Fears over recession 'ghost towns'

The Local Government Association canvassed local authority leaders in January and found:

• over four out of five councils which responded reported an increase in empty properties in town centres

• two thirds of those councils that have experienced an increase say empty properties are having a significant or moderate impact on their high streets

The LGA is calling for new powers to allow councils to transform empty shops on a temporary basis during the recession.

Shops that are currently standing empty could be used as training centres, libraries, bring-and-buy sales or youth clubs.

The LGA is urging:

• New powers to allow councils to take over temporary management of empty shops once they have been vacant for three months and the landlord is not taking reasonable steps to find a new tenant.

• A cut in VAT from 15% to 5% on the refurbishment of empty shops to encourage new businesses into them.

• The Government to make small business rate relief automatic to companies that qualify and give councils the power to offer breaks on business rates to small businesses in trouble.

Cllr Margaret Eaton, LGA chair, said: “If ever there is an image that symbolises the times we are in, it is desolate town centres with rows of empty shops where once there were small local retailers, a Woolworths or a Zavvi. Decisive action must be taken to stop our high streets turning from clone towns into ghost towns."

The LGA sent out a survey to all 399 Leaders of local authorities in England on 26 January. 129 responses were received to the question regarding increases in empty town centre properties. 105 responses were received to the question regarding the impact of empty properties upon town centres.

Has there been an increase in the number of empty properties in your town centres as a result of the economic downturn?

• Yes - 85%

• No - 10%

• Don’t know - 5%

What impact has this had on your town centres?

• Significant impact - 21%

• Moderate impact - 44%

• Slight impact - 32%

• No impact - 2%

• Don’t know - 1%

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