25 November 2022

It’s time to re-think the retail-dominated model of our high streets

It’s time to re-think the retail-dominated model of our high streets image

It’s no secret that our town centres are struggling. And with the cost-of-living crisis biting and a recession on the horizon, the money people have in their pockets is quickly dwindling. As a result, we are likely to see another wave of prime retail premises becoming vacant in towns and cities across the country this winter.

To revive our high streets, we must re-think the dominant retail model – so they can once again become vital civic hubs. We urgently need spaces where local communities can come together to work, play, learn, share and congregate. These civic spaces are even more important as we head into a recession, which will undoubtedly bring higher demand for services as people struggle to make ends meet.

Levelling up our communities

Despite cuts to departmental budgets at the recent autumn statement, the return of Michael Gove to the Department for Levelling Up, Housing and Communities indicates that Rishi Sunak takes the levelling up agenda more seriously than Liz Truss did. It is the best opportunity we have for revitalising town and city centres, particularly as we weather the coming economic storm. They’re fundamental when it comes to spreading opportunity across the UK.

At Power to Change – the independent trust that strengthens communities through community businesses – we believe that community ownership is one of the best ways to truly level up. That’s why we are urging the government to build on its Community Ownership Fund and help communities buy high street property through the creation of a new £350m High Street Buyout Fund. We need to fill empty shops with community organisations that support local people and contribute to the local economy, like The Annexe in Hartlepool which has pivoted in recent months to provide warm hubs for those struggling to heat their homes.

As we’ve seen with the Covid-19 pandemic, charities and community businesses are at the front line of responding to communities, catering for people’s needs in creative ways. We are seeing a similar response now to the cost-of-living crisis, as community businesses like the high-street based Love Wavertree in Liverpool see a rise in demand for food services and warm spaces. Protecting community spaces is therefore more important than ever.

Resilient high streets through community ownership

Community ownership on our high streets also make them more resilient in the face of economic challenges. Our research shows that high streets with higher levels of community ownership have reduced vacancy rates. In fact, community-owned spaces contribute £220m to the UK economy.

What’s more, unlike larger national and multinational businesses, they don’t extract the money that’s made. The benefits and financial investment tend to stay local – with 56p of every £1 spent in a community business staying in that community, compared to just 40p for large private sector firms. By attracting people back onto the high street, community enterprises also boost local footfall, helping the shops with which they co-exist.

Socially, they offer so many additional benefits. They tackle the growing problem of social isolation by bringing people together – improving their quality of life and boosting community wellbeing. Considering the mental health issues associated with the cost-of-living crisis, this kind of community spirit has never been more important.

Community spaces also offer enriching ways for people to spend their time, like exploring art, learning a new skill or experiencing live music. They show there is life beyond shopping by providing a destination space for people to gather and learn. By providing training opportunities, they help support those furthest from the job market back into work too. This is especially important with unemployment predicted to rise in the coming months.

Take The Big Onion in Bootle as a case in point. It’s a community hub located in a shopping centre that offers support and training for a range of local people and businesses. It has a physical retail space for small local traders and makers. An employability hub exists to help people looking for work – providing one-on-one advice, training and assistance with applications. There’s also a vibrant community space that’s hired out for yoga classes, book clubs and charity fundraisers.

A new vision for high street regeneration

The reality is that top-down regeneration doesn’t work. The evidence shows that centralised approaches have little or no lasting impact on left-behind places. Local people are best-placed to understand the needs of their own community. They know what’s going to work best in their specific location. Besides, distinctive town centres are central to civic pride.

To save our high streets, a radical reimagining of who can exercise power in this country is essential. If the government wants to realise its levelling ambitions, it must devolve power and funding to local people at neighbourhood level. And it must create a High Street Buyout Fund. Doing so will support communities on their high streets to provide the key services to local people, who now more than ever need access to these vital spaces.

Nick Plumb is head of policy and public affairs at Power to Change

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