The Finance & Investment Advisory Committee met on 2 September 2025, to discuss a range of financial matters, including the proposed budget strategy for 2026/27 and beyond, the Treasury Management Annual Report for 2024/25 and a borrowing strategy update. The committee endorsed recommendations to the cabinet regarding community asset transfers, land disposals, and participation in the Darent Valley Landscape Partnership¹, while also reviewing financial monitoring reports and performance indicators.

Darent Valley Landscape Partnership

The committee endorsed a recommendation to cabinet regarding the Darent Valley Landscape Partnership (DVLP). The Darent Nature Partnership is a long-term project aiming to enhance connected habitats in the Darent Valley. The project is led by the Kent Wildlife Trust, and includes 20 landowners, including Sevenoaks Council, and has secured funding from the Department for Environment, Food and Rural Affairs (DEFRA). The council's landholdings in the partnership are Shoreham Woods and Oxenhill Shaw, with a combined area of 214 hectares.

The council is being asked to formally join a company limited by shares with the other landowners. The purpose of this company is to ensure the land is managed to optimise grant funding from DEFRA, and to engage with capital markets to benefit from biodiversity net gain² (BNG) unit trading and carbon sequestration credits in the future.

The report noted that the Darent Valley landscape recovery project can deliver social, environmental and economic benefits, and will assist the council in achieving its priorities in the Council Plan, Climate Change Strategy and Economic Development Strategy.

The committee agreed to endorse the recommendations to cabinet and council, including the formal incorporation of the council's land, the appointment of portfolio holders as council representatives, and delegating authority to the Deputy Chief Executive & Chief Officer Finance following consultation with relevant heads of service to enter into necessary legal agreements.

Land Disposals Tranche 3

The committee discussed and endorsed recommendations to cabinet regarding the disposal of several properties considered surplus to the council's requirements. The disposals are intended to generate capital receipts for the council's capital programme.

The properties include:

• Land to rear of 42 Clarks Lane, Halstead
• Land adjacent to 1 Southdene, Halstead
• Land adjacent to 6 Parkside, Halstead
• Land to rear of 2-12 Northfield, Hartley Longfield
• Land at the junction of Brambledown & Hawthorns, DA3 7ER
• Land at north of recreation area at junction of Caxton Cl & Woodland Avenue – DA3 7DL
• Land between 8 & 10 Porchester Close DA3 7DQ
• Land opposite 16 20 Vernon Close TN15 6JY
• Palace Approach, Otford
• Land at Small Grains, Fawkham

The committee noted that the Small Grains and Vernon Close sites are currently being taken through the Council's Community Asset Transfer process, and agreed that if the Community Asset Transfer applications are successful, any decision taken by Cabinet in relation to these two sites will not then be taken forward.

Community Asset Transfer - Round 1

The committee endorsed recommendations to cabinet and council to dispose of The Stag Community Arts Centre, Sevenoaks, as a community asset transfer to Sevenoaks Town Council on a 100-year Full Repair and Insuring (FRI) lease³ with restrictions, in accordance with the adopted Disposals Policy.

The report noted that the council had received multiple requests from town and parish councils to transfer assets, since the government's announcement to progress local government reorganisation in Kent.

The committee was advised that the asset proposed for transfer has been subject to the necessary due diligence on the related impact on the council associated with the transfer, and that the council has considered the community based economic benefits that will be realised by the council.

The proposal is to continue to use the asset as a Community Arts Centre with the aims of:

• Assisting the sustainability of the local economy, particularly the night-time and tourism economy
• Retaining a valuable social and leisure facility
• Enabling the development of youth services
• Retaining an iconic building and preserving the street scene
• Retention and development of an independent charity with local governance

Financial Prospects and Budget Strategy 2026/27 and Beyond

The committee discussed the financial prospects and budget strategy for 2026/27 and beyond, and agreed to advise cabinet with their views on the proposed budget, financial strategy and principles set out in the report.

The report proposed a move away from the established 10-year budget framework, due to expected organisational changes resulting from local government reorganisation and the government's intention to provide a three-year financial settlement. Instead, it was proposed to have a three-year balanced budget with the 10-year plan remaining in the background.

The current three-year budget position shows an annual budget gap of £527,000, although this may be reduced by government funding.

The report set out a number of financial pressures the council is likely to face in the coming years, including inflation, the impact of the local government funding reform, and the need to maintain a prudent level of reserves.

Treasury Management Annual Report 2024/25

The committee reviewed the Treasury Management Annual Report for 2024/25, which provides a review of investment and borrowing activity during the year. The report outlined the strategy adopted during the year, showed the position of the investment and debt portfolios, and gave details of how the investment fund performed in comparison with previous years and against various benchmarks.

The report noted that the council complied with its legislative and regulatory requirements during 2024/25.

The overall return on the council's investment was above budget in 2024/25 by £334,000, achieving an average interest rate of 4.97%.

Borrowing Strategy Update

The committee considered a report providing an update on the past, present and future borrowing strategy and utilisation of cash resources to fund both operational and capital requirements.

The report noted that the council has some borrowing, but in recent years has chosen to maintain an under-borrowed position, utilising cash balances instead. However, this strategy has resulted in a reduction in the level of investment balances the council is able to hold, and therefore reduces investment income.

The report stated that the current level of internal borrowing is not sustainable and the ambitious capital aspirations of the council going forward will require projects to be funded using appropriate levels of external borrowing.

Member Task and Finish Group Feedback

The committee considered the report of the Task & Finish Group, which was set up to consider an appropriate budget strategy and budget consultation for 2026/27 in light of Local Government Reorganisation. The committee noted the report.

The Task and Finish Group recommended the adoption of a three-year balanced budget approach, with the financial forecasts extended to 10 years to show what the future might look like in the absence of Local Government Reorganisation.

The group agreed that the three most critical elements of the budget were likely to be:

• The development of Land East of Sevenoaks High Street
• Waste and recycling services
• Leisure services

The group also asked for research to investigate the approach of other authorities towards budget setting and budget consultation.

Financial Performance Indicators 2025/26

The committee reviewed a report setting out the internally agreed financial performance indicators which related to the financial aspects of the council as at July 2025. The committee noted the report.

The report advised that both Audit and Benefits had improvement plans in place and were expected to show improved performance in the new financial year.

The performance indicators included:

• Audit actions fully implemented within agreed timescales
• The percentage of business rates collected in-year (cumulative)
• The percentage of council tax collected in-year (cumulative)
• The percentage of undisputed invoices paid within 30 days or agreed terms
• Sundry debts outstanding more than 60 days
• Average number of days to process a new claim for Housing Benefit
• Average number of days to process a change in circumstances for Housing Benefit
• Treasury Management - Actual vs Budget + Forecast
• Treasury Management - Investment returns vs RPI vs CPI

Actions from Previous Meeting

The committee noted that the responses to the actions from the previous meeting had been circulated.