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Certain 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, according to a new Parliamentary Committee report.

A new vision has been set out with bold objectives to create positive reform for town centres across the UK. This will be based on locally-led strategies that are developed together with local communities and business, which will also be reflective of evolving commercial and economic patterns, according to the Housing, Communities and Local Government Committee.

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. This is aimed at allowing high streets to adapt to changing demands, and compete with online retailers such as Amazon.

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Converting underused or empty retail space

The new vision must prioritise the converting of underused or empty retail space into homes, according to the Federation of Master Builder (FMB) who responded to the report.

Brian Berry, chief executive at FMB said: “I’m really encouraged with the visionary approach this report has taken, as it looks at how we need to fundamentally reimagine the ways that we regenerate our high streets in order to adapt to the challenges of modern life.

“Central to breathing new life into our high street is converting empty or underused spaces above shops into new homes. These kind of homes would be ideal for young families and professionals, and would benefit the high street through increased footfall to the activity based community gathering places, which the report wants us to aspire to,” Berry added.

The FMB backs the Committee’s conclusion that the Government must review the planning powers currently available to local authorities, with a view to strengthening them and empowering local authorities to deliver on town centre transformation, as well as the Government’s ambitious house building targets.

Overcoming challenging times

Clive Betts, chair of the Housing, Communities and Local Government Committee, said: “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.”

He added that it is likely that the heyday of the high street primarily as a retail hub is at an end. However, Betts also points out that this doesn’t need to be the end of the story: “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.”

Finally, Betts commented that he believes that 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.

This needs to happen at a local and national level, where government must create a framework that allows high streets and town centres to thrive. Local authorities must also have the foresight to develop evolving strategies tailored to the needs of their local communities and drive the large-scale transformation needed, according to Clive Betts.

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Jim Kersey
Jim focuses on the socio-economic impact of housing. His reporting for Property Notify often touches on topics such as changes in sentiment among investors in various housing sectors, as well as the impact of various developments on the average person.

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