Flint Bishop

Mary Portas review glosses over key issues for the high street, reports GVA

Pictured: Paul Brewer

The recommendations and suggestions put forward by Mary Portas in her review of the future of British High Streets will have thrown a welcomed 'lifeline' to many of the Midlands' beleaguered town centres, reports GVA.  

In particular the suggestions of further empowering successful Business Improvement Districts (BID's) to take more responsibility and become in her words 'Super BID's', as well as the creation of 'Town Teams', could be implemented by extending the roles of existing organisations says Paul Brewer, head of Retail at GVA's Birmingham office. 

However, there are certain facets of the Portas report that 'gloss over' some of the key issues which continue to affect the viability of the region's High Streets. 

Paul Brewer said: "Mary appears to have overlooked the fact that financial institutions own many blocks of retail and offices accommodation within town centres and rely on the growth of such investments to create and maintain value for pension funds, from which we all benefit. The suggestion therefore that such landlords should look to accept reducing rentals - allowing tenants to take leases for minimal periods in order to 'trial' their business' -would lead to a vast reduction in investment values. This would have a detrimental impact on the level of pensions  payable, both now and in the future. 

"However, it is already the case that landlords are being as pro-active as they can to encourage occupancy by letting their shops on short term tenancies to discount and other retailers who, whilst possibly only paying a nominal rent, are in turn also paying the business rates. In that regard Mary's suggestion that landlords should continue to benefit from the Government's three month rates relief if their shops are occupied is to be commended and may lead to more opportunities for entrepreneurs.

"The second area of concern is Mary's suggestion of local authorities providing free customer car parking within town centres to mirror the out of town centres. Whilst agreeing with the sentiment, there are a number of aspects to be given consideration, not least that most local authorities rely on the revenue from car parking to off-set short falls from lack of central funding. Many of these car parks are also 'unfit for purpose', either by way of being deemed unsafe and user unfriendly (particularly at night); or because they are in the wrong location and difficult to find. And, whilst originally set up with the best of intentions, Park and Ride options are not the panacea of relieving congestion and the hassle from town centre car parking.

"However, there are some forward-thinking local authorities within the Midlands who are reviewing their car parking provision with a view to assessing the viability of providing one or two major car parks within their town centres of a high standard. In turn, they may possibly dispose of poorer secondary car parks for alternative uses, with the resultant proceeds being used to fund the new car parks. 

"The third issue is Mary's suggestion to use markets to bring back the vitality of High Streets. In essence this is a good idea, albeit not necessarily the 'quick fix' that she alludes to. 

"Our European neighbours tend to operate markets in a format that has them located either in a purpose built market hall, or in an established market square. This makes them an attractive destination and an additional experience for the shopping public, whilst leaving mainstream retailers able to trade from their shops on the High Street unimpeded and able to provide a wider offer.  

"In the UK there are good examples of market halls, but there are also too many examples where markets have been located within the good secondary and prime shopping streets and then compete with the neighbouring mainstream retailers. The shops have the added burden of paying full overheads, and therefore the 'playing field' in that regard is neither flat nor fair. I therefore question Mary's view that the assumption should be that 'anyone can trade on the High Street unless there is a valid reason why not'? 

"I do however, agree that 'speciality markets' such as visiting French, German, Christmas Markets and events such as Farmers Markets do provide an added and vital dimension to High Street shopping, so long as they are controlled and carefully integrated into the shopping pattern of the town centre and add to the overall shopping experience.

"There are other suggestions within the Portas review that need careful interrogation and analysis. In particular her views on banks selling their empty shops to communities - how does she anticipate communities actually raising the capital to purchase? 

"Mary's views on local authorities becoming empowered to acquire shops that landlords have left empty through 'Empty Shop Management Orders' and the use of Compulsory Purchase Orders needs further consideration. As local authorities are currently stretched for cash, who is going to pay for this intervention? Arguably if there was demand for these shops they wouldn't remain empty anyway." 

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Article published by Midlands Business News on 21 December, 2011

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