Decision

URL: https://democracy.kent.gov.uk/ieDecisionDetails.aspx?ID=3026

Decision Maker: Cabinet Member for Economic Development and Coastal Regeneration

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

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.  

Content: 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.   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.

Date of Decision: October 6, 2025