planning and CPO. The scheme also now has a fully detailed design and specification.

The increased cost estimate is partially offset by the indexation on the developer contributions. 

The current funding available from Local Growth Fund and developer contributions (including indexation calculations) is £44m. Prior to the identification of funding through the BIL from Homes England, a potential shortfall of between £4 and £10m was identified. The securing of this funding relies on a successful Homes England endorsed bid to MHCLG to allow the BIL funding to be allocated to this scheme. A final decision regarding this is expected in January 2026. The final offer has not yet been issued by Homes England. As such, the full terms of this funding grant are currently unknown, but it is expected that this will be a grant to fully cover the funding gap as well as a recoverable grant to the value of the S106 contributions yet to be banked by the Council, to offset the forward funding requirement for KCC. However, it is appropriate that the Council proceed with the governance now to ensure we can meet Homes England’s timescales for grant acceptance. Further detail will be provided within the subsequent Cabinet report when it becomes available.

Sufficient developer contributions and the grant from the Local Growth Fund are banked to enable the construction phase of the A28 roundabout to proceed. However, the Homes England funding is required to enable the remainder of the scheme to progress to the construction.

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

I. Give approval to progress the construction of the Sturry Link Road A28 roundabout and associated works utilising banked S106 funding in order to implement the planning permission for the scheme.

II. Subject to a successful Homes England bid, delegate to the Corporate Director of Finance (S151 Officer), the authority to accept Brownfield, Infrastructure and Land (BIL) funding from Homes England to deliver the A28 Sturry Link Road viaduct.

III. Confirm that other decisions in Record of Decision 18/00027 and 23/00066 remain extant.

IV. Approval for any other further decisions required to allow the scheme to proceed through construction to be taken by the Corporate Director of Growth, Environment & Transport under the Officer Scheme of Delegations following prior consultation with the Cabinet Member for Highways and Transport

Proposed decision

To permanently remove the specialist resourced provision for pupils with speech and language needs at River Primary School, following statutory consultation and representation.

Reason for the decision

The specialist resource provision (SRP) at River Primary School is designated to meet speech and language needs (S&LN). The number of pupils for whom the SRP at River Primary School has been deemed appropriate has fallen significantly. Currently there are only 4 pupils accessing the SRP and all will move on to secondary school within the next two years.

Background – Provide brief additional context

In order to meet the changing needs of pupils, SRPs now need to provide for pupils who may have wider communication needs in addition to purely speech and language. This may include Speech Language and Communication Needs (SLCN) and Autism Spectrum Disorder (ASD).

Whilst the number of pupils supported by River’s SRP has fallen, the number supported by the SRP at Whitfield Aspen School has grown significantly (by over 100 places since 2015). This is because it has the existing resources and expertise to support pupils with multiple need types including SLCN and ASD.

Additionally, as there is no primary SRP provision in Deal and Walmer, we are looking to address this by supporting a proposal to create a 14 place primary SRP at The Downs CE Primary School in Walmer. This is expected to open in September 2026, supporting pupils with ASD and SLCN. The proposal to open this new provision in Walmer is part of Kent’s wider SEND strategy and is linked to Key Decision 25/00085.

An SRP in Deal/Walmer would reduce the distances that residents in Deal, Walmer, Sandwich and the surrounding villages have to travel to secure specialist provision. 

Kent’s Strategic Statement

The proposed decision supports KCC’s strategic statement as it is necessary for KCC to continue to deliver the statutory duty, in a cost-effective way.  It will help to maintain KCC’s strategic role in supporting schools in Kent to deliver accessible, high quality education provision for all families, particularly those with SEND.

Options (other options considered but discarded)

Option 1: to keep the SRP open for purely speech and language needs was not viable as insufficient pupils with this need are being identified to keep the provision viable.  The changing needs of pupils mean that SRPs now need to provide for pupils who may have wider communication needs in addition to purely speech and language.

Option 2: broadening the need type that the SRP can support, was considered and discarded as the accommodation and site constraints at River Primary School mean the premises do not lend themselves to supporting other need types.

