Decision Maker: Cabinet

Outcome: Recommendations Approved (subject to call-in)

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 27, 2025

Purpose: Due to challenges for project delivery the council has needed to formally close the Highways Infrastructure project from the Thanet Regeneration Programme.   The grant funding allocation of £3,955,264 will need to be reallocated, and it was proposed that this is to a Ramsgate contingency within the Thanet Regeneration Programme. A decision will be required at a later date to distribute the funds across individual projects within the agreed Regeneration projects in Ramsgate.   As the Accountable Body for the projects within the Local Regeneration Fund, the council is the ultimate decision maker.

Content: Cabinet agreed the following recommendations:   1.  To note the new funding flexibility that allows the council to make changes to existing projects without seeking prior approval from the Ministry of Housing, Communities and Local Government, including the ability to cancel a project and invest in existing or new projects;   2.  The formal closure of the Highways Infrastructure Project;   3.  That £3,955,264 is reallocated to a Ramsgate wide Thanet Regeneration Programme contingency fund, to be allocated to any of the already agreed projects as required with the agreement of the Chief Executive in consultation with the Leader of the Council.

Reasons for the decision: In the summer the council paused all design and development works for the Highways Infrastructure project due to challenges in formalising and approving the technical requirements and considerations for the scheme with Kent County Council (KCC). The Highways Infrastructure project had been designed up to RIBA Stage 4 and the project delivery team was unable to progress to RIBA Stage 5, which is implementation. Thanet District and Kent County Councils have been in negotiation on the challenges relating to gaining approval for the scheme and without being able to move forward with delivery, Thanet District Council has had to make the decision to close the project down.

Alternative options considered: Three alternatives were considered, including: The project could be delivered ‘piece-meal,’ however, this would incur re-design costs, consultation and section 278 approval through KCC - all of which are considerably constrained and unlikely to be achieved by March 2027. This would mean that further costs are spent on a scheme at risk of it being delivered within the funder timescale and also does not provide security for the other schemes within the portfolio. Thanet District Council would also need to underwrite the revenue costs of having resources to manage the traffic flow when the tunnel is shut. This option was not recommended. An alternative option would be to do nothing, this would result in reduced delivery of these grant-funded schemes and the necessity to return £3,955,264 of grant funding to MHCLG. This option was not recommended. The funding could be re-allocated differently - Members could decide to alter the reallocation of funding across the projects, or across the whole programme, including the Margate schemes. However, this would not optimise the delivery of the programme outputs and outcomes in Ramsgate, and Cabinet has agreed to keep the funding in the town it was awarded to. This option was not recommended.