All weather lifeboat launched at 0350 to report of a small dinghy/speedboat on fire off Garrison Point. On launching advised by Medway VTS that a target was on their radar drifting towards the North Kent buoy on West shore. ALB located a small partially burnt out dinghy neat the outfall beacon on West shore, no signs of recent occupation, dinghy taken under tow very slowly back towards the lifeboat station, in the meantime Sheppey CRT carrying out investigations ashore. The dinghy was recovered ashore at the station and handed over to members of the CG team, the lifeboat crew were requested to remain on standby whilst CG made further enquires. CG later advised the lifeboat, that the dinghy may have been stolen from the seafront and set alight along with a number of flares being fired. The lifeboat was stood down at 0515. Wind variable, light airs.