Facts and Solutions to help small and start up businesses in our district.
We need a thriving district. We need a business friendly environment. We need to help businesses come here, and local start up businesses to thrive here. We need to help them survive longer as well. So, below I have set out the facts as they are known, with evidence, and deliver some solutions which could help businesses wishing to start up in our wonderful district, regardless of where it might be.
Dr Susan Priest (pictured), the Chief Executive & Head of Paid Service of Folkestone & Hythe District Council joined the Council in Oct 2013.
She was once a Ph.D student at St Catharines College; which is one of the halls of Cambridge University. She is mentioned in the St Catharines College Magazine in 1997 as a Postgraduate registered for Research or Further Study 1996 – 1997 at page 60.
Dr Priest received her PhD from St Catharine’s College Cambridge for her examination of the effectiveness of government policy to stimulate small and medium enterprise (SME) growth and competitiveness.
So she knows a thing or two about small and medium businesses.
In January 2023, Kent Analytics who undertake research for Kent County Council, released the Statistical Bulletin for Business births, deaths & survival rates of companies in Kent by district.
As one can see, companies who set up in the Folkestone & Hythe District area in 2016, only 36% survived by 2021. So 64% of businesses did not survive.
Of course, I’m not blaming Dr Priest for this poor record for the second worst business death rates in Kent. She must implement the policies of those in power. Nothing more.
One further notes in the Kent Analytics Statistical Bulletin, released in November 2022, for UK Business Counts 2022, for Kent, over 12 years, Folkestone & Hythe District has added only 740 companies between 2010 and 2022, who pay VAT and/or PAYE. The third lowest of any district in Kent.
So what reasons might there be for Companies failing, and not wishing to locate in our district?
Well, part of the answer lies in the Watermelon Research released in February 2020, titled Folkestone Town Centre Regeneration Research
One can see parking is an issue. The research shows it was an issue of nearly half of those surveyed online.
It is more often than not an issue raised by those on the planning committee.
Even Sir Roger De Haan sees it as an issue, as he wanted to build a multistorey car park at the empty Marine Parade Car Park; which he owns, but for a variety of reasons this did not happen.
Some argue it is the cost of parking which is an issue, as it hurts those who travel to Folkestone, Hythe, New Romney, Lydd as they must pay to park.
It’s clear car parking income has revived after the pandemic. And its clear that the increased numbers of CPZs affects those who travel into our towns for work.
It’s worth noting car park income has revived though.
2019/20 – £1,377,657
2020/21 – £992,512
2021/22 – £1,528,333
But of Course, it’s more than car parking, on or off street; which affects business in Folkestone, Hythe, New Romney and Lydd.
Location is another reason, as is help with grants, and tailbacks caused due to Operation Brock causing mayhem. A cost of living crisis and wages falling behind inflation does not help either.
What one has to remember is between 2010 and 2023, the people who have been in charge of the local district economy are the local Conservative party.
That said, since 2019 the Cabinet Member responsible for the district economy has been Cllr David Wimble (Ind)
In Feb 2019, it was the then Tory Cabinet who set up the £3m High Street Fund, as is made adequately clear in the minutes at Agenda Item 76
This is further substantiated by Report Number C/22/84 at page 2.
But more can be done to make a thriving local economy for all businesses. What solutions are there to help businesses in our district survive longer than the appaling failure rates over five years, cited above?
1 Reduce business rates.
2 Progressive business rates for small and start up business for 12 months. This means that the more a company earns, the more it will need to pay more in business rates over that initial year.
3 Then a further partial subsidy for another 6 months, if needed.
So how can that be done?
Currently local councils such as ours, collectively retains half of the income from business rates, the other half is paid by councils to central government, which uses the income to fund grants to local authorities. The half retained – minus the percentage which goes to KCC, can be used to support small start up local businesses.
In 2021/22 Folkestone & Hythe District Council retained £7,727,600 in business rates. Some of this could be used to help small and start up bussineses who choose to set up here.
And finally, given Dr Priest has that Ph.D in the effectiveness of government policy to stimulate small and medium enterprise (SME) growth and competitiveness, I am sure she has some solutions up her sleeve too.
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Bryan Rylands Flat D Avenay Court Sandgate Rd Folkestone CT20 2LN
When I saw Priest and Wimbles names i immediately thought you had written a comedy sketch .
Just keep your eye on the ball on 4th May as we all know that Dr Susan Priest is the queen of the fictitious recount especially I would expect in the Folkestone Central Ward !
So given the No of VAT and/or PAYE companies set up in the district is the lowest of all 12 Districts (740), why would anybody wish to locate on the Otterpool Employment site, as their survival chances are not very good given the 12 years worth of evidence available.
The problem is often about making good use of space. People want more car parks and variety of shops, entertainment venues recreation facilities / leisure activities means they are all competing for the same space. Poverty/homelessness/anti-social behaviour/Tired/run down/scruffy, Litter, dirty/ grubby, Lack of facilities/ amenities, Lack of shops, shops closing down all effect each other with a Domino effect leading to a chain of events.
It is good that our council has made funds available for existing and new businesses across the district. However having just looked at the Grants Register dated 30 September 2021 I do feel that some of the the grants should be loans. Some of the businesses that have received grants have more than sufficient funds available in their businesses to fund the purpose of the grant. Remember it is rate payers money that is being given away.
If you look at the grants given out under the heading of Folkestone Community Works it is even more worrying to see that funds of £16,014 in total were given to two Limited Companies that have been dormant for many years. The council has either been defrauded or it is just shoddy reporting. Other grants have also been made to profitable businesses. Why should a grant of £6,935 be made to a company with net assets of over £1.3m and cash in the bank of £1.4m. It is always easy to give away other peoples money. Once again it comes down to proper scrutiny and processes being put in place.