High Streets (Built Environment Committee Report)

Lord Mair Excerpts

Tuesday 13th May 2025 Grand Committee

[Lord Mair (CB)]

My Lords, it was a privilege to be a member of the Built Environment Committee under the expert chairmanship of the previous chairman, the noble Lord, Lord Moylan. Our inquiry on high streets received more than 60 submissions of evidence from many organisations and individuals. I thank our excellent clerk Kate Wallis and her team, our specialist adviser Dr Lucy Montague and our impressive witnesses. I also congratulate the noble Lord, Lord Gascoigne, on his introductory speech for this debate.

I welcome the broadly positive response of the Government to our report. There can be no doubt that high streets have encountered numerous challenges in recent years. There are at least two principal reasons: first, the falling consumer demand for retail shopping and an increase in online shopping; and, secondly, the presence of out-of-town retail parks and shopping centres. In many towns, these have led to shop closures, declining footfall and a general loss of appeal of the high street.

Our committee recognised that local high streets should be at the heart of communities. We set out to elucidate answers to three key questions. What makes a resilient and thriving high street? Who needs to be involved in making it a success? What is the role of government working with local communities in both policy and funding? I will briefly address some aspects relating to these three key questions.

First, what makes a resilient and thriving high street? Our committee found from oral and written evidence that there is no magic formula. Each high street faces different challenges. It was clear that what people want from their high street has constantly evolved and will continue to do so. This means that conforming to a fixed vision should be avoided. There is a need for adaptability and diversity. However, some common themes emerged. Ideally, communities want a mix of retail and services, green spaces and ready accessibility in terms of safe and easy access—the latter meaning good public transport connectivity, nearby parking for car access and careful design of pedestrianisation. Our inquiry emphasised the importance of celebrating the local history and character of a place, conserving and repurposing historic buildings wherever possible. Celebrating the character and heritage of the high street has a highly beneficial effect, encouraging a greater sense of pride in place, and it potentially draws more people in, increasing footfall.

Linked to celebration of local history is the existence of markets. Many markets to this day still operate under historic charters or local laws. We received evidence that around 80% of markets are owned and operated by local authorities. They enhance the vitality of a local high street, increase footfall and can act as catalysts for new businesses. We strongly recommend that local authorities and other market operators should continue to support market traders.

A thriving high street also needs attractive, well-designed and sustainable public space, notably including green areas. We heard about the value of people having space to socialise and spend time—without necessarily spending money—on the high street. Our committee undertook an engagement event with students from Lancaster and Shrewsbury; they told us that they want to see more and safer green spaces, giving them space to hang out and socialise. Ensuring that there are clean and well-maintained places for young people to socialise can contribute to the high street being used by a larger proportion of the community. This, in turn, can improve footfall and hence sustain local businesses and public services.

Secondly, who needs to be involved in making a successful high street? Ideally, landlords, business owners, local community members and local authorities all need to be involved. A sense of community, local pride and belonging—in other words, pride in place—is widely recognised as a vital ingredient for a thriving high street.

A Private Member’s Bill, the High Streets (Designation, Review and Improvement Plan) Bill, introduced by Jack Brereton in the House of Commons and sponsored by the noble Lord, Lord Whitby, in this House, received its Second Reading in this House in May 2024. Unfortunately, the Bill, which had cross-party support, did not progress in time before Parliament was dissolved for the general election in July 2024. It would have required all local authorities in England to designate at least one street, or a network of streets if appropriate, as a high street in their area.

Once in place, improvement plans would need to be reviewed at least once every five years. Consultation would have played a key role in the development of improvement plans. Local authorities would have been required to consult on the designation of high streets, as well as on the plans themselves. Ensuring community buy-in and support for a designated improvement plan for high streets was a particularly welcome feature of that Private Member’s Bill. Will the Minister support this principle and will the Government consider introducing a similar Bill?

Local planning policy is clearly a key determinant in the future of successful and thriving high streets. The previous Government amalgamated a number of use classes within the planning system into a single use class E to increase flexibility in building usage and revitalise city centres. It allows change in use across existing commercial, business and service buildings, without the need for planning permission. For example, a retail shop could be converted into a café, or an office into flats. Our committee noted that the introduction of use class E in the planning system has made high streets more adaptable.

However, too many retail premises converted into flats could have a damaging effect on the success of a thriving high street. If most of the shops were converted into flats, the character and vitality of a high street would change radically. We therefore recommended that the Government should undertake a review of the policy of expansion of permitted development rights to convert use class E properties into homes; there is a need to examine the impact that this is having on high streets relative to the number and quality of new homes delivered.

In response, the Government stated that it was important to achieve a balance—a balance between business owners and landlords adapting buildings and the ability of local authorities to implement improvement strategies for high streets. Consequently, the Government are not currently intending to review the policy regarding use class E properties, but are keeping this position under review. The noble Baroness, Lady Andrews, referred to this. Can the Minister confirm that this is still the Government’s position? Does he agree that the use class E policy potentially risks damaging the vitality of high streets?

Thirdly and finally, what role should government have in funding high street improvements? Our committee received evidence that there is a wide range of different government programmes providing funding to local authorities for high street regeneration, but the wide range is confusing and lacks policy clarity. Moreover, the bidding system for awarding funding has historically been inefficient and costly for local authorities applying for funding. As we heard from the noble Baroness, Lady Miller of Chilthorne Domer, this is time-consuming and a strain on already limited resources for local authorities. Our committee therefore recommended that any future programmes created as part of the local growth funding reforms should have a highly simplified bidding process.

We also recommended that the Government consider implementing a two-stage bidding process, with a simplified, cursory first stage. This would ensure wider participation by local authorities in bidding for funds for much-needed and vital improvements to their high streets. Can the Minister give an assurance that a simplified bidding system will soon be available? This would greatly assist local authorities in the often much-needed regeneration of their high streets.