Title

ECONOMIC GROWTH

Vibrant high streets need vibrant cities and towns

The fundamental cause of high street decline is simple: a lack of local spending power, says Andrew Carter. 'People are typically paid more in Cambridge so they have more money to spend, both online and offline, than people in Burnley do'.

Debenhams' collapse, just days before restrictions on Christmas shopping lifted, is another reminder of the difficulties that many high street businesses are facing.

The latest data from Centre for Cities' High Streets Recovery Tracker shows that, immediately before November's lockdown, city centre footfall hovered around half of pre-March levels. A long-term shift towards homeworking and changes in consumer habits could mean it never again reaches pre-pandemic levels.

This presents a challenge for policy-makers. As well as being an important source of jobs, people's pride in their place is linked to the vibrancy of their high street, so boarded up shops are a depressing and symbolic symptom of local decline.

Commentators blame online shopping for the bricks-and-mortar retailers' struggles. This is an overly simplistic conclusion.

Recent Centre for Cities' analysis of consumer spending found no link between the popularity of online shopping and the decline of the high street. In Cambridge, the UK's online shopping capital, almost 30% of all spending is done online yet only 7% of high street units lie vacant.

The opposite is true in Burnley, where the biggest share of shopping is still done the traditional way. There, 81% of all spending is done in person, yet almost 20% of the town's high street units sit empty.

This pattern can be seen right across the UK. In economically weaker cities less people shop online, yet retailers still struggle.

So, the fundamental cause of high street decline is simple: a lack of local spending power. People are typically paid more in Cambridge so they have more money to spend, both online and offline, than people in Burnley do.

Vibrant high streets need vibrant cities and towns. Once we recognise this we can begins to develop realistic strategies to transform high streets. These should be focused around attracting high-skilled businesses into our cities and improving the skills of people so they can get the better-paid job opportunities that will be created.

This is not a quick fix, but it is the only way to bring about sustainable improvements to the high street. Without it, Debenhams will not be the last household name to fail.

Andrew Carter is chief executive of Centre for Cities

@AndrewCities

ECONOMIC GROWTH

A'no-brainer' approach to utilising empty properties

By Steve Grimshaw | 23 July 2025

The No Use Empty Kent scheme has led the way for 20 years in bringing houses, shops and business spaces back to life, and news of its success has reached th...

ECONOMIC GROWTH

Could they be a contender?

By Jack Shaw | 03 July 2025

If Reform-controlled authorities prove dysfunctional or obstructive will that erode trust in both devolution and local government? Can their administrations ...

ECONOMIC GROWTH

Top Talent: Regeneration and Growth

02 July 2025

As part of our regular series on ‘rising stars’, we celebrate the regeneration and growth officers who have been nominated by their councils for having an im...

ECONOMIC GROWTH

Creating work, the local way

By Jonathan Werran | 01 July 2025

A new research programme shows how devolution can improve employment services by moving decision-making closer to communities, explains Jonathan Werran.

Andrew Carter

Popular articles by Andrew Carter