Elizabeth Cox of nef argues that Mary Portas' review of the High Street makes many good suggestions, but misses out some curiously large targets
Elizabeth Cox is the head of local economies at nef (the new economics foundation)
Considering the dire straits our high streets currently find themselves in, Mary Portas’ review into their future made for surprisingly positive reading this morning.
Establishing once and for all that thriving town centres are key to rebuilding our economy is a vital step in the right direction.
We at nef (the new economics foundation) have been arguing that small, independent outlets are disproportionately beneficial to local economies for almost a decade.
Today’s review recognises this, setting out a variety of practical measures to encourage and support local businesses, from making it easier to reclaim vacant lots to an annual National Market Day.
Mary Portas shares our understanding that high streets should no longer merely be seen as places to shop, but somewhere for culture, leisure, learning and social opportunities. Her recommendations go a long way towards fulfilling that vision.
There are some notable omissions, however. Curiously the report was initially trailed as having at least thirty key recommendations, which then mysteriously dropped to 28 in the final version. We can’t say for sure what they were going to be, but we do have some suggestions:
29. Properly rein in the supermarkets
In the report itself, Portas identifies big retailers as a serious threat to the kind of diverse high streets we should be encouraging and protecting.
Having decimated local food markets over the last fifty years, there are ominous signs that supermarkets are set to cause even more damage to beleaguered high streets. More than a third of supermarkets’ floor space is now devoted to non-food sales, and particularly troubling is their sprawl into dentists’ and GP’s services – glue that holds our high streets together.
Given that this is acknowledged in the report itself, where are the calls to more stringently rein in big retailers? Those steps tentatively ventured by Portas do not go far enough: a moratorium on further edge and out of town supermarket developments would help, as would caps on store size and market share.
30. Establish a functioning local banking infrastructure
Something missed entirely by today’s review is the need for a local banking system to power the kind of local economies Portas clearly envisages.
nef’s work on finance and banking has repeatedly highlighted the unwillingness of big banks to lend to small businesses, regardless of how much extra money is pumped into the economy. For independent and small retailers to survive and thrive, they need a local banking system that understands and supports them.
31. Local high streets are good for the environment
We should be looking to reinvigorate the country’s high streets as part of our solution to the twin challenges of climate change and peak oil. The need to reduce our ever increasingly supply chains and begin living sustainably should be the most powerful argument for an economic revival of local areas.
See also:
• Latest high street gloom shows urgent need for new planning system – Jonathan Schifferes, September 20th 2011
• The High Street spiral of self-harm – Ann Pettifor, June 28th 2011
• High and dry streets? – Jonathan Schifferes, June 17th 2011
• Shocking news from the high street – Tony Dolphin, June 16th 2011
• High streets should be transformed to benefit the community – Elizabeth Cox, February 16th 2011
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12 Responses to “Here’s what the Portas review left out”
NWL Unison
Here's what the Portas review left out, writes @theneweconomics' Elizabeth Cox: http://t.co/xWHPBrK2
Andrew Johnston
Here's what the Portas review left out, writes @theneweconomics' Elizabeth Cox: http://t.co/xWHPBrK2
Anonymous
1. Put in place a “Town Team”: a visionary, strategic and strong
operational management team for high streets
In other words – local government has failed.
2. Empower successful Business Improvement Districts to take on
more responsibilities and powers and become “Super-BIDs”
More quangos
3. Legislate to allow landlords to become high street investors by
contributing to their Business Improvement District
So by buying property and letting it, you aren’t helping?
4. Establish a new “National Market Day” where budding shopkeepers
can try their hand at operating a low-cost retail business
Puffery and spin
5. Make it easier for people to become market traders by removing
unnecessary regulations so that anyone can trade on the high street
unless there is a valid reason why not
Yep. Government regulation is hampering lots of things.
6. Government should consider whether business rates can better
support small businesses and independent retailers
Yep – taxation isn’t fair. People take all the risks, and do all
the work, and government takes 50% of the profits, none of the losses.
