Dated policies and an unfair tax regime must be reformed to create an environment that will allow high streets and town centres to flourish in the future, a report published by the Housing, Communities and Local Government Committee has found.
With online sales currently at 20%, and changing consumer behaviour meaning this is likely to continue growing, the future for high streets and town centres will become increasingly bleak.
Some formerly thriving shopping areas are likely to become ghost towns and effectively close down altogether unless the Government, councils, retailers, landlords and the local community act together to implement the Committee’s recommendations.
The report sets out a bold vision for the high street based on locally led strategies, developed with local communities and businesses at the centre, and reflective of evolving commercial and economic patterns.
The Committee calls on the Government to initiate reform in key planning and taxation areas, including the options of an online sales tax and reforms to business rates, to allow high streets to adapt to changing demand, and compete with online retailers such as Amazon on a level playing field.
The Committee finds that:
High streets and town centres must adapt, transform and find a new focus in order to survive
Business rates are stacking the odds against high street retailers.
The Government must initiate reforms to provide meaningful relief to
high street retailers, including giving consideration to proposals for
an online sales tax to level the playing field
Achieving large-scale structural change will require intervention
led by the local authority, in collaboration with business and local
communities, backed by funding and new powers from central government
Local Plans are a key element of this. They must consider green
space, leisure, arts and culture, health and social care services to
create space that is the “intersection of human life and activity”
Retailers must accept the need to adapt and do more to offer what
online cannot, focusing more on personal interactions and convenience
Landlords need to recognise the retail property market has changed
and be more receptive to negotiating lease terms with retailers in
financial difficulty – The Government should consider providing a
conciliation service to facilitate negotiations between the parties.
Chair of the Housing, Communities and Local Government Committee, Clive Betts MP commented:
“In recent years, high streets and town centres have faced extremely challenging times. We have seen the collapse of a number of well-known, national high street chains, with many more undergoing restructuring or being bought out. The growth of online shopping has profoundly changed retail in the UK, and the knock-on impact on high streets has been stark.
“It is likely that the heyday of the high street primarily as a retail hub is at an end. However, this need not be its death knell. Local authorities must get to grips with the fact that their town centres need to change; they need to innovate, setting out a long-term strategy for renewal, reconfiguring the town centre and finding new ways of using buildings and encouraging new independent retailers.
“Dated planning policy must be reformed to reflect the needs of modern high streets and town centres. Business rates must be made fair. They are currently stacking the odds against businesses with a high street presence and this must end. Tax reforms are needed to level the playing field between online and high street retailers, and we urge the Government to investigate all the options in this area, including an Online Sales Tax.
“We must begin a period of renewal and regeneration, establishing high streets as focal points of our communities comprising green space and health, education and leisure services, as well as a core of retail. At a local and national level, government must create a framework that allows high streets and town centres to thrive. Local authorities must have the foresight to develop evolving strategies tailored to the needs of their local communities and drive the large-scale transformation needed. Central government must give them the powers, and back them financially, to allow them to put this into practice.”