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
