Agenda item

Cabinet considered the report on Thanet Pathfinder Projects that recommended movement of funding across themes and projects. When the Council entered into the Pathfinder Pilot with central government the council reallocated funding from the restaurant with rooms scheme to the Clock House to support the funding application to the National Heritage Lottery Fund. In response to the application being unsuccessful the Council allocated a budget to the Clock House scheme based on cost plans and in line with the original budget secured through the Levelling Up Fund.

The report considered by Cabinet provided a process where officers could work more flexibly across the programme to ensure that the level of contingency was appropriate for the projects. The teams were still working through final designs and value engineering to ensure they were able to get the best value from the funding in order to deliver the outputs agreed with central government. Thanet District Council was not alone in facing these challenges, engagement with other Pathfinder and Levelling Up Fund areas showed a similar picture across the country. The impact of cost increases and infraction had been significant on this regeneration programme of funding from central government.

A Thanet Regeneration Partnership Board meeting was held where this approach to contingency was discussed. Feedback from the Chair and the Board was that the approach was sensible due to the cost environment that the Council was working in, and it was important that the Council managed expectations and risk within these projects. The Board noted that there was regret that this had to be done, but it was important to realise what had happened in relation to costs since the projects were originally planned. It was important to make sure main projects of the programme that were providing outcomes were delivered.

Cabinet was asked to agree the following, to:

1. Note that moving funding between themes and projects up to a value of £5,000,000 is permissible under the Simplification Pathfinder Project;
2. Agree to the movement of £1,109,000 from the current Clock House project which has a higher than required budget to a contingency for Ramsgate projects;
3. Delegate authority to the Section 151 Officer in consultation with the Leader of the Council, to approve the allocation of contingency funding to the Ramsgate projects, except that;
4. Note that any potential future use of this contingency pot for the Port Infrastructure project will be presented to Cabinet for approval.

Councillor Everitt proposed, Councillor Keen seconded and Cabinet agreed the following:

1.  To note that moving funding between themes and projects up to a value of £5,000,000 is permissible under the Simplification Pathfinder Project;

2.  To the movement of £1,109,000 from the current Clock House project which has a higher than required budget to a contingency for Ramsgate projects;

3.  To delegate authority to the Section 151 Officer in consultation with the Leader of the Council, to approve the allocation of contingency funding to the Ramsgate projects, except that;

4.  To note that any potential future use of this contingency pot for the Port Infrastructure project will be presented to Cabinet for approval.