The government has announced a £150 million cash injection for struggling high streets across the UK, but small business owners and industry leaders have warned the funding is little more than a “trivial band-aid on a gaping economic wound”.
The funds, unveiled as part of a forthcoming high street strategy, will target city centers hardest hit by years of store closures, rising costs and declining footfall. Ministers said the money would help revitalize high streets, which have been hit by boarded-up shop premises and the loss of key local retailers such as butchers, grocers and bakers.
Further details on how the £150 million will be distributed and which areas will benefit are expected to be announced in the coming months.
Steve Reed, the communities secretary, said the investment was an important step in reversing the decline of town centers.
“Our high streets are the beating heart of Britain, where communities come together and local businesses can grow,” said Reed. “City centers have suffered from the decline of high streets and that is why we are taking action to turn things around with this crucial investment and further investment.
“We have listened to what people are telling us and that is why we are giving them the power and control to breathe new life into our high streets and restore community pride.”
However, many business owners believe the scale of funding is dwarfed by the pressures facing large businesses, particularly rising business rates, higher wages and weak consumer spending.
Jess Magill, co-founder of Powderkeg Brewery, said the government recognized the problem but failed to address the root causes.
“While it is great that the government recognizes the problem, the level of funding is far from enough,” she said. “By increasing corporate interest rates, the government is taking away on one hand and throwing crumbs back with the other hand.
“Many cities have run-down retail centers owned by private property firms who are happy to leave units empty. Add to that the pressure on household budgets and it’s clear we need far more than this to prevent the closure of shops, pubs and restaurants.”
Others questioned how far the money would go once it was distributed across the country.
Clive Bonny, managing director of Strategic Management Partners, said the numbers didn’t add up.
“There are around 325,000 small independent retailers in the UK,” he said. “£150m spread across them is just a few hundred pounds per company. We need transparency about who gets this money, how it is spent and what return on investment the government expects.”
The harshest criticism has focused on the wider economic context facing high streets.
Rohit Parmar-Mistry, founder of Pattrn Data, said the funding failed to address the underlying causes of the decline.
“This initiative is a trivial Band-Aid on a gaping economic wound,” he said. “You can repaint storefronts and open community centers, but even if local people don’t have disposable income, businesses will still fail.”
“The decline of the high street is not cosmetic, it is systemic. Real renewal comes when people have money in their pockets to spend. Until that is fixed, it is just a matter of dealing with the decline with a smile.”
The criticism comes amid increasing pressure on the government from retailers and hospitality businesses, warning that rising taxes and the withdrawal of pandemic-era support measures could lead to an acceleration of closures in city centers. While ministers insist the £150m is just the start of a wider strategy, business groups are calling for deeper reform of business rates, rents and consumer affordability if high streets are to make a sustained recovery.
