The Economy Committee of Arun District Council is scheduled to meet on 9 October 2025, to discuss the budget process for 2026/27, review parking tariffs, consider a new legionella testing contract, discuss recommendations from the Asset Review Working Party, and consider options for seafront cafes in Bognor Regis.

Parking Tariff Review

The committee will be asked to consider the annual review of parking fees, as outlined in the report, Variation to Parking Charges Disc - FINAL. The report includes a review of the 2-hour free parking scheme in Littlehampton and Bognor Regis, and proposed changes to the Arun District Council's Parking Order.

The report pack includes three options for parking fee increases, and the committee will be asked to agree to one of them:

• Option A: a 3% increase in fees.
• Option B: a 5% increase in fees.
• Option C: a 10% increase in fees.

The report estimates that Option B would increase annual income by £95,913.

The committee will also be asked to agree to cease the 2-hour free parking scheme, which the report says would save the council £13,000 per year, and could potentially increase income by £503,621 per year. The report also proposes to include £60,000 each year in 2026/27 and 2027/28 for economic activity in Littlehampton and Bognor Regis town centres.

The report pack includes the results of a town centre user survey, attached as Appendix C - Survey Results, conducted in collaboration with the Economic Regeneration team. The survey found that 47% of respondents drove to the town centre, while 39% walked. When asked why they chose to come into the town centre, the ease, availability and price of parking ranked 5th out of 6 options.

The report also refers to a paper published by Horsham District Council, Appendix B - Do Parking Charges Drive Success, which concluded that retail success depends more on the quality and quantity of shops, location, visitor-friendliness and overall atmosphere, rather than parking availability. The Horsham District Council paper also establishes that the introduction of free or reduced priced parking to encourage more cars into the area directly contradicts any local authority's declaration of a climate and ecological emergency.

Asset Review Working Party Recommendations

The Economy Committee will be asked to consider the recommendations from the third and final meeting of the Asset Review Working Party, as detailed in the report, Asset Review Working Party 3 FINAL. The Asset Review Working Party was established to identify opportunities for improving revenue, reducing costs, and generating capital receipts from the council's assets.

The report includes the following recommendations:

• Investigate leisure market interest for a lease of land opposite Hendon Avenue, Littlehampton.
• Dispose of the freehold of land at 2 River Road, Littlehampton.
• Explore the feasibility of residential or mixed-use development on land at Horsham Road, Findon, either in conjunction or separately from the adjoining Nightingales housing site.
• Explore the feasibility of residential and/or commercial development options on all or part of the Sheep Wash Barn & Depot, Worms Lane, Flansham.
• Explore the feasibility of alternative leisure and commercial offerings at Norfolk Gardens Pitch & Putt, Littlehampton.
• Continue the use of the Gloucester Road Car Park as an operational car park but seek a new lease or management contract with Butlins for the non-owned land.
• Explore relocating the entertainment centre at Windmill Complex, Littlehampton and repurposing or redeveloping the existing site, including meaningful engagement with user groups.
• Maintain the existing arrangements at the Caravan Club Site, Mill Lane.
• Begin negotiation for a lease renewal to the existing or new tenant at the Caravan Club Site, Rowan Way.
• Explore a phased development scheme seeking a mixed-use development of Hothamton Car Park – including a supermarket – to enable regeneration of Fitzleet Car Park & Store, with no loss of parking provision.
• Negotiate for a short lease for a free to use public car park further to proposals from Felpham Community Interest Company at Grassmere Car Park and Links Avenue Car Park.
• That 'Canada Gardens, Chichester Road, Arundel' be maintained in its current use with consideration given to ecological and environmental gain in consultation with other local authorities and interest groups.

The report also asks the committee to agree to a Priority Matrix, attached as Appendix 3 - Priority Matrix, to act as a guiding framework for directing project resources and feasibility activity across the asset portfolio.

Seafront Café Options at Bognor Regis (Esplanade Theatre Site)

The Economy Committee will be presented with business case appraisals for options for proposed café developments at the Esplanade Theatre site in Bognor Regis, as detailed in the report, Seafront Cafe Report FINAL.

The report pack includes a Cafes Feasibility Report, which outlines the context and development history of the site, and presents three design options:

• A two-storey café/restaurant accommodating up to 200 covers.
• A single-storey 80–100 cover café/restaurant.
• A smaller 30–40 cover café serving beverages and snacks.

Each option has been designed to either retain or relocate the existing skatepark.

The report also includes a Commercial Property Report, which notes that the restaurant and pub sector remains challenged, and that tenant-led development is generally the preferred route for delivery of new coastal cafes/restaurants. The report states that the Esplanade Theatre site could be well suited to a medium size restaurant with an extensive external terrace.

The report notes that financial appraisals for the sites both show a loss at the current time. The NPV Appraisal shows that a positive cashflow is not achieved until year 21 and break even does not occur within the 30-year projection.

The report recommends that officers make enquiries of the market to identify any interest from potential investors, developers, or operators for progressing the development on a ground lease basis, including skate park provision.

Legionella Testing, Sampling and Maintenance Contract

The committee will be asked to consider a report updating them on upcoming budget requirements and management of legionella¹ compliance obligations. The report seeks approval and authorisation for the Group Head of Technical Services, Nat Slade, to enter into a new legionella testing, sampling and maintenance contract.

The report, Legionella Committee Report FINAL, notes that Arun District Council has no cooling towers anywhere on its estate but must comply with all other relevant requirements of the legislation.

The report recommends delegating authority to Nat Slade to enter into a new 3+1+1 year legionella testing, sampling and maintenance contract commencing 15 November 2025. The report, Business Case - L8 draft for report FINAL, notes that the annual expenditure of the recommended contract is estimated at £32,000, and the whole life costs of the contract are therefore £160,000.

Budget 2026/27 Process

The committee will be asked to note the budget process for 2026/27, as outlined in the report, 2026-27 Budget Process, which was approved by the Policy & Finance Committee on 8 July 2025. The report informs members of the budget process for 2026/27 as required by Part 6, Section 2 of the Council's Constitution.

The report notes that the council continues to face cost pressures and increasing demands on service delivery. It is expected that the budget process will be supported by ad hoc briefings to all members as and when necessary.

The report also includes a timetable of key dates for the budget process.