HIGH STREET BRITAIN: 2015

House of Commons
All-Party Parliamentary
Small Shops Group

Report Summary

This report provides the analysis of the evidence, both written and oral, submitted to the Inquiry held by the All-Party Parliamentary Small Shops Group, entitled ‘High Street Britain: 2015’, concerning the long term prospects of the United Kingdom’s small retail sector.

Concern for the future of traditional shopping areas arose amidst recognition from many in, and associated with, the retail industry: ‘traditional’ local small shops or independent convenience stores are disappearing rapidly. Once a ‘tipping point’ is reached many small shops could be lost instantly as wholesalers no longer find it profitable to supply them, resulting in the urgent need for a review of the market.

The vast majority of contributors agreed that all small shops are important to, and influenced by, economic, social and political trends. The small retail sector is a key driver of: entrepreneurship, employment, skills, local economies, innovation, and sophisticated business networks, as well as accessibility to vital goods and services, diversity, social inclusion and community activities.

However, contributors are concerned by the intense pressure small shops face, from both market-led forces and external (macro-environmental) forces. Witnesses cite the aggression of larger competitors, distortion of the supply chain, the cost of property, crime, poor planning decisions, a lack of appropriate business support and disproportional regulatory burdens as problematic.

There is widespread belief therefore, that many small shops across the UK will have ceased trading by 2015 with few independent businesses taking their place. Their loss, largely the result of a heavily unbalanced trading environment, will damage the UK socially, economically and environmentally. People (as consumers and members of communities) stand to be disadvantaged the most with restricted choice, entrenched social exclusion and a vulnerable supply chain caused by consolidation.

We make the following recommendations:

• Implement a moratorium on further mergers and takeovers until the government has brought forward proposals to secure the diversity and vitality of the retail sector
• Establish a retail regulator
• Revise the two market ruling
• Introduce comprehensive codes of practice across the retail sector
• Review the tax system and close the Jersey VAT loophole
• Review application of rate relief system as applied to independents trading on the threshold of viability
• Introduce a new requirement for all local authorities to adopt a retail strategy within the Unitary Development Plan
• Develop regeneration units in all local authorities within the UK
• Develop retail focused regeneration units in all RDAs within the UK
• Delegate greater decision-making power to people locally (consumers and communities)
• Rapidly implement the recommendations of the Hampton review
• Make revisions to the retail property market
• Encourage the transformation and innovation of the Post Office network
• Implement measures to restrict the environmental impact of shifts in the retail sector

Read Full Report:http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/15_02_06_highstreet.pdf