Town Centres and High Streets Background This consultation paper is presented as the first stage in the development of a new party policy on Town Centres and High Streets. It does not represent agreed Party policy. It is designed to stimulate debate and discussion within the Party and outside; based on the response generated and on the deliberations of the working group a full policy paper will be drawn up and presented to Conference for debate. The paper has been drawn up by a working group appointed by the Federal Policy Committee and chaired by Councillor Katie Mansfield. Members of the group are prepared to speak on the paper to outside bodies and to discussion meetings organised within the Party. Comments on the paper and request for speakers should be addressed to Christian Moon, Policy Unit, Liberal Democrats, 66 Buckingham Gate, London, SW1E 2AU. Email: policy.consultations@libdems.org.uk. Comments should reach us no later than Friday 3rd October 2025. Responses are not necessarily expected to answer all the questions. ________________ CONTENTS 1 Introduction 3 2 A Liberal Vision for Town Centres and High Streets 5 3 Different types of High Streets 7 4 The High Street experience 8 4.1 Changing expectations 8 4.2 An outdated and disappointing experience 9 4.3 Arts, culture, and leisure 11 4.4 Tourism 13 4.6 Community hubs, pubs, places, and people 15 4.7 Environmental resilience and climate action 16 5 Accessibility issues 19 5.1 Transport 19 5.2 Inclusivity 21 6 An unfair playing field 23 6.1 Out of town retail parks 23 6.2 Online shopping 23 6.3 Cost of doing business on the High Street 24 6.4 Context and considerations 25 7 Ownership 27 7.1 Governance and responsibility 27 7.2 A fragmented approach 27 7.3 Context and considerations 28 8 Funding 31 8.1 Cuts to local authority budgets 31 8.2 Competition for investment 31 8.3 Limitations of capital investment 32 8.4 Business Improvement Districts (BIDS) 33 1 Introduction 1.0.1 High Streets and Town Centres are the beating heart of communities up and down the country, places that people love and become attached to, places that give a sense of local pride and places that can support the local economic, social and environmental needs. 1.0.2 Whether it is a bustling Liverpool neighbourhood, a coastal town in Cornwall, a market town in Surrey, a former mill town in Yorkshire or a community in the Welsh valleys, the High Street is where people feel at home, their community. 1.0.3 When people talk about their local high street, they do so with strong feelings – of the butcher who knows their name, the pharmacist who quietly delivers their medicines, the bench where they watched their children play or the café where they meet friends every week. 1.0.4 Increasingly, people are expressing anger at how their high streets have been allowed to go into disrepair, with empty shops, cracked pavements, traffic jams and waste strewn across the streets. 1.0.5 The traditional UK high street and town centre has undergone significant structural economic and social change, challenging its place in the heart of the community. But, if we only talk about the transformation through data, statistics, planning and tax laws, we are missing the point. People want the places where they can feel at home. 1.0.6 To make policy that works for our High Streets and Town Centres, we need to understand how they fulfilled peoples’ needs in the past and what would bring back local pride for the future: * High streets evolved as the commercial heart of towns at the time of the Industrial Revolution, featuring market halls, street markets, early department stores and independent traders. People walked or cycled. These centres weren’t just for shopping, they were where life happened. * After the War, high streets were rebuilt and modernised, introducing chain stores, covered arcades and public services. People still lived nearby and they remained the hub of each local community. * Over the last 30-50 years residential populations have moved from urban living towards suburban growth, meaning much of the population is now living away from the High Street, creating a physical barrier. Access is now dependent on the car or public transport for access. * Some High Streets, particularly those in former industrial or coastal towns, have experienced up to 50 years of structural decline, due to changes in types of employment, decline in tourism, and underfunded local authorities. As noted by Tony Travers (LSE), these areas in particular face deep-rooted challenges including chronic underfunding, social deprivation, and anti-social behaviour, and cannot be ‘turned around’ with short-term interventions alone. * The rise of a homogenised experience, with the same shops in every town centre, combined with out-of-town retail centres and online shopping has created places that people simply are not enjoying and, therefore, not visiting. * People want places that meet the full range of our human needs, places that are unique to our local area. High streets with recognisable stores and quirky independents. Seats where we can rest, trees that lift our moods, clean streets, spaces to work, access healthcare and meet others. Safe places to see local festivals, performances and markets. What we need and expect from our High Streets and Town Centres has changed and we need to develop policies to support these evolving needs. 2 A Liberal Vision for Town Centres and High Streets 2.0.1 High streets and town centres are the heart of our communities. Across the country, from bustling urban hubs to quiet rural high streets and historic market towns, they can be spaces where people come together, where local economies grow, and where the unique character of each place shines through. 2.0.2 They reflect our local identity and heritage, places where, for generations, we have met, marched, shopped, celebrated, and supported each other. But, today, what we need from our high streets has changed and our town centres must adapt to meet our new needs. 