Red tape strangling our high streets

A new paper from the neoliberal think tank the Adam Smith Institute argues that the problem with the High Street has been totally misunderstood. The ASI says that to reinvigorate our town centres we need to reform restrictive planning rules and reject a policy of managed decline:  

• National  Planning Policy  Framework’s ‘primary  shopping areas’ (PSAs)  designation in town centres  concentrates retail and leisure  uses in one small zone, creating inactive dead zones outside the PSA and separating retail from the residential areas where their users live

• Primary shopping areas are often dominated by one or two large single-owner shopping  centres, limiting the rental market. This allows property owners to charge higher  rents to small businesses, hurting the high street. 

• Local  planning  policies are  based on retail  capacity assessments  that can be-come out of date before the plans are even adopted. 

• Mixed use development, combining retail, office, leisure and residential uses, creates  more viable, safe and liveable spaces with night-time activity and the ability to adapt to changing economic and social circumstances.

• This paper looks at two concerning case studies of overregulation of the town centre, Stafford & Stone and Milton Keynes, and looks also at Aylesbury where less restrictive local planning rules show the benefits of more widespread retail.

With online shopping on the rise, and more people wanting to live in our cities, the high street needs to be made fit for purpose in the next decade. The free market think tank the Adam Smith Institute says that we should expect fewer big chains dominating the high street. Instead we should expect to see supermarkets and pharmacies next to yoga and dancing studios beneath residential apartments and the odd hipster cafe serving smashed avocado on toast.

Instead of a single street designed for chain shops concentrating retail and leisure uses  in one small area, creating dangerous inactive dead zones in our towns and cities, and separating retail from the residential areas where its users live — towns, cities and national planning guidelines should expand the areas that shops and cafes can set up to encourage mixed use. 

The paper identifies four ways that national planning guidelines have led to dead high streets across the country: 

1. They’ve encouraged monopolistic ownership by national landlords jacking up rents;

2. Mixed residential, commercial and office space has been limited;

3. Designated  primary shopping  areas are already  heavily developed and  sometimes overlap with conservation  areas or contain a large number of  listed buildings which has restricted growth;

4. Towns and cities are often inactive outside their centres, leading to unattractive  and unsafe streets, especially at night.  

Far from boosting growth, local plans have in many ways hindered our high streets, the report argues. The bureaucratic nature of local authorities and the policy making process means that local plans are often out of date, superseded by new developments, other policy documents and market changes, before new ones are adopted. 

Plans are based on evidence gathered around a year or two before its publication, and local authorities are in constant political flux with a third of the council being reelected on three out of every four years. A ten-year plan is liable to be at odds with the policy direction of a new administration within a year or two of its adoption, or sometimes even before its adoption.

A lack of central planning can actually be a good thing when it comes to local planning. The Vale of Aylesbury Local Plan 2013-2033 was rejected by the Government in 2014, and remains unadopted to this day. It may seem counterintuitive when nearly one in ten shops stand empty across the UK, but making it easier to set up shop throughout Aylesbury has meant the local town now expects to double the amount of retail space by 2033. The town is allowing new shops to set up where they will be able to entice people in, where punters want to be, and where rents will be competitive.

The Adam Smith Institute recommends seven ways that the government could bring life back to our high streets across the country by learning from this example. 

1. Remove the requirement to set strict areas of shopping activity;

2. Encourage mixed-use developments and a diverse range of uses within and around town centres;

3. Shorter term plans to complement or replace long-term plans;

4. The examination process for local plans should be simplified or abolished;

5. Neighbourhood Planning within urban areas should be encouraged further to take advantage of local knowledge and expertise and produce plans better focused on local needs and priorities.

6. Permitted development rights should be expanded to allow conversion of residential or office buildings to retail use and vice versa.

For Britain’s high streets and town centres to remain active and viable, a looser approach to planning is needed which is better able to respond quickly to changes in technology, habits, and markets. For the retail industry to survive and compete effectively against growing online competition, retailers need to be free to adapt to their customers’ needs in terms of floorspace and location.

A move away from zoning is required to allow local authorities and town centre economies to grow, adapt and survive. We need to remove the red tape strangling Britain’s high streets. 

Thomas Walker, author of the report, said:

“Everybody knows Britain's high streets are struggling. In order for that to change we need a new approach to planning policy that gives our town centres the flexibility to react and adapt to rapidly changing economic conditions and consumer needs. We need to move away from the old idea of dedicated retail zones and embrace a more dynamic, mixed-use approach to make our town centres prosperous and create a safe and active environment for residents, workers and visitors.”

