High street sees further fall in visitor numbers
BRC warns against business rates rise
THE BRITISH high street continues to struggle with an even more pronounced drop in footfall last month, according to latest figures.
Overall high street footfall in August fell by 1.2 per cent against the previous year, the British Retail Consortium (BRC) said, below the three-month and twelvemonth rolling averages of -0.4 per cent and -0.3 per cent respectively.
The BRC has called for urgent action from policymakers to stem and reduce the cost of doing business. The trade association for UK retailers has urged against applying the planned inflationary increase to business rates next April.
High street footfall declined by 2.6 per cent in August, a deeper decline than July’s figure of 2.1 per cent.
The decline in shopping centre footfall decelerated to -0.8 per cent in August from -1.3 per cent in July.
However, there was good news for retail parks, which once again continued their recent trend of positive growth.
Footfall at retail parks increased in August by 1.6 per cent, slightly less than in July when it increased by 1.7 per cent.
Helen Dickinson OBE, chiefexecutive of the BRC, said: “The story for UK shopper footfall in August unfortunately remains much the same as before, with most shopping locations seeing a year-on-year decline.
“Indeed footfall sagged last month at a more pronounced rate than that witnessed over the past quarter as a whole. Retail parks once again bucked the trend, with shoppers attracted by the convenience of a one-stop shop for purchases, services and leisure activities.”
Ms Dickinson said it was crucial to reduce the number of vacant premises and bring shoppers back to town centres. Encouraging shoppers back to more of our town centres is crucial to reducing the high number of vacant premises and the increasing gap between the vibrant and in-demand areas and those at the much more economically fragile end of the spectrum,” she said.
Ms Dickinson added: “The increasing number of locations falling further and further behind continues to grow.
“These areas clearly have their work cut out to attract custom with the right mix of retail, leisure and other facilities and ensuring ease of access and parking.
“From a retailer point, the sheer cost of doing business on our high streets has direct implications for the affordability of retailers’ investments in new or refurbished stores.
“A far more concerted and urgent effort is required from policymakers to stem and ultimately reduce the cost of doing business, particularly in our more economically-fragile communities. Not applying the planned inflationary increase to business rates next April would be a place to start.”
New research has revealed that at least one small business owner a week is facing prison for failing to pay their business rate bills.
Courts in England and Wales handed down 54 prison sentences of up to 90 days on business owners for non-payment of rates in the year to the end of March, up from 52 the previous year, according to figures compiled by business rent and rates specialists CVS.
The figures come as businesses struggling with crippling rate bill hikes since the controversial recent revaluation in April are being warned to pay up or face prison. Hambleton District Council in North Yorkshire said last month it was launching legal proceedings for committal to prison for business owners with a rates debt who fail to pay.
CVS, which uncovered the figures on prison sentences through a Freedom of Information request to the Ministry of Justice, said sole traders and self-employed business owners are most at risk of a “disproportionate financial and legal burden” from falling behind with debt payments.
While limited companies can be placed in administration if they are unable to pay debts such as business rates, sole traders and self-employed business owners can ultimately face prison.
The recent business rates revamp has seen firms across the UK hit with soaring bills after the value of properties has rocketed since the last overhaul seven years ago.