2.0.3 We must create places that are for the community, by the community, spaces that are inclusive, thriving, and resilient, welcoming those from near and far. Every high street should have its own vision, developed locally to address its challenges and strengths. But, as Liberal Democrats, we believe that, to create a successful town centre, it must be: * Fair: Welcoming spaces that are socially inclusive and accessible to everyone. * Economically Successful: Places that feel alive with opportunity, where independent businesses thrive day and night, weekday and weekend and resilience is built through a diversity of uses. * Social: An opportunity to connect, for all ages and backgrounds, with activities and infrastructure that supports health and wellbeing. * Local: Rooted in the needs of local people, supporting local businesses, and creating meaningful jobs, especially for young people building their futures. * Sustainable: Designed for the future with clean transport options, green spaces, and with inbuilt climate resilience. * Clean and Safe: Environments where people feel secure and comfortable spending time and where businesses have the confidence to locate. 2.0.4 We must reimagine town centres, not as relics of the past but as places for everyone to live, connect and belong, today and for generations to come. Questions Q1. Does this reflect your vision for a high street? Q2. Do you think each high street needs to be different, reflecting its community? Q3. What do you love and hate most about your local High Street? What would you change? Q4. Name the best and worst High Streets you have visited? Why do they stand out for you? Q5. Are there any local High Streets that are doing a great job? Can you share examples of where they are doing well? ________________ 3 Different types of High Streets 3.0.1 There are many different types of High Streets and town centres, each of which has its unique characteristics and challenges. While there is no absolute definition of each of these, if we are to revive the high street, we need to consider the experience and solutions for each of these. * Flagship High Street (e.g. Oxford Street, London; Prince’s Street, Edinburgh; City Centres in Manchester and Glasgow). Regional destinations with high investment, flagship stores and well connected. * Market Town High Street (e.g. Frome, Somerset; Skipton, North Yorkshire; Stockton-on-Tees, County Durham). Centres for surrounding communities, increasingly challenged by out-of-town retail parks. * Local and Neighbourhood High Street (e.g. Richmond, London; Moseley, Birmingham) Within a larger city, meeting needs of a local community. * Rural Village High Streets (e.g. Wye, Kent; Crickhowell, Powys; Somerton, Somerset) Key to local community, central role for surrounding villages). * Coastal Towns (e.g. Great Yarmouth, Norfolk; Blackpool, Lancashire). Towns built around pleasure beaches, piers and theatres, suffering economically as domestic tourism declined. Questions Q5. Are there any other types of High Streets that can’t be covered by these categories? ________________ 4 The High Street experience 4.1 Changing expectations 4.1.1 People today expect more than just shops from their high streets and town centres. They are looking for connections, somewhere that they can grab a coffee while working from home, meet friends for a celebratory dinner, pop out for a few drinks, drop into an exhibition, get a haircut, attend a Pilates class, collect parcels and more. 4.1.2 But, too often, the vital services people need and expect in town centres, such as GPs, health centres, vets, beauticians, and cobblers are pushed out of town centres due to cost and convenience, making the overall experience less productive. We need to balance the needs of experiences and these required services. 4.1.3 Modern life also requires convenience and integration between online and offline experience. People expect click-and-collect, free Wi-Fi, contactless / mobile payments and apps to assist with parking and wayfinding. This can be difficult for independent retailers who can sometimes lack access to the skills and resources to deliver these. 4.1.4 More people than ever work irregular hours and juggle responsibilities, with less time to browse. They increasingly seek access to goods and services outside traditional retail hours, particularly in the evenings, yet many high streets are not set up to meet this demand. 4.1.5 The cost-of-living crisis has exacerbated the issues faced on the High Street as there is less disposable income both within the town and the surrounding area, making paid for activity less accessible. 4.2 An outdated and disappointing experience 4.2.1 Many High Streets and Town Centres have been designed around the shopping experience, with space and frontages overly reliant on pure retail space. The High Street Task Force estimates that there is an oversupply of retail space in 40% of cases. 4.2.2 Vacancy rates have increased in recent years and are estimated at an average of 13.9% in Q2 2023 by the British Retail Consortium. Empty, boarded up retail units can create a sense that ‘this place is failing.’ Add graffiti, fly-tipping and vandalism to the mix and the feeling of neglect gets deeper. People notice. 4.2.3 This is compounded by cuts to community police and smaller local authority budgets for cleaning, lighting and maintenance, leaving many high streets feeling run down. In some towns with high vacancy rates, people report that they don’t feel safe in the evenings, citing concerns over crime and anti-social behaviour, and saying that a lack of visible police make this worse, thereby negatively impacting the nighttime economy. 4.2.4 Multinational and national retail chains often dominate town centres, pushing up rents and pushing out the local and independent retailers that have less economies of scale or brand recognition to afford higher prices and creating a homogenous experience with little less charm and character. While large chains bring much needed services to towns, there is a need to ensure balance. The physical design of the high street can also take away from the experience. Cars dominate, pedestrians space is squeezed, green space is rare and places to sit and relax missing. It is difficult to relax and socialise on the current High Street. 