Matthew Lesh, Head of Research at the Adam Smith Institute, says: 

“High streets across Britain have too often become soulless and empty, and we risk creating a country of ghost-towns. Our one-size-fits-all national planning rules don’t fit anyone or anywhere. We need to encourage the dynamic use of high streets and mixed-use retail, residential and commercial across towns if the government is to revitalise forgotten communities.”

Rob Butler MP, the newly elected Member of Parliament for Aylesbury, says:

“This report is an excellent exploration of the challenges our towns are facing, and how reconsidering restrictive zoning can potentially help reinvigorate them, to ensure our town centres thrive in the new decade.”

Notes to editors:  

For further comments or to arrange an interview, contact Matt Kilcoyne, Head of Communications, matt@adamsmith.org | 07904 099599.

The Adam Smith Institute is a free market, neoliberal think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Flybe should not get special treatment, no one company should

Matthew Lesh, Head of Research at the Adam Smith Institute, warns that the government should not be picking winners in industry when it comes to bailouts or tax cuts.

“The collapse of Flybe would be a tragic event for its staff and travellers. But the Government is right to remember that no business is too big to fail. It must avoid the temptation to bailout a failing, carbon-intensive business. If customers are unwilling to pay the true cost of a business it should not continue to exist — we must be willing to allow the economy to adapt to new circumstances and demands. We should not ask taxpayers to subsidise the travel of politicians and businessmen.

“A broad lowering of air passenger duty would be a better approach than a direct cash injection into a single business. But even this appears to be inconsistent with broader government goals to reduce carbon emissions. Short haul flights, particularly where the same journey could be taken by train, are a disproportionate contributor to carbon emissions and the government will be hard-pressed to explain why this will be encouraged in future budgets at the expense of future generations. “

For further comment, or to arrange an interview, please contact the Adam Smith Institute press team on mobile 07904099599, landline 02072224995, or email matt@adamsmith.org.

High Pay Stats unoriginal, uninteresting and unhelpful

With the news that the CIPD and the High Pay Centre have released their cod stat report on executive pay saying the exact same thing that it always does the Adam Smith Institute's Head of Research, Matthew Lesh, has issued the following statement calling out the politics of envy and economic illiteracy. 

“Once again the so-called High Pay Centre are revealing their hatred of high pay. These nonsense statistics are unoriginal, uninteresting and an unhelpful contribution to public debate.  

“This is just more of the now discredited Corbyn-style politics of envy. We should be talking about how to help the worst off in society — how to cut red tape, increase the threshold for payment of national insurance, and cutting the Factory Tax that is holding back workers’ wages and unbalancing the economy.

“In a global market for CEOs, British firms must be able to compete for top talent. These people provide immense value to our society. Decisions made by Britain’s makers and doers now have global impacts and their value to firms reflects this. Limits on executive pay would drive top British talent and companies offshore, ultimately leading to fewer jobs and lower pay for workers."

For further comment or to arrange an interview please contact Matt Kilcoyne on 07904099599, via landline 02072224995 or email matt@adamsmith.org

No-one needs this intervention by Boris

The Adam Smith Institute is very disappointed by the Conservative Party’s proposed changes to state aid rules that take the United Kingdom in an interventionist direction. Matthew Lesh, Head of Research at the Adam Smith Institute, says:

“We shouldn’t free ourselves from the European Union in order to just enslave ourselves to the whims of Whitehall. The British people are sick of massive corporations, who have close connections with the government, getting huge handouts at the taxpayer’s expense.

“Weakening bailout rules is hugely disturbing. A Conservative government should not be promising to use taxpayer money to subsidise failing industries. Making a profit is a proof of the value added to society, and there must be no business that is too big to fail. Boris should support individuals to build skills and safeguard their futures, not entrap them in old industries.

“Promoting the “local economy” in procurement and having a “buy British” rule for state bodies is a form of Trumpian protectionism. The local economy does best when government wastes the least. If it’s better to procure goods or services overseas then that means more to spend on frontline services at home.

“Britain must not go backward, but onward into a competitive global future.”

For further comment, or to arrange an interview, please contact Matt Kilcoyne via email matt@adamsmith.org, mobile 07904099599, or landline 02072224995.

