Article by;
Nic Redfern – Finance director of Know Your Money
For years, the ‘death of the high street’ has been a much-touted phrase in the media. And understandably so; with every month that passed over the last decade, it seems that more and more high street giants are going under.
At the beginning of the year, the question ‘are we witnessing the death of the high street?’ would have been a question more simply addressed, given the plethora of reports predicting its demise. The rise of online shopping, as well as the inability of some firms to react quickly enough to it, would have been to blame.
However, with the recent outbreak of the COVID-19 pandemic forcing consumers to stay indoors and changing life as we know it, we are in unchartered territory. It is inevitable that the high street will be deserted for weeks – perhaps even months – and for an already struggling part of the economy, this does not come as encouraging news.
As such, it is more important than ever that we take stock, assess where things stand, and see what more can be done to help high streets in Wales and across the UK.
What is the Government doing?
In response to COVID-19, the Government has offered unprecedented and generous levels of support to ensure the survival of businesses. Indeed, prior to this the Chancellor Rishi Sunak had already promised a £100 billion investment into public infrastructure in his Spring Budget. This included almost £29 billion on the nation’s roads, all of which offered up the promise of a more connected UK and a more prosperous high street.
However, after Mr. Sunak delivered his first Budget on 11th March, providing many small businesses a crucial lifeline in their greatest time of need, many of the measures announced were nullified by the rapid spread of the virus; the rapid escalation of the situation led to the Government issuing a nation-wide lockdown, and the subsequent closure of all “non-essential” businesses.
Clearly, greater measures were needed. Just days after the Budget, the Government revealed further investments to help steady the high street through the ongoing crisis.
This included £330 billion of loans and grants, as well as a 12-month business rates holiday. Furthermore, the Government has also promised to offer up grants of £3,000 for more than 500,000 small businesses in the UK, amounting to £2 billion in total.
Given the extraordinary nature of the situation, the Government should be commended for the breadth and scope of its impromptu response to ensure the survival of businesses and the jobs of many individuals.
Where the Government’s actions enough?
Any praise cannot lead to complacency, though. These are rapid responses to an ever-evolving crisis, and the main concern faced by many business owners will be the long-term impact of the pandemic, and how things might change as the pandemic progresses.
News of a recent study of the economy, which predicted that the forced factory and high street store closures caused by COVID-19 will push the UK into a deep recession late this year, will hardly come as a comfort to retailers. So, businesses must call on the Government to direct more support to where it is needed the most – and to that end, communication between the private and public sectors is of vital importance.
Given their pledge to do “whatever it takes” to get the UK through this pandemic, Rishi Sunak and his team will undoubtedly be planning their next move. Chief among their concerns must be ensuring the high street is able to withstand the COVID-19 storm.
It is still far too early to say what the future will hold for the Great British high street. But one thing is for certain, the threat posed by the coronavirus will eventually subside. The Government must therefore do all it can to ensure long-term support well after social-distancing measures are dropped in order for business as usual to resume.
Doing so will give businesses a fighting chance to recover, restore the health of the economy and give the high street a foot ahead.
Nic Redfern is Financial Director for Know Your Money. Know Your Money is an independent financial comparison website, launched in 2004. Run by a dedicated team, Know Your Money’s goal is to provide clear, accurate and transparent comparisons for a wide range of financial products, such as business loans, mortgages and car insurance.
