Transforming the fortunes of struggling UK high streets “will involve thinking back to the future” according to one leading industry expert.

Michael Weedon, Chair of the Retail and High Street Policy Unit, explained to delegates at the High Streets Development Conference that the future for high streets may involve looking back, to enable new development and regeneration in town and city centres to be future-proofed. [emaillocker id=”71749″]

Weedon questioned perceptions that retail had been historically dominant: “It has never all been about retail. Retail has never made up more than 30% of the shops in our town centres. But net seven times as many large shops are closing than small shops, which may see the return to a predominance of smaller retail outlets.”

Amy Harhoff, Director of Regeneration & Growth at Sandwell Council, spoke positively about changes in attitudes: “In the last 12 months we’ve really moved on in terms of accepting that the high street has changed.”

She emphasised the key role the public sector can play in advancing high streets and that town centres are a holistic investment for the government.

The question of making high streets places to live was raised by Andrew Carter, Chief Executive of the Centre for Cities. He cited statistics that showed more successful cities tended to have population growth in the centre, adding: “We need to think very carefully about making our high streets places to live again.”

Harhoff suggested the smaller cities could make use of their transport links, such as West Bromwich’s seven-minute travel time to Birmingham which makes it a “genuine alternative to live due to some of the higher prices in Birmingham.”

However, Weedon warned about the danger of small towns losing their “critical mass” if they lost a significant portion of retail space.

Business rates reform was advocated by Weedon as a way of revitalising the high street: “Retail park rentals are 20% cheaper than the town centre and that translates directly into what you pay for rates.”

He decried reforms that were enacted in 1990 which lead to annualised increases in rates.

Carter agreed that business rates needed reform but pointed out that, after 2-3 years, 75% of any rates relief went directly into rent increases: “Whoever owns that property is going to take up that relief, so if you want to subsidize landlords, then offer business rate relief.”

Carter instead suggested the possibility of a move to a land value tax, to take the costs off businesses and instead move them directly onto landlords.

Harhoff said Government funding was key to transforming the high street, but she also raised concerns with the current system: “There is a £3.7bn pot but that itself has been spliced as part of the High Street Funding and Town Centre Funding initiatives.”

She praised the “absolutely great” Public Works Loans Board for being beneficial to cash flow and revenue. However, Harhoff suggested that grant funding could play a larger role within the funding eco-system for high streets and had untapped potential.

Accommodating the Carbon neutral agenda is also a key aspect of discussions over the future of high streets. Faulks praised the success of London’s Ultra Low Emissions Zone (ULEZ) in making the high street a more attractive place. The Royal Borough of Chelsea & Kensington has also been heavily focused on greening and creating parklets to increase air quality and encourage people back into town centres, said Catherine Faulks, Lead Member for Enterprise and Skills at the Council.

Harhoff suggested utilising town markets to provide a sense of place: “Actually our markets have been declining for decades so let’s reinvent them. There might not be a market for haberdashery, but what there is a marketplace for is things like street food and mixed-use.”

The panel concurred on their optimism over the future of high streets, but a general acknowledgement that fundamental shifts will need to occur. Weedon summarised the discussion saying high streets “need to change. They are changing whether we like it or not, and helping them change for the better is a good idea.” [/emaillocker]