Decision:

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

1. Issue a Public Notice to permanently remove the specialist resource provision for pupils with speech and language needs at River Primary school, and following a representation period of four weeks with no substantive objections received, then implement the decision;
2. Delegate authority to the Corporate Director Children, Young People and Education to take all steps necessary to issue a Public Notice; and
3. Delegate authority to the Corporate Director Children, Young People and Education, in consultation with the Cabinet Member for Education and Skills, to take relevant actions, including but not limited to entering into relevant contracts or other legal agreements as required, to implement the decision, subject to there being no new substantive objections received during the notice period.

Proposed decision:

Cabinet Member for Integrated Children’s Services to: 

APPROVE the adoption of the Best Start in Life Family Hub Model; and subject to review and assessment of the terms and conditions associated with the funding, approve the acceptance of the Best Start Family Hub grant award and the deployment of the grant funding in accordance with the grant conditions and the Best Start Family Hub Model 

Reason for the decision

Within the Spending Review in June 2025, the Chancellor announced continued investment in the Family Hub Programme. In July 2025, the government launched the Best Start in Life Strategy alongside their commitment to invest £500m for the national roll out of Best Start Family Hubs; a 3-year Programme starting on 1 April 2026.

On 7 November 2025, the Department for Education (DfE) and Department of Health and Social Care (DHSC) announced that the provisional allocation for the Best Start in Life Programme for Kent County Council is £15,354,500, for financial years 2026-29. The DfE and DHSC will share guidance on the service and delivery expectations ahead of April 2026.

A series of Key Decisions by the Cabinet Member for Integrated Children’s Services accepted the original transformation grant funding for Family Hubs and adopted our new Family Hub service model. A new Key Decision is required to adopt the Best Start Family Hub Model and to accept funding for the 3-year programme.

Background – Provide brief additional context

In October 2022 the Cabinet Member for  Integrated Children’s Services took decision 22/00094 and Kent County Council (KCC) signed the Memorandum of Understanding (MOU) with the Department for Education (DfE) which accepted the initial 3-year transformation grant funding. This decision set out the requirement for the development of detailed proposals, public consultation and appropriate governance ahead of a further Key Decision on the Family Hub model. 

In November 2023, after the development of detailed proposals, public consultation and appropriate governance, KCC Cabinet took decision 23/00092 to implement the Family Hub model across the county.  

In March 2025, the Cabinet Member for  Integrated Children’s Services took Decision 24/00124 and Kent County Council (KCC) signed the Memorandum of Understanding (MOU) with the Department for Education (DfE) which accepted the Year 4 Family Hub grant. This grant funding will end on 31 March 2026.

Options (other options considered but discarded)

The option to not adopt the Best Start Family Hub Model and not accept the grant money has been considered. If the announcement related to the conditions on how the grant is to be used is made in quarter 4 of financial year 2025/26 (i.e. in February 2026) it will likely impact on the Local Authority’s ability to mobilise resources to implement additional service requirements or procure services. This in turn, will pose a risk to the delivery of services and cause a reputational risk for Kent County Council.

While understanding the risks associated with a late announcement, we have discounted the option of not accepting the additional funding in recognition that children, families and communities in Kent will benefit from additional support.

Final determination of whether the Best Start Family Hub model can and should be accepted, and whether the funding can and should be accepted would be dependent on the terms and conditions associated with the model and funding – these will be reviewed at the point of decision.

How the proposed decision supports the Councils Strategic Statement

AIM 3: Supporting residents that need help - The Family Hub model, supported through Best Start funding, supports Aim 3, by embedding prevention and early intervention within service delivery. Family Hubs provide accessible, integrated support for parents/carers and children, helping families address challenges before they escalate and empowering them to make informed choices that improve health and wellbeing. By investing in services that promote parenting skills, parent-infant relationships and home learning environment, Family Hubs help to reduce dependency on crisis interventions and ensure every child has the opportunity to grow up safe, secure, and supported, and help families stay together.

