Written evidence submitted by Test Valley Borough Council [HST 016]
Re: High Streets and Town Centres in 2030 HCLG Inquiry
I am delighted to attach the Test Valley Borough Council submission in support of your inquiry into the future role of the High Street. This Test Valley contribution details the current and planned status of the three towns, Andover in the north, Romsey in the south and Stockbridge in the centre of the Borough.
Planning for the future of our high streets and town centres presents a huge challenge and perhaps the only certainty is the rapid changes they have undergone and look likely to undergo over the coming years.
Here in Test Valley we are rising to the challenge and listening to the people. However, local government plays but one part in this important quest. Over and over again we hear town centre businesses call for lower rents and rates so that they can match the business models employed by those who operate in cyber-space, who are less burdened by fixed property costs.
Perhaps the most obvious move that Government can play here is to oversee a shift in taxation from property to the businesses themselves. This would help to level the playing field and give town centre businesses a fighting chance to compete. More importantly, doing so would increase their attractiveness and help them return to their vital role at the centre of our town communities.
Written evidence submitted by Test Valley Borough Council to the Housing, Communities and Local Government (HCLG) Committee
“High streets and town centres in 2030” inquiry”
Introduction - why submit our story?
Like many councils, Test Valley Borough Council (TVBC) has struggled to respond to the continuing challenges that our town centres experience and to express that response to our community.
The evolution of the Council’s attitude and response may strike a chord with other councils with market towns and, therefore, be of interest to the inquiry.
The diagnosis for our town centres is well-rehearsed: the need for re-invention in the internet age; to offer a retail function which complements online shopping and to offer a special experience which includes specialist goods and personal services in an attractive and entertaining environment.
How this can be achieved given the multiplicity of interests, cost and the sheer uncertainty of change needs further thought, discussion and collaboration.
Background - about Test Valley’s towns
Test Valley is 250 square miles of western Hampshire in central southern England. Although predominantly rural, its three towns are within easy commuting reach of major employment centres in the Thames Valley, Southampton and London by both train and road.
Andover, Romsey and Stockbridge are each very different.
Andover, in the north of the borough, is a fast-growing market town that experienced London Overspill in the 1970s. Its population of 48,000 is forecast to grow to 60,000 by 2031 and is matched by a diverse employment base of 24,000 jobs.
andover is unusual in that it lies about 16 miles from its neighbours, the cathedral cities of Salisbury and Winchester and strong commercial centres of Basingstoke and Newbury. These neighbours affect Andover town centre.
Romsey, in southern Test Valley, is a smaller historic market town with Romsey Abbey at its heart. Its population of 20,400 will grow modestly to 24,000 by 2024 and its smaller employment base reflects its role as a service centre. The town’s more dormitory character reflects its size and proximity to Winchester, Southampton and Eastleigh.
Romsey lies at the gateway to the New Forest National Park and therefore attracts many visitors, businesses which serve them and an award winning visitor information centre.
Stockbridge lies exactly between Andover and Romsey and is smaller still.
Its wide Georgian High Street hosts a wealth of independent shops, hotels, galleries and restaurants which attract visitors from far afield. Voted Britain’s Best Foodie Street, Stockbridge is the heart of Test Valley’s visitor economy.
Background –Test Valley’s town centres
Andover
Within Test Valley Andover town centre faces the greatest challenges:
Romsey
The Council’s Response
Historically, the Council employed a town centre manager covering both towns but 10 years ago the role became encompassed within Andover Vision – an initiative which has returned in an impressive way!
In 2012, as the recession gained momentum, the Council came under mounting pressure “to do something” about the rising level of retail vacancies in Andover.
Andover Town Centre Summit
The Council invited all interested parties (retailers, landlords, commercial agents, town and county council, the local press, large town centre businesses etc.) to a “summit” to agree how to respond.
The summit embodied two messages:
http://www.testvalley.gov.uk/business/towncentremanagement/andover-town-centre-summit
Five public-private working groups were set up to consider:
Between 2013-18 these groups have been delivering positive outcomes.
Summit Outcomes (covered in greater detail in the links)
Planning
http://www.testvalley.gov.uk/business/towncentremanagement/andover-town-centre-summit/reviewing-planning-controls-working-group
Parking & Signage
Parking is free before 09.00am and after 16.00pm which allows shops to open early or stay open a bit later to attract trade.
Environmental Improvements
http://www.testvalley.gov.uk/business/towncentremanagement/andover-town-centre-summit/environmental-improvements/
High Street Events
Footfall is the lifeblood of any town centre so the Council created:
Town Centre Management
Initially, it was hoped to fund a new town centre manager from a partnership between businesses, Andover Town Council, Hampshire County Council and TVBC. However, it soon became clear that, having faced the recession without a manager, businesses were unwilling to contribute financially to one now.
