News & Events

Market Towns take on the Credit Crunch

Market Towns response to current Economic Climate

This is a summary of 11 responses from SMTF Members to the question;

What can be done quickly to help the economies of our Market Towns during the Credit Crunch?

Like Businesses nationally, they are suffering from;

-          Lack of credit
-          Loss of consumer confidence (i.e. non-essential shopping dramatically reduced and less spent on leisure)

What can be done to tackle these, specifically for businesses in Somerset’s Market Towns?

1. Issue – Lack of credit

Government loans package may be available to larger businesses, but simple local measures like Local Authorities paying suppliers more quickly than 30 days are a positive step.

It has been suggested that a dedicated microfinance facility for Somerset (perhaps run by Wessex Reinvestment Trust) is needed to create a ring-fenced reserve for Somerset Businesses.

2. Issue – Reducing Costs

Suggestions included Business Rates holidays or discounts, cheaper business waste collection (linked with improved business waste recycling), and rent discounts or holidays (better for landlord and the wider town to have an operating business rather than an empty shop/unit). Whether any of these are achievable - apart from Business Rate Relief which exists (see your District Council's website) - is another matter!

3. Issue – Stimulating consumer spend

Consumers are very focussed on value at present (evidenced by the rise of Lidl and Aldi). Market Towns often have good quality, comparison food shopping but getting customers onto the High Street is more difficult now.

Suggestions for how the independent retailer can be supported included;

  • Town Discount promotions/‘Shop Local’/ loyalty schemes

  • Car parking charge ‘cashback’ promotions (as run in Crewkerne recently)

  • General or niche shopping promotion (Ilminster Town and Catherine’s Hill, Frome, recent examples of shopping-focussed signage projects)

  • Businesses, Chambers and other interested parties should visit other towns who have successfully instigated these types of schemes

There was also a suggestion that the low pound versus the euro creates an opportunity to promote Somerset more as a visitor destination to the euro-zone. Some cynicism as to whether VisitSomerset has the capability to deliver this.

4. Issue – Empty Premises

Towns with Woolworths now have a prominent, large footprint store empty which is both a shame and an opportunity. If no interest at the moment from competitors (and Tesco Metro stores could further damage independent food stores), a suggestion has been made in the Western Gazette that these could be rented temporarily (perhaps by Town or District Councils) as an indoor market – farmers market on some days, but also more general local traders – until the economic climate improves and demand returns. But with LA budgets tight this is unlikely.

A more practical route is making sure businesses enquiring about premises get the right info, fast. South Somerset DC have an Employment Land & Premises database - other Districts may well have them too - though this is only as good as the info they receive from agents or owners.

5. Issue – Business Support

Finding sources of business support and signposting to information not always clear or obvious. There was a suggestion that perhaps a very clear, Somerset-focused Business Signposting website is needed. The joint Somerset Chamber and Business Link Credit Crunch meetings have been welcomed. SSDC Area East Mentoring scheme has potential. Mendip Business Exchange event (27th Jan) – Shine in 2009 – on promoting businesses successful.

Local Authority Officers summarised what they are doing (beyond the standard Business Support/Signposting services);

South Somerset are offering;

  • Business Ambassador Service. Business owners can get advice on a wide range of business related issues, including pre-application planning to expand or relocate existing premises, and help with locating new premises in the area. 

  • Business Mentoring Service.  Businesses in Wincanton, Bruton and Castle Cary area are being given a unique opportunity to “survive and thrive” through the credit crunch, as part of a new business mentoring scheme.  This will allow businesses to take advantage of their very own personal expert – matched to their needs – by registering their interest in the scheme.

  • Various Business Rate Relief strands.

Sedgemoor are;

  • not increasing car parking charges from April as planned. 

  • They are looking at all internal strategies to see what help they can provide as a result of the Credit Crunch

West Somerset are;

  • Continuing their Business Rate relief schemes (small, rural and new business strands)

  • We are looking at ways of improving the business network in the District.

  • Developing a new Economic Development Strategy, the Action Plan of which includes targeting worklessness through applying for funds from the Working Neighbourhoods Fund

(not comprehensive, just the Officers who replied from my contacts list)

If you have comments or suggestions on how we can tackle the recession locally, email matt@somersetrcc.org.uk

Views expressed above are those of SMTF Members.

And finally...

‘Regional Minister Beverley Hughes said public bodies should flex their financial muscles to help local businesses.’ Rural Services Network

 

Created on January 30th 2009

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