BAE Systems has become the first business to sign up to a multi-million pound project since it started seven years ago.

It was revealed at a cabinet meeting last night (March 11) that the aerospace firm will lease part of the land which makes up Innovation Park Medway (IPM) and the council’s plans for a change of direction.

The news comes after it was revealed the original plans had been scaled back after a lack of interest from other companies.

The business park, which launched in 2018, will be split in two, with the northern section of the site being used for industrial and “mid-tech” - meaning a mix of office space and industrial - and the southern section will become a 70-bed care home and 16 retirement properties.

BAE Systems, which has a site nearby, has agreed a lease with the authority for a portion of the northern section of the site until the end of 2028.

The land will be used by BAE as a temporary car park while their main site undergoes a £220 million investment, building a new state-of-the-art factory, anticipated to create 300 jobs.

BAE Systems’ Rochester business centre site director Dave Banks said: “Medway Council has been supportive of our growth plans and ambitions to bring even more highly skilled jobs to the local area.

“The IPM lease will allow us to continue our vital work, which is of national importance, whilst we build our new factory and continue our rich heritage of engineering and aerospace in Medway.”

Councillors are hopeful the lease will open the door to more interest in IPM.

Cllr Harinder Mahil (Lab), portfolio holder for economic and social regeneration and inward investment, said: “This is a clear example of an administration that actually talks to our employers and openly discusses with very obvious candidates for that site about what we can do in partnership.

“I’m really happy to announce this, it’s good news, but this is essentially a restart.

“We have a short lease which offers BAE Systems flexibility in its current site, but that opens up further conversations which is what we’re looking for.”

He added the pause and rethink of the IPM plans, which began in February last year, was a facing up to the reality of IPM which the previous administration had failed to do.

He continued: “Not for one second do I bemoan an attempt. I do not think trying to get IPM up and running was a bad idea, we wanted and still want to see those high-quality jobs in Medway.

“But when it was found things weren’t quite working, it is incumbent on the political leaders to be able to say “actually, the new direction should be this” or, at least “let’s find a new direction, let’s make this work - in my view the effort wasn’t there.

“When we took over the council, we faced some fundamental issues with the site, we looked at what were the offers - and there were no real credible offers.

“That was a massive issue and we’ve faced it head on.

“It is concerning the previous administration were not able to change tack fast enough or react or give a new direction.”

Fellow councillors agreed the redesign of plans was a necessary step, and the creation of a new care home would be a valuable contribution to the Towns.

Deputy leader Teresa Murray (Lab) said: “IPM had stalled because of the problems it faced, but also an unwillingness to change.

“I’m delighted about the care home and I’m pleased about the lease with BAE Systems because there will be reach into all parts of our community through this site.

“It’s no longer a white elephant, it has a real future.”

Cabinet members also welcomed the fact BAE System’s investment in Medway meant there would be more opportunities for graduates from the universities in the Towns to stay in the area.

The cabinet approved the plans to change the direction of IPM and for the leasing of the land until 2028 by BAE.