Andrew Dismore

 

The London Assembly^[1] yesterday set out a package of emergency measures to break the vicious cycle on the high street which has led to an increase in empty shops across the capital – up five per cent to 3,400 in the past two years.^[2]

Open for Business says outer London high streets are particularly struggling, predominantly because of tough economic conditions and changes in the retail industry, as people increasingly shop at out-of-town centres and online^[3].

The Assembly Economy Committee’s report warns the vacancy increase is contributing to the decline, discouraging shoppers, and leading to the closure of other retailers that might otherwise have survived.

The Committee proposes a package of emergency and longer term measures to reverse the decline and bring empty shops into use.  It wants immediate action from the Mayor, the Government and local boroughs.  The Committee calls for:

• London-wide support to renegotiate rents.
• An expansion of small business rate relief paid for through a reduction in landlord’s rate relief on empty properties^[4]
• A new register of owners of vacant shops so landlords can be easily traced.
• Changing planning rules so boroughs can address the rise in the number of pawnbrokers – of which there has been a 94.8 per cent increase^[5] since January 2010 – betting shops and payday loan shops.
• Pop-up and interim uses for empty shops.

 

The report also sets out other ideas to boost high streets, including improving accessibility especially for walkers and cyclists and prioritising turnover of car park spaces over maximising income.

Andrew Dismore AM, Chair of the Economy Committee, said: “Our traditionally diverse and interesting high streets are blighted by the number of empty shops which are a deterrent to customers, discourage further investment, and create an air of decline.

“We have identified ways to turn this round, giving shop owners a helping hand and making the high street an attractive place to go for shoppers too.

“The Mayor, the Government and local boroughs need urgently to follow our recommendations to bring empty shops back into use, stop the rot and so help our local high streets thrive again.“

The Committee suggests boroughs should have powers to control any plans for betting shops, payday loan shops or pawnbrokers, to encourage more diversity in London’s high streets.

The report also recommends support for schemes that increase co-ordination between shop proprietors and landlords, and a new form of Compulsory Purchase Order for empty shop leases.  The Committee suggests the Government’s Future High Street Forum should focus on developing practical measures to integrate better the high street and internet retail.

Notes to editors:

1. Read the report.
2. Overall the number of empty shops has increased by an estimated 5.4 per cent since the beginning of 2010. See P10 of the report
3. In 2000, a third of retail spending took place in out-of-town centres, or on the internet.  By 2011, this had risen to 42 per cent. Nationally, footfall to high streets has fallen by around 10 per cent between 2008 and 2011. See Understanding high street performance, Department for Business, Innovation and Skills, December 2011.
4. Currently landlords do not have to pay rates for the first three months a property is empty. The Committee recommends cutting this to two months to fund more small businesses rate relief.
5. Increase between 1 January 2010 and 1 December 2012.  Local Data Company, Jan 2013.
6. Andrew Dismore AM, Chair of the Economy Committee, is available for interview. Contact details below.

As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.