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."