Not equitable is it.
7. Local authorities should use their new discretionary powers to give
business rate concessions to new local businesses
How about just reducing business rates across the board. Otherwise, the
tax angle is shut down the company, sell to a new one, and for the cost
of a new sign, you have a lower rate bill
8. Make business rates work for business by reviewing the use of the
RPI with a view to changing the calculation to CPI
See, RPI when it suits the government. CPI when it suits the government.
The reason is taxation just to pay the massive debts, not services
9. Local areas should implement free controlled parking schemes
that work for their town centres and we should have a new parking
league table
Parking is the major reason many high streets are screwed. Why go there
and risk huge fines or even pay for parking, when you can go elsewhere?
10. Town Teams should focus on making high streets accessible,
attractive and safe
So they haven’t been doing it? Yep, all that money for nothing.
11. Government should include high street deregulation as part of
their ongoing work on freeing up red tape
Regulation – less jobs – more on the dole. Lower profits – less tax – more debt.
12. Address the restrictive aspects of the ‘Use Class’ system to make it
easier to change the uses of key properties on the high street
Yep – regulation again.
13. Put betting shops into a separate ‘Use Class’ of their own
Why? Aren’t they part of the highstreet?
14. Make explicit a presumption in favour of town
centre development in the wording of the National
Planning Policy Framework
Why? Just get government out of it, and let people loose.
15. Introduce Secretary of State “exceptional sign off”
for all new out-of-town developments and require
all large new developments to have an “affordable
shops” quota
Lots more corner shops charging high prices. A call for more rent seeking.
16. Large retailers should support and mentor local
businesses and independent retailers
Pleeeezzeee. Another expense put onto firms, so prices go up.
17. Retailers should report on their support of local
high streets in their annual report
More regulation
18. Encourage a contract of care between landlords and
their commercial tenants by promoting the leasing
code and supporting the use of lease structures
other than upward only rent reviews, especially
for small businesses
More regulation
19. Explore further disincentives to prevent landlords
from leaving units vacant
Such as? Ah yes – subsidies.
20. Banks who own empty property on the high street
should either administer these assets well or be
required to sell them
To whom? How are the people buying them going to afford them?
All the money in banks is going to the government because of its
debts and the regulations mandating it.
21. Local authorities should make more proactive use
of Compulsory Purchase Order powers to encourage
the redevelopment of key high street retail space
Ah yes. The state will steal people’s property.
Next on the list, all private and company pensions, for the
public good. Just like Argentina, Hungary, partially in France
and Ireland. Partially in the UK like Gordon Brown.
It’s a kleptocracy.
22. Empower local authorities to step in when
landlords are negligent with new “Empty Shop
Management Orders”
More regulation.
23. Introduce a public register of high street landlords
More regulation and cost.
24. Run a high proile campaign to get people involved
in Neighbourhood Plans
And what? Turn up to a planning meeting and its two fingers
because they have already decided to give permission to their mates.
25. Promote the inclusion of the High Street in
Neighbourhood Plans
More regulation
26. Developers should make a inancial contribution to
ensure that the local community has a strong voice
in the planning system
Ah yes. You have to bribe us first.
27. Support imaginative community use of empty
properties through Community Right to Buy,
Meanwhile Use and a new “Community Right
to Try”
Ah yes. The two year old’s argument. If you have it, its mine.
If I want it, its mine. …
28. Run a number of High Street Pilots to test proof
of concept
Window dressing.
It’s all about cutting regulation. Getting government out
of the way. Not taking money from people so that it can be
invested.
Steve
The report also missed out the community decay caused by empty flats above the shops: she seemed to be glued to the ground floor. There are by some reports over 250,000 empty flats above shops. They are not classed in the empty property registers.. they are additional. By bringing these back into residential use we not only help the homeless/housing crisis but help bring high streets alive as more than mere shopping outlets.
http://www.channel4.com/programmes/the-great-british-property-scandal/articles/category/features
Mr. Sensible
Yep, we need to get to grips with the supermarkets.