Written evidence submitted by Ministry for Housing, Communities and Local Government [RHS 133]

 

Q1. What impact does the clustering of similar retail and service outlets, such as betting shops, vape shops and barbers, have on high streets and community pride?

  1. It can undermine perceptions of high street quality and community pride by reducing the diversity of businesses that attract a broad range of residents and support vibrant town centres.

 

  1. Public attitudes towards some of these businesses are often negative: 73% of people say they would ban betting shops from their ideal high street, and polling found that people would rather see an empty shop than a gambling outlet (44% versus 27%).

 

  1. This is particularly prominent in the more deprived areas where such outlets are disproportionally concentrated. Evidence shows that deprived areas have over three times as many bookmakers and vape shops as the least deprived areas, while also experiencing sharper declines in community-serving amenities such as pharmacies, supermarkets and public toilets. Over the last decade, vape shops increased by almost 1,200% nationally, takeaway provision rose by 24%, and high streets lost around 20% of retail units overall.

 

  1. While direct evidence linking outlet clustering to community pride is limited, the wider evidence suggests that people value diverse high streets that combine retail, services, leisure and community assets. Concentrations of similar outlets may therefore contribute to perceptions of decline, particularly where they coincide with the loss of amenities that support the high street's role as a social and community focal point. This can reduce the attractiveness and distinctiveness of high streets and weaken their contribution to civic pride, social interaction and local identity.

 

Q2. What new planning powers is the government proposing to empower communities to block “unwanted” businesses from high streets, and how effective will these powers be?

  1. We have recently announced new measures to give local communities a say over what opens on their high street, and stronger powers to stop the businesses and eyesores that are blighting town centres. This includes new planning rules that mean vape shops and adult gaming centres will need planning permission before opening and revoking the 2005 Gambling Act’s “aim to permit” rule, which restricts the ability of councils to refuse new gambling premises. We are aware that some of these properties benefit from reduced business rates. We are looking at how to tackle these harms and will set out action at Budget.

 

  1. We will consult on introducing a licensing scheme for the retail sale of tobacco, vapes and nicotine products, as a mechanism to deal with rogue vape shops on our high streets.

 

  1. We have introduced Gambling Impact Assessments through the English Devolution and Community Empowerment Act, which will give licensing authorities an additional tool to manage the location and number of gambling outlets in their areas. This will allow licensing authorities to use local evidence to designate areas where it considers that the grant of a licence, or further licence, would likely be inconsistent with the licensing objectives.

 

  1. These measures are an important first step in strengthening the powers that local authorities have to shape their high streets. We will consider whether any further measures are needed during the development of the High Streets Strategy, which will be published later this year.    

 

Q3. Are local authorities’ Trading Standards departments sufficiently funded and resourced to improve problem high streets alongside the new High Streets Organised Crime Unit?

  1. We cannot yet be confident that they are sufficiently funded and resourced to meet the challenge of illegal activity on the high street. Trading Standards teams are being asked to respond to complex and organised criminality alongside other statutory responsibilities. Anecdotal feedback from operational partners indicates that capacity, specialist capability and access to enforcement tools vary considerably, and that some teams struggle to sustain the activity required.

 

  1. The High Streets Organised Crime Unit is working to establish an evidence base and assess the necessary policy response to reduce the number of high street dodgy shops. Its rapid evidence assessment will examine the threat and current response, identify gaps and inform decisions. As part of the £30m package to tackle high street illegality, £20m will go towards enhancing the law enforcement response (including establishing a new multi-agency coordination cell based in the National Crime Agency and uplifting across Forces in hotspot regions (altogether, 75 new Police Officers will be recruited across the NCA, Greater Manchester Police, West Midlands Police, and a joint Kent Police and Essex Police Unit.

 

  1. Corresponding Local Authorities will receive an uplift, recognising the importance of a multi-agency response. £6m will be used to bolster Trading Standards’ capacity and capability to identify and investigate suspicious businesses, strengthen business compliance and boost enforcement. 

 

  1. DHSC is investing up to £10m of new funding per year until 2028/29 to support the enforcement of illicit and underage tobacco and vape sales, and the implementation of the measures in the Tobacco and Vapes Act 2026. This includes recruitment of 120 new apprentices to ensure Trading Standards have a sustainable workforce for the future.

 

  1. Funding alone will not be sufficient. Operational teams also need appropriate powers, better data sharing and practical training that reflects the complexity of tackling organised crime on the high street. The Unit is therefore working across HMG to develop wider policy proposals including strengthening existing closure orders.

