Issue - meetings

Background:

This report provided details of a proposal for the loan of £400,000 to Delce Academy to fund capital expenditure on the installation of a four classroom block of modular buildings.

The report stated that the school had requested funding from the Council on several occasions and had been refused on the basis that this was not considered a priority project when allocating limited funding for the provision of school places. However, provision of the loan would allow the school to provide the additional classroom space it required in the short term and, over the longer term, this additional capacity would become necessary for the wider area.

The report also stated that the loan would have to be made on commercial terms and at an interest rate commensurate with those available in the private sector in order to have no adverse effect on the Council’s budget and to avoid breaching ‘state aid’ rules.

Reasons:

The making of a loan to Delce Academy would allow the school to provide the additional classroom space it requires in the short term and there is little doubt that over the longer term, as Medway grows, this additional capacity will become necessary for the wider area.