Kentish Express Ashford & District
Bold council projects set to be halted
Covid-19 pandemic puts ‘unprecedented’ pressure on authority’s finances
Ashford Borough Council is set to put the brakes on a number of multi-million pound projects after the coronavirus pandemic left a £4.5m gap in its finances.
Plans for a 500-space multi-storey car park in Station Road and redevelopment of the former Mecca Bingo site are among the schemes expected to be halted.
Bosses say it will allow them time to “take stock” and assess which of their projects “may provide the greatest amount of benefit in aiding economic recovery”.
The gap in the authority’s 2020/21 budget has been put down to four “significant areas” - parking and enforcement, commercial property, garden waste and planning application fee income.
In a report prepared ahead of an ABC cabinet meeting this evening (Thursday), officers fear a loss of parking income could total £1.2 million this year, while less parking enforcement could cost the council an extra £222,000.
In commercial property income, the report says a loss of £1m is expected which “not only reflects lost rental income but also the increased costs in service charge and business rates, which will now be borne by the council for empty units”.
International House - which ABC bought in February 2014 is showing a possible loss of just under £129,000, while it is feared a number of small independent traders in the council-owned Park Mall shopping centre “will find it difficult to survive in these conditions”.
Although the government has provided £1.3 million of funding to deal with the pressures, the council says it is not enough to close the gap.
The authority is therefore proposing to reach into its reserves to pull out £4.5 million to help combat the crisis.
Ahead of this evening’s meeting where the plans will be discussed, authority leader Cllr Gerry Clarkson (Con) said: “The council is facing a significant financial challenge but it is one that we will meet.
“We will develop our financial strategy to maintain the viability of the council and to continue to deliver services.
“We are also developing a recovery delivery plan which will set out how we will meet this challenge and what our focus will be on as we seek to rebuild our local economy following these unprecedented times.”
Deputy leader Cllr Paul Bartlett (Con) says pausing work on developments during the summer would be a sensible move, but he doesn’t want to see a lengthy stoppage.
“My view is that we should send a very clear message that Ashford is still open for business,” he said.
“I think a pause is OK, but we need to be very careful that we don’t harm our own chances in the future by pausing for too long.
“I think a good example is Netflix - if it can see Ashford is still going along with its own pipeline of projects, I think it would sway it to carry on and it would choose to build its studios in Newtown.”
“If it stops then it could send the wrong signal.”
As well as the Station Road multi-storey car park and Mecca Bingo scheme, Cllr Bartlett says plans for the ‘Ashford Shard’ on the HomePlus Furniture site in Beaver Road are also set to be halted.
A Better Choice for Property - the property investment company owned by ABC - is behind the 16-storey tower block project after it bought the ex-B&Q site from the Southern Housing Group last year.
In a statement, ABC said it has seen many reductions in government funding and faced many challenges over the last decade to continually balance its budget.
It said the Covid-19 pandemic is “unprecedented” and is “generating a financial pressure that has not been seen before”.