7 Conclusion
This is an exciting—and volatile—time
for retail. [BIS Retail Strategy][181]
119. The most recent BIS Retail Strategy states that:
This is an exciting—and volatile—time
for retail. There is a difficult economic climate, there are fundamental
shifts in the retailer/customer relationship, there are great
opportunities but also dangers for retailers of all sized and
types, in all locations.[182]
120. Without doubt, the retail sector is continually
evolving. Much of the evidence submitted to this inquiry was testament
to innovative, fast-moving aspects of the retail sector. However,
the fast moving pace of the retail sector means that the traditional
home of retail—the High Street and the town centre—are
under threat. We do not advocate going back to a bygone age of
the retail sector. Indeed, the emergence of PopUp shops illustrates
the fact that you do not have to be a big player to function effectively
in the retail sector area. Also, the area of skills needs to evolve
and be fit for purpose for the new multichannel transactions.
However, the rapid evolution of the sector has a knock-on effect
on the built environment. The physical location, where shops are
or have been located, is important because that space means more
than just retail. That space is a community hub, which equates
to more than whether shops are present or not. Flourishing shops
are better than boarded-up shops, in economic terms, and in relation
to the social cohesion and fabric of our communities.
121. The Business Rate system is a significant barrier
to innovation. Therefore, to allow retail to continue to operate
in the High Street and, most importantly, to allow Start Ups to
reinvigorate the sector and our Town Centres, Business Rates must
be addressed. Clear, decisive action needs to be taken. If there
is one thing that this Report urges the Government to do, it is
to reform Business Rates. For retail, and other enterprises, to
continue on the High Street, the Business Rates system must be
addressed urgently.
122. The Government's retail strategies are
full of good intentions, yet they do not seriously address what,
to our minds, is the most crucial deterrent to new businesses
appearing on the High Street and the most debilitating levy on
existing businesses: Business Rates. Fewer Government strategies
are needed. Instead, there should be simple, decisive action.
Without a wholesale review, resulting in a new way of calculating
Business Rates, the High Street—and with it community hubs
attached to those centres—will fester. As the Government
Strategy states, "This is an exciting—and volatile—time
for retail", and the volatility should be kept to a minimum
by reviewing Business Rates so that businesses on the High Street
can have a fighting chance of surviving and flourishing.
181 BIS, A Strategy for Future Retail, p 2 Back
182
BIS, A Strategy for Future Retail, p 2 Back
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