Financial Implications

The DfE and DHSC have announced that the provisional funding allocation for the Best Start in Life Programme for Kent County Council is £15,354,500, for financial years 2026-29. The distribution of Kent’s funding allocation by Programme Strand is set out in the table below.

While the delivery expectations of the grant are not yet known, the Programme Strands are a continuation of the current Strands, with the exception of ‘Healthy Babies Offer’, which has changed from ‘Start for Life Offer’.

It is expected that the funding will support the ongoing delivery of Family Hubs in a way that complements and enhances existing services. Based on current understanding, the grant is not expected to place additional pressure on the Council’s revenue or capital budgets. Additionally, DfE has confirmed that Best Start funding may be used for delivery of existing services which could support a reduction in the base budget for Family Hubs. Therefore, a portion of this funding could be allocated to staff costs associated with delivering these services.

Decision:

As Cabinet Member for Integrated Children’s Services, in consultation with the Cabinet Member for Adult Social Care and Public Health (subject to receiving confirmation from Department for Education (DfE) and Department for Health and Social Care (DHSC) I agree to:

a) APPROVE, the acceptance of the Best Start Family Hub Grant Award and the deployment of the grant funding in accordance with the grant conditions and the adopted service model;  

(b) DELEGATE authority to the Director of Operational Integrated Children’s Services and Director of Public Health, in consultation with the Cabinet Member for Integrated Children’s Services and the Cabinet Member for Adult Social Care and Public Health to agree the terms and conditions to enter into the necessary grant agreements;   

(c) DELEGATE authority to the Director of Operational Integrated Children’s Services and Director of Public Health to deliver the requirements of the grant;   

(d) DELEGATE authority of required expenditure to the Director of Operational Integrated Children’s Services and Director of Public Health, in consultation with the Cabinet Member for Integrated Children’s Services and the Cabinet Member for Adult Social Care and Public Health, to be managed in line with Council procurement rules;   

(e) DELEGATE authority to the Director of Operational Integrated Children’s Services and Director of Public Health, to take other necessary actions, including but not limited to entering into contracts or other legal agreements, as required to implement the decision.   

Proposed decision –

Cabinet is asked to:

a) NOTE the revenue and capital forecast outturn position for 2025-26 detailed in the report, and accompanying appendices

b) AGREE the capital budget adjustments which will be detailed in the report

c) AGREE the proposed changes to the flexible use of capital receipts strategy in 2025-26

Reason for the decision

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

Adjustments to capital budgets require approval from Cabinet.

The policy on the flexible use of capital receipts was approved by County Council in February 2025.  Cabinet need to agree any changes to this policy as part of the financial monitoring process.

Background

The report on the Council’s latest financial position in 2025-26 will be reported to Cabinet on 29 January 2026. The report provides detail of our revenue and capital forecast outturn positions.

The previous report highlighted the level of the forecast revenue overspend and identified areas where urgent mitigation action was targeted. This report provides an update on those measures.

An additional £7m of capital receipts in 2025-26 can be applied to revenue under the flexible use of capital receipts policy, which will help reduce the in-year overspend.

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.

The Cabinet agree to:

a)    NOTE the revenue and capital forecast outturn position for 2025-26 as detailed in the report, and accompanying appendices

b)    AGREE the capital budget adjustments detailed in the report

c)    AGREE the use of additional £7m flexible capital receipts and the associated changes to the flexible use of capital receipts strategy for 2025-26

Proposed decision

To approve and adopt a new enforcement policy enabling Kent County Council (KCC) to take enforcement action against land owners to ensure highways users are not put at risk from non-compliance under relevant statutory provisions.

To approve and adopt a new street works enforcement policy enabling KCC to take relevant enforcement action up to and including prosecution against utility companies and other entities for non-compliance failures under relevant statutory provisions.

Reason for the decision

As the local Highway Authority, KCC has a statutory to ensure that the public can use and enjoy any highway for which they are responsible including any roadside waste which forms part of it.

KCC also has a statutory duty to coordinate the works of statutory utility companies.