 

 

Q4. What factors and approaches have led to successful high street regeneration in different parts of England?

  1. Successful high street regeneration in England has typically been driven by a shift away from retail-only models towards more diverse town centres that combine leisure, culture, public services, housing and community uses. Evidence from the Towns Fund, UK Shared Prosperity Fund and High Streets Task Force suggests that the most successful schemes adopt an integrated, place-based approach, combining physical improvements, events and animation, business support and community engagement to address local challenges. These interventions are most effective when delivered in sequence, with physical improvements creating the platform for events and activity, followed by business support to help local firms capture the benefits. The strongest examples are characterised by local leadership, strong partnerships and a clear sense of place.

 

    1. Coordinated strategic planning: In Grimsby and Cleethorpes, North East Lincolnshire Council has pursued a coordinated, place-based regeneration strategy that has unlocked around £88 million of public and private investment. Central to this is the transformation of Freshney Place from a traditional shopping centre into a mixed-use destination incorporating leisure, food, health and community facilities. This approach is helping to generate footfall throughout the day and evening while reducing reliance on retail alone.
    2. Diversification: Through Barnsley’s Health on the High Street programme, health and wellbeing services are being integrated into the town centre, including a Community Diagnostic Centre based in a shopping centre. The centre has delivered more than 220,000 appointments, increased mammogram attendance by 22% and reduced missed appointments by 24% and generated more than 50,000 additional town centre visits annually, demonstrating how public services can support both improved outcomes and increased footfall.
    3. Cultural renewal and partnership working: A strong example of partnership working can be seen in Prescot, where Knowsley Council, the Liverpool City Region Combined Authority, Arts Council England and the National Lottery Heritage Fund collaborated to deliver the £38 million Shakespeare North Playhouse. The venue now attracts around 100,000 visitors annually, generates £12.4 million of local spending, and has helped reposition the town centre around a distinctive cultural identity.

 

  1. Together, these examples show that successful regeneration is most likely where places combine economic, social and cultural objectives to create high streets that serve as community, civic and commercial centres. Regular events and community activity, alongside improvements to the built environment, have been particularly effective in increasing footfall, strengthening perceptions of place and supporting local businesses.

 

 

 

 

Q5. What conditions might allow for such approaches to be replicated in other areas?

  1. Successful high street regeneration is most likely where local places have the powers, capacity and resources to respond to their own circumstances. While the challenges facing high streets are often similar, the evidence suggests there is no single model for regeneration. Central government can therefore play an important role in creating the conditions for local success.

 

    1. Long-term funding certainty and local flexibility: Evidence from the Towns Fund and UK Shared Prosperity Fund shows that regeneration is most effective when delivered through integrated, place-based programmes rather than isolated projects. Longer-term funding settlements allow local authorities and communities to plan strategically, align interventions and build momentum over time. Government reforms to the local government funding system should help provide greater financial stability and support longer-term regeneration planning.
    2. Community empowerment: Evidence suggests regeneration is more sustainable where communities feel ownership over the future of their neighbourhoods. The Government's Pride in Place approach seeks to support this through measures such as the Community Right to Buy and the £5.8 billion Pride in Place Programme, which is providing long-term support to empower communities, strengthen local leadership and build civic capacity. This recognises that successful regeneration depends not only on investment in places, but also investment in the people and partnerships that shape them.
    3. Capacity, capability and partnership working: Delivering complex regeneration programmes requires expertise in regeneration, property, placemaking and community engagement. Evaluation evidence consistently highlights the importance of strong local partnerships, effective governance arrangements and sustained engagement with businesses, voluntary organisations and residents. Government can help by supporting local capability, sharing evidence on what works, and providing practical delivery support where capacity is limited.

 

  1. Regeneration policy should recognise that high street performance is influenced by wider economic and social conditions. Analysis suggests that factors such as catchment population, employment, earnings and crime are among the strongest predictors of high street performance. High street interventions can help places fulfil their potential where demand already exists, but in areas facing entrenched deprivation and long-term economic challenges, regeneration may need to be complemented by broader action to support economic growth, improve safety and increase opportunity.

 

  1. Alongside these long-term measures, there is also a role for targeted, visible interventions that address the most prominent signs of decline, such as vacant landmark buildings, derelict sites and environmental blight. Combining immediate improvements with longer-term community empowerment can help restore confidence in places while laying the foundations for sustainable, locally led regeneration.

Q6. What are the potential benefits and drawbacks of different approaches to public realm improvements on high streets, such as design codes, street furniture, and pedestrianisation?

