Trouble on the high street

I remember, as do alot of people, the first CD (remember those things!) I ever bought in HMV (in the good old days before YouTube). I bought the Mendelssohn and Brahms Violin concertos (a bit of culture!). Unfortunately, HMV recently joined those lists of great names who have had to call it a day and bring in the administrators. It's a shame.

Alot of people would blame the Internet. They are right- partly. Vibrant high streets are important. Landlords want a frequent footfall. Empty properties are bad for the Landlord. Empty properties mean no rent. No rent means no income. No income means a very unhappy Landlord! Worse the Landlord has to deal with empty property and business rates to boot!

The Government has recognised that something needs to be done and commissioned a report from Mary Portas (AKA the Queen of Shops to some of you) into high street regeneration. The government has recently stated that it would adopt all of the report's recommendations...

The report sets the big out of town retailers firmly in its sights. These big bad developments are partly to blame for the woes on our high streets. The Portas report recommended relaxing the rules concerning changes of use in property and recommended that the Secretary of State for CLG (Communities and Local Government) should be able to decide the fate of big out of town retailers.

My view? Yes the Internet presents a challenge. Items can be bought, sold and delivered with a click of the button. Does this mean the end of the high street with boarded up shops and irate Landlords? No. People still enjoy the shopping experience. People like to walk into shops- touching, tasting, smelling, listening- you get the picture. Moreover there are some services that cannot be bought over the Internet- you cannot have your hair cut online! (at least not yet...)

The solution- I have no doubt that there is alot of merit in Portas' report. However, the Government should be doing more to support small and medium sized businesses on our high streets by cutting business rates. The next business rates re-evaluation is not set until 2017. This is an issue that continually crops up. In many areas, business rates can be higher than rents. I am not saying that this is the magic bullet. But cutting business rates would deliver a vital shot in the arm for our ailing high streets. The Government should take note. Everyone would benefit from a business rates cut- Butcher, Baker, Candlestick maker and yes even Pasty makers Mr. Osborne!

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