Financial future safe as council’s investments pay

Council chiefs say the borough’s finances remain in safe hands despite the warnings over Brexit and the government’s plan to scrap grant funding to local authorities.

Cllr Neil Shorter, ABC portfolio holder for finance, says the Conservative run administration has created a medium-term corporate plan which has delivered higher revenues for the council.

It means that despite the government cuts, the council will instead become a self-sufficient authority by 2019.

Cllr Shorter said: “Through the decisions the council has taken we find ourselves in calm waters. We are proud to set the lowest council tax in Kent and continue to do so.

“It is pleasing to note that there are fewer than 1,000 people on Job Seekers Allowance, and that the evidence indicates we are now reaping the rewards of our bold decisions.

“We invested in International House and Park Mall, together with a number of other assets, and increasing their value.

“Despite pressure on budgets, we have invested in our people. In short, the medium term financial plan is good news for residents as it shows we’re in good shape and well-placed to meet the challenges ahead.”

In May the Kentish Express revealed the full costs of some of the council’s purchases of land and properties, which are now making significant returns on investment.

For example the purchase of International House in Dover Place sost £7.9 million, and the council forecasts to make £1.2 million in rents in this financial year from the offices, at a return on 11%.

Meanwhile returns from other investments and council run shopping precincts also show handsome returns.

In a report discussed by Cabinet members last week Cllr Shorter also revealed that council business rates have brought in an extra £800,000 this year, half of which will stay in the borough.

Meanwhile in the future, the council expects a cash boost of a further £365,000 per year with the completion of business developments such as the Chapel Down brewery visitor centre, hotel and Aldi supermarket in Victoria Road.

The council has also purchased a land holding in the new Elwick Place cinema and hotel scheme, which will see council coffers filled with 5% of revenues from rents of new restaurants and businesses there.

Stanhope shops – Council spend £1 million. Projected income of £105,000 at a return of 10.2%.

Wilkos in Park Mall – Council spend £3.5 million. Total projected income of £270,000 at a return of 7.1%.

Bockhanger shops – Council spend £217,000. Total projected income £31,500 at a return of 13.3%.

Brookfield Road shops – Council spend £467,000. Total projected income of £45,000 at a return of 8.8%.

Civic Centre at Tannery Lane – Council spend £203,000. Total projected income of £92,000 at a return of 6.4%.

International House – Council spend £7.9 million. Total projected income of £1.2 million at a return of 11.6%.

Park Mall shopping centre – Council spend £823,000. Total projected income of £418,000 at a return of 0.4%.

Cllr Neil Shorter – ‘We have invested in people’