  1. Well-designed public realm, such as streets and squares, are inclusive and provide opportunities for various activities, encourage social interaction, integrate natural features and promote well-being.

 

  1. Design codes are important tools for achieving well-designed places. They can provide upfront clarity about design expectations for a site or area, giving confidence to applicants, decision-makers and communities about what is required of new development. The National Planning Policy Framework (NPPF) encourages local planning authorities to prepare design codes in line with the features of well-designed places set out in national design guidance. These include movement, public space and identity. The guidance acknowledges the opportunities of creating public spaces that support activities like meeting, resting and events. Enabling multi-functional streets can boost trade and create a more welcoming environment.  Street furniture creates inviting, inclusive and sustainable spaces.

 

  1. MHCLG is in the process of updating national design guidance to support local planning authorities to better understand what good design means for their area and how they can prepare different design tools, at appropriate scales, to deliver high-quality development. The final Design and Placemaking Planning Practice Guidance will be published later this year.

 

  1. Public realm improvements are beneficial to high streets, especially if they are part of a coherent town centre strategy. Pedestrianisation can make high streets more attractive, safe and welcoming, creating spacious, walkable locations that can increase footfall and support retail and services. However, the process needs to be well considered. Removing traffic risks undermining the ‘movement economy’ of high streets and making them less accessible (though access for delivery vehicles is usually retained). Local leaders pursuing pedestrianisation must be aware of the risks and work to mitigate them, within a broader spatial strategy.

 

  1. When developing these strategies, local planning authorities should have regard to national design guidance and can also consider URBED’s town centre health check based on the four As:
    1. Attractions: Things that draw people to high streets like anchor stores, markets, heritage sites, cultural venues or events.
    2. Access: Public transport infrastructure, parking, pedestrian connectivity, and infrastructure that accounts for disability.
    3. Amenity: The physical quality of public realm including cleanliness, green space, safety and comfort.
    4. Action: The capacity and capability of the various partners involved in high street transformation, including the local authority.

 

  1. Street furniture is important for increasing both amenity and access. It can increase dwell time on high streets and can contribute to a vibrant ambience. Street furniture also provides places to rest, making high streets more accessible for elderly and disabled people. However, street furniture must be well maintained. If not, it can detract from the character of the high street and become a target for anti-social behaviour.

 

  1. There are many good examples of public realm improvements. Local leaders should draw on peer learning networks and ensure they have the right capacity and capability. Most importantly, public realm improvements should be grounded in a broader strategy that accounts for economic and social conditions.

 

Q7. How effective are existing local powers at supporting high streets, such as High Street Rental Auctions, Compulsory Purchase Orders and the Community Right to Buy?

  1. High Street Rental Auctions: High Street Rental Auctions (HSRAs) are a power available to local authorities in England to tackle persistent high street vacancy by auctioning off the lease of eligible long-term vacant commercial premises where landlords have been unable to secure tenants. The aim is to bring empty properties back into productive use, increase footfall, support local businesses and help revitalise town centres. Early evidence shows the policy is having a positive impact at designation stage, with more than 80 vacant properties brought back into use or currently being fitted out, and over 50 local authorities actively engaged in implementation. Notable successes include Bassetlaw, where 30 vacant units have been returned to use and vacancy rates in some centres have fallen significantly; Bournemouth, where 23 previously vacant units are now occupied or being fitted out; and Rugby, where vacancy has reduced from 24% to 17%, with over half of HSRA notices resulting in properties being let or refurbished. Areas actively using the powers are demonstrating growing momentum and confidence in the policy as a tool to reduce vacancy and support high street regeneration.

 

  1. Compulsory Purchase: Compulsory purchase orders (CPOs) are used by local authorities to regenerate their high streets where they have failed to purchase properties by negotiation. Local authorities may use CPOs at their discretion where there they can demonstrate a compelling case in the public interest. The government has sped-up site delivery and facilitation of improvements by use of CPOs through reforming the CPO process and compensation rules via the Planning and Infrastructure Act 2025. The reforms ensure quicker decisions on CPOs can be made, the administrative costs of undertaking the process are reduced, and a fair balance is struck in the payment of compensation.

 

  1. Community Right to Buy: The new community right to buy, introduced through the English Devolution and Community Empowerment Act 2026, will give communities stronger powers to bring valued local assets such as shops, pubs and community centres into community ownership. This will help to revitalise our high streets and end the blight of vacant premises. It will replace the current community right to bid scheme, which is widely considered insufficient to support community ownership, and we are currently developing the wider regulatory framework to implement it early next year.

