We have detailed some key highlights from the Cabinet meeting, held on Monday 28th July 2025.
Budget Outturn 2024/25, Revenue and Capital Monitoring and Productivity Plan Update
Andrew Vallance, Deputy Chief Executive, presented the report and updated Cabinet members on the recommendations arising from the Overview and Scrutiny Committee meeting held on 7 July.
The revenue budget draft outturn position represents a significant improvement on the previous reported position with an overall surplus of £433,000 compared to an original budget deficit of £186,000. The General Reserves stand at £5m at the end of 2024/25.
The 2024/25 Revenue Budget included anticipated savings totalling £2,575,624. This represents a significant improvement in the delivery of savings targets, with over 87 per cent of the target being met in 2024/25.
The projected spend for the Capital Programme (CP) for the 2024/25 financial year was £86m, with an estimated projection over the next five financial years of approximately £149m.
In November 2024, following a review, the total cost of the CP was reduced by nearly £80m and draft CP outturn as of 31 March 2025 is now £24m.
Cllr Jeeawon, portfolio holder for Finance and Governance, said: “While the council remains in a challenging financial position, the outturn position is an improved picture with no draw from Reserves now being required.
“This report highlights positive news about our budget position and more importantly about our savings. Last year we set some ambitious savings targets, and we have achieved very positive performance here.”
Cabinet members recommended to Full Council that the proposed amendments to the Capital Programme and Productivity Plan be approved and adopted.
Capital Programme and Corporate Development Team Update
Members were provided with an update on the Council’s Capital Programme (CP), the status of the larger schemes and the work of the Corporate Development Team.
The report allows Members to understand the programme’s schemes and the risks and opportunities they present to the authority.
Following a review last year the total cost of the CP was reduced by £80m. The most significant changes related to Housing Company loans with a reduction of £60m as no schemes past the Blackfriars Housing Development have been identified, and a £14m reduction due to the Beeching Road Hotel and Food Store scheme being no longer viable.
The council has a significant capital programme of £183m, with a balance of £115m to be spent over the next four financial years.
Cllr Jeeawon, portfolio holder for Finance and Governance, said: “The Capital Programme was a hugely ambitious programme and given the changing landscapes some difficult decisions needed to be made. Those decisions mean that the projects we have left in the programme are the right ones to be taken forward and are achievable.”
Members noted the report at the meeting.
Town Hall Renaissance Project
Cllr Ruairi McCourt, portfolio holder for housing, presented a report considering the options for the Town Hall Renaissance Project.
The original 2022 proposal for the redevelopment of the Town Hall site was for a mixed use, non-residential scheme. However, in recent years demand for office space has become less predictable. In addition, levels of homelessness have grown significantly, as has demand for temporary accommodation (TA), at a growing revenue cost to the council in excess of £2m per annum.
The report sets out the feasibility and implications of a residential or primarily residential development opportunity at the Town Hall site.
Cabinet unanimously agreed that £45,000 of the approved temporary accommodation budget be used to further investigate: the feasibility of converting 1 & 2 The Villas into residences for TA; the feasibility of new-build development on land at the rear of Town Hall, Amherst and former Autolec buildings for TA; and the sale of available land at the rear of Town Hall, Amherst and former Autolec buildings for housing development, both for affordable housing and open market sales.
It was also agreed that officers return with a formal proposal including budget, Business Plan and initial concepts, for further consideration by Cabinet.
Cllr McCourt said: “I support this report and the decision to spend the funds to investigate the feasibility of developing temporary accommodation options. We need to be good custodians of public finances and when you consider we spend £2.3m on temporary accommodation, which is a considerable sum for a small authority, anything which can ease that is welcome.”
King Offa Housing Delivery Options
Cabinet considered a report on the housing delivery options for the King Offa development site.
Members discussed the proposed options available in relation to the redevelopment of the site. These are: the outright sale of the land potentially to an affordable housing registered provider; seeking a Joint Venture partner to develop the site with the council; deliver a development through the Rother DC Housing Company; and a turnkey contract, whereby a construction partner would deliver fully completed turnkey properties.
Following the discussion, members voted unanimously to approve the proposal to progress a sale of residential land at the King Offa site.
Cabinet advised their preference is to sell the site for affordable housing tenures with a preference to maximise social housing within the mix, and to progress the scheme as quickly as possible.
It was agreed that officers will report back to Cabinet and Council on the full proposed sale terms/JV opportunities and seek final approval for the preferred option.
£20k from the Temporary Accommodation budget was approved to allow pre-sale activities to be undertaken.
Published: 1st August 2025
