Grimsey proposes High St tax for major chains

MAJOR retail and leisure chains should “put something back into the High Street” through a one off levy, according to campaigner Bill Grimsey.

The former chief executive of Iceland and Wickes has recommended in his alternative High Street review that national chains should invest 0.25% of one year’s UK sales from 2014 into a local economic development fund to help sponsor start-ups and new ventures.

He believes this would create a fighting fund of around £550m compared to £20m he says the Government has spent.

He said: “I honestly think the time has come for the big chains to put something back and help re-design the High Street. What we’ve seen in a lot of secondary town centre locations is that as the chains move out to more lucrative out-of-town sites they’re hollowing out the High Street.

“The big players have made a lot of money over the years, and they should put something back. They could achieve far more than the Government has and leave a lasting and powerful legacy. If this money was spent wisely it could make a massive difference.”

He said a levy would work best if the money were administered through a central fund overseen by independent trustees that would include some of the biggest contributors to the fund.

“It would be absolutely vital that business had confidence in how their money was being spent,” he added.

The call for a levy on major retail and leisure chains is one of 31 recommendations to feature in Mr Grimsey’s alternative review, which will be launched on Wednesday.

Other issues that he examines include business rates, long term planning, using technology to create ‘networked towns’, car parking, access to finance for small business, charity shops and planning regulations.

Katja Hall, CBI chief policy director, said: “Rapid change in the retail sector means high streets have changed forever, and we can’t reinvent them as they once were.

“High streets are suffering from a lack of strategic vision, so a business plan for each town centre is a good idea – giving businesses the opportunity to work alongside local authorities to breathe new life into our town centres.

“Action on business rates would help ease the pressure on some retailers struggling to keep their doors open. However, a one-off money-grab on larger retailers would undermine investment and job creation.”

John Pennie, the Institute for Turnaround’s (IFT) North region chairman, said: “Town centres in the North must embrace the developing trends in business and consumer purchasing patterns.

 “To help address the short fall in town centre housing, unused town centre units can be converted to housing units to utilise empty space and reduce pressure on the demand for affordable homes. 

“In addition, rather than attempt to restore the high street to a consumer age before the rise of online shopping, town centres should embrace additional restaurants, cafes and pub to attract footfall and business. It is essential to keep life in our town centres through such measures.”

He added: “High street businesses must be willing to work with the grain of local supermarkets, possibly moving their business in store, which guarantees access to a large consumer base.

“For those determined to survive on the High Street, their levels of service have to be so much higher than the supermarket as to really make a difference and an IFT member working with a retailer can demonstrate how to turn around a retailer’s profitability and prospects.”