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Medway Council Approves £44m Care Home Development

Medway Council has given the green light to a major care home project, securing £44 million in funding to construct and operate an 80-bed facility at Innovation Park Medway.

The development, approved at a Full Council meeting in mid-November, will provide specialist accommodation divided equally between dementia residential care and step-down beds for patients transitioning from hospital to home settings.

Labour councillors championed the scheme as an essential investment to address critical shortages in local care provision. Deputy council leader Cllr Teresa Murray defended the ambitious nature of the proposal, arguing that the authority faces an urgent need to expand specialist dementia care capacity.

“Our residents experiencing complex dementia require specialist residential support, and families currently face distressing delays whilst suitable placements are identified,” Cllr Murray told the chamber. She emphasised that the facility would establish high standards across the sector whilst improving system efficiency through strategic investment rather than short-term spending.

Conservative opposition members acknowledged the merits of expanding care provision but questioned the financial viability given the council’s current fiscal position. Cllr Gary Hackwell highlighted concerns about the overall cost structure, noting that the £37 million build programme, combined with £7 million for wider site infrastructure, would require substantial long-term borrowing.

The opposition pointed to projected annual interest payments of £2.7 million, potentially accumulating to approximately £136 million over five decades. Conservative members also questioned the economics of operating a facility that may charge higher rates than the authority currently pays for private sector placements.

Despite financial concerns, the proposal received majority support. Labour councillors, the Independent Group, and an independent member voted in favour, whilst Conservative and Reform UK representatives opposed the motion.

Council leadership has indicated intentions to commence construction during early 2025, with the project timeline being accelerated where feasible.

The care home represents a significant repurposing of the Innovation Park Medway site, and reflects growing recognition among local authorities of the need to directly provide care home capacity, particularly for specialist services including dementia care and hospital discharge support.

 

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