4.2.5 Historically, space on the High Street has been protected as retail as opposed to leisure space, and space above the retail units often vacant. As an attempt to address this, changes were made to planning legislation to enable permitted development to convert from retail to residential. This was not effectively controlled and led to dead frontages – dark, empty windows where once there was activity. It solved one problem but created another. 4.2.6 In some town centres, people say that certain types of shops and uses are detracting from the experience, for example: * Betting shops, arcades and payday lenders often cluster in areas of deprivation, exploiting financial vulnerability. * Fast food and take away outlets, which often have shutters down during the day, and in the evening attracting clusters of delivery drivers that clog streets and make walking feel stressful or unsafe, create an additional barrier to enjoying the space. * Too many shops that offer similar products cluster in specific areas e.g. vape shops. Questions Q7. What would you like to see on the High Street? What role would they play? 1. Community centres, Libraries, Town Halls? 2. Services - diagnostic centres, post, banking, ATM, leisure, social care, police stations, community service outreach 3. Markets- daytime, evening, food, craft 4. Enlivenment and Activation Events 5. Facilities - public toilets, play areas, water fountains. 6. Environmental Resilience (biodiversity / shade / flood resilience), green space 7. Independent Pubs and Restaurants 8. Housing, including private, social and affordable. 9. Logistics and Delivery solutions 10. Sport and leisure facilities 11. Education - reskilling, lifelong learning, training centres 12. Workspace – drop in, shared office space, study space. Q8. What would you like to see removed from the High Street? Q9. What cheap or free activities should be on the High Street? Q10. What innovations are currently being piloted that you believe will impact the High Street e.g. Drone deliveries? Q11. Do you know of any schemes that have succeeded in making the High Street feel safer at night? Q12. How important is it to you when visiting an area that the high street is Digitally connected – e.g. up-to-date websites for event and hospitality bookings etc.? 4.3 Arts, culture, and leisure 4.3.1 When people speak about what they want from their high streets, they don’t just talk about shops, they talk about atmosphere, creativity, community and fun. Arts and Culture can bring all of these to town centres, building shared experiences and creating a local identity. 4.3.2 In recent years, this sector has been undervalued and underfunded, the first to face cuts, resulting in shorter opening periods and sometimes closing town completely. 4.3.3 Cultural institutions such as libraries, museums, small theatres and heritage centres can tell the story of the local area, increasing local pride and a sense of belonging. These institutions can play a powerful dual role… not only telling the story of a place, but also serving as community hubs, hosting classes, events, local clubs and support groups. 4.3.4 Culture does not need to hide behind closed doors. High Streets can come to life with regular scheduled street performers, outdoor cinemas, art trails and busking zones. In addition, seasonal or themed festivals can draw on local talent and bring people together for shared experiences. Closing the streets for festivals can benefit local cafes, bars and restaurants as they draw people in and encourage them to stay longer. 4.3.5 Permanent and temporary street art, from installations to murals can also be used to highlight local history and stories, generate interest and create distinctiveness. They can surprise, provoke or simply make people smile. 4.3.6 Cultural programming can also make use of vacant space with empty shops hosting temporary exhibitions or art collectives supporting local artists and creators while keeping the town centre vibrant. 4.3.7 There is an increasing demand for leisure activities, with farmers markets, makers’ markets or food festivals drawing people in for regular shared experiences and providing local jobs. Alternatively, space for leisure activities, such as cinema, ‘competitive socialising’ or children’s activities can create additional reasons to visit the centre. 4.3.8 Arts and culture can also play a critical role in boosting a safe night-time economy. It offers alternatives to alcohol-led venues, ensuring that the High Street doesn’t close at 5pm or becomes unwelcoming after dark. 4.3.9 Overall, investment in arts, culture and leisure can bring significant benefits to the local community; local jobs for the creative sector and small businesses, a stronger sense of belonging and a high street full of life. 4.4 Tourism 4.4.1 Tourism can bring in much needed footfall and revenue into the High Street, supporting job creation in hospitality and enabling a broader range of retail. In many instances, tourists are looking for similar arts, culture and leisure activities that benefit locals. However, in order to attract visitors, these activities must be marketed outside the local area. 4.4.2 Tourists themselves are more dependent on wayfinding, needing signage and maps to help them navigate their way through the area. Trails and plaques highlighting places of interest can help create an enjoyable experience. 4.4.3 Tourism can also bring in distinct challenges. It is highly seasonal, leading to short periods of pressure on local infrastructure, followed by long off-peak periods and unreliable employment. In addition, a proliferation of gift shops can erode the unique identity of local high streets. Questions Q13. What additional value do you think Arts and Culture bring to High Streets? Q14. How would you support Arts and Culture programmes? Q15. What additional leisure activities do you think would benefit the High Street? Q16. How can High Streets adapt to encourage tourism? Q17. How do we address potential tension between tourism and local needs? 