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We have to stop the rot in Town C'trs.

But will anyone take any notice :confused:

Save Our High Streets: We have to stop the rot in town centres
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By Stephen Alambritis Federation Of Small Businesses 26/03/2009
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Britain is rapidly losing its label as a nation of shopkeepers as the worst economic crisis in 60 years ravages the high street.
Some 200 stores a day have shut since January and there could be 135,000 boarded up by the end of the year.
Yet while the death of Woolworths, Zavvi and other chains have grabbed the headlines, they mask a bloodbath that has gone largely unnoticed.
Small shops, the lifeblood of town centres, have been driven to the wall at an alarming rate.
It is not just the owners who are hit when they are forced to throw in the towel but the part-time workers who relied on them for a job.
Big-name store closures are also having a knock-on impact on smaller shops because people often head to town centres to go to the well-known chains and then nip into a small store.
Just over one in 10 of the country's 900,000 shops is now standing empty.
But the average masks town centres where the scenes of desolation are much worse - around a fifth of the shop space in Ayr is unoccupied, a quarter in Rochdale and 28 per cent in Blaydon, Tyne and Wear.
Rows of empty stores do more than give a downtrodden image. They also risk attracting crime and antisocial behaviour, which is why it is vital action is taken.
The Mirror won support in January for its blueprint to save Britain's battered economy. As it said at the time, small firms lie at the heart.
But there are other measures that would provide a lifeline to thousands of hard-working shopkeepers.
Yesterday was rent day for many stores, when they had to find three months' money in advance - a large layout many experts fear could prove the final straw for those just clinging on.
Landlords could help by switching to billing tenants every month to prevent a big payment shock. There is also a case for the abolition of upward-only rent reviews which allow landlords to increase rents regardless of the economic conditions.
Business rates are due to rise by an inflation-busting 5.2 per cent next month. This is using last September's retail price index to influence bills that are being sent out now, when RPI is at zero. This cannot be right and given the economic difficulties, sticking to this technicality would be immoral.
A simple way to help retailers would be to ensure what is rightfully theirs. One example is rate relief, which could be worth up to £1,200 per business.
Unfortunately, businesses have to go through acres of red tape to apply for this money. There was a Private Members Bill seeking to ensure that such rate relief was given automatically by town halls.
There is still time to address this issue and the Chancellor should use his Budget to do so.
Plans for a supplement on business rate bills should also be quashed immediately.
The Government's decision to cut VAT by 2.5 per cent to 15 per cent was met with much flak, with critics arguing it did next to nothing to boost sales, given stores were already slashing prices, and added to businesses' costs because they had to implement the changes.
There were also reports of some retailers not passing on the cut at all.
It's all change again at the end of the year, when VAT is due to go back to 17.5 per cent. The increase will, as the rules stand, clash with the post-Christmas sales.
A smarter way forward would be for a much lower VAT rate, as low as 5 per cent, on certain products and services.
Unlike a lot of things, EU rules allow ministers to offer these savings, which give a boost to employers.
Banks have made a bad situation worse for plenty of shopkeepers, whether it be refusing loans, cutting or cancelling overdraft facilities or upping charges. It has left companies otherwise in sound shape desperate for money to pay essential bills such as wages and rent.
Banks, particularly those bailed out by the taxpayer such as RBS and Lloyds Banking Group, must be forced to start lending again - and not in a piecemeal way but en masse and at reasonable rates.
Then there's credit insurance.
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This is basically a guarantee that companies will get paid when they supply goods and services.
Insurance firms are withdrawing cover for fear they will have to pay out, leaving shopkeepers and other small businesses without the essential service. The insurance industry should be shamed into providing this service for small firms.
Meanwhile, it is hard enough to get shoppers out and about at the moment without forcing them to pay for the pleasure, so hefty charges for parking in many town centres only deter would-be customers.
They are more likely to drive to out-of-town shopping centres which offer free parking, or even do their shopping online.
Parking fees have proven to be a cash cow for plenty of town halls, but they must look at the bigger picture and either reduce fees or knock them on the head completely.
Some forward-thinking councils have already chosen to suspend parking fees on major shopping days.
The Government should send an edict to all local authorities to do the same over the Easter break. Without action, there is the risk of there being no town centre shops left to visit when the recession is over.
Boarded-up sites are not only a blight on high streets, but they also cost their landlords dear. They still have to pay rates, albeit less than if the premises were filled.
There have even been reports of landlords bulldozing empty shop units because of the cost of paying for them to stand empty.
Instead, landlords should be encouraged to rent units on the cheap to locals who want to set up community-run shops.
It is estimated that small businesses are currently owed £26billion from their larger brethren.
Companies House should be made responsible for enforcing payment times and make a name and shame list readily available so that small business can deal with those who want to pay, not those who won't.
Interview: Graham Hiscott, Deputy Business Editor
OUR 10-POINT RESCUE PACKAGE
1 Monthly rents instead of quarterly to ease bills
2 Abolish upward-only rent reviews
3 Reduce business rates in line with falling RPI
4 Scrap plans for business rate supplement
5 Cut red tape on rate relief for small firms
6 5% VAT rates for small businesses
7 Force banks to lend to small firms again
8 Persuade insurers to reinstate credit insurance
9 Scrap high street parking charges at weekends
10 Urge landlords to let empty shops at low rents
200 shops a day have closed since January
Big-name store closures are having a knock-on effect on smaller shops
I came in to this world with nothing and I've still got most of it left. :rolleyes:
«13

