A Huge Budget for Folkestone and Hythe

The Folkestone and Hythe District Council General Fund Budget 2026/27 was agreed unanimously to be put to Full Council by the Cabinet meeting of 11th February.

In presenting the budget, F&HDC Deputy Leader and Cabinet Member for Finance Tim Prater outlined the budget. He said:

"I am of course delighted to move the General Fund budget before us this evening which will, with a few late amendments and additional detail from the County Council and other authorities we collect precept for, form the basis of the budget put before Council in 2 weeks time.

"You’ll see in the report that various elements of this report have already visited Scrutiny on a number of occasions, and their constructive questioning and feedback then comes back to the budget we’re now presenting. There is at section 11 also one of the most important parts of the report, where Alan as Section 151 officer has to give his professional opinion on of this budget is achievable and safe. In many Councils that’s harder and harder to say.

Kent County Council, for example, take 27 pages to say they are have the highest level of risk, ever.

"I’m delighted that Alan could be confident to say he is “content that the budget being presented is adequate, and the level of reserves held throughout the MTFS period are adequate to meet the Council’s financial obligations having due regard to foreseeable risk.” Short, but great to hear.

"This year again every line has been through, looking to see if they are realistic, take into account inflation and other cost pressures, and deal with expected demand. It corrects previous issues, and deals with the constantly moving Government position.

"This is the right time for my thank you’s to Alan, Jonathan, Daniella and the team for getting this together: as ever, it’s a huge commitment to get together, alongside other little things like introducing an entirely new finance system from April.

"I’ll say the Government financial settlement for this year was OK to this Council. It’s great to see three year budgeting return, which allows our forward forecasting to be rather more certain. I’ll also say that although the settlement is not as good for years 2 and 3, where rising costs and inflation are not met by increased support, although literally a few days ago they did improve that position a little.

"But instead of talking to the detail of this budget, I want to outline what it allows, and what we’re going to be able to do.

"I just wanted to reinforce a few of the things this budget allows, and reinforces. We’ve been talking about many of these things in meetings for months: for those that haven’t there are a lot of highlights.

"For our third year running, of three, it’s a balanced budget, not funded from General Reserves.

"We do so with a sub 3% Council Tax increase on our portion of Council Tax, AGAIN. That’s lower than the Council tax rise that Kent County Council will set.

"We’re funding a £5m investment in new Council owned Temporary Accommodation to provide emergency housing to those that need our help most and which should reduce our costs long term and improve the quality of what we offer.

"We’ve accepted an offer for Folca1 which will be turned into retail and flats by a commercial developer, within the existing façade. The receipt will be invested into Folca 2.

"And as we discussed earlier, that receipt is part of the £13m investment to get Folca2 medical centre and commercial built and open with a business plan that pays for itself.

"We’re ready and able to fund a £2.4m grant to reopen Folkestone Sports Centre with massively reduced energy costs and no ongoing cost to this Council.

"We’re ready to find £6m to rejuvenate Hythe swimming pool, giving us options to look at improving facilities and extending its lifespan by 20 years for a fraction only the price of a new pool.

"We’re still determined to bring a new leisure facility to Martello Lakes, and there will be more on that through the coming months, but this budget allows for it.

"And there is more money for grants, and Mike and the team will be coming forward with the proposals of how to allocate that, and give Councillors control of more of it, during the next 2 months.

“So I’m delighted to move the report and all recommendations, and even more delighted not to take you through each of the supporting papers in turn.”