Folkestone Council’s Charity Misses £500k Beach Hut Income Target, Accounts Filed Late Again

The Folkestone Parks and Pleasure Grounds Charity, managed by Folkestone & Hythe District Council as sole trustee, has come under renewed scrutiny after filing its 2022/23 accounts more than a year late—marking the third time in recent years that the charity has breached statutory deadlines.

The charity exists to safeguard and maintain several historic parks and recreation spaces in the town, including Radnor Park, the Lower Sandgate Road Coastal Park, and East Cliff & Warren. These lands are held in trust for the “use and enjoyment of the inhabitants of the town and its neighbourhood.” Following local government reorganisation in 1974, the District Council inherited trustee responsibilities from the Borough of Folkestone. Today, it meets the charity’s running costs, recovering these as a “special expense” through council tax on residents in Folkestone and Sandgate only.

Three Years of Late Accounts

Records published by the Charity Commission reveal a pattern of persistent non-compliance. The charity’s accounts were filed:

• 87 days late for the year ending 31 March 2021

• On time for the year ending 31 March 2022

• 453 days late for the year ending 31 March 2023

• 120 Days late for year ending 31March 2024

As of late May 2025, the charity’s 2023/24 accounts are also overdue. While the Charity Commission has not issued a statutory warning, the pattern of delays has led to concerns about governance. The council’s April 2025 trustee report explains that the 2022/23 delay was due to “resourcing challenges in 2022-23” and a need to appoint new auditors after “scheduling conflicts” forced the resignation of the previous audit firm.

Funding and Finances: A Four-Year Review

Over the four years from 2019/20 to 2022/23, the charity’s income rose from £715,000 to £923,000, while expenditure climbed from £737,000 to £907,000. Annual surpluses were modest and driven mainly by gains on asset revaluation. The charity ended the 2022/23 year with total reserves of £5.07 million, most of which is tied up in fixed assets.

Throughout this period, council contributions—levied through council tax—ranged between £540,000 and £585,000 per year, except in 2022/23 when a large one-off income item meant the council only contributed £18,600. Income from charitable activities (e.g., parking and beach huts) grew slowly, from £91,000 in 2019/20 to £172,000 in 2022/23.

While the charity continues to deliver public benefits through well-maintained parks and award-winning green spaces, it remains highly dependent on council funding. Investment income (interest and property) rose from £46,000 in 2020/21 to £218,600 in 2022/23, in part due to asset liquidations.

Beach Huts: Return on Investment Falls Short

A major element of the charity’s financial strategy since 2019 has been the redevelopment of 120 beach chalets at Marine Walk, Folkestone. In November 2019, the council—acting as trustee—approved Report-Number-C/19/37, which asked councillors to approve a £500,000 investment in chalet refurbishment. The report stated:

“The scheme is to be funded through a loan from the General Fund, and the loan will be repaid from surplus income generated from chalet rents.”

The financial model included projected annual net returns (after costs and loan repayments) rising from £9,462 in Year 1 to £57,391 in Year 5, with a cumulative surplus of £191,327 by Year 5.

However, analysis of the charity’s accounts shows these returns have not materialized – quelled surprise. Surplus income remains well below projection. From 2019 to 2023, the chalet scheme contributed only modestly to overall finances. In fact, the total operating surplus in 2022/23 was £58,000, which covered all charity activities, not just the chalets.

These two comparative charts show the mismatch:

The findings raise questions about the original financial assumptions. As The Shepway Vox Team reported in November 2019, the proposal sparked community anger when charity tenants learned they were being asked to subsidise a capital outlay without clear evidence of return. The report noted that:

“The Charity is seeking £500,000 to redevelop 120 beach huts, which are leased out for commercial gain… none of this money is to be used for the charitable land itself, only the huts.”

The promise to repay the loan over ten years from chalet profits now appears overly optimistic. By 2025, halfway through that timeline, cumulative actual income is trailing well behind the expected path.

Public Trust and Public Money

The Folkestone Parks and Pleasure Grounds Charity has delivered clear public value through its parks. Green Flag awards, upgraded facilities, and maintained open spaces point to good operational outcomes. But the charity’s governance and financial stewardship face legitimate questions. Three years of late accounts and unmet income targets for the chalet scheme suggest a need for stronger oversight and more realistic financial modelling.

With £500,000 of taxpayer-backed investment at stake, and continued reliance on council funding, the need for improved accountability is clear. As the council prepares to file its next annual return as trustee, local residents will be watching closely—not just for pretty parks, but for prudent use of public money.

The Shepway Vox Team

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