 

Q8. What impacts can improvements to a high street have on community pride and people’s sense of belonging?

  1. Improvements to a high street can strengthen community pride and people's sense of belonging both directly, by improving the quality and attractiveness of the place, and indirectly, by creating spaces for social interaction, culture, services and community activity. The evidence suggests that high streets are valued for much more than shopping:
    1. 71% of people see their local high street as an important part of their community,
    2. 73% report an emotional attachment to it, and
    3. 72% say they judge a place based on the condition of its high street.

 

  1. This indicates that visible improvements to the high street can have wider effects on how people perceive their neighbourhood and local area.

 

  1. There is evidence that investment in heritage, culture and community assets can support pride in place and strengthen local identity. For example, 42% of people report that historic buildings and monuments make them feel proud of their area. High streets provide spaces to meet, socialise and access services, suggesting that improvements which increase activity, participation and the quality of the local environment may help strengthen social connections and community cohesion.

 

Q9. What impact have recent changes to business rates had on high street businesses?

  1. Recent changes to business rates have had mixed impacts across high street businesses, with effects varying by location, property value and business size. The 2026 revaluation (taking place once every 3 years) updated rateable values to better align with market values, which has an in-built market effect shifting the tax burden away from lower-value areas and towards higher-value locations. As a result, many businesses in deprived areas are likely to have benefited from lower liabilities, although this effect is not universal and some properties will still have seen increases. The impact of reliefs within the system also helps to smooth the impact of the revaluation where businesses see a significant change in their rateable value.

 

  1. The distributional effects also depend heavily on the revised multipliers and reliefs. The new retail, hospitality and leisure multipliers provide an effective reduction of around 10 to 20%, replacing temporary reliefs that had previously ranged from 40 to 100% in recent years, but were subject to a per business cash cap. While all eligible high street properties benefit from the lower RHL multipliers, the change is expected to leave some independent retailers paying more than under the previous arrangements while some larger retailers pay less. As is usual, at the revaluation the government provided reliefs to help phase in changes in liability caused by the revaluation. Transitional Relief caps the annual bill increases of ratepayers seeing a significant increase because of the revaluation. The 2026 Supporting Small Business Relief caps the increases of those ratepayers losing some or all their Small Business Rate Relief, 2025/26 Retail, Hospitality and Leisure Relief, Rural Rate Relief or 2023 Supporting Small Business Relief at the revaluation. These reliefs provide support over the 3-year 2026 rating list.

 

  1. Small Business Rates Relief continues to provide substantial protection to small businesses with full relief below a £12,000 rateable value and tapered relief up to £15,000. This is particularly relevant to high streets in deprived areas, where lower rental values mean that more properties are likely to qualify. The new 15% Pub and Live Music Venue Relief followed by 2-year real terms freeze responds to the particularly large increases experienced by some pubs following the revaluation. The government has also recently announced an additional 20% relief for pubs, clubs and live music venues on top of the already announced package with further detail to be laid out at the Autumn Budget.

 

  1. Overall, the evidence suggests that recent reforms have primarily redistributed liabilities across businesses and places.

 

Q10. Are allocation methods for Pride in Place funding suitable to ensure funding reaches communities where it is most needed?

  1. Pride in Place funding has been allocated using a methodology specifically designed to target the most in need neighbourhoods (proxied as Middle Super Output Areas) across the country. Phase 2 used a composite measure of deprivation (Index of Multiple Deprivation) and community need (Community Needs Index). Deprivation refers to a lack of material resource and access to opportunities, while community need captures challenges such as poor access to services, limited community infrastructure, and low civic participation. The most deprived areas were selected to receive funding – subject to geographic caps which were applied to achieve geographic distribution. The phase 2 expansion applied an additional filter from the community life survey to ensure funding is targeting neighbourhoods with high disadvantage and low community cohesion.

 

Q11. How effective are the government’s plans to address current challenges on high streets across England?

  1. The challenges facing our high streets are multifaceted. Consumer habits have changed with the rise of online retail and high streets face competition from out-of-town alternatives. Retrenchment in local government budgets under previous administrations led to less investment in the public realm. This has been compounded by economic shocks including the pandemic and the illegal invasion of Ukraine.

 

  1. For high streets to remain the focal points of communities they need to adapt and diversify. Over the last decade we have seen a decline in high street retail, characterised by the closure of department stores that acted as anchor locations. To encourage footfall and vibrancy, we must find alternatives to draw people to the high street. Later this year, we shall publish our High Streets Strategy that will set out our vision for transforming high streets into mixed use spaces where businesses and communities thrive together.


September 2026