London Uber ban is a total disgrace

The Adam Smith Institute has today slammed TfL’s announcement that it is stripping Uber of its license to operate in London.

The ASI’s Head of Research Matthew Lesh said:

“Labour Mayor Sadiq Khan’s decision to strip Uber of their operating licence on spurious grounds is a total disgrace. He has sided with the vested interest of Black Cabs — who want less competition — over the interests of all Londoners. 

Uber provides thousands of jobs for low income and immigrant Londoners. It provides a much-loved service to get people home safely at night. It is more affordable than other cabs and provides a flexible working life for drivers. 

Today’s decision is a reminder of the risks of the anti-competition and anti-innovation mentality of Jeremy Corbyn’s Labour Party.”

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).

Conservative Party Manifesto: A robust manifesto but more work to be done to boost the economy

The Adam Smith Institute has today responded to the Conservative Party Manifesto announcement.

The manifesto is robust, but there is more work to be done to boost our economy, the ASI’s Head of Research Matthew Lesh says:

The Conservatives should be congratulated for a robust manifesto that lowers national insurance, seeks to revise business rates, and commits to not increasing income tax.

Creating ten free ports will help boost some of Britain’s left behind areas with lower taxes and less cumbersome red tape — an approach that should ultimately be taken nationwide. Free trade deals will help boost Britain's economy and deliver lower priced, high quality products for consumers. It is also welcome to see a commitment to ensure regulation is “sensible and proportionate” and “using our new freedom after Brexit to ensure that British rules work for British companies”. Abolishing Section 40 of the Crime and Courts Act 2014, which requires media outlets to pay costs even when they lose cases, is a welcome move for free speech. The introduction of safe standing will ensure football fans have more choice while keeping patrons safe.

But overall, this will not be enough to turbocharge Britain’s economy, or address the ballooning size of the state and long-run issues. Splashing out taxpayer money — albeit at a much more sensible scale than Labour — will do little to solve structural issues and raises questions about fiscal responsibility. The NHS needs more than higher spending, but fundamental structural reform and the embrace of a European-style insurance model for those who can pay. To improve the standard of our schools we need more parental choice, not simply more funding. 

The recommitment to the so-called “Green Belt” and Help to Buy will do little more than throw fuel on the fire of the housing market. Cancelling the planned corporate tax reduction will discourage investment and job creation and will make it harder to unleash Britain's potential. The substantial increase in the minimum wage will mean fewer jobs and less hours, particularly for those will fewer skills, the young and minorities. While embracing nuclear, hydrogen and fusion has the potential to provide substantial low-cost, low-emission energy, the moratorium on fracking will hamper efforts to fight climate change with transitional energy sources.

Support for skills throughout people’s lives is much-needed in this era of rapid technological change - this should be spent on experimenting with different models of retraining, relocation and cash payments to find out what works for different individuals and communities. The Conservatives should also be looking to reform taxes to encourage investment and cut red tape that is strangling business. 

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).

Corbyn's little red book carries a big price tag

Following the release of Labour's manifesto this morning Matthew Lesh, Head of Research at the Adam Smith Institute dives into the manifesto and finds the costs go beyond the costings, and the divisive language used at the launch gives lie to the claim that Corbyn will bring the country together:

“Jeremy Corbyn’s little red book is the most backwards-looking, self-destructive manifesto in Labour’s history. Tens of billions of pounds in higher taxes will scare away entrepreneurs and red tape that will strangle business of all sizes. Everyone will be poorer. Labour is on nobody’s side.

“A higher income tax rate on the rich will scare away job-creating entrepreneurs, higher corporate taxes will discourage businesses from locating and starting in the UK, taxing capital gains and dividends will discourage investment in our economy. Ending tuition fees will mean the poor subsidising the university education of the rich and successful. Rent controls will close our great cities to new occupants with decade-long waiting lists, and discourage house building. Mass social housing will see people stuck in their local area paying rent to landlord Corbyn for their whole lives while crowding out private building that’s just starting to pick up. Scrapping Universal Credit, without any plans for an alternative, will cost billions and encourage welfare dependency. Nationalising everything from the postal service to broadband will cost hundreds of billions, destroy the value of your pension, and lower the quality provided.