4.5 Wellbeing 4.5.1 High Streets have the power to improve the mental and physical health of people in the area. 4.5.2 People have an innate desire to belong to their local area. Research[1] shows clear links between older people’s well-being and urban public realm such as High Streets. 4.5.3 Community areas are unique in that they can provide experience where young people can benefit from workshops, music and creative spaces and older people can enjoy book clubs and fitness classes. 4.5.4 In addition, they are one of the only spaces where we can provide intergenerational opportunities, spaces where older people who may have the time, can share skills, knowledge and experience by volunteering and offering mentoring for younger generations. Questions Q18. Would you be happy with having less commercial activity on the High Street to enable facilities to improve wellbeing? Q19. What measures would support this? Q20. How do you think we can improve interaction and the intergenerational experience? 4.6 Community hubs, pubs, places, and people 4.6.1 For centuries, the local pub was the heart of the community, a warm, familiar space where people met friends, shared stories, held union meetings, debated local issues and offered space to talk to those from different social circles. They were usually found on or near the High Street and were part of the town’s social infrastructure, supporting trade, travel and offering lodgings. 4.6.2 Since 2000, pubs have faced increased challenges, from rising costs, inflation, energy bills, rates and changing consumer habits. Approximately one in five pubs have closed, leaving fewer than 40,000 remaining in the UK. In some towns, the loss of the pub has meant the loss of a shared meeting space, with nothing taking its place. 4.6.3 Many pubs have adapted, offering expanded food menus, quiz nights, parent and toddler coffee mornings or co-working space. They still serve as key meeting points, informal spaces to call a meeting either in the day or evening or informally get together with friends and family. However, many landlords say that licensing laws are overly complex and inflexible, restricting their ability to expand uses e.g. pavement or beer garden permissions, youth groups. 4.6.4 In parallel, other types of community hubs have risen, from community cafes, libraries, town halls and faith spaces. These spaces can offer free, warm accessible spaces, food banks, interest groups, youth services and facilities such as repair cafes. They are vital, but often dependent on volunteers, limited by funding or opening hours and sometimes serve more targeted groups rather than creating a space in which the whole community can mix. 4.6.5 Online platforms like Facebook, WhatsApp and Nextdoor have also stepped in to offer community discussions and conversations but are often self-selective and fragmented, reducing their ability to add to social cohesion, tackle loneliness or intergenerational activities. Questions Q21. Do you think that community hubs are key to a successful High Street and Town Centre? Q22. What roles do you think these community hubs should play? Q23. How can pubs and other facilities deliver this and what are the pros and cons of different options? Q24. How can we support pubs while ensuring responsible drinking habits? 4.7 Environmental resilience and climate action 4.7.1 As we increasingly witness the impacts of climate change, town centres, particularly those in dense, urban areas, are increasingly vulnerable to heatwaves, flash flooding, and storms. Research from the UK Climate Resilience Programme suggests that the frequency and severity of such events will increase significantly in the next few decades. High streets have large areas of hard surfaces, limited tree cover, and aging drainage infrastructure so are not equipped to manage these conditions. 4.7.2 If we want our High Streets to be resilient, we need to introduce green measures such as tree canopies, shaded rest areas and sustainable urban drainage systems (SUDS). 4.7.3 Climate interventions such as rewilding, planters, green roofs and community gardens can also have the added benefit of creating a more pleasant public realm that promotes good mental health. 4.8 Context and considerations 4.8.1 The existing National Planning Policy Framework includes: * A ‘town centre first’ principle where new retail and leisure developments must demonstrate a preference for town centre locations. * Mandatory housing targets for town centre developments * Since 2020, Class E Planning categories have been consolidated into one commercial category, including shops, offices, cafes, enabling premises to switch more easily between uses. * In 2024, permitted development was introduced to enable converting any class E building into residential use, giving local authorities limited ability to stop or restrict conversions. 4.8.2 In England, the English Devolution and Community Empowerment Bill proposes a number of changes to tackle issues on the High Street: * Strategic and Combined Authorities will have more power over housing, transport, regeneration, and high street planning. * New Community Right to Buy powers will make it easier for local groups to take over pubs, libraries, shops, markets, and community spaces. Questions Q25. How do local communities get the power to implement the High Streets they want? Q26. What role do you think that government and local councils have in supporting High Streets? Q27. What changes to planning and licensing do you think would support the vitality of the High Street e.g. encourage mixed use, maintain frontages, increase meanwhile use of space, support local businesses Q28. What role can town centres play in solving the housing crisis? What mix / types of housing would be optimal (private, affordable, social, assisted, later living)? Q29. Could changes to the current business classifications (e.g. micro, small defined by turnover and employee numbers etc) reduce unintentional ‘cliff edges’ around tax and grant criteria as businesses grow? ________________ 5 Accessibility issues 5.1 Transport 5.1.1 Getting to and from the High Street can be difficult, particularly in rural areas and market towns. Many town centres are undermined by a lack of well-integrated and reliable public transport options. In many instances, bus services have been reduced and infrastructure for walking and cycling is limited. Given that the vast majority of people do not live in the town centres, access becomes a barrier. 