Urgent action needed to stop high streets becoming 'ghost towns'

LGA media release - 28 February 2009

High streets across the country risk becoming ‘ghost towns’ unless urgent action is taken to fill empty shops created by the recession, town hall leaders will warn today.

New figures, published today by the Local Government Association, which represents councils in England, show:

• over four out of five councils are reporting an increase in empty properties in town centres
• two thirds of those councils that have experienced an increase are saying that empty properties are having a significant or moderate impact on their high streets

The LGA is calling for new powers to allow town halls to transform empty shops on a temporary basis during the recession. Shops that are currently standing empty could be used as training centres, libraries, bring-and-buy sales or youth clubs. The new powers would be a temporary measure for councils to use only during the recession.

Council leaders will warn that empty shops in town centres risk becoming hotspots for anti-social behaviour and could cause high streets to fall into a spiral of decline.

Town hall leaders will call for:

• New powers to allow councils to take over temporary management of empty shops once they have been vacant for three months and the landlord is not taking reasonable steps to find a new tenant.
• A cut in VAT from 15% to 5% on the refurbishment of empty shops to encourage new businesses into them.
• The Government to make small business rate relief automatic to companies that qualify and give councils the power to offer breaks on business rates to small businesses in trouble. These measures would be aimed at stopping shops from going bust in the first place. 

Cllr Margaret Eaton, Chairman of the Local Government Association, said: “Rows of boarded up shops are a sad reflection of the recession the country is mired in. Not only do they signal a local economy in decline, they also become a hotspot for anti-social behaviour and drag down the whole feel of an area.

”If ever there is an image that symbolizes the times we are in, it is desolate town centres with rows of empty shops where once there were small local retailers, a Woolworths or a Zavvi. Decisive action must be taken to stop our high streets turning from clone towns into ghost towns.

”The best option is for new or existing businesses to move into empty premises. Where new occupants for a shop can’t be found, councils need to take the lead to stop our high streets sliding into decline. The millions of pounds spent resuscitating this country’s town centres must not go to waste during these bad times.

“Empty shops could be used to provide a whole range of services that would benefit local people during the recession. Be it an information centre or a bring-and-buy sale, these things could be done without spending significant amounts of money.

”The aim would be to get businesses back into these shops, but at the very least, councils would be able to make sure that buildings aren’t allowed to fall into a state of disrepair that ends up blighting a whole town centre. Councils could step-in and use some vacant shops by, for example, providing a one-stop shop for people hit by the recession to get information about jobs and benefit entitlements.

"Only councils can provide the vital support that even more people need at this time of repossessions and redundancies. Town halls are taking decisive action to protect local people and small businesses from the worst effects of the recession. They are helping to keep people in their own homes, offering support to the unemployed and helping small companies stay afloat.”

ENDS

Notes to editors:

1. The LGA sent out a survey to all 388 Leaders of local authorities in England on 26th January 2009. 129 responses were received to the question regarding increases in empty town centre properties. 105 responses were received to the question regarding the impact of empty properties upon town centres.

2. Responses as below:

Has there been an increase in the number of empty properties in your town centres as a result of the economic downturn?

Yes – 85%
No – 10%
Don’t know – 5%

What impact has this had on your town centres?

A significant impact – 21%
A moderate impact – 44%
A slight impact – 32%
No impact at all – 2%
Don’t know – 1%

3. Regional Breakdown

A regional breakdown of councils reporting empty town centre properties shows that town centres in the North East are most likely to be affected.

(Total number of respondents in each region shown in brackets)
East of England - 87% (15) of councils reporting an increase in the number
of empty properties in town centres

East Midlands - 73% (15)
Greater London - 90% (10)
North East - 100% (5)
North West - 83% (12)
South East - 83% (37)
South West - 83% (18)
West Midlands - 89% (9)
Yorkshire and Humberside - 88% (8)

Author: LGA media office
Contact: LGA media office, 020 7664 3333