HIGH STREETS

High Streets are clearly suffering from the onslaught of the Internet. However, there is a misconception that this is because it is easier to shop online. In reality it is due to prices online, being cheaper than those on the High Street.

Many people love going out and meeting people and do this, primarily in city/ town/ village centres. Buying from a shop is generally preferable because you can see the goods before you buy. There is a tipping point when this benefit is outweighed by the price. We are approaching this level, whereby the internet retailers have such a price advantage that more and more people shop online. [I am not ignoring the minority who will prefer the convenience of shopping on the inter web!].

We are nearing a level of perfect competition, with price information publicly available, and so the price differential comes down to input costs. Parking now, thanks to the financially challenged local authorities, costs as much as postage; people are actively put off going out because of these very high charges. We are increasingly finding that parking now costs at night too. We should remember that parking charges were there to introduce a form of rationing, so we all got a fair chance to park. Now it is strictly revenue raising.

Shoppers are put off from going to stores because of parking charges and now look at malls (free parking) and the internet. However, the High Street is further at a loss as their rents and rates are so high.  Now, if a local authority/ government really wanted to protect the High Street, they would remove Business Rates. There is a curious juxtaposition here as they claim to want to protect the High Streets (often not allowing development and change of use plans) but tax the occupiers out of business.

As a commercial agent, I often come across situations where the rates payable are higher than the rent. The traders get nothing in return, apart from an army of inspectors!

I propose two things to get the High Streets active again, free parking for two hours and no Business Rates for A1 retailers. If the Local Authority has to tax, then please provide something in return....

I estimate that the average High Street in the East Midlands probably gives the Local Authority some, £100-200,000 per annum and they don't even get a bin!