“Labour’s industrial relations plans could take us back to the days of double-digit unemployment. The ‘four day work week’ means forcing people to work less and earn less income. Introducing sectorial collective bargaining will leave everyone at the mercy of unions, leaving workers with less choice and fewer job opportunities. Banning ‘zero-hour contracts’ will leave millions of workers with less flexibility at work and threatens Britain's jobs miracle of the past decade."

For further comment or to arrange an interview please contact matt@adamsmith.org, ring 07904099599 or 02072224995.

Liberal Democrats Manifesto: A jump to the left on economics, says ASI

The Adam Smith Institute has today responded to the Liberal Democrats Manifesto announcement.

The Adam Smith Institute’s Head of Research Matthew Lesh said:

“It is disappointing to see the Liberal Democrats becoming increasingly anti-enterprise, promising punishing taxes, more red tape, and higher state spending. The formally orange book is turning into a tinge of dark red.

"While there is welcome news on refugees and drug liberalisation, focusing on harm reduction not punishment, the Liberal Democrats economic policies will hurt Britain’s prosperity. Increasing corporate taxes, forcing workers on boards, and scrapping permitted development rights that have allowed high streets to thrive with more residents, will make us all poorer.

“Seeking to change the purpose of business away from shareholder value will reduce accountability and empower state regulators -- undermining the dynamic free market that allows the country to deliver world class public services.

“The commitment to tax tech companies and create an impractical payment for data will scare away tech entrepreneurs from setting up shop in the U.K. The Uber-riding, Deliveroo-eating generation will be disappointed proposed rules to discourage the sharing economy and flexible work.”

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).

The Adam Smith Institute responds to the annual CBI conference

The Adam Smith Institute has today responded to speeches at the CBI’s annual conference.

Responding to Boris Johnson’s comments on tax changes at the CBI annual conference, Matt Kilcoyne of the Adam Smith Institute said:  

“The Conservatives plans to reduce National Insurance and urgently review business rates are welcome moves - however, the abandonment of the corporate tax cuts are a retrograde move that cedes ground to socialists as they seek power in next month’s election. 

“Corporation tax is a particularly poor way of raising government revenue. By taxing capital, the government deters firms from investing in their workforce, lowering productivity and wages — nearly 60% gets passed onto lower wages. Britain suffers from a productivity puzzle, and businesses have held back investment already thanks to uncertainty over the Brexit deal. The last thing the economy needs is a tax rate that deters investment. 

“Business rates may stir passion on the campaign trail, but the evidence just isn't there to support a review. A review will find what the last six reviews found, that the system is working well for the treasury. The real problem with business rates is that they fall on property and not land. Any improvement to a shop or pub simply sees an increase in the rate payable and this deters investment. As it stands, any rate cut will just translate into higher rents. A cut in business rates is a subsidy and a sop to landlords.”

In response to Jeremy Corbyn’s remarks, Matt Kilcoyne said:

”Corbyn has come out with warm weasel words about a decent society to those gathered at the CBI's annual conference. But the Labour leader has forgotten that a decent society is not one where the government expropriates private property, nor one where politicians can pinch hundreds of billions from your pension pots through nationalisations and equity grabs, nor is it one where government racks up unsustainable debts that undermine the economic stability of the country.

"Anywhere and everywhere that has tried Corbyn's style of socialism has seen economic collapse and the ruin of the nation. The cost of Corbyn is too much for this country."

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).

Adam Smith Insitute slams Labour's plan to nationalise broadband

The Adam Smith Institute has today slammed Labour’s costly, ill-thought out proposal to nationalise broadband in the United Kingdom.

Matthew Lesh, Head of Research at the Adam Smith Institute, says Labour’s plans would be disastrous for the country:

“Nationalising broadband would be a total disaster for the British people. It will cost tens of billions, lower service quality and leave millions waiting longer for the rollout of high speed fibre internet and 5G. We shouldn't have to call up Jeremy Corbyn every time the internet goes down.

"The Government shouldn't be paying for a service that the vast majority of us can afford. There are so many other more pressing priorities for taxpayer funds like schools, hospitals and police.

“The key issue in broadband is a lack of competition. The last thing we need is a costly government scheme that will scare away booming private sector investment from companies. Just today TalkTalk put on hold the announcement of plans about FibreNation, a multi-billion pound project to invest in fibre. Labour’s plan will be turning back the clock to a time when Britons had to wait months for a phone line connection from the post office.

To arrange an interview or further comment, please contact Matt Kilcoyne via email (matt@adamsmith.org) or phone (07904099599).