Background

To meet these obligations, KCC needs to know about all the work happening on the road network. The work must be done in timely fashion with the safety and convenience of all road users in mind. The proposed polices will enable KCC to take enforcement action against landowners and utility companies when they break the law or act in a way that is non-compliant to the works orders. This is especially important when such violations affect the council's ability to manage and coordinate road works or when the work is done unsafely or disruptively.

How the proposed decision supports the KCC Strategic Statement

This proposal is aligned with the strategic statement and direction of the emerging 'Reforming Kent' agenda

·   to improve the quality the highways network and to reduce the delays caused by road works.

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

a)    To approve and adopt a new enforcement policy enabling Kent County Council (KCC) to take enforcement action against land owners to ensure highways users are not put at risk from non-compliance under relevant statutory provisions.

b)    To approve and adopt a new street works enforcement policy enabling KCC to take relevant enforcement action up to and including prosecution against utility companies and other entities for non-compliance failures under relevant statutory provisions

Please note: Cabinet Portfolio Transfer during Decision process

The portfolio was transferred in January 2026. The decision was taken by the Cabinet Member who held responsibility for the portfolio at the relevant time. At the point the Forthcoming Executive Decision was published, the responsible Cabinet Member was Mr Paul King, Cabinet Member for Economic Development and Coastal Regeneration. Following the portfolio transfer, responsibility moved to Mr David Wimble, formerly Cabinet Member for Environment and now Cabinet Member for Economic Development and Special Projects.

Proposed Decision: That the Cabinet Member for Economic Development and Coastal Regeneration:

(a)  AGREE to end the current DPTIF Partnership and transfer the existing shares into the beneficial ownership of Kent County Council

(b)  DELEGATE authority to the Director of Growth and Communities to take relevant actions to transfer the shares and cease the operation of the DPTIF, including but not limited to entering into contracts or other legal agreements, as necessary to implement this decision. 

Reason for the decision

Kent County Council is proposing to end the current Partnership for the management of the Discovery Park Technology Investment Fund (DPTIF), an equity scheme established in 2015 using Regional Growth Fund monies. 

The end of this Partnership will allow KCC to transfer the shares of the six remaining companies within the DPTIF investment portfolio into KCC’s beneficial ownership. The purpose of this action is to ensure financial savings to KCC and allow KCC to retain the shares for future growth potential or exit strategy

Background

DPTIF focused on innovative early stage, high-growth companies initially based in Discovery Park. Managed by NCL under a 10-year partnership arrangement, this ends on the 14 December 2025.

The DPTIF to date has invested £5,202,500 of equity investment into nine companies within the DPTIF portfolio. DPTIF provided equity investments to companies predominantly in the life science sector to support those companies’ growth, five of the companies are still active (see Table 1):

All proceeds from the future sale of shares from companies currently within the former DPTIF portfolio will be returned to KCC, ring fenced as per RGF requirements and re-invested in local companies via the KMBF.

Options (other options considered but not recommended):

The following options were considered:

·         Continue the DPTIF Partnership (not recommended because the sums expended on the Partnership management fees would not result in a significant increase in the value of KCC’s investment portfolio)

·         Closing the DPTIF Partnership and selling the shares held by the Partnership (not recommended as the prevailing economic conditions selling the shares at this time could result in a significant reduction in the value of KCC’s investment portfolio).

How the proposed decision meets the challenges in the Interim Strategic Plan

This proposed decision is consistent with the current strategic plan priority; Levelling Up and is aligned with the strategic direction of travel in the planned new Strategic Statement; particularly the ambition to ‘support local businesses to attract investment’. Decision making will continue to progress in line with the new Strategic Statement once enacted

As Cabinet Member for Economic Development & Special Projects I agree to:

(i)            AGREE to end the current DPTIF Partnership and transfer the existing shares into the beneficial ownership of Kent County Council

(ii)          DELEGATE authority to the Director of Growth and Communities to take relevant actions to transfer the shares and cease the operation of the DPTIF, including but not limited to entering into contracts or other legal agreements, as necessary to implement this decision.