5.1.2 This has a particularly significant impact in the evenings, when public transport options are minimal or non-existent, effectively limiting access for non-drivers and contributing to social exclusion. 5.1.3 Although active travel is stated as a key government priority, investment has often been piecemeal. Many walking and cycling routes are poorly connected or end abruptly, failing to deliver a safe route or pleasant experience. For cyclists, the lack of secure bike parking is an additional concern. 5.1.4 In many urban areas, micromobility solutions like shared e-scooters and e-bikes have opened up access options. However, the lack of enforcement of where they are left can also clutter pavements, creating trip hazards or access barriers. particularly for those with visual impairments or mobility needs. 5.1.5 The considerable rise in EV cars has improved air quality on the High Street, but EVs require dedicated space and power supply which can add to the pressure on already constrained high streets. 5.1.6 The public realm on the High Street has increasingly become an area where there are tensions between users, including drivers, pedestrians, cyclists, and delivery vans. Car-dominated high streets can have low air quality and discourage dwell time. They often feel less safe and inviting, especially for families, older people and those with disabilities. The spaces are congested, no one is happy and the experience is not enjoyable. 5.1.7 Urban design solutions, such as Low Traffic Neighbourhoods (LTNs), park and ride, pedestrianisation schemes, and “15-minute neighbourhoods” have been introduced in various areas to improve the experience of those using the space. However, these schemes have often been designed and implemented to the community rather than with them and have faced significant backlash. 5.1.8 More homes in the town centre can increase demand for public transport, justifying and supporting increased investment in this area and reducing the reliance on the car. 5.1.9 Large delivery vehicles, in many instances idling and blocking lanes, can be intimidating to other road users. In some areas, restrictions have been introduced on the times deliveries can take place, engine idling has been banned and delivery vehicle sizes have been limited. In central London and other major urban centres, freight consolidation hubs outside town centres (inbound and outbound) have freed up street space on the High Street and improved the experience by shifting deliveries to last mile delivery methods such as cargo bikes or electric vans. 5.1.10 There is an increasing demand for food home delivery services, mostly catered by popular apps. These apps require bikes, mopeds and cars to park near restaurants and wait for the food, taking up space. In addition, many restaurants are using ‘dark kitchens’ (facilities in cheap locations that prepare food exclusively for delivery, without a dine-in option for customers), reducing the need for space on the High Street. Questions Q30. What examples do you have of pedestrianisation of the High Street and what impact has this had to accessibility, business performance and people using the space? Q31. How can we balance the needs of those using different transport options while encouraging active transport? Q32. What additional facilities would encourage active travel? E.g. covered bike parking bike maintenance stands with tools, and pumps built in. Q33. How should we balance the need for EV charging points, electric scooter and bike bays and regular parking spaces? Q34. How would you approach the challenges of delivering (retail and food) to stores and from stores to home? Q35. Do you think park and ride solutions work? Can you share examples of where it has and hasn’t worked and why? 5.2 Inclusivity 5.2.1 Disabled People: * Many High Streets and Town Centres are still full of barriers for disabled people. * In order to be inclusive, safe and accessible, High Streets need to improve the physical design (e.g. step-free access, tactile paving, clutter free pavements, dropped kerbs and tactile paving at crossings, automatic doors) and public facilities (public toilets, seating). Without these, many feel excluded from participating fully in the space. 5.2.2 Families: * Families want a safe and enjoyable experience when visiting the High Street. Those with young children feel particularly vulnerable in car dominated areas, seeking safe play areas or space to relax without traffic. In order to enjoy spending time in the area, they also need access to public toilets and baby change facilities. 5.2.3 Older People and the High Street: * High Streets can offer significant benefits for older people, providing opportunities for social interaction and a connection to their local areas. However, in their current form, many High Streets and Town Centres are not well designed to meet the needs of older people, often lacking essential services such as health, social care and community facilities. * Infrastructure, including flat footpaths, traffic segregation, regulated crossings, street greenery and the availability of toilets and public seats that cater for the needs of older people. Questions Q36. Are there other specific groups you would like us to focus on? Q37. What measures would make our High Streets more accessible to all? 6 An unfair playing field 6.1 Out of town retail parks 6.1.1 In the 1970s, out-of-town retail parks emerged in the UK and were encouraged by deregulation in the Thatcher years. They supply big box retail units and have attracted retailers due to the lower rents and shoppers due to their convenience and parking. 6.1.2 Since the 1990s planning regulations have gradually shifted to be ‘town centre first’, making it harder for new parks to be approved, but still maintaining the cost advantage of existing retail parks. 