Our highstreets are in decline across the country and we need a proactive plan to save them.
First, we need to establish why they are in decline.
Online shopping has taken over so the traditional retail model is no longer viable. There is no point in having stores that all sell the same products which you can buy online and have delivered the very next day. The costs involved with a store vs online shop is so far apart that it isn’t a viable business for anyone that isn’t long established.
Multinational chains have created monopolies in towns and cities. They set up so many stores within a small area, put the competition out of business and then they shut the majority of stores, saving the best performers.
Due to the above, towns lose their appeal. We know that no matter where we go, the same stores and same chain hospitality businesses will be there. It has meant that towns have no individuallity or any draw for people to go to them.
Also, because of these big multinationals, we have created an environment where rents and rates are so high that a small independent or start up business have little to no prospect of being financially viable. Landlords would rather sit on an empty property, waiting for a multinational to come along and pay astronomical amounts of rent, rather than lowering rents to attract new businesses.
Small independents create a reason for people to go into towns and also attract people from outside of the area. They are the life blood of the highstreets and they provide goods that can’t be found elsewhere, which provides an enjoyable shopping experience and a reason to go to a physical store. Therefore we need a plan to promote this type of business and revive the highstreets.
My idea for the solution.
Business rates need adjusting up for multi-national chains and franchises.
Scaling business rates for multi-national chains and franchises that increase with the number of outlets in an area. For example, one Starbucks pays the new normal rate, if another opens, they pay double on that outlet, triple for the third and so on. They should be able to spread the rates across the outlets so that franchises all pay the same and this plan could be implemented on existing stores. This would stop them, flooding the area with their stores and give independents a chance at competing for business.
Landlords of empty premises should be given a period of time to find a tenant. Let’s say 6 months. After that period, they should pay full business rates on that property. The rates should then scale every 3 months until a tenant is secured. This would force landlords to lower rents and secure tenants for empty properties or force them to sell up. It would also reduce the number of empty stores in the highstreets and give the area a better atmosphere.
If they fail to secure tenants after a long period of time, councils should have the ability to compulsory purchase or compulsory lease hold properties. Those properties should then be managed by a local chamber of commerce, run by a panel of local businesses owners. They could offer, very cheap rents for pop up stores and people who want to test out their business plans with reduced risk. Other support, such as business mentoring and accountancy could be offered.
The money raised from the above should then be used to offer start ups and small businesses, grants and support.
Small independents should receive a honeymoon period where they pay zero rates and then move on to a scaling rate relief system which moves inline with turnover.
Reduced employer NI contributions for independent retail and hospitality sector.
Honeymoon period for start ups
I fear that unless we make radical changes then we will lose our highstreets and ultimately, they will just become more human storage facilities. I would like to see a return to thriving, interesting and individual town centres.
