Large retail chains urged to pay levy to help revive high streets

Bill Grimsey, who is leading review into plight of town centres, calls for national chains to 'put something back'

Major retail and leisure chains should pay a one-off levy on UK sales that would raise £550m to help revive Britain's high streets, according to Bill Grimsey, the veteran retail boss, who is fronting a review into the plight of town centres this week.

Every local area should also set up a town centre commission to produce a 20-year vision for their high street, supported by costed, five-year business plans.

Grimsey, former boss of the now defunct DIY chain Focus and the Iceland frozen food chain, is leading a group of eight industry experts who have put together an alternative review to that by Mary Portas, the self-styled Queen of Shops.

He dismissed Portas's effort as "little more than a PR stunt" that simply served as the basis of her "lucrative TV makeover show", as he produced 31 recommendations including changes to business rates and more defined targets for town centre teams, which should be co-ordinated with all local planning decisions.

After sending out 100 freedom of information requests his review found that more than half of the local authorities questioned had no town centre plan in place, despite widespread concerns about the health of high streets.

His report was released as Portas appeared in front of a parliamentary committee on Monday to provide an update on progress since her review, launched nearly two years ago. She defended her efforts amid complaints that high streets continue to suffer during the economic downturn as national chains pull out and supermarkets continue to expand.

Grimsey is calling on national chains with a turnover of more than £10m to invest 0.25% of one year's UK sales from 2014 – about £550m between them – into a local economic development fund to help sponsor startups and new ventures that could entice shoppers back to local high streets.

The fund would dwarf the £18m the government has spent on high street initiatives including 24 "Portas pilots" which each received £100,000 grants to improve their town centres, and nearly 330 town teams which have been handed smaller grants.

"I honestly think the time has come for the big chains to put something back and help redesign the high street," said Grimsey. "What we've seen in a lot of secondary town centre locations is that as the chains move out to more lucrative out-of-town sites they're hollowing out the high street."

Grimsey said a central fund could be overseen by independent trustees that would include some of the biggest contributors.

But some industry groups, including representatives of smaller shops, have dismissed the idea. Michael Weedon, of the British Independent Retailers Association, said: "A one-shot solution to try to solve the problems is not what's needed. We think addressing the longer term issues by rewriting the way that business rates work will enable the high street to change sustainably."

The BIRA's call for change is part of pressure on the Treasury to adapt the property-led rates system to reflect a changing retail environment in which major players are less reliant on physical outlets because of online sales while small businesses on high streets are suffering. The British Retail Consortium has called for a complete overhaul of the system after a string of major retail failures this year.

Helen Dickinson, the BRC director general, said: "There is a growing consensus that the business rates system is no longer fit for purpose, and a complete reform of it would be the single most important step towards reviving our high streets and boosting retail jobs across the country."

Grimsey's group of eight experts also endorsed more short-term ideas such as discounts for businesses moving into empty shops and a freeze on rates in 2014.

The Treasury has so far been silent on the issue of a rates rethink, but the government has doubled small business rate relief for three and a half years.

Article Source : http://www.guardian.co.uk

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