The British Retail Consortium (BRC) has highlighted the pressing need for reforms in planning and business rates to spur footfall recovery.
A significant drop in UK footfall for June underscores the urgency for revitalising local high streets through strategic reforms.
Challenges in Footfall Decline
In June, total UK footfall saw a decline of 2.3% year-on-year, following a 3.6% decrease in May as reported by the latest BRC-Sensormatic IQ figures. This decline was most pronounced in shopping centres with a drop of 3.2%, followed closely by high streets which experienced a reduction of 3.1%. Retail parks fared slightly better, recording a marginal fall of 0.4%.
Regionally, all parts of the United Kingdom, except Scotland, experienced decreases in footfall numbers for June. Wales observed the steepest decline at 4.1%, while footfall in England fell by 2.6% and Northern Ireland by 0.6%. These figures indicate a continuing struggle for retail locations across the country to attract visitors.
Potential Influences on Footfall Recovery
Some areas experienced a temporary surge in footfall, partially attributed to major events. For example, Edinburgh and Liverpool saw increased activity as Taylor Swift drew large crowds to her performances. Yet, such boosts are not sustainable long-term strategies for recovery.
Retailers are hopeful that the summer heat and possibly England’s success in the forthcoming European Championships could entice more visitors in July. However, the reliance on unpredictable events underscores the need for more stable and structural reforms to ensure lasting recovery.
Importance of Planning Reforms
The British Retail Consortium (BRC) has emphasised the urgency for a fast-track planning system. They propose measures such as automatic approval in certain cases to enable quicker decision-making processes. Such reforms are seen as essential for providing retailers with the tools to invest throughout the country.
Helen Dickinson, the chief executive of the BRC, highlighted that reform in this area is crucial for town and city centres to thrive. By streamlining planning processes, retailers would gain the flexibility needed to adapt and grow amidst changing market conditions.
Planning reforms could serve as a catalyst for economic revitalisation by expediting developmental projects aimed at enhancing retail infrastructure. Allowing retailers to innovate through easier access to building developments could transform retail spaces into dynamic and attractive hubs.
Reforming Business Rates
The call for reform extends to business rates, with many advocating for a reassessment of the current tax structures to alleviate financial pressures on retailers. The burden of high business rates is seen as a major impediment to growth for high street shops.
A review of business rates could potentially level the playing field between physical stores and online businesses, fostering a more equitable competitive environment. The proposed reforms aim to reduce costs for brick-and-mortar shops, enabling them to compete more effectively.
Such measures would not only aid in financial relief but also encourage new investments in retail locations, potentially increasing footfall. By reducing operational costs, retailers would be better positioned to offer competitive pricing and improved services, further attracting customers.
Government’s Role in Retail Recovery
As the UK government transitions, addressing the challenges faced by local communities appears vital. Retail experts stress the importance of incorporating retail industry needs into policy agendas within the new government’s first 100 days.
There is an apparent consensus that government action could be pivotal in transforming struggling retail sectors. By prioritising planning and business rates reforms, significant strides can be made towards rejuvenating local high streets and shopping centres.
Government initiatives could serve as a cornerstone for restoring consumer confidence and boosting economic activities in retail precincts. Direct involvement and support from governmental bodies could accelerate the implementation of much-needed reforms.
Future Outlook for UK Retail
Looking forward, the retail industry remains cautiously optimistic. While challenges persist, the proposed reforms provide a framework that could lead to substantial improvements in footfall.
Achieving a balanced approach that combines strategic government intervention with innovative retail strategies will be key. This dual approach could pave the way for a sustainable recovery in the retail sector.
The collaboration between policymakers and the retail industry is crucial for rebuilding robust and vibrant high streets. Through joint efforts, there is hope for a revitalised retail landscape that meets the needs of consumers and businesses alike.
Conclusion
The need for planning and business rates reform cannot be overstated, as it is pivotal to the revival of UK retail footfall. Collaborative efforts between the government and retail sector are essential in crafting a sustainable recovery path. With proactive reforms and strategic investments, there lies potential for a brighter future in the retail domain.
Planning and business rates reform is vital for revitalising UK retail footfall. Government and retail sector collaboration is crucial for sustainable recovery.
