Budget 2018: High streets to gain £675m funding

Chancellor Philip Hammond has announced a £675m fund for councils to revive their town centres and high streets. The “Future High Streets Fund” has two key aims. It will support local areas to prepare long-term strategies for high streets and town centres, including funding a new High Streets Taskforce. It will also then co-fund projects in local areas, involving: Investment in land assembly, including to support the densification of residential and workspace around high streets in place of underused retail units; and Investment in physical infrastructure, including improving public and other transport access; improving flow and circulation within a town or city centre; congestion-relieving infrastructure; investment in physical infrastructure needed to support new housing and workspace development and existing local communities; and regenerating heritage high streets. It will contribute up to £25m of funding to projects per local area, which will be competitive. The government said it expected local areas to form partnerships with the private sector to develop proposals. Up to £55m of the overall fund will support the regeneration of heritage high streets. This has two elements: helping to restore historic high street properties through Historic England, and equipping communities with their own resources to put historic buildings back into economic use – for example, as residential buildings, new work spaces or cultural venues, supported by the Architectural Heritage Fund. The government will launch the prospectus for the fund later this year, while the taskforce will launch in early 2019. The reaction Bill Grimsey, retail tsar: “If this money is spent wisely and strategically, this will make a big difference, but without strong local leadership and accountability there’s always the risk of it being used for pointless vanity projects. “We have seen this in the past and I would encourage funding to be used to support long-term plans for change that have community buy-in. Money should not be wasted tinkering around at the edges.” Ed Cooke, chief executive, Revo: “The chancellor has listened to our calls to set aside funding for infrastructure and small-scale transport solutions. “It’s not a sexy topic, but the economic and social benefits created by these small but critical interventions will help to unlock private investment, improve accessibility and help connect our town and city centres. We hope this funding is just the beginning as we seek to repurpose and reposition our urban centres for the future. [On the proposed High Streets taskforce] “Perhaps the shining light within this Budget, we have long sought and welcome central support for under-resourced local authorities to help build visionary and viable strategies to reposition town centres for the future. “It is critical the public sector can draw upon resources and expertise to build positive, mixed-use places that are vibrant and sustainable. It is likely £2m is not enough, but is the starting point for brave new thinking. We look forward to learning more details of this initiative.” Helen Dickinson, chief executive, British Retail Consortium: “Retailers welcome the measures announced by the Treasury to invest new funding to boost high streets and town centres and facilitate reinvention into modern and diverse destinations. We await with interest further details of the plans, particularly around how the funding will be targeted, who will eligible and how quickly funds will be made available.” Nicole Roe, planning associate, Barton Willmore: “For the high street, the tea has been served without hot water. The chancellor’s £675m Future High Streets Fund and lower business rates for smaller retailers are excellent initiatives, but the pot is incomplete without all the elements in play. “How are we going to tackle the demise of international businesses, such as department stores, on the high street? The small business tax relief will make it easier for pop-ups and small businesses, which is greatly needed, but it doesn’t solve the problem for larger stores – the loss of these is impacting the high street in a major way. The chancellor suggests modernising Use Class Orders and Compulsory Purchase Orders to enable conversions to housing, but more information is needed to ensure the right mix of retail and housing is delivered to create thriving streets.” David Fox, director and head of retail agency – north, Colliers International: “In essence the Future High Streets Fund is a good idea, and one that private landlords with access to funds and the vision had already being doing. If this means councils buying property themselves in order to regenerate stock, then it will offer landlords with portfolios going nowhere an exit strategy – albeit at bottom dwelling prices. “Also, it will stack up only where there is demand for alternative property classes – big cities and metropolitan areas. In the former industrial towns it would need to be part of a much wider regeneration initiative to bring jobs and other forms of investment.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette