Here's a summary of the Finance & Investment Advisory Committee meeting held by Sevenoaks Council on 2 September 2025.

The committee discussed the financial strategy for 2026/27 and beyond, including the impact of local government reorganisation, and endorsed a three-year financial planning approach. They also endorsed a recommendation to Cabinet and Council for the council to formally participate in the Darent Valley Landscape Partnership¹, and reviewed land disposal plans, financial monitoring reports, and treasury management.

Financial Prospects and Budget Strategy

The committee discussed the Financial Prospects and Budget Strategy for 2026/27 and beyond, as detailed in the report Financial Prospects - Final. Due to expected organisational changes resulting from local government reorganisation (LGR) and a three-year financial settlement from the government, the council is proposing a shift from its established 10-year budget framework to a three-year balanced budget approach.

The report highlighted a current annual budget gap of £527,000, but noted that government funding, expected to be confirmed in late September/early October, should reduce this. Key points included:

• The government is proposing a three-year funding settlement, replacing the usual one-year plan.
• A business rates reset is expected in 2026/27.
• The council tax referendum limit is expected to be up to 3% for the next three years.
• The New Homes Bonus will end.
• There will be a simplification and consolidation of several grant pots.

The committee was asked to advise the Cabinet on the proposed budget, financial strategy and principles. The Cabinet was asked to endorse the three-year financial planning approach and principles, adopt the financial strategy, and request officers to continue reviewing assumptions and options to address the budget gap.

The Task and Finish Group, consisting of Councillor John Grint, Councillor Penny Cole, Councillor Sean Malone, Councillor Nina Scott, and Councillor Tony Clayton, recommended the adoption of a three-year balanced budget approach, with financial forecasts extended to 10 years to show the potential future without LGR. The group identified the development of Land East of Sevenoaks High Street², waste and recycling services, and leisure services as the three most critical elements of the budget.

The Task and Finish Group's report, FIAC TF Group - West Kent Survey Findings, included a survey of other councils in the potential West Kent Unitary Authority area, regarding their budget strategies and consultation methods.

Darent Valley Landscape Partnership

The committee discussed the Darent Valley Landscape Partnership (DVLP) as detailed in the report DVLP Committee Report Final, and endorsed recommendations to Cabinet and Council for the council to formally participate in the partnership and incorporate its land at Shoreham Woods and Oxenhill Shaw into the project.

The Darent Valley Landscape Partnership is an ambitious, long-term project that aims to create and enhance a mosaic of connected habitats to support nature's recovery in the Darent Valley. In 2022, Department for Environment, Food and Rural Affairs (DEFRA) funding was secured to set up this project, which is being led by Kent Wildlife Trust, and consists of 20 landowners, including the council. The council's landholdings included in the proposed partnership are Shoreham Woods and Oxenhill Shaw with a combined land area of 214ha.

The report sought authority for the council to formally join a Company Limited by Shares together with the other landowners. The purpose of this company is to ensure the land is collectively managed to optimise additional grant funding from DEFRA and also to engage with the capital markets to benefit from the trading of Biodiversity Net Gain³ units and possible carbon sequestration credits in the future.

The committee also endorsed the appointment of the portfolio-holders for Finance and Investments and the Cabinet Member for Cleaner and Greener as the council's representatives on the partnership.

Land Disposals Tranche 3

The committee discussed the Land Disposals - Tranche 3 Cabinet Report Final 002 and previously raised concerns about the consultation process. The report detailed feedback received from the consultation, with 89 objections regarding the intended disposal of land at Small Grains, Fawkham and nine objections regarding Vernon Close, West Kingsdown.

The committee agreed that if the Community Asset Transfer applications for Small Grains and Vernon Close are successful, any decision taken by Cabinet under the Tranche 3 disposals in relation to these two sites will not be taken forward.

Financial Monitoring 2025/26

The committee reviewed the Financial Monitoring Report - July 2025, which provided information on the revenue and capital position as of 31 July 2025, and the forecast to 31 March 2026. The report noted an unfavourable variance of £255,000, which included the impact of a 3.2% pay award.

Financial Performance Indicators 2025/26

The committee reviewed the Performance Indicators Report - July 2025, which set out internally agreed financial performance indicators relating to the financial aspects of the council.

Treasury Management Annual Report 2024/25

The committee reviewed the Treasury Management Annual Report 2024-25, which provided a review of investment and borrowing activity during 2024/25. 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. 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 the Borrowing Strategy Update, which provided 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 current level of internal borrowing is not sustainable and the ambitious capital aspirations of the council will require projects to be funded using appropriate levels of external borrowing.

Work Plan

The committee noted the work plan, with the report of the Task and Finish Group added to the September meeting.