Proposed Decision:
To approve up to £6m of Kent and Medway Business Funds (KMBF) being made available to No Use Empty (NUE) Commercial scheme to still achieve the outcomes of the KMBF schemes in terms of boosting employment and economic growth within Kent, as well as generating income for KCC, both through interest payments/management fee and increasing business rate growth.
A decision is required to:
Agree up to £6m from the Kent & Medway Business Loan Fund (KMBF) being made available for No Use Empty (NUE) to administer short term secured loans to support specific NUE Commercial projects which would provide wider economic and employment opportunities and benefits as well as generating income, through interest payments. The value of an individual loan under this proposal is likely to be more than the £600k cap on loans which are administered by the KMBF team; and
agreement of the Section 151 officer or the Cabinet Member for Finance as appropriate for approval to spend: and
agree that delegated authority be given to the Corporate Director for Growth Environment and Transport to take appropriate actions, including but not limited to, entering into legal agreements (loan agreements and legal charges), consider and approve requests which may require consent and discharge of legal charges, as necessary to implement this decision.
· Background
Business Units
NUE funded a pilot project - The Tridax Business at Honeywood Parkway, Whitfield, Dover, creating 24 new business units (completed December 2023) using KCC Treasury Investment funds. The project has been an immense success. NUE are seeking to borrow KMBF funds to support further NUE commercial projects to support the creation of additional high quality commercial/workspace in Kent to meet the needs of local firms.
Options
(a) Do optimal – to proceed as planned with KMBF funds which will reduce the call on KCC funds (Treasury Investment funds and/or Capital Programme) for the creation of new business units.
(b) Do maximum – to proceed as planned with Treasury Investment funding which will reduce the funding available for new build residential homes if up to £6m of the £28m was ring fenced for the creation of new business units.
Framing Kent’s Future 2022-26:
https://www.kent.gov.uk/about-the-council/strategies-and-policies/framing-kents-future
Priority 1Levelling Up Kent - Our commitment is to support the Kent economy to be resilient and successfully adapt to the challenges and opportunities it faces over the coming years.
Securing Kent’s Future:
The decision does not place any additional financial burden on KCC as KMBF-NUE will be delivered with external funds and generate an income stream.
Kent & Medway Economic Framework:
Action Area 4: Supporting the conditions for growth by responding to local need for workspace.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: Recommendations Approved
Notice of proposed decision first published: 02/09/2025
Decision due: Not before 30th Sep 2025 by Cabinet Member for Economic Development and Coastal Regeneration
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Economic Development and Coastal Regeneration
Lead director: Stephanie Holt-Castle
Department: Growth, Environment & Transport
Contact: Steve Grimshaw, Strategic Programme Manager Email: steve.grimshaw@kent.gov.uk.
Consultees
The proposed decision was considered and endorsed at the Growth, Economic Development and Communities Cabinet Committee on 11 September 2025
Financial implications: NUE Revenue There is one NUE team. Revenue costs are £1.2m and expected income (Application Fees/Interest) of an offsetting £1.2m to ensure this valued service is not only self-financing but generates additional income for KCC through increased Council Tax and Business Rates.
Legal implications: A robust application process is in operation for the secured loans including independent risk assessments conducted by the NUE team. The proposed £6m of former Regional Growth Funds (RGF) funding will be drawdown by NUE from the KMBF budget when required. All NUE Commercial loans made will be to fund businesses and not individuals in their personal capacity. The vires relied on to operate this NUE Commercial scheme remain the same as the original NUE scheme. Decision - 23/00013 - No Use Empty (NUE) update and continuation of the initiative The Subsidy Control Act will be taken into account when considering each loan application.
Equalities implications: Equalities implications EQIA for NUE completed by the Strategic Programme Manager and signed off by KCC Equality Team - 31 January 2023. Data Protection implications KMBF-NUE have completed a DPIA (reference no 603) for this proposal which is awaiting review and approval.