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New report from FSB sets out vision to transform British high streets

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THE UK’s biggest business group has unveiled a package of new measures to help transform life on our ever-evolving high streets for the millions of small firms based on them.

Supporting pop-ups and temporary use initiatives for new businesses, creating mobile phone-based loyalty programmes, and showcasing local high streets in major tourism campaigns are some of the recommendations set out to revive the UK’s village, town and city centres, in a landmark new report by the Federation of Small Businesses (FSB).

The Future of the High Street report, published this week, builds up a picture of life for small firms in and around the high street and sets out a plan to help transform them into places that meet future needs and support the next generation of entrepreneurs, which is essential for a thriving economy.

FSB is calling for a specialised fund to be created to support pop-ups, markets, and temporary use initiatives for first-time businesses to encourage new ventures and help them set up on the high street. With more than a third (39%) of high street small businesses saying the availability of affordable commercial space is important for the future of an area, ensuring temporary spaces are available will not only fill vacant sites but also provide opportunities for small firms eager to launch in a physical premises.

The report, which features in-depth analysis following a large-scale survey of small businesses, also suggests a specialised fund to support a mobile phone-based loyalty programme for high street firms, and launching community-specific online marketplaces to showcase local shops and services.

To bring in visitors and increase footfall, local high streets should be featured in domestic and international tourism campaigns. FSB is encouraging tourism groups like VisitBritain, VisitEngland and Local Visitor Economy Partnerships to showcase the unique character and offerings of local high streets across the UK in promotions and coordination of campaigns.

The research also found plummeting consumer spending (70%), falling footfall (47%) and crime or anti-social behaviour (47%) are the biggest risks to high streets according to the small firms based on them.

  • Over half of local businesses (57%) say a diverse range of independent businesses is one of the most important features for the long-term sustainability and future of their local high street.
  • Good transport links are also key for the future of the high street, according to almost half (43%) of small businesses based on them.
  • Around half (49%) of high street small businesses say parking facilities are managed poorly on their local high street.
  • Since the beginning of the Covid-19 pandemic, most local businesses saw a range of closures on their local high street, including: retail stores (72%), hospitality (69%), banks (58%), post offices (28%), and entertainment venues (20%).

Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses (FSB), said: “Our small businesses are an integral part of the high street and will be central in leading the transformation of their local economies. By providing the infrastructure, flexibility and digital connectivity that modern businesses demand, high streets will have the resources available to become resilient, dynamic hubs ready for the future.

“As well as core recommendations targeting fundamental issues for small firms on the high street, including business rates, transport and parking, this report also lays out innovative asks to ensure these businesses can survive into the future and ultimately help revive our town centres.

“High streets must be helped to evolve to keep pace with changes in consumer behaviour as well as how small firms want to work. One example of this is introducing loyalty schemes for high streets to encourage local businesses to collaborate and incentivise consumers to shop, eat, and drink locally.

“It’s been exciting to hear from many online small firms that want to take steps to open up in a bricks and mortar premises on the high street. These businesses need support to make that change – and should be given the flexibility to access pop-up and temporary units. Before the General Election, we were pleased to see Labour’s emphasis on improving life on the high street for small firms. It’s now time for the new Government as well as local authorities to put these plans into action and ensure that small firms on our high streets are fully supported.”

According to the report’s other findings, empty units are a major blight on shopping streets across the UK, with more than two thirds (69%) of local businesses reporting them on their nearby high street. FSB is asking for a band of on-site high street chiefs responsible for the growth and wellbeing of high streets across the country, creating promotion plans and monitoring vacant units within their area.

The research also highlights the need for well-maintained and accessible modern public toilets and family-friendly services like creche facilities, encouraging visitors to stay longer, upping footfall and supporting the local economy.

Business rates remain a huge burden on high street small businesses, with the current Small Business Rate Relief (SBRR) a key part of their survival. Almost half (49%) of high street small businesses say they would not survive without SBRR. The research also found that more than half (54%) of high street small businesses would invest in or grow their businesses if the SBRR threshold was increased from £12,000 of rateable value to £25,000. FSB believes this increase would be a crucial step in allowing small firms to further foster growth.

The report calls for a high street hop scheme providing free bus fares on key routes during peak shopping days to help increase footfall and support local businesses. Offering free parking on at least two Saturdays, plus two additional days a month, would increase footfall and support local businesses by making high streets more accessible.

Business

Pembrokeshire Council tax hike having the desired effect

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Pembrokeshire recently tripled its council tax for second homes. Wales permits its local authorities to increase council tax rates by 300 per cent. While the rule has been in place since April 2023, it has taken time for councils to commit to the hikes. The recent move by Pembrokeshire to bump to 300 per cent – a 200 per cent rise – has freed up what were many second homes.

Naturally, the major move has had mixed feedback. Some second homeowners see it as a counterproductive move. Others, predominantly people who don’t own second homes, welcome the move to make more properties available to local people. On paper, it’s a positive move at a time when demand for first-home buyers greatly outweighs availability. Even with Pembrokeshire relying on tourism, housing local people is more important.

