URL: https://democracy.thanet.gov.uk/ieDecisionDetails.aspx?ID=5509

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Authority was sought from Cabinet for a) the reallocation of funding within the Thanet Regeneration Programme fund, b) approval to procure the capital works main contract and c) secure an operator to run the Margate Theatre Royal and 19 Hawley Square under a lease agreement.

Content: Authority was sought from Cabinet for a) the reallocation of funding within the Thanet Regeneration Programme fund, b) approval to procure the capital works main contract and c) secure an operator to run the Margate Theatre Royal and 19 Hawley Square under a lease agreement. Cabinet agreed the following, to:   1.  Approve the reallocation of the Active Movement and Connections Margate project funds of £1,000,000 to the Theatre Royal project;   2.  Approve the procurement of contractor(s) for capital works to the Theatre Royal;   3.  Delegate to the Head of Property in consultation with the Cabinet Member for Regeneration and Property, to enter into legal arrangements with an operator, to run and manage the Theatre Royal and 19 Hawley Square. Following previous approvals £1m from the Active Movement and Connections intervention was held in contingency for the Theatre with approval required to reallocate the funding to the project. The approval brings the total project budget, including revenue, to £6m.   Cabinet approval was required for the main contractor procurement, as it exceeds the key decision threshold. This contract is the main capital element and will advance the Theatre Royal project delivery, with the procurement strategy recommended by the professional team and approved by the council's procurement team.   Due to financial and operational constraints, the council cannot run the Theatre Royal Margate and must secure an independent operator. Previous plans for the council to lead the operating trust are unviable following unsuccessful fundraising. A viable alternative exists with interest from third-party operators, and legal advice suggests a lease agreement. Due to the significant time and financial constraints, in addition to the extensive fundraising efforts and alternative options reviewed within previous Cabinet reports, no other viable options remain. Therefore, the only remaining courses of action are to either abandon the project (not recommended) or adopt the recommendations presented in this report. Adopting these recommendations is essential to utilise the Margate Town Deal funding and safeguard the future of the much loved heritage asset - the Theatre Royal.   Do nothing to the Theatre Royal and 19 Hawley Square - reallocate the funding to another project in the programme or hand it back to central government. This option puts a Grade 2 II* Listed building at further risk, and does nothing to remove the Theatre Royal from the Theatres at Risk, risk register. This option was not recommended.   Approve the Recommendations.

Date of Decision: January 22, 2026