High streets are set to be revitalised as the government hands
councils new powers to tackle the scourge of empty shops.
From today (Monday, 2 December), local authorities will be
able to auction off leases for commercial properties that have
been empty for long periods, helping bring business back to the
high street and drive growth across the country.
High Street Rental Auctions will create a ‘right to rent' for
businesses and community groups, giving them access to city, town
and village centre sites. The changes will stop disengaged
landlords sitting on empty lots for more than 365 days in a
24-month period, before councils can auction a one-to-five year
lease.
With growth a key mission for the government, it is committing
over £1m in funding to support the auction process, which will
create jobs for local people and boost trade by bringing local
businesses back to the heart of our communities.
Local Growth Minister said:
“High streets lie at the heart of communities the length and
breadth of this country. But in many areas, they are not what
they used to be.
“Small businesses need our support and that's why we are creating
a ‘right to rent' so that high street lots that have been left
empty for far too long can be brought back to life. We want shops
and shoppers back on the high street – and that's what these
changes will help to bring.”
Business Secretary said:
"Empty shop premises that gather dust aren't doing any good to
high streets, jobs and the economy. This is why we said we'd lift
the shutters, and today we are delivering on that promise.
"Paired with the wider small business strategy to tackle late
payments, getting more SMEs exporting, and boosting access to
finance, we are unashamedly backing small firms, to get more
people into well paid jobs and help grow our economy."
The government has announced today that four local authorities
will lead the way as enthusiastic Early Adopters of the new high
streets powers. Bassetlaw, Darlington and Mansfield councils will
set an example for other local authorities across England, while
Bournemouth, Christchurch and Poole Council will join the Early
Adopters programme in an advisory role as critical friends.
Additional local authorities have been invited to join the
programme at a later stage.
Originally introduced by the Levelling Up and Regeneration Act
2023, the High Street Rental Auctions powers came into force
today after legislation was laid in November. Before putting a
property to a rental auction, a local authority must first seek
to resolve the vacancy by engaging with the landlord.
High Street Rental Auctions form part of the government's wider
commitment to support high streets and small businesses, as part
of work to drive economic growth in all parts of the country,
break down barriers to opportunity, and fix the foundations of
the economy. The changes come ahead of Small Business Saturday
this week, a major event in the commercial calendar which the
government is proud to support.
Earlier today, Business Secretary kicked off a week of
activity ahead of Small Business Saturday by visiting several
small businesses in and around Walthamstow High Street in
North-East London.
Small businesses are the backbone of our economy, making up 99%
of UK companies and employing more than 60% of the workforce.
When they thrive, the country thrives. That's why government has
already announced a number of other changes to back small
businesses including:
- Freezing the small business multiplier, protecting 90% of
properties from inflationary increases in business rate
liabilities.
- Announcing the intention to introduce permanently lower
business tax rates for retail, hospitality, and leisure
properties (RHL) from 2026-27.
- Providing access to finance – committing £250m in 2025-26 for
the British Business Bank's small business loans
programmes.
- Increasing the Employment Allowance from £5,000 to £10,500
and removing the £100,000 threshold, expanding this to all
eligible employers.
Supporting small businesses is at the heart of this government's
growth mission, and plans are underway to unleash the potential
of small businesses all around the country. A new Small
Business Strategy will be published next year.
Notes to editors
Further information on High Streets Rental Auctions can be found
in the Technical Guidance.
