Category Archives: High Street decline

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30 Sep 2018

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Accountability, Austerity cuts, Business Rates, Economy, High Street decline, Inequality

“Business rates: one John Lewis store will pay four times the tax of Amazon”

“John Lewis, the embattled retailer whose profits collapsed by 99% in the six months to July, will be charged £10.5m in business rates for its flagship Oxford Street shop from April, according to new figures — a 60% rise in three years.

A short walk away, Selfridges’ flagship shop also faces a 60% hike: its business rates bill will climb to £17.5m. That figure is almost four times the total UK corporation tax paid last year by the online retail giant Amazon: just £4.5m.

The looming threat to the high street will put pressure on the chancellor, Philip Hammond, to throw businesses a lifeline when he delivers his budget on October 29.

This weekend, Helen Dickinson, the chief executive of the British Retail Consortium (BRC), said: “These figures lay bare the shocking burden the business rates regime places on British retailers, who make up 5% of the economy and pay 25% of business rates — £7bn a year. The rates bill is leading to store closures, preventing the reinvention of our high streets, and is damaging communities the length and breadth of the UK.”
The BRC is lobbying for a two-year freeze in business rates until a revaluation in 2021, while the New West End Company, which represents businesses in London’s West End, is lobbying for a rates reduction of £5bn. This would be financed by a 1% tax on online businesses but would not apply to traditional retailers’ internet sales.

High street trading has been squeezed by online shopping, which now accounts for 18.2% of the market, with fewer stores surviving to shoulder the rates burden.

A phased four-year settlement in 2017 will bite hardest from April, with some stores facing huge increases. Burberry, which this month unveiled a new collection, faces a hike for its London headquarters of 186% compared with its rates in 2016-17.

In Manchester, Zara must pay £1.26m and Manchester City football club £2.4m, up from £1.7m in 2016-17.

Altus Group, the property adviser that researched the figures, found NHS hospitals will have to pay £386m and council-controlled state schools £957m.

Nickie Aiken, the Conservative leader of Westminster council, said: “Our taxes should reflect our way of life. I would ask the Treasury: do we want to continue the decline so that the only things left on the high street are charity shops and betting shops?”

Source: Sunday Times (pay wall)

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25 Sep 2018

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Audit (EDDC), Austerity cuts, Business Rates, Developers/ Development, EDDC, High Street decline

Resuscitating high streets – or are they too far gone already?

Owl is noticing more and more empty shops – even in places that seemed to be weathering the High Street decline so far (eg Sidmouth).

Isn’t it time our council did an audit of our high streets (empty shops, open shops, temporary pop-up shops, local-owned independent, chain stores, charity shops) to get a proper idea of just how bad this problem is in each town and what the mix says about the health of each town centre? And time to come up with a strategy for their future?

“… Charges to withdraw money from cash machines would be scrapped under a Labour government to “save Britain’s high streets”.

Attempts to stop their “slow agonising death” were announced by shadow business secretary Rebecca Long-Bailey with a range of measures – including stopping Post Office closures.

Sky News can reveal Labour would draw up a register of landlords of empty shops in every local authority.

And the party would deliver free public wi-fi in town centres, for those having a coffee or working in community spaces.

The plans are due to be announced on Tuesday by Ms Bailey at Labour’s autumn conference in Liverpool.

She is aiming to boost support for the party in British towns, as leader Jeremy Corbyn suggested a general election could be called imminently.

Brexit secretary Dominic Raab insisted on Sunday that “it’s not going to happen”.

Research by Which? published in June found that the free-to-use ATM network was “under threat”.

The idea to ban them was championed by Labour MP Ged Killen, who welcomed the party’s announcement.

“No one should ever have to pay to access their own money,” he told Sky News.

“If any government is serious about economic development in our towns and high streets they need to protect the financial infrastructure people and business rely on.”

The other plans would see post offices owned by the government stopped from further franchising and closing.

Under-25s will also get free bus travel in local authorities where local bus services are either franchised or publicly owned.

Labour has also promised to “work with” councils to extend wi-fi roll-outs by commercial developers in public spaces.

And it will force shop landlords to make their identity and contact details public, creating an empty shop register to “make it easier to bring empty units into use”.

A new annual business rates re-evaluation will also be introduced. …”

https://news.sky.com/story/labour-would-scrap-atm-charges-in-bid-to-save-high-streets-11507872

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15 Sep 2018

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Cranbrook, Developers/ Development, East Devon economy, EDDC, Greater Exeter, High Street decline

Another blow to a new Cranbrook town centre?

