The Finance, Innovation and Transformation Cabinet Advisory Board met on Monday 05 October 2026 to discuss the proposed redevelopment of the Royal Victoria Place shopping centre's Palm Court, approve new leases and term contractors for building maintenance, and review the council's budget update. Key decisions included approving a £23.5 million capital budget for the Palm Court redevelopment, authorising new leases within Royal Victoria Place, and appointing contractors for building maintenance.

Royal Victoria Place Development - Palm Court

The Board considered proposals for the redevelopment of the Palm Court area within the Royal Victoria Place (RVP) shopping centre. A public speaker, Mr Tansley, raised concerns about the financial assumptions underpinning the business case, including the loan repayment period, interest rates, contingency figures, and revenue projections. He argued that the project might not be self-financing and called for independent financial review and further public consultation.

Councillor Christopher Hall, Cabinet Member for Finance and Property, and David Candlin, Head of Economic Development and Property, along with Andrew Goodwin from Rivington Hark, presented the plans. They detailed the proposed refurbishment, which includes a new roof, improved energy efficiency, and the repurposing of the former food court into a leisure space. They addressed Mr Tansley's concerns, explaining the financial modelling, the rationale behind the 50-year loan term, and the measures in place to manage interest rate fluctuations. They highlighted the project's potential to revitalise the town centre, attract new tenants, and increase footfall.

The Board discussed the impact of the redevelopment on existing businesses, the potential for increased revenue through new lettings and business rates, and the financial viability of the project. They also considered the flexibility of the design to adapt to future changes in retail and leisure trends.

Ultimately, the Board resolved to support the recommendations to Full Council. This included approving an additional gross capital budget of £23.5 million for the Palm Court scheme, delegating authority for funding sources, and approving the procurement of a two-stage design and build contract. The Board also endorsed the strategy to develop the Ely Court scheme as part of the full RVP development, subject to future approval.

RVP Investment Transactions July to September 2026

Diane Brady, Investment Property Manager, presented a report on property transactions completed at Royal Victoria Place (RVP) between July and September 2026. The report detailed four lease renewals and two new leases, along with tenancy-at-will letters and licences for short-term use. The terms agreed were in line with the RVP Business Plan 2026-27 and had been endorsed by the Investment Advisory Panel.

The Board resolved to note the report.

New Lease in Royal Victoria Place, Royal Tunbridge Wells

Diane Brady also presented a report seeking endorsement to enter into an agreement for lease and a new lease for three units within Royal Victoria Place. The proposed tenant would combine these units to create a new letting space. The terms had been recommended by specialist advisors Rivington Hark and Cushman and Wakefield. The preferred option was to enter into the agreement and lease, supporting the business plan for the centre's revitalisation.

The Board resolved to support the recommendations to Cabinet, which included approving the entering into of the agreement for lease and lease, and delegating authority to relevant officers to finalise terms and complete legal formalities.

Appointment of Term Contractors for Building Maintenance

David Candlin, Head of Economic Development and Property, presented a report on the appointment of term contractors for building maintenance. The council's existing contracts were due to end on 31 December 2026, and new contractors were needed for contracts starting on 1 January 2027. The report outlined the successful procurement of contractors for building fabric, electrical, fire and security, and asbestos management. However, the procurement for mechanical and lift services had failed, and approval was sought to retender these lots.

The Board resolved to support the recommendations to Cabinet, which included approving the appointment of contractors for the successfully procured lots, delegating authority for negotiations and contract finalisation, and authorising further market engagement and retendering for the mechanical and lift services.

65-67 St John's Road - Agreement of a Lease

James Ponsford, Estates Surveyor, presented a report on the proposed lease of the property at 65-67 St John's Road. The double-fronted retail unit had been vacant for most of the year. Terms had been agreed with a photography studio, Venture Photography, who intended to use the space for portraiture and a photography school. This was considered a sensible letting that would generate rental income and potentially benefit the community through educational opportunities.

The Board resolved to support the recommendations to Cabinet, which included approving the grant of the lease and delegating authority to officers to negotiate and agree the terms and complete legal formalities.

Budget Update Report 2027-28

Jane Fineman, Head of Finance, Procurement and Parking, presented an update on the budget projections for 2027-28 and medium-term forecasts to 2028-29. The report highlighted a projected budget deficit of £801,000 for 2027-28, which was a decrease from previous forecasts due to major contract awards and the local government finance settlement. The report also detailed government funding, national and local economic forecasts, and budget pressures.

The Board resolved to support the recommendations to Cabinet, which included officers continuing to work on plans to reduce the projected budget deficit and reporting back in December with draft proposals prior to public consultation.

The meeting concluded with the noting of the date of the next meeting.