6.1.3 Out of Town retailers benefit from lower business rates as the business rate is calculated at the rateable value x multiplier (a pence per pound rate set by the government). As the rateable value of property at retail centres is lower per square foot, the business rates are lower. 6.1.3 Since Covid-19, Out-of-Town retail parks are often used as delivery hubs for large retailers, with customers driving to collect due to ease of parking. 6.2 Online shopping 6.2.1 In the last 20 years, online shopping has meant high street sales have steadily declined. 6.2.2 Almost one third of retail sales are now online, with retailers realising lower overheads and, therefore, prices and consumers choosing the convenience of delivery or click and collect. 6.2.3 Online retailers benefit from lower overheads, partly due to tax arrangements. 6.2.4 Online food and beverage operators often use ‘Dark Kitchens’ to create dishes to be delivered to homes as a way to create operational efficiencies in their offer. However, they undermine the High Street Experience and often offer low-paid, low-security and isolated jobs, in comparison to similar roles on the high street. 6.3 Cost of doing business on the High Street 6.3.1 High street businesses are property and people intensive, meaning their operating costs are disproportionately tied to three main factors: rent, business rates, energy bills and staffing. These costs cannot be avoided and have risen significantly in recent years and now present a serious challenge to ensuring a thriving, diverse high street. 6.3.2 Rising energy bills have become a significant concern to High Street businesses, who report that they cannot access the government energy support policies. To date, these policies have prioritised ‘energy-intensive’ industries like manufacturing, overlooking High Street businesses in retail, hospitality and leisure, despite the dependency on warm welcoming spaces, from café seating areas to retail changing rooms, to attract people. 6.3.3 The National Insurance increase has had a disproportionate impact on High Street businesses, which tend to employ more local, lower-to-mid-income staff. These staff costs form a larger proportion of overheads than in many other industries and, unlike tech or professional service firms, the roles cannot be automated or offshored. Therefore, the increase in NI makes the payroll costs become less affordable. 6.3.4 In many parts of the country, rents have gone up considerably, with the cost per square foot becoming unaffordable for businesses operating on small margins, as many in retail and hospitality do. 6.4 Context and considerations 6.4.1 The Digital Services tax introduced in 2020 taxes the revenue made by large tech companies with global revenues in excess of £500m and UK digital revenues over £25m. This only targets companies such as online marketplaces, social media and search engines e.g. Amazon, Google, Facebook. In our last manifesto, we proposed a Digital Services tax rise from 2 percent to 6 percent, to be used to fund children’s mental health services. 6.4.2 A number of retailers have called for the introduction of a new tax on online shopping, a tax on the consumer purchases made online, with revenues used to fund business rates relief for physical stores. It was investigated by HM Treasury in 2023 after which the government rejected it. 6.4.3 This could be implemented in a number of different ways – as a tax at the point of sale, or as an online delivery charge. Retailers argue that a tax like this could balance the field with online. Others say that it is impractical, as an ‘online sale’ is impossible to define. 6.4.4 Currently the business rate multiplier has two levels: * Standard multiplier: for properties with a rateable value over £51,000 * Small business multiplier: for properties for rateable value under £51,000 Questions Q38. Do you support an online sales tax? How would you define an online sale? How would you prevent an online sales tax from impacting small or High Street businesses? Q39. Or would you prefer a solution where small High Street businesses are given tax breaks? If so, what tax breaks would you suggest? Q40. Do the current business rate multipliers have an impact? Should they be amended? Q41. Should we tackle the differentiated parking charges? Q42. What costs are having the biggest impact on the High Street in your area? Q43. Should we roll back the national insurance increase to reduce costs for high street businesses? How would you define these – by revenue, by physical size, by number of employees or another metric? Q44. What more could be done to help high streets businesses with rising energy costs? Q45. Should the business rate categories remain the same or is there an opportunity to change the criteria for relief? Q46. Should any re-design of the tax system have an explicit goal of supporting the needs and interests of small businesses on the high streets, a ‘Think Small Business First’ approach? ________________ 7 Ownership 7.1 Governance and responsibility 7.1.1 Town centres often sit within different layers of government (town, district, and county councils), which can create coordination challenges and slow down decision-making. 7.1.2 In urban areas, responsibilities are similarly fragmented e.g. in London, transport is led by TfL, while high street management sits with borough councils. This can lead to siloed planning and missed opportunities for joined-up action. 7.2 A fragmented approach 7.2.1 Many town centres are shaped by fragmented property ownership, often held by multiple landlords with little connection to the area. The result is a disjointed patchwork of uses that can feel confusing and uninviting – spaces that don’t clearly serve the needs of the community or offer a compelling reason to visit. 