High Streets ‘will die unless we take action’
UNFAIR business rates must be reformed and thousands of empty shops converted if Britain is to avoid becoming a country of ghost towns, MPs will warn today.
The call for radical action and ‘large-scale structural change’ comes from the Commons housing, communities and local government committee.
It argues the ‘high street heyday’ is over and it is vital to redefine the purpose of town centres.
In a stark report, the committee concluded: ‘With online sales currently at 20 per cent, and changing consumer behaviour meaning this is likely to continue growing, the future for high streets and town centres will become increasingly bleak.
‘Some formerly thriving shopping areas are likely to become ghost towns and close down unless the Government, councils, retailers, landlords and local community act together.’
It argued that one of the biggest threats to high street stores is the business rates system, which means massive tax bills make it virtually impossible for them to compete on price with online retailers such as Amazon.
The MPs said Amazon’s business rates bill amounts to around 0.7 per cent of its UK turnover, while bricks-andmortar stores pay between 1.5 and 6.5 per cent.
As a result, the committee said the Government should consider proposals for an online sales tax to level the playing field. It also suggested applying ‘green taxes’ to the deliveries and mountains of packaging created by online retailers.
Industry figures collated by the Local Data Company show an all-time high of 18,355 shops closed down in 2018 – meaning a net loss of 4,679 once new store openings were taken into account.
High-profile retail casualties have included the Maplin electronic goods chain, discount store Poundworld and Toys R Us, while several other major brands, such as Marks & Spencer, Mothercare and Carpetright, are axing stores.
Meanwhile, around 700 banks closed down, leaving black holes in many once thriving town centres.
The report – titled High Streets and Town Centres in 2030 – argued towns across the UK, which will require fewer shops, should convert stores to serve other uses such as housing, bringing life back into increasingly deserted streets.
Committee chairman Labour MP Clive Betts said: ‘Local authorities 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.’
The boom in online sales has been blamed for turning UK high streets into ghost towns – although Scotland is bucking that trend.
Marketing company Censuswide Scotland found that 41 per cent of shoppers visited high street stores looking for a bargain, compared to only 35 per cent last year.
Almost half of those were women (45 per cent), compared with 33 per cent who were male, with people aged 16 to 24 making up the largest single demographic.