Homes hit the market after tax increase

Source: Pixabay

Council tax increased by 200 per cent following Wales’ new rules to make it easier for people to buy homes where they grew up. In July alone, 135 second homes in Pembrokeshire hit the market. In July 2023, only 38 were put up for sale. The rate of houses hitting the market was the highest this century, per analysts. Those who remain now need to commercially rent out a property for 182 days per year – up from 70 – to get lower business rates.

If the house goes up for sale, the owner can sidestep council tax for a year. However, as the figures show, many second homeowners now want to sell swiftly. Getting out before the increase becomes too taxing is very much a desire for many. The options to do so quickly have offered an outlet to the exodus of second homeowners. Now, selling your home can be done for free. Anyone can get a free cash offer and then sell without hidden fees.

Furthering the mission to get local homes to local people, a new allocation policy could be of use. The county council met back in April to discuss the social housing allocation policy. Seen as outdated, the 2014-made policy utilises an open housing register. Tighter eligibility criteria are now being sought. Part of this could be that applicants need stronger proof of their connection to the county.

Some movement on the housing development front

As reported earlier in September, a new housing development in Tenby has been unanimously approved. Pembrokeshire Coast National Park had been receiving submission bids for the Brynhir development through the summer. This autumn, a pre-construction service agreement will likely be awarded. Once work gets underway, the plan is to have 125 new homes. Social housing has been highlighted as a particular need in Pembrokeshire.

Of the 125 homes, 93 will be retained by the council. The other 32 will go to the open market and shared ownership deals. As outlined before, there will be a way to prioritise the letting process from the council. Priority will be given to those connected to Tenby and the local villages. Of course, not all plans go as swimmingly. In the summer, a Narberth housing development was refused due to major concerns.

Pembrokeshire’s seeing the intended results from its second home tax hike. With additional housing on the way, on paper, it’s getting easier for those who grew up in the county to stay there.

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Business

Ascona’s community spirit earns group further awards nomination

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PEMBROKESHIRE’S Ascona Group has been shortlisted for another prestigious Great British Entrepreneur Award, this time in recognition of its philanthropic efforts.

The company, which has already been acknowledged for its high-quality customer service and operational excellence, is now a contender for the ‘Randal Foundation Entrepreneur of the Year Award’, part of the 2024 Allica Bank Great British Entrepreneur Awards. Darren Briggs, CEO and Founder of Ascona, has been named as a finalist for this new category, which celebrates businesses that reflect The Randal Foundation’s mission: saving lives, improving life chances, and positively contributing to local communities.

Ascona, the 7th largest independent forecourt operator in the UK, has seen rapid growth in recent years, becoming one of the fastest-growing companies in Wales. Since its inception, the group has remained committed to giving back, launching the Ascona Foundation in 2020. The group’s philanthropic efforts have made a significant impact, donating over £375,000 to local, national, and community organisations since 2017.

A new initiative with Pennies, a leading UK charity that protects and grows micro-donations, is set to raise over £250,000 annually for Ascona’s charity partner, the Wales Air Ambulance. By the end of 2025, the company expects to have donated over £500,000 in total through its charitable activities.

In addition to this latest nomination, Darren Briggs was also a finalist earlier this year in the ‘Scale-Up Entrepreneur of the Year’ category. The awards’ shortlist includes businesses with a combined turnover of nearly £2.9 billion and approximately 20,000 employees, highlighting their role in driving economic growth and community support.

The winners will be announced at a ceremony at Grosvenor House in London on Monday, 18th November 2024.

Darren Briggs commented: “It’s a great honour to be named a finalist in such prestigious categories at this year’s Great British Entrepreneur Awards. I’m incredibly proud of everything Ascona has achieved, and this recognition is a testament to our team’s hard work and commitment over the years.

“However, our charitable endeavours are what make me most proud. Giving back is close to my heart, and we remain dedicated to supporting our charity partners, including the Wales Air Ambulance, as we continue our fundraising efforts across the group.”

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Business

New Home Bargains store set to open in Pembroke Dock

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A NEW Home Bargains store is set to open in Pembroke Dock, promising a welcome boost to local employment and retail offerings. The discount retailer will officially launch on Friday, 26 October, occupying the site formerly held by Wilko on Pier Road.

The arrival of Home Bargains is expected to generate over 50 new jobs, with the majority being filled by local residents. Job openings range from store managers to team members, cleaners, and team leaders, with vacancies having been advertised online.

The store will take over the premises that Wilko vacated last September, following 15 years of service in the town. Wilko’s closure was part of a nationwide shutdown of 400 stores, following the company’s entry into administration.

Plans for the site have been approved by Pembrokeshire County Council, with permission granted for external changes to the building. These include a new shopfront, the installation of goods doors, and various refurbishments. The addition of condensers has also been greenlit to support the store’s operations.

Home Bargains, owned by TJ Morris Limited, has rapidly grown into one of the largest privately-owned companies in the UK, now boasting over 550 stores nationwide. The company’s expansion plans aim to surpass 1,000 outlets in the near future.

The announcement has sparked excitement in the local community, with many residents looking forward to the store’s opening. One enthusiastic shopper remarked on social media, “Book the day off, we have plans!”

Local officials have also expressed support for the new development. A report prepared for planners stated that the proposal would “enhance the functionality of the site, without detracting from or preventing the development of identified retail zones within the town centre.”

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