Folkestone & Hythe District Council has built up a sizable war chest in recent years — not through increased government funding or soaring council tax, but by selling public land and property. The Council’s Capital Receipts Reserve — money raised from the disposal of assets — has grown from £7.9 million in 2023 to £11.8 million in 2025, and is forecast to rise by another £3.16 million by 2028.
This fund is being used to invest in major projects — from digital transformation and council housing schemes to town centre regeneration and the vast Otterpool Park garden town. The Council argues it is putting the money to good use, laying the groundwork for a more efficient, resilient, and economically vibrant future.
But not everyone is convinced. Critics warn that once land is sold, it’s gone — and with some projects still years from completion, there are fears the community could end up poorer in the long run, having traded physical assets for promises that may never fully materialise.
“Once you sell public land or the property, that’s it — it’s gone,” said a Cabinet member. “You can’t rebuild the council’s future by quietly selling off its past. Residents deserve to know what’s being sold, why, and what we’re getting in return — not vague promises and vanishing assets.”
What Is the Capital Receipts Reserve — and Why Should We Care?
When councils sell something valuable — a building, a piece of land, a long-term lease — the proceeds go into a separate account called the Capital Receipts Reserve. By law, this money cannot be used for day-to-day services like bin collections, staffing, or adult social care.
Instead, it must fund capital expenditure: major, one-off investments expected to benefit the community over the long term, such as:
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Building new council homes
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Upgrading IT systems
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Investing in public facilities
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Acquiring land for development
Since 2016, councils have been granted limited flexibility. Under specific conditions, they may use capital receipts for “transformation projects” — initiatives not involving physical infrastructure, but intended to cut future costs or improve efficiency. These might include:
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Redesigning services
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Merging departments
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Rolling out digital platforms
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Funding one-off restructuring costs
To do so, a council must publish a Flexible Use of Capital Receipts Strategy, proving the spending is one-off, delivers long-term savings or service improvements, and is properly accounted for.
What Is Folkestone & Hythe Spending It On?
The Council’s latest Medium-Term Capital Programme outlines a wide range of uses for capital receipts:
Digital & Service Transformation
Investment is being made in IT systems, digital infrastructure, and service redesigns. The aim is to modernise operations, reduce costs, and improve access by shifting more services online.
Major Regeneration Projects
Proceeds from asset sales are also funding key regeneration efforts, including:
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Otterpool Park: Acquisition of land for the planned garden town of up to 10,000 homes, which the Council hopes will generate long-term income to support public services.
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Folca (former Debenhams): Purchase and redevelopment of this flagship Folkestone town centre site to house a health centre, council offices, and retail space.
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Stalled Sites: Intervention where the Council has stepped in to acquire land or unlock sites abandoned or stalled by the private sector.
According to the Council, these investments are designed to secure long-term prosperity and address urgent housing and infrastructure needs.
“The General Fund Medium Term Capital Programme includes a Flexible Use of Capital Receipts as the council expects to realise income from selling capital assets of £3.16m over the period 2024/25 – 2027/28″
But What’s Being Sold — and What’s Being Lost?
Not every land sale is publicly advertised. But some significant disposals are known:
Highview School Site (Moat Farm Road)
Originally earmarked for 30 zero-carbon council homes, the project was paused in February 2023 due to rising construction costs. The site is now being offered to a private developer. The new proposal includes just seven affordable homes.
Princes Parade
A long-running controversy, this seafront site has been the subject of environmental, legal, and political debate. Though not yet sold, the Council is spending public money on preparatory works:
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£92,060 approved in 2023 for hoarding removal, boundary security, and contaminated land clearance
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Public consultation on future uses, with no confirmed development plan
Critics point out that even preparing land for potential future sale costs money, and that burden ultimately falls on taxpayers.
Other Land Disposals
The Council’s capital strategy targets £3.16 million in further capital receipts by 2028, with planned disposals of surplus land and property. But details are often kept vague until decisions are final — making it difficult for the public to understand what’s being lost.
Where’s the Transparency?
Under the Local Government Transparency Code 2015 (section 35 & 37) councils are legally required to publish an up-to-date Asset Register at least once a year. This isn’t a suggestion — it’s a statutory duty, meant to give residents a clear view of what their council owns and what it’s selling off.
Yet Folkestone & Hythe District Council hasn’t updated its Asset Register since 31/10/2023. As of July 2025, that’s over 20 months without a legally required update. This means residents have no way of knowing which public assets have been sold, transferred, or quietly removed from council ownership in nearly two years.
Which raises the obvious question:
Is the Council simply ignoring its legal obligations — or is it deliberately hiding what parts of the public estate are being sold off behind closed doors?
The Tension: Bold Investment or One-Way Street?
Supporters argue that the Council’s approach is pragmatic and forward-looking: investing in infrastructure, housing, and regeneration to build a more self-reliant district.
But there are serious concerns:
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Selling public land is a one-way street — once it’s gone, it’s gone.
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Promised returns — in savings or income — may take years to appear, if they appear at all.
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The more that’s sold, the fewer tools the Council has to respond to future challenges.
There’s also a risk that capital receipts are being used as a financial sticking plaster, masking deeper funding issues. The Council’s Medium-Term Financial Strategy warns of a £5.5 million budget shortfall by 2029 — a gap that capital receipts cannot lawfully be used to fill.
Jam Tomorrow, Jam Yesterday — But Never Jam Today
To many residents, the benefits of these major investments still feel remote. Otterpool Park will take decades to build. Folca remains empty. Digital upgrades and service redesigns aren’t always visible — especially when local services are being cut or restructured.
“They say they’re investing in the future,” a Councillor remarked. “But if that future doesn’t show up — what do we have left?”
The sentiment recalls a line from Lewis Carroll:
“Jam tomorrow, jam yesterday — but never jam today.”
While the Council insists the payoffs will come, it is asking residents to be patient — even as public land disappears and tangible benefits remain over the horizon.
The Real Test: What Will Residents Actually See?
At its best, this strategy is bold and future-facing: using capital to invest in transformation, regeneration, and long-term economic strength.
At its worst, it may be a short-term survival plan disguised as strategic vision — depleting the public estate while betting on outcomes that may never fully materialise.
Residents have every right to ask:
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What exactly was sold — and why?
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What public benefit has it delivered — and when?
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Was it worth it — or could the land have been used differently?
The Council says it is laying foundations for a stronger, self-sufficient future. That may be true. But success won’t be measured by how much was raised — or even how much was spent.
It will be judged by what the public can point to, years from now, and say:
“This was worth it.”
Because selling off land is easy.
Delivering real, lasting value?
That’s the hard part.
We would be interested in hearing about your experiences of Fokestone & Hythe District Council. Email: TheShepwayVoxTeam@proton.me in confidence.
The Shepway Vox Team
Journalism for the People NOT the Powerful
