Support for pop-ups, online retail, mobile-based loyalty programmes as FSB releases UK high streets report

The Federation of Small Businesses (FSB) has unveiled a package of new measures that aim to help transform life on UK high streets for the millions of small firms based on them.

Supporting pop-ups and temporary use initiatives for new businesses, and community specific online marketplaces, creating mobile phone-based loyalty programmes, and showcasing local high streets in major tourism campaigns are some of the recommendations set out to revive the UK’s village, town and city centres, in the FSB’s report.

The research found:

• Plummeting consumer spending (70%), falling footfall (47%) and crime or anti-social behaviour (47%) are the biggest risks to high streets according to the small firms based on them.

• 57% of local businesses say a diverse range of independent businesses is one of the most important features for the long-term sustainability and future of their local high street.

• Good transport links are also key for the future of the high street, according to 43% of small businesses based on them. 

• 49% of high street small businesses say parking facilities are managed poorly on their local high street.

• Since the beginning of the Covid-19 pandemic, most local businesses saw a range of closures on their local high street, including: retail stores (72%), hospitality (69%), banks (58%), post offices (28%), and entertainment venues (20%).

Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses (FSB), says: “Our small businesses are an integral part of the high street and will be central in leading the transformation of their local economies.”

“By providing the infrastructure, flexibility and digital connectivity that modern businesses demand, high streets will have the resources available to become resilient, dynamic hubs ready for the future.”

“As well as core recommendations targeting fundamental issues for small firms on the high street, including business rates, transport and parking, this report also lays out innovative asks to ensure these businesses can survive into the future and ultimately help revive our town centres.”

“High streets must be helped to evolve to keep pace with changes in consumer behaviour as well as how small firms want to work. One example of this is introducing loyalty schemes for high streets to encourage local businesses to collaborate and incentivise consumers to shop, eat, and drink locally.”

“It’s been exciting to hear from many online small firms that want to take steps to open up in a bricks and mortar premises on the high street. These businesses need support to make that change – and should be given the flexibility to access pop-up and temporary units.”

“Before the general election, we were pleased to see Labour’s emphasis on improving life on the high street for small firms. It’s now time for the new government as well as local authorities to put these plans into action and ensure that small firms on our high streets are fully supported.”

According to the report’s other findings, empty units are a major blight on shopping streets across the UK, with 69% of local businesses reporting them on their nearby high street.

FSB is asking for a band of on-site high street chiefs responsible for the growth and wellbeing of high streets across the country, creating promotion plans and monitoring vacant units within their area.

The research also highlights the need for well maintained and accessible modern public toilets and family friendly services like creche facilities, encouraging visitors to stay longer, upping footfall and supporting the local economy.

Business rates remain a huge burden on high street small businesses, with the current Small Business Rate Relief (SBRR) a key part of their survival. 49% of high street small businesses say they would not survive without SBRR.

The research also found that 54% of high street small businesses would invest in or grow their businesses if the SBRR threshold was increased from £12,000 of rateable value to £25,000. FSB believes this increase would be a crucial step in allowing small firms to further foster growth.

The report calls for a high street hop scheme providing free bus fares on key routes during peak shopping days to help increase footfall and support local businesses.

Offering free parking on at least two Saturdays, plus two additional days a month, would increase footfall and support local businesses by making high streets more accessible, it argues.