A large shopping centre development at Sowton was recently turned down by Exeter City Council because it did not fit in with their vision for local centres in the large new housing developments springing up in that area. The scheme called for an out-of-town shopping centre with the likes of Next, Boots, etc.

The developer, rather than appealing the decision, has swiftly withdrawn the original plans and submitted a revised application, thus avoiding the hefty cost of submitting new plans.

They now say they will (possibly) include a post office, pharmacy and gym and maybe other smaller retail elements. This, they feel, fulfills the requirement for a more local feel to the plans.

Whether Exeter City Council agrees with this, or if an appeal is successful if they still reject it remains to be seen.

But it certainly puts a damper on those retail ventures willing to open up in secondary, nearby areas such as Cranbrook and those developers willing to take a chance on anything but (highly profitable) housing.

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9 Sep 2018

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Austerity cuts, High Street decline, Planning System

“Rip up planning laws to save the high street”

“Coalition of retailers and landlords: rip up planning laws to save the high street:

A coalition of retailers, landlords, councils and pubs has called for planning laws to be reformed so that abandoned shops can be turned into cafes, galleries, gyms and other businesses more easily which could help rejuvenate Britain’s high streets.

It said empty units are often hard to let ­because it can be difficult and expensive to get permission to change their use and is calling for more flexibility in planning legislation to help compete with online businesses. The LGA said it is time to recognise “a contraction in retail floor space” may be needed to help high streets survive.”

Sunday Telegraph (Business & Money p1)

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7 Sep 2018

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Accountability, Councillor Marianne Rixon EDA, East Devon Alliance, East Devon economy, High Street decline, Independent Councillors, Sidmouth/ Sidford/ Sidbury

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Independent EDA Councillor Rixon speaks up for Sidford parking

Here is her speech to Cabinet which led to reconsideration of an increase in car parking charges.

“My comments echo those made earlier by Richard Eley, on behalf of Sidmouth Chamber of Commerce.

I would ask you to reconsider the proposal to standardise car park fees. Evidence in my Ward suggests that a one size fits all policy will not help small businesses to survive, let alone thrive.

Sidford is a clear example. We have already lost many shops over the years. Everyone knows that retail is suffering due to competition from online shopping from the likes of Amazon which makes huge profits but contributes little to the UK economy.

Business rates weigh heavily on SMEs, which pay a disproportionate rate by comparison with large business.

Add to this the increase in the minimum wage, high levels of VAT and general running costs.

And then the local council decides to hike up the cost of parking to your customers by a whopping 150%. Taking Sidford Spar as an example, why would anyone pay a 50p premium for half an hour to buy a loaf of bread or pint of milk when they can drive to Temple Street and park for nothing or onto Waitrose and park for nothing, or even Newton Poppleford and park for nothing?

The Operations Director of Spar told me they “lost significant customer flow when the Doctor’s surgery relocated and now these increases will only hit our business even more.”

The owner of Lexys, the hairdressers, said, “I am not happy at all with the charges proposed. If I were to raise my charges by 150%, I wouldn’t stay in business.”

Cllr Pook stated “the Council has listened carefully to what has been said during the public consultation and the cabinet report recommendations reflect the views of the respondents”.

This is not the case with regard to Sidford, where 64% agreed with the proposal to introduce free parking for the first two hours. Nor does it reflect the views of business owners.

Looking at the current revenue generated, this car park contributes only 0.32% towards annual revenue at £10,676 for 2016/17. There are 60 spaces which generate only £29 a day for the whole car park (so less than 50p per space per day). Raising the parking fees by 150% would only equate to £43.50 per day, which is still miniscule. And apparently the amount for 2017/18 was even less, £10,535, so still less than 50p per space per day).

In summary, a dramatic increase in car park charges could hasten the closure of more local businesses through lack of custom. Precisely how much do the Sidford companies pay in business rates? Could it be more than £29 per day? I would suggest that this information be made available, so that it can be reviewed by Cabinet.”

Speeches by councillors for Lympestone and Phear Park led to reconsideration of their charges as reported here:

https://www.devonlive.com/news/devon-news/parking-charges-rise-devons-cheapest-1948853

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6 Sep 2018

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Business Rates, High Street decline, Transport (local)

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“Every town centre should have free parking to encourage Brits to return to the high street, new report says”

“ALL town centres should have free parking in a dramatic intervention to help save the high street, a major report says today.

In a five-point strategy the Federation of Small Businesses also calls for urgent measures to halt thousands of ATM and bank branch closures that are crippling local firms and driving people away from town centres….”

https://www.thesun.co.uk/news/7191097/every-town-centre-should-have-free-parking-to-encourage-brits-to-return-to-the-high-street-new-report-says/