UK High Streets Need £5bn Pound Investment to Survive Economic Challenges

British town and city centres require up to £5bn in investment to address the growing crisis of empty shops, with several regions experiencing vacancy rates double that of London, according to a comprehensive study by the Centre for Cities thinktank.

The research reveals a stark contrast between affluent and struggling areas across the UK. Bradford, Newport, and Blackpool are particularly affected, with vacant shop rates exceeding 16%, whilst London maintains a healthier 7.4% vacancy rate. The disparity highlights a deeper economic divide rather than merely a retail sector challenge.

Centre for Cities chief executive Andrew Carter emphasises that the issues facing high streets extend beyond cosmetic concerns. The fundamental problem lies in the economic health of local communities, where many areas are oversaturated with shops but lack sufficient footfall and spending power to sustain them.

Successful city centres like York, London, and Edinburgh demonstrate resilience through diversification, with approximately 25% of consumer spending directed towards dining and leisure activities. This stands in marked contrast to struggling locations such as Bradford, Stoke, and Wigan, where hospitality spending accounts for merely 10% of consumer expenditure.

The study indicates that traditional solutions such as business rates reform, while important, may not be sufficient to address the core issues. Many properties in struggling areas already benefit from rates relief, suggesting that more fundamental economic interventions are necessary.

The British Retail Consortium advocates for a mixed-use approach to city centre development, combining retail and hospitality to create vibrant urban spaces. However, the outdated business rates system continues to impede investment in shops and employment opportunities vital for local economic recovery.