7.2.2 To reverse this, each town centre needs a unified vision that defines its purpose, reflects local identity, and delivers real value to those who live, work, and spend time in the area. 7.2.3 Many properties are owned by absentee landlords, including publicly listed companies and institutional investors. These owners often have limited engagement with the local community, are difficult to contact, and lack a visible presence. In some instances, it is difficult to collect business rates, as the owner cannot be identified. As a result, the spaces they own rarely contribute to a thriving town centre. 7.2.4 According to Powertochange.org, there are many more vacant units when retail units are owned by public limited companies, with 21.7% of those owned by private individuals vacant, while 61.3% of units owned by public limited companies are vacant. 7.2.5 Overseas and institutional investors can present specific challenges. Many are disconnected from local contexts, operate through bureaucratic asset management chains, and are slow to act, increasing the likelihood of long-term vacancy and undermining vibrancy. 7.3 Context and considerations 7.3.1 Business Rates * In the current arrangement, business rates are payable by the tenant on commercial property. If the property is vacant, the landlord becomes responsible but can claim relief for three months. * Some landlords exploit loopholes, such as short-term lettings of six weeks, to reset the relief period or use pop-ups to reduce liability. * Others may choose to keep the property vacant despite the cost for a variety of benefits: * Planning advantage: Long-term vacancy can strengthen the case for change of use applications. * Portfolio valuation: Letting below market value can reduce an asset’s overall valuation, affecting profit margins. * Rate burden vs. incentives: The cost of business rates may exceed the benefits of offering rent-free periods or contributing to tenant fitouts. * Capital appreciation: Land values may increase faster than rental income, especially in high demand areas. 7.3.2 Commercial Landowner Levy * In our last manifesto, we proposed replacing business rates with a commercial landowner levy. The levy proposed to remove buildings and machinery from calculations and tax only the land value of commercial sites, with the expectation that it would boost investment and cut taxes for businesses in 90% of English local authorities. By taxing landowners rather than businesses, half a million SMEs would be spared the bureaucratic burden of property taxation and local councils would save time and money. 7.3.3 High Street Rental Auctions (HSRA) * As of December 2024, local authorities have new powers to force landlords to let out long-term vacant high street properties through rental auctions. While the powers are in place, the practical process is still developing. To qualify, premises must: * Be in a designated high street or town centre (not industrial or residential). * Have a suitable high street use (e.g. retail, hospitality, office). * Be vacant for 12 months or 366 days over the past 2 years. * Be deemed by the council as beneficial to the local economy, society, or environment. * Before an auction, councils must (1) consult on area designation, (2) serve a letting notice and conduct a property survey, and (3) follow a detailed 12-week process, including a marketing period and bid acceptance stage. If a landlord does not act, the council can let the property on their behalf. Successful bidders may be asked to cover the council’s legal and survey costs. Questions Q47. Do you think we should continue with our policy to replace business rates with a commercial landowner levy? Q48. If we don’t move to a commercial landowner levy, do you have suggestions on how we could improve the current business rate system? Q49. Has your local area used High Street Auctions? Do you have any feedback? Q50. How can we encourage landlords to utilise empty space? Q51. Landlord register. To deal with the issue of absent landlords, we could introduce legislation that requires all High Street Landlords to list the contact details for someone in the UK who can deal with inbound enquiries e.g. start-ups / entrepreneurs who may like to use the space. Would having the contact details available make a difference for local groups? Q52. How can we ensure landlords contribute to the local area? In some parts of the US, local authorities have introduced ‘formula business restrictions’, where certain parts of the town centres prevent chains from opening. Do you think this could work in the UK? 8 Funding 8.1 Cuts to local authority budgets 8.1.1 Many years of sustained cuts to local authority budgets have placed significant strain on councils, forcing difficult decisions about which services to protect. With rising demand for statutory services such as social care, housing, and support for children with special educational needs and disabilities (SEND), discretionary spending, including services that support town centres, has needed to be reduced considerably. 8.1.2 Facilities that draw people in to spend time in town centres (e.g. libraries, leisure centres, and public toilets) have been scaled back or closed altogether in many areas. 8.1.3 Simultaneously, reductions in funding for public realm maintenance, including parks, street lighting, community policing and street cleaning, have left many High Streets feeling neglected. 8.1.4 The cumulative effect is to make these spaces feel less welcoming, less vibrant, and in some cases, less safe, undermining efforts to revitalise local economies and build stronger, more connected communities. 8.2 Competition for investment 8.2.1 Competition for investment in high streets through capital grant schemes, such as the Levelling-Up Fund or Future High Streets Fund, is often allocated as a result of competitive bidding processes, where local authorities submit proposals to secure limited central government funding. As there are only a set number of ‘winners’, many good schemes fail to get any support from government schemes. 8.2.2 Funds are usually for capital investment and require the submission of business cases within short application windows, making planning difficult for local authorities. 