Undeterred, the summit working group persuaded the three tiers of local government to fund a part time town centre manager under a 3 year contract running between 2013-16 at a cost of £84,000.
The first challenge for any town centre manager is to create a network of active businesses. The second is to make a difference!
Andover’s learning curve is longer than Romsey’s: Romsey has more active, independent retailers, is more vibrant and its town centre manager lives locally so is able to devote more time and energy to the project.
Romsey
The Council agreed to support a town centre manager in Romsey in a three year agreement. The level of funding would step down to be the same as that for Andover in year 3 (£9,300p.a.).
However, the mechanism for doing so reflects the respective character of the towns: Romsey Town Council fully fund the Town Centre Manager’s salary and Test Valley Borough Council part funds activities and events. In due course, RTC levied a precept to part fund the post because they were so impressed with what was being delivered, principally in terms of events and liaison.
Independent Retailer Grant
The summit also resulted in a grant designed to offer practical help to independent businesses taking on vacant units. The £1,000 Independent Retailer Grant generates essential publicity for new independents and a chance to bring together Council regulatory advice and external business support.
As at April 2018, 18 grants have been awarded to Andover independent businesses and 19 to Romsey independents.
The High Street is probably the most challenging business environment. It is therefore not surprising that, after 5 years, a quarter of these businesses have closed for a variety of reasons, personal as well as business.
However, the grant remains as both practical help at the outset, when most needed, is unconditional and remains a long-term commitment from TVBC to supporting independent businesses in our two town centres.
Andover Vision and Romsey Future
http://www.testvalley.gov.uk/communityandleisure/andovervision
https://www.romseyfuture.org.uk/about
Andover Vision and Romsey Future represent fundamental new community-led, long term, place-making initiatives which the Council established in 2014 and which underpin the continuing programmes.
They demonstrate a new way of working for the Council: rather than provide services based on an assumption of what communities want, the Council has moved to a receptive relationship by asking communities, in a structured way, what they want and then helping them achieve those ambitions for themselves.
Therefore our town initiatives are part of how the Council has transformed how it does business. This includes neighbourhood planning and dedicated support (officers and budgets) for ward Members.
Creating successful town centres is critical to Andover Vision and Romsey Future as places where related themes (public involvement, regeneration, accessibility, attractive environment, business support etc) come together to help create vibrant town centres.
Andover Vision - major regeneration schemes
As part of Andover Vision, several major town centre regeneration schemes, each with a different emphasis, will complement the proposed BID.
A new Andover Leisure Centre
When the Council considered replacing the 1970s leisure centre it rejected out of centre locations. The town centre was best: not only was it most accessible to most car parks, bus station, rail station, but it would reinforce the importance of the town centre.
Due to open in Spring 2019, the £14.5m leisure centre is a striking building which will draw people to it and therefore through the town centre.
Andover Town Mills Riverside Park
An attractive public realm – a safe and attractive space for people to come together is a necessary condition for any successful town centre. If that public space also has natural features, such as a river or open space, so much the better for creating a locally distinct town centre.
Like public events and entertainment, a high quality physical environment will attract footfall which, in due course, can attract commerce and private investment.
Andover and Romsey have recently benefited from highway-led environmental enhancements: the Upper High Street/Chantry Street/Newbury Street in Andover and more recently Bell Street in Romsey. In 2019 Romsey will see a major enhancement of the Market Place.
Andover Town Mills Riverside Park is a key element in the Andover Vision action plan. It will remove traffic from Town Mills Road to create a new urban park by opening up one of the most attractive and prominent stretches of the River Anton in the town centre, focussed on the historic Town Mills.
This will enable people to relax and enjoy their town centre and significantly reduce traffic using Bridge Street by creating a new junction off Western Avenue. This will provide direct access to Town Mills car park from the ring road.
Andover Town Mills Riverside Park is part of a comprehensive approach to enhancing the link between Andover Railway Station and the town centre. This aims to attract more of the growing number of Andover’s rail commuters into the town centre.
The project is strongly supported by TVBC and part-funded through S106 contributions. However, it is led by Hampshire County Council as the Highway Authority.
Andover Cultural Quarter
Andover Cultural Quarter is an ambitious major redevelopment opportunity on 11 acres of land on the northern side of the town centre. The area is currently occupied by the former Andover Magistrates Court, Andover College, The Lights Theatre and adjoins the new £14.5m Andover Leisure Centre.
Andover Cultural Quarter could see a brand new theatre and new and enhanced Andover College facilities, together with eateries with outdoor seating looking over a landscaped plaza. In addition there could be new leisure floor space, which existing and new residents, users of the College, Leisure Centre and others will use.
Health insurance business, Simplyhealth, which employs 1000 at its Andover HQ, is also excited to be a partner in the scheme.
In March 2018 as part of a market engagement exercise, the Council invited developers to submit suggestions for the comprehensive transformation of this major site on the edge of Andover town centre. A number have now engaged with Council.
