Calls Grow for Major Investment to Rescue Failing UK High Streets

A new report warns that Britain’s declining high streets may require as much as £5 billion in targeted investment to recover, particularly in economically struggling towns such as Blackpool, Bradford, and Newport. The Centre for Cities think tank argues that unless deeper economic issues are addressed, including job creation and income growth, retail-focused quick fixes will not halt the long-term decline.

While larger cities like London, Manchester, and York have seen high streets shift toward leisure, hospitality, and experience-based services, many smaller towns remain plagued by shuttered shops, empty units, and falling footfall. According to the study, the core issue lies in the lack of high-skilled employment and stagnant local wages. Town centres with lower incomes simply cannot support a thriving high street economy.

Andrew Carter, Chief Executive of Centre for Cities, stated: “City centres that are struggling are oversupplied with retail and undersupplied with spending power. More residents, higher wages, and stronger economic purpose are essential, not more coffee shops or cosmetic regeneration projects.”

The study urges the government to redirect funding into long-term economic development, including housing, education, and transport infrastructure, rather than short-term beautification efforts. Retail-specific interventions, such as business rates relief and free parking, were seen as useful but insufficient on their own. The report calls for a clear national strategy, supported by local flexibility, to reverse a decade-long slide in high street health.

Figures from the Office for Budget Responsibility (OBR), the UK’s independent fiscal watchdog, show that high street vacancy rates in towns like Wigan, Burnley, and Stoke-on-Trent exceed 16 percent, double that of better-off areas such as York or Edinburgh. Furthermore, spending on services such as dining and personal care remains significantly lower in deprived areas, limiting the viability of independent businesses.

While the current Labour-led government has made general pledges to “revive town centres,” critics argue that meaningful policies and funding commitments remain vague. The report implicitly challenges the government to move beyond slogans and deliver measurable economic renewal.

This £5 billion figure may seem large, but proponents argue it is necessary to stop further erosion of town centres that once formed the social and economic heart of communities. Without urgent action, many of Britain’s high streets risk becoming little more than relics of the past.

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