A new £210 million Government package aimed at bringing derelict high street buildings back into use could provide a much-needed boost to footfall and local economies, but more action is needed to address the rising costs facing retail and hospitality businesses, according to financial experts at leading accountancy and business advisory firm Price Bailey.
The funding, announced by Andy Burnham last week, includes a £125 million Derelict Buildings Fund, £65 million to support communities seeking to rescue buildings & businesses at risk of closure and £20m split equally between High Street Rental Auctions and a new Co-operative Development Programme.
While bringing empty premises back into productive use could help create a more attractive environment for consumers and businesses, Price Bailey cautions that regeneration alone will not address the underlying cost pressures facing many operators.
Emma Benjamin, Retail and Hospitality sector specialist at Price Bailey, comments: “The £210 million package will provide a much-needed boost for many run-down high streets across England, bringing empty buildings back into use and creating new community spaces. For high-street businesses, this could help increase footfall and create a more vibrant environment in which to trade.
“However, while the investment is a step in the right direction, it may be too little, too late for some struggling businesses. High-street operators continue to face significant cost pressures, and regeneration needs to be accompanied by measures that address the underlying cost of doing business.
“The announcement also needs to be considered alongside the Government’s wider approach to hospitality, including the Prime Minister’s support of a tourist tax, which could further hinder hospitality and leisure businesses who are already operating on tight margins.”
The announcement follows the Government’s commitment to introduce a 20% business rates cut for pubs, clubs and live music venues in England from 2027/28.
Price Bailey’s Till to Table: The Retail & Hospitality Rundown provides ongoing analysis of developments affecting the retail and hospitality sectors.