The site has enormous potential, not only for the people of Andover to use and enjoy but for visitors and businesses too.
The project underpins the Council’s commitment to invest in our town centres, seek opportunities that will help support businesses and provide new outdoor spaces and leisure facilities.
Andover’s indoor Chantry Centre was designed in the 1960s, built in the 70s and has been enhanced over recent years. However, like many shopping centres, it is struggling to attract retail businesses. As well as unrelenting competition, the combination of business rates, rent and service charges mean the businesses it was designed for can no longer afford to be in town centres.
The Centre is 60% owned by Aviva and 40% by the Council.
Despite attracting big names in recent years (Pandora, Subway) The Chantry Centre currently has a disproportionate share of Andover’s vacant units.
The Council is in discussion with Aviva about the future ownership of The Chantry Centre
http://www.testvalley.gov.uk/news/2018/feb/ambitions-for-andover-town-centre
Recent developments
Andover
Several summit initiatives are still being implemented, including walkway arches and town centre signage. In addition, town centre management has taken a new and significant direction.
During the third year of the combined councils’ town centre management contract, the Council considered how to maintain the hard-won momentum and decided to appoint consultants (The Means) to prepare for a Business Improvement District (BID) Feasibility Study.
In June 2016 the BID feasibility study was positive and in 2017 the Council appointed different consultants (CMS) to prepare for a BID ballot, which is due to go to a ballot in October 2018.
This extended lead-in period seems to have had the unwitting effect of making some businesses more aware of a BID, in a very general sense, and possibly eager to see the outcome.
Romsey Future
Romsey Future sets out a long-term vision for Romsey which will be delivered through a set of strategic ambitions:
These ambitions were developed by local organisations and the community coming together to talk about what a successful Romsey will look like in 20 years. The town centre is where they come together rather than being a separate project in its own right.
Romsey Future is not just a plan but an active partnership of many groups working together to build consensus and deliver shared ambitions. Over the next 20 years Romsey will thrive and grow, new communities will emerge and more people will visit the town centre. The town will retain its character as a relatively compact historic market town closely related to the countryside around it.
Romsey town centre is being strengthened in many different ways:
Conclusions and lessons learned
Shopping preferences have changed: online and out of centre options are taking an increasing market share. Whether the pace of change will remain or accelerate to a tipping point is unclear. However, our town centres will be different places in 2030: chain stores and multiples will continue to consolidate and there will be more leisure and hospitality uses. However, town centres need to remain to be the focus of their communities, places for people to come together. Similarly, a section of the community will not want or be able to shop online or in out of centre venues so some convenience provision will sit alongside new entrants and independents offering a different retailing experience.
Town centres need to:
Lessons learned
Test Valley Borough Council has never had a definitive end-state plan of where things should be but instead has worked incrementally with its communities and is responding accordingly.
Work to support the future role of town centres must be long term. The causes of their current state began decades ago-though the pace of change has accelerated. Therefore, political and management commitment must also be long term and consistent in order to earn the trust of residents and businesses - and must be communicated as such.
Town centres need significant financial public investment, especially in the public realm, footfall-generating uses (such as Andover Leisure Centre) and new forms of commercial activity such as leisure and hospitality uses before we can expect new complementary private commitment.
The Council will have spent about £250,000 on the Andover Summit initiatives notably on parking, signage and the arches. Its commitment to town centre management, including supporting a BID ballot, has involved about £80,000 over 3 years. Test Valley Borough and Hampshire County Councils’ investment in the public realm in Andover and Romsey amounts to several million pounds.
The process has to be community-led, as per Andover Vision and Romsey Future which, means it will take time and discussion to reach consensus.
Similarly, supporting town centres must involve supporting the businesses that give them life, especially the new and small businesses that offer distinctiveness.
At the same time Councils must engage with private landlords to understand their needs and work with them to offer opportunities that will attract and support retail and commercial uses such as shorter leases.
Recommendations
For town centres to survive in any recognisable form Government needs to create a more level playing field between online and town centre retailers.
Online retailing grew, as a proportion of all retailing, from 12% in 2012 to 24% in 2017 and is expected to reach up to 33% in the next decade.
In 2017 16 stores closed every day - a net loss of 1700 chain stores – and 5,000 jobs. The experience in 2018 is, if anything, accelerating.
Business rates penalise town centre businesses and have long been perceived as unfair. Together with increasing employment, fuel/delivery and parking costs they put online retailers at a significant advantage.
One answer could be an online delivery tax which could be used to help rebalance the respective costs of town centre and online shopping
This receipt could be used to encourage investment in town centres.
The alternative – a hollowing out of town centre retail and property values – will continue to undermine the general investment climate including that of pension funds etc. If not more important, the likely demise of town centres could lead to the erosion of our social fabric as those unable to use online services are denied physical facilities which in turn will damage the social cohesion of our communities.