Andy Burnham unveils £210m package to regenerate high streets

Prime Minister Andy Burnham has announced a £210 million package to regenerate high streets across England, with funding aimed at bringing vacant shops, shopping centres and other disused buildings back into use.

The package will support the transformation of empty spaces into community hubs, health centres, shared workspaces, cafés and other local services, as the Government seeks to give communities more control over the future of their town centres.

The announcement comes ahead of Burnham’s first Labour Party conference as Prime Minister and follows repeated calls from the retail industry for greater support for high streets, including reform of business rates and measures to encourage investment.

The largest element of the package is a new £125 million Derelict Buildings Fund, which will allow local authorities to revamp vacant shopping centres, disused cinemas and other abandoned buildings for uses identified by their communities.

A further £65 million will help communities rescue and revamp buildings and businesses at risk of closure, including pubs and sports clubs.

The remaining £20 million will be split between High Street Rental Auctions, which enable councils to bring properties that have been vacant for 12 months or more back into use, and a new Co-operative Development Programme.

The Government said the measures are designed to put more power in the hands of local communities and support its wider ambition for “good growth in every postcode”.

Burnham said: “People don’t measure growth by looking at a spreadsheet. They measure it by looking at their local high street. Are shops opening or are the shutters down? Does the place feel like it’s moving forward or being left behind?”

He added: “The truth is that too many high streets have been left to hollow out, leaving town centres a shell of what they once were. That must change, and today’s funding will help put power back into the hands of locals who know their area best.”

The announcement follows months of pressure from retailers and industry bodies for action on the costs facing bricks-and-mortar businesses.

The British Retail Consortium’s ‘Buy into Retail Manifesto’, published ahead of Burnham taking office, called for reforms to business rates, employment costs, energy and regulation, alongside greater support for investment in retail sites.

The BRC has argued that retailers have a key role in supporting jobs and investment in local communities, while previous industry warnings have focused on the impact of rising costs on retailers’ ability to invest in physical stores.

The Retail Jobs Alliance, which includes major retailers including Marks & Spencer, Tesco, Sainsbury’s and Primark, also warned Burnham earlier this month that increasing business rates for larger stores could put pressure on prices and investment.

The Government said the £210 million package builds on existing high-street regeneration schemes, including the £5.8 billion Pride in Place programme, which is supporting regeneration projects in 284 communities.

A full high streets strategy for England is expected to be announced later this year.