“Wake-up-call” as report finds 44% of people in Wales say they use town centres less

Forty four per cent of people across Wales have admitted due to the pandemic that they are using their town centres less, with only three per cent believing that their local high street is thriving.

The findings feature as part of a report carried out the Federation of Small Businesses Wales (FSB) into the challenges facing retail across Wales and customers perception of their area and how their concerns could be addressed.

It found that whilst the majority of those surveyed “expressed negative sentiments about the bleak state of their local spaces,” there remains a “clear appreciation for their area and a clear desire to see improvements.”

Only three per cent of people surveyed believed their town centre to be “thriving”, 24 per cent believed their local high street was in a good way.

In contrast 33 per cent said their town was “bad” and 34 per cent described it as “bleak”.

A further six per cent of people had no opinion either way.

The study also found that 44 per cent of people are now using their high streets less, with 57 per cent opting to shop more online.

However many felt that “thriving small and independent shops” are their highest priority for the future of town centres.

Blame was also aimed at those making decisions impacting their town centres, with just 13 per cent feeling that their that their town centre had been supported well by decision-makers, compared to 46 per cent who do not.

The FSB say these findings must act as a “wake-up-call for us all to deliver for the communities and small businesses of Wales.”

Despite the challenges posed by the pandemic, changes in shopping habits and the impact of the covid-19 pandemic, the organisation believes there is a “vibrant future for these spaces can exist, if small businesses are able to flourish and prosper.”

It has called on those at all levels of government to work together to improve Welsh town centres and high streets.

This includes the Welsh Government retaining 100 per rates relief for retail, hospitality and tourism businesses 2022–23.

Long-term the FSB has called for a review review of the business rates system and outline proposals for substantive reform that works for small businesses.

Of the small businesses surveyed the majority found that the current system is “an unfair charge that hinders their viability.”

A majority also felt that car parking costs were a barrier to success.

Combined with issues such as supply chain costs, the pandemic and changes in shopping habits 65 per cent of small businesses have experienced a drop in demand in the last few months.

Whilst the report acknowledges that there will never be a return to the pre-2020 normalities, there is an opportunity to “prioritise the revitalisation of communities with vibrant, inclusive and prosperous local spaces at their heart.”

This includes six key points which FSB Wales believes should be at the heart of the vision for town centres. These include:

• A vibrant small and independent retail offer
• High streets for a digital age
• Spaces that people feel safe in and enjoy
• Resilience and activity throughout the day and year
• Sustained levels of increased footfall
• Unique cultural and creative footprints

It proposes that could be achieved with diverse range of voices and input into future decision making, the introductions of deposit return schemes to encourage recycling, offering improved parking initiatives and payment options, the creation of Digital Towns, a review into business rates and also introducing more co-working spaces and looking at alternative uses for existing retail space.

The FSB has also called for local authorities to commit to publishing the intake generated by car parking charges and dictate explicitly how such funds are being used to improve the area.

This is along with the Welsh Government lobbying out of town developments to address the car parking in out-of-town developments to be addressed, including through business rates.

The report concludes by saying: “FSB Wales’ vision for our town centres is aligned with what people want to see in these spaces: a vibrant future for small retail businesses, the ability to feel safe and enjoy throughout the day and year, and a strong sense of character across the many functions that it serves.

“In short, our vision for town centres is ensuring that they are fit for the twenty-first century. Revitalising towns is about evolving these spaces in a way that works for the values and priorities of people and small businesses.

“Decision-makers can be in no doubt around the bleak state of many of our town centres, nor the scale of the challenges that need to be overcome. Revitalising our town centres will be an uphill struggle. There is no one single policy or one single actor that will revive our town centres.

“However, this report outlines some key pathways to improving the conditions of these spaces for small businesses and, in doing so, strengthening and future-proofing their appeal.

“The enthusiasm for our town centres is undeniable. This energy must be focused in addressing the key challenges for these spaces. Crucially, this must be done collaboratively.

“Wales has a long way to go to achieving this vision. Only three per cent of people believing their town centre to be ‘thriving’ is a sobering reality of the state of these spaces.

“This must be a wake-up-call for us all to deliver for the communities and small businesses of Wales.

“Fortunately, the interest and passion that individuals have for their town centres could not be understated. The objective of vibrant, modern and resilient town centres is the product of economic, social and environmental imperative.

“Each of us – from an individual-level to the business community and decision-makers – have a role to play in achieving this vision. Indeed, it takes a town.”