8.2.3 Bids are evaluated on aspects such as short-term deliverability, alignment with government strategic priorities and value for money. This often means that there is an emphasis on ‘shovel-ready’ infrastructure projects that can provide clear return on investment for government evaluation, but which do not have the best match with local need. 8.3 Limitations of capital investment 8.3.1 Government grants, such as the Future High Streets Fund and Levelling Up Fund, have enabled local councils to use external capital investment into public realm upgrades, including pedestrian improvements, street furniture, lighting, and green landscaping. These investments can create a short-term boost, enhancing the high street experience and footfall. 8.3.2 However, without ongoing revenue funding for maintenance, cleaning, and enlivenment, many of these newly upgraded public spaces risk becoming underused or neglected, effectively turning into ‘modern white elephants’. 8.3.3 With local authority budgets squeezed (core spending per person has fallen since 2010, while statutory service demands have surged) these new facilities can quickly deteriorate, undermining public confidence and diluting the value of initial investment. 8.4 Business Improvement Districts (BIDS) 8.4.1 The Local Government Act of 2003 enabled the formation of BIDS in geographically defined areas (if voted for by local businesses), with the aim of boosting footfall for local businesses and leading to the passing of responsibilities from some councils to BIDS. 8.4.2 They charge a levy (usually between 0.5 and 2% of business rates) to all businesses over a certain size and target improvements in the town centre such as enhanced street cleaning, signage, enlivenment, and street furniture. 8.4.3 According to the Local Government Association (2015), well-run bids report footfall growth of 5-10% above comparable areas, attributed to events, improved street maintenance and co-ordinated marketing. Questions Q53. How can we develop funding models to ensure better alignment to local need and more strategic planning cycles that secure the long-term future? Q54. Do you think public private can partnerships provide a role here? Q55. What do you think the role of BIDS should be?? Q56. How should BIDS and local authorities work together? Q57. Do you think that the High Street would benefit if BIDS and local authorities had more powers? What additional powers do you think they should have? Q58. What High Street related changes would you make to the government proposals on local government restructure? Q59. Do you think communities would be interested in investing in their local High Streets? If so, how do you think that could work? ________________ Annexe: Town Centres and High Streets Working Group Remit The remit of this group is to review the party’s policies on Town Centres and High Streets, and make updated proposals which communicate our party’s values of liberty, equality, democracy, and community in a way which helps secure the election of as many Liberal Democrats as possible, at local, regional and national level, in order to promote our vision of society. They should convey our vision of high streets as a central part of building communities, fostering entrepreneurship, providing opportunity and strong local economies. The group will be expected to build on existing policy proposals as set out in the 2024 Election Manifesto. The group is expected to consider and address Liberal Democrat principles on diversity and equalities in developing their proposals. This group will as a top priority: * Develop up to three headline policies on town centres and high streets which the party can communicate widely to win votes. The working group will develop policies on: * Reshaping town centres to provide thriving community spaces fit for the future. * Recognising the role of health facilities and health services to high street renewal. * Protecting essential services like those provided by the post office, banking, libraries. * The role of national and local planning policies in creating healthier communities and improving public health. * The changing nature of high streets as destinations and experiential inclusive spaces, including the growth of markets, events and festivals. * Making high streets safe, both through addressing crime and anti-social behaviour and promoting public safety in terms of physical safety of pavements, access to defibrillators, transport safety etc. * How the high street and town centres work for different age groups. * Developing high streets that promote active and sustainable travel and are climate-ready. * Re-balancing power in the food and drink sector between hospitality (including pubs) and supermarkets. * Using public sector procurement to boost local small businesses. * Tackling the imbalance of power between big out-of-town retailers and high streets, and between big chains and independent stores. * Making it easier to bring empty properties back into use. * Reviewing the taxation system to help promote vibrant high streets, including by addressing any unfair biases towards online-only retailers. * The role and powers of local communities and democratically elected local government to drive local regeneration. * Ensuring new developments are environmentally sustainable. The remit of the group is meant to cover both shopping districts in urban areas and high streets in rural market towns. The group will also consider the need for institutional change at central, regional and local government levels to embed these approaches firmly in policy. The group will take evidence and consult widely both within and outside the party. This evidence should inform the group’s proposals, which will be presented alongside an analysis of costs and an Equalities Impact Assessment. A policy paper of no longer than 10,000 words should be produced for debate at Spring Conference 2026. Prior to that a consultative session should be held at Autumn Conference 2025, and a draft policy paper should be presented to the Federal Policy Committee by December 2025. Autumn Conference 2025 ________________ [1]Luca Brunelli, Harry Smith & Ryan Woolrych (2025) High streets, ageing and well-being, Journal of Urban Design, 30:2, 223-253, DOI: 10.1080/13574809.2024.2302436