Medway Conservatives have formally called in a recent Cabinet decision to acquire a block properties from another public sector provider and manage the portfolio through the Housing Revenue Account (HRA). The call-in has been submitted based on significant concerns regarding capital expenditure and levels of Council debt. Decisions of this scale cannot be made lightly and must be subject to appropriate scrutiny.
Following the call-in, at Full council on the 23rd April, Cllr Lawrence, Shadow Cabinet Member for Regeneration, Community and Housing, moved an amendment to the HRA acquisition seconded by Opposition Armed Forces Champion, Cllr Doe.
The amendment was designed to support transparent, prudent, and sustainable decision‑making. The amendment inserted a stop-go clause, deferring the decision until the full financial, legal, and stock due diligence; a formal statement of assurance from the Council's section 151 officer that the borrowing is prudent; a validated Stock Condition Survey and its impact on the 30-year HRA Business Plan and finally, confirmation that the final Interest Cover Ratio (ICR) remains above the 1.25 'Golden Rule' threshold across the 30-year plan.
The amendment intended to ensure Councillors were provided with the completed due diligence before agreeing to significant long-term financial commitment for Medway. Importantly Medway Conservatives were concerned that any miscalculation could have dire consequences for repairs and investment in the Council's existing housing stock.
Disappointedly, but not unsurprisingly Labour Councillors voted down the amendment under a vague assurance that due diligence is being done. The decision to proceed will now rest with just three individuals. The question has to be asked. What are Medway Labour's priorities? Is it rushed spending behaving closed doors or is it prudent and democratic financial management? To date, there has been no detailed scrutiny by Council committees, no meaningful engagement with Group Leaders, and no transparent examination of the financial assumptions underpinning the deal. Despite this, Members are being asked to approve a £45.95 million commitment based on a single report.
Cllr Lawrence, Shadow Cabinet Member for Regeneration, Community and Housing, said:
Recommendation 6.5 gives "carte blanche" to Officers to sign this deal behind closed doors. We are being asked to sign a blank cheque tonight and walk away due due diligence is completed. Given the total lack of prior scrutiny or Group Leader discussion, that is not unacceptable. My amendment inserts a vital "Stop-Go" point. It ensures that once the due diligence is in, and the Section 151 Officer has confirmed he is satisfied the borrowing is prudent in the actual market conditions of 2027, the matter must return to this chamber for a final vote.
