MSPs propose plan-based support for town centres
Action to halt the longstanding decline of Scotland's town centres has been proposed by a Holyrood committee in a new inquiry report.
MSPs on the Economy & Fair Work Committee are calling for the planning system to be strengthened to ensure no new developments unfairly compete with town centre provision, and a rebalancing of the cost of doing business to make town centres more competitive including how non-domestic rates currently operate.
They believe that every town in Scotland should have its own town plan, a long-term strategic vision for the future that recognises the town's unique nature, its history and the community that brings it together. It should be driven locally by communities and not imposed from the top down.
Specific measures proposed in the report include:
- Strengthening the National Planning Framework 4 (NPF4) to ensure that any proposed developments can demonstrate that town centre sites have been pursued and thoroughly evaluated, and that developments will have no adverse impact on town centres and will not compete with town centre provision.
- The overarching principle must be rebalancing the cost of doing business in town centres versus out-of-town sites. Approaches that could be considered include giving councils the power to levy an out-of-town development premium or a business rates surcharge which could then be used for town centre regeneration.
- The current non-domestic rates ("NDR") system acts as a disincentive when trying to attract businesses back to our town centres. For businesses already located in town centres, the current NDR system acts as a disincentive to invest in already occupied property, as any investment leads to an increase in NDR. The committee consistently heard that the current system works against investment and growth in town centre retail, and that the NDR system should be rebalanced to support town centre development.
- There is strong demand among Scotland's smaller retailers for more and better support to build their online presence and their ability to take advantage of platforms that already exist. A broader range of opportunities must be made available to upskill the retail workforce.
- Transparency of beneficial ownership of town centre property and land and absentee owners can still be a problem, particularly where an individual lives or is based overseas. It is the committee’s strong view that all property and landowners should be contactable and there should be clarity on who the owner is. While the Scottish Government has said its focus is on compulsory purchase orders, the committee is of the view that the Government’s actions may be insufficient and that more may be needed to address this problem.
- The committee has noted a reluctance among local authorities to use their powers to tackle derelict or dangerous buildings, in part due to a lack of resources to carry actions through, and welcomes the Scottish Government's commitment to reform and modernise compulsory purchase orders.
- It also recognises the increased demand for online and e-commerce activities and the importance of technology as a driver of increased productivity. A strategically driven action plan should be developed by the Scottish Government to support the takeup of training and capacity building to support Scotland's eCommerce activity.
Committee convener Claire Baker MSP commented: “This report should signal a line in the sand for how we support, develop and prioritise investment in our town centres. We all know a town centre that has empty shops, a lack of investment and few thriving businesses.
“Throughout this inquiry we heard that although the pandemic accelerated trends towards online shopping, people really care about the future of their town centre and what is on their doorstep. The positive benefits that a thriving town centre can bring are clear – not just economically but socially and culturally as well."
She added: “This report signals that change is needed. We know there is no quick fix but unless we start now, then we won’t be able to halt the accelerated decline of recent years we’ve seen already in too many communities across Scotland.”