Borrowing up to £28 million by Swale council to spend on Sittingbourne town centre’s regeneration has been unanimously agreed by the authority’s ruling body.

Security was increased at the Tory-controlled Cabinet yesterday after fears of a backlash from people angered by the proposal, which would see the council own buildings occupied by a cinema, restaurants and retailers.

The 25 members of the public who attended were met by a police officer outside, two more inside, and security staff at the door to the council chamber.

What the council described as “additional resources” were brought in because of posts on social media by Ukip leader Cllr Mike Baldock, about ways people could make their feelings known before the meeting.

In the event, proceedings went ahead with minimal disruption.

The most heated exchange was during the debate and followed comments by Swale chief executive Abdool Kara who accused opposition members of being “financially illiterate” and “democratically irresponsible” to say it was a good idea to borrow to invest in roads and play equipment.

Labour leader Cllr Roger Truelove, who said the council loan was “a last ditch move to avoid the reputational risk of admitting it had always been a flawed scheme”, had questioned why the authority had never used its reserves or borrowing to meet local people’s needs, such as for children’s play areas.

“I think you said what you should not have said as an officer,” he told Mr Kara.

Earlier, finance chief Cllr Duncan Dewar-Whalley (Con) said the loan proposal was very, very important for the financial future of the council, and a way of generating income to replace Government funding, which is due to disappear by 2020.

The council says it has received independent financial and legal advice and estimates it could receive an average return of 7.8% on its investment over 50 years, equating to £2.1m a year in rental fees.

“This decision is a commercial one that represents an excellent opportunity for the council,” added Cllr Dewar-Whalley.

Opposition members questioned the move. Cllr Baldock called for people to be given a say on the level of borrowing and what it was being spent on, Cllr Truelove said it was not a viable investment and Cllr Monique Bonney (Ind), who has worked in property finance for 15 years, said there were significant holes in the plan.

Supporters such as Cllr Mike Whiting (Con) described it as “borrowing sensibly to invest sensibly” and council leader Cllr Andrew Bowles (Con) said it would give better returns than if the money was spent on housing.

The Cabinet also agreed spending £2.2m on changes to Sittingbourne town centre’s road layout and £500,000 of Government funding on demolishing the Princes Street depot, which the council will have to pay back should the development not proceed.

The matter is likely to be called in and will be referred to the Scrutiny Committee for further consideration before a final decision can be taken.