Purpose

Proposed decision
–
 
That the Cabinet Member for
Economic Development and Coastal Regeneration, agree to reallocate
the Getting Building Funding (GBF), originally awarded to Maidstone
Business Suite Phase 2, to the A249 Bearsted Road Project.
 
Reason for the decision & background
 
Getting Building
Funding (GBF) was announced by the Government in June 2020. The
funding was part of the then Government’s plan to deliver
upgrades to local infrastructure, boost skills, and help fuel an
economic recovery by investing in shovel-ready housing and
infrastructure projects, creating jobs and supporting economic
recovery during the COVID-19 pandemic.
 
The previous
Government decided that the South East Local Enterprise Partnership
(SELEP) would allocate the funding with their approval. In total,
the Government provided £85m of GBF to SELEP in
2020.
 
In summer 2023, SELEP
announced that there was £2.05m of unallocated GBF available
to bid for. Projects had to be shovel-ready capital projects which
would deliver in 12 months. Business cases for Maidstone Business Suite Phase 2 and the A249 Bearsted Road Project were amongst those submitted
for consideration.
 
SELEP Accountability
Board met and considered the business cases submitted from across
their area (Essex through to East Sussex).
 
On 12 January 2024,
the SELEP Accountability Board agreed to
 
“the award of £300,000 GBF to Kent County Council
for the Maidstone Business Suite Phase 2 project which has been
assessed as offering High value for money with a Medium/High
certainty of achieving this, subject to receipt of Government
approval of project inclusion within the GBF programme, and agree
that the GBF funding can be retained against the project for a
maximum period of 12 months to 31 January
2025.”
 
The GBF had to be
spent in accordance with the business case, which is available
here:
Maidstone-Business-Suite-Phase-2.pdf
 
The A249 Bearsted Road project was not awarded funding, but
was placed on SELEP’s reserve list of projects, were more GBF
to become available.
 
 
Regular monitoring of
the GBF programme is undertaken by KCC, on behalf of SELEP and the
Government.
 
In late 2024, the
project promoter requested a project extension with GBF spend to be
fully spent by 31 July 2025. This request was agreed by Central
Government.
 
The latest monitoring
returns show this milestone has not been met.
 
 
Deliverability
concerns and project risks were discussed by senior KCC officers
(from GET and Finance Departments). Their recommendation to the
Cabinet Member is to reallocate the funding to the A249
Bearsted Project, a project on
SELEP’s original reserve list.
 
Following the
dissolution of SELEP, KCC is the Accountable Body for the use of
these funds
 
The
A249 Bearsted Road project will
commence in August 2025 for a period of up to 15 months, ensuring
prompt spend of the grant funding.  It
also aligns with the original aims of the GBF, as it will unlock
development at the Kent Medical Campus Enterprise Zone; which is
restricted to 75% build out without improved highway capacity (from
the Bearsted Road scheme and M20
Junction 7). This is a key employment site
for the county and will create 3,700 highly skilled jobs, including
specialised research and development – an area key to
boosting productivity. The reallocation of funding would also
continue to benefit businesses and communities in the original
intended borough.
 
Options (other options considered but discarded)
 
If Kent County Council
were to choose to not reallocate the funding to a project on
SELEP’s reserve project list, the GBF would either
(i) be retained for the Maidstone
Business Suite Phase 2 project or (ii) returned to central
government.
 
How the proposed
decision supports Framing Kent’s Future
2022-2026: (https://www.kent.gov.uk/about-the-council/strategies-and-policies/corporate-policies/our-council-strategy)
 
The award of GBF to
Kent-based projects supports KCC achieve its Levelling up Kent,
Infrastructure for communities, and Environmental step change key
priorities.

 
How the
proposed decision supports Securing Kent’s Future:

Securing Kents Future - Budget Recovery
Strategy.pdf
 
The decision is
compliant with the Strategic Statement in the context of the
significant financial challenges that the Council is
facing.
 
The A249 Bearsted Road Project is managed by KCC. The
reallocation of funding towards this project will reduce potential
cost pressures on KCC.
 

Decision

As Cabinet Member for Economic Development and
Coastal Regeneration I agree to:
 
1.         AGREE to
reallocate the Getting Building Funding (GBF),
originally
           
awarded to Maidstone Business Suite Phase 2, to the A249
Bearsted Road Project.
 
2..        DELEGATE
authority to the Director of Growth & Communities, to take
relevant actions, including but not limited to finalising the terms
of, and entering into required contract or other legal agreements,
as necessary to implement the decision as shown at Appendix
A.