Comments

  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    But I thought we were short of residential accommodation?

    Surely if we think laterally (or in this case vertically) there is a solution?
  • bo_drinker
    bo_drinker Posts: 3,924 Forumite
    But I thought we were short of residential accommodation?

    Surely if we think laterally (or in this case vertically) there is a solution?
    They spoke about this here years ago, nothing came of it though.
    I came in to this world with nothing and I've still got most of it left. :rolleyes:
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    Well, what do you expect? I looked into renting a small shop six months ago, and with rent, utilities, business rates etc I decided that it simply isn't possible to guarantee a living wage. Most small shop keepers I've talked to don't make very much money at all.
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    What is wrong with retailers? Brown saved them with the 2.5% VAT cut, and now he's saving the rest of the world.
  • scousethife
    scousethife Posts: 926 Forumite
    Theres 30 units in the Trafford centre now empty.

    The centre itsself has offered a 7% cut in service charges like security etc
    Hi, we’ve had to remove your signature. The one where you showed us Dithering Dad is a complete liar. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE Forum Team
  • FungusFighter
    FungusFighter Posts: 1,163 Forumite
    Theres 30 units in the Trafford centre now empty.

    The centre itsself has offered a 7% cut in service charges like security etc

    Shows the ones that closed wren't needed i the first place if you ask me;)
    You can't win an argument with a stupid person.

    I'm dyslexic ie I can't be @rsed to check for typos
  • scousethife
    scousethife Posts: 926 Forumite
    Shows the ones that closed wren't needed i the first place if you ask me;)

    Are you stupid????

    Are you really telling me a store dedicated offering 237 flavours of foot soap and nipple balm is'nt the best idea ever?

    The shop next door was selling non reflective mirrors for ugly people.
    Hi, we’ve had to remove your signature. The one where you showed us Dithering Dad is a complete liar. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE Forum Team
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    mmm nipple balm.
  • scousethife
    scousethife Posts: 926 Forumite
    mewbie wrote: »
    mmm nipple balm.



    mmmm ugly people
    Hi, we’ve had to remove your signature. The one where you showed us Dithering Dad is a complete liar. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE Forum Team
  • FungusFighter
    FungusFighter Posts: 1,163 Forumite
    mmmm ugly people

    Mmmm ugly nipple balm :beer:
    You can't win an argument with a stupid person.

    I'm dyslexic ie I can't be @rsed to check for typos
This discussion has been closed.
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