£1bn for high streets ‘not the panacea’
0Councils say they need more help from the government after its £1bn pledge of high street funding.
The government announced 50 councils could bid for up to £1bn from the Future High Streets Fund to help regenerate their retail zones by starting plans for transport and infrastructure projects.
The cash – up to £150,000 per council – can also be used to fund controversial initiatives to turn shops and offices into residential developments.
Action is needed. According to the British Retail Council, retail unit vacancy rates are at 10.3% – their highest level since 2015. Average sales have dropped to 0.5% – the lowest level since records began in 1995.
Consumer confidence, rising costs and internet shopping are among the factors for the change in fortunes.
2nd Housing & Regeneration Finance Summit
October 31, 2019, County Hall, London
The Local Government Association said the announcement was ‘not the panacea’ for retailers’ problems.
Cllr Martin Tett, the LGA’s economy spokesman, said councils had their eyes on the chancellor’s one-year spending statement: “We are pleased that the £1bn cash injection announced by the government as part of the Future High Streets Fund will provide local economies with a desperately-needed cash boost at a time when town centres are undergoing unprecedented change.
“As part of its forthcoming spending round, the government should now provide councils with the resources to ensure vital services keep pace with newly regenerated town centres that local communities can enjoy.”
High street retailers have called on the government to do more and will also be watching the chancellor’s statement carefully. Members of the British Retail Consortium have called on the chancellor to freeze the business rates multiplier and give the Valuation Office extra funding.
Helen Dickinson, BRC chief executive, said: “Retail accounts for 5% of the economy yet pays 25% of all business rates – this disparity is damaging our high streets and harming the communities they support.”
The successful councils that can start their plans said the extra funding was vital.
The successful councils that can start their plans said the extra funding was vital.
Blackpool Council is hoping to start a £100m investment in its retail centre to help boost tourism.
Cllr Mark Smith, cabinet member for business, enterprise and job creation, said the money was vital to help develop plans.
“Within the submission, a range of proposals were outlined to support the £100m regeneration programmes, which is already underway to transform Blackpool town centre. More specific details of the investments…will be announced in the forthcoming months as we get more details of the government’s offer and as we go through the business planning process required by the fund.”
He told Room151 there was more work to do: “The original guidance for FHSF indicated that the maximum level of grant that they anticipated giving was £25m although they expected most to come in at a lot less than this. At this stage all of Blackpool’s proposals are not yet fully costed until the detailed business plans have been prepared which is the next stage.
“However, we are ambitious in our plans for the town centre and have a clear strategy and would therefore hope to receive as close to the maximum level of grant as possible.”
The Kent coastal town of Ramsgate was among the 50 applicants and Thanet District Council said the cash was critical for getting plans under way.
Cllr Reece Pugh, Thanet District Council’s cabinet member for corporate governance and coastal development said: “We are delighted that Ramsgate is one of the successful towns to be invited to put our application forward into the next phase of assessment of the Future High Streets Fund.
“We want to develop a thriving and sustainable high street and having up to £150,000 to work up detailed project proposals, to be ready to bid for capital funds. This is another step closer to achieving that goal.”
