In April, the Labour Party set out a five-point plan to revive the UK high street, including reforming business rates and introducing tougher laws on shoplifting. The opposition party pledges to:
- Tackle anti-social behaviour and shoplifting
- Roll out banking hubs
- Replace business rates
- Stamp out late payments
- Revamp empty shops, pubs and community spaces.
Shadow chancellor Rachel Reeves said: “Labour will breathe new life into our high streets. We’ll create the conditions to get retailers thriving again by replacing business rates, opening hundreds of banking hubs across the country and stamping out late payments to get them paid on time.”
Labour said it would replace business rates with a new system of business property taxation that “rebalances the burden and levels the playing field” between physical stores and online retailers.
The party has pledged to tackle anti-social behaviour and shoplifting by putting 13,000 more police officers on the beat and allowing investigation of shoplifting of goods under £200. It will also roll out banking hubs to provide face-to-face services to boost local high streets and shops.
It has also vowed to introduce tough new laws to stamp out late payments and revamp empty shops, pubs and community spaces.
Drapers asks property experts what they think of the plans and what further details they would like to see.
And we want to hear from you: Drapers wants to know what the fashion retail industry needs from a new government. Whether business rates reform, a focus on shoplifting or doubling down on regeneration, we want to know about the issues that affect your business and could benefit the industry.
We are asking all sectors of the industry, from suppliers and manufacturers, to designers and luxury brands, to high street and independent retailers what they need to survive and thrive. We will then present the Drapers Fashion Retail Manifesto to the Conservatives, Labour and Liberal Democrats ahead of this year’s general election.
Please send your views to lee.kenny@emap.com
Businesses need a lower multiplier, not window-dressing nonsense
John Webber, head of businesses rates at property agent Colliers
The current business rates system has contributed heavily to the decline of the retail and hospitality sectors and the decline we are seeing in the high street. Successive Conservative governments have promised to reform the tax, but none have delivered, just making the system more onerous and expensive for the ratepayer as time has gone on.
While it is encouraging to read of Labour’s aspiration to breathe life back into our high streets, unless they tell us what they plan to do, how can anyone scrutinise their plans or take their calls for change seriously?
Business rates as a tax has been around for 400 years – it’s only the last 20 that it has been tinkered with so disastrously. Given the economic situation in which the UK finds itself, no politician worth their salt would suddenly get rid of this, the most certain of taxes, without replacing them. The reality is businesses need a lower multiplier, not window-dressing nonsense.
Labour must come clean about what it is going to do. Businesses deserve to know what is happening so they can plan ahead and that includes owners and occupiers on the high street. Labour must show it has meaningful and well thought through policies and not just jump on the bandwagon. Or we will be calling them out right up to and after the election.
The catalyst in terms of funding is missing
Simon Morris, managing partner of retail property consultant GCW
Labour’s five-point plan is admirable as it contributes to the idea that we need to create civic pride in the places people live and visit. [However,] aside from a commitment to replacing business rates, it feels lightweight and simplistic.
Successful places have a sense of purpose and central to that is less likely to be retail. Shopping becomes the thing people engage with because they are there for another reason. The things create that magnetism are complementary blend of uses (living, education, medical, leisure and retail), high-quality public realm and accessibility. All of this needs significant capital investment.
In the places where the need for change is highest, the private sector cannot secure the returns necessary to justify this – central government funding or partnerships are required. Time is of the essence, as decline in some places will become difficult to arrest and then reverse. There’s such energy to engage with and transform places at both a local and national level, but the catalyst in terms of funding is missing.
Shining a spotlight on high street vacancies is a good start
Tolga Necar, principal consultant at property and data agency CACI
[Our research shows that] 52% of UK destinations are over-spaced in retail – an issue visible through stubbornly high vacancy rates and the rows of empty shops we see.
How this will need to be tackled will depend on the requirements of each individual location. An over-arching strategy to revamp empty units is welcome, but can only be successful if it genuinely delivers what that specific community needs.
[Labour’s plans for] shining a spotlight on high street vacancies is a good start, and combining an evidence base for assessed need with direct community involvement should certainly make these places more resilient.
Initiatives introduced to tackle this have to be centred around collaboration – between council, community and corporate parties – to ensure the benefits are felt by everyone. Any plan has to consistently bring these three stakeholder groups together.