Revitalising the High Street in the UK: The Role of the Foundational Economy
In recent years, the UK’s high streets have faced unprecedented challenges, ranging from the rise of e-commerce to the economic fallout of the COVID-19 pandemic. Once vibrant centres of community and commerce, high streets are now at a crossroads.
Amidst store closures, rising vacancies, and changing consumer habits, there is an urgent need for innovative solutions to breathe new life into these spaces. One such solution lies in embracing the foundational economy—a concept that underscores the importance of essential, locally rooted economic activities in revitalising communities.
This blog will explore the role of the foundational economy in revitalising the UK’s high streets, offering insights into its potential to create sustainable growth, foster community resilience, and reinvigorate local economies.
Understanding the Foundational Economy
The foundational economy encompasses goods and services that are essential to everyday life, such as health and social care, education, utilities, housing, and local retail. Unlike sectors driven by global markets or financial speculation, the foundational economy is grounded in meeting local needs. It is characterised by its reliance on place-based enterprises, public services, and mutual benefit rather than profit maximisation.
The foundational economy employs a substantial portion of the workforce and contributes significantly to GDP. Yet, its value is often underappreciated, particularly in economic strategies that prioritise high-growth, high-tech sectors. By recognising the foundational economy as a driver of sustainable development, policymakers and communities can build resilient local economies while addressing key social challenges.
The Decline of the High Street
The decline of the high street in the UK is well-documented. Factors such as the shift to online shopping, the proliferation of out-of-town retail parks, and rising business rates have created a perfect storm. According to the British Retail Consortium, high street footfall decreased by 43% between 2014 and 2023, exacerbating the challenges faced by traditional retailers.
Additionally, the COVID-19 pandemic accelerated pre-existing trends. Lockdowns and social distancing measures caused a sharp decline in footfall, forcing many small businesses to close permanently. Meanwhile, changing consumer habits—such as the rise of remote working—have altered the way people interact with their local environments.
These challenges have left a stark physical legacy: boarded-up shops, declining public spaces, and a loss of community cohesion. Revitalising the high street requires more than a return to the status quo; it demands a reimagining of the high street as a space that reflects and serves the needs of local communities.
The Foundational Economy: A Blueprint for High Street Renewal
1. Localising Economic Activity
At its core, the foundational economy prioritises local economic activity over external investment-driven growth. By supporting locally rooted businesses and community enterprises, high streets can become hubs of activity that retain wealth within the community.
For example, independent retailers, cafés, and cultural venues contribute to the unique character of a high street while meeting local needs. These businesses are more likely to source from local suppliers, employ local people, and reinvest their profits locally. Supporting them through targeted policies—such as grants, reduced business rates, and streamlined planning processes—can help build vibrant, resilient high streets.
2. Community-Led Development
The foundational economy places communities at the heart of decision-making. High streets that reflect the aspirations and needs of local people are more likely to thrive. Community asset transfers, where public or private property is transferred to community ownership, are a powerful tool for achieving this.
Examples such as the Hebden Bridge Town Hall in West Yorkshire, which was saved from closure and transformed into a vibrant community hub, demonstrate how community-led initiatives can revitalise high street spaces. By empowering local people to take ownership of their high streets, councils can ensure that redevelopment aligns with community priorities.
3. Integrating Essential Services
High streets must adapt to meet the broader needs of their communities. Incorporating essential services—such as healthcare clinics, libraries, and education centres—into high street spaces can create multi-functional hubs that attract footfall and enhance accessibility.
For instance, the Welsh Government’s Foundational Economy Challenge Fund has supported projects that repurpose high street spaces for social enterprises and essential services. These initiatives demonstrate how the foundational economy can transform high streets into spaces that serve both economic and social purposes.
Case Studies: Success Stories in High Street Renewal
1. Altrincham Market, Greater Manchester
Once labelled a "ghost town" due to high vacancy rates, Altrincham's high street has been transformed through a focus on local food, culture, and community. The revitalisation of Altrincham Market as a food and craft destination has drawn visitors from across the region, while also providing opportunities for local producers and artisans.
This success story highlights the importance of investing in activities that reflect the unique identity of a place, leveraging the foundational economy to create a sense of belonging and vibrancy.
2. Totnes, Devon
Totnes has gained international recognition as a model of sustainable development. Its high street is home to numerous independent shops, many of which support local supply chains. Initiatives such as the Totnes Pound—a local currency—encourage residents to spend locally, boosting the foundational economy.
This approach demonstrates how high streets can become engines of local economic activity by fostering connections between businesses and the wider community.
3. Stretford Mall, Greater Manchester
Stretford Mall is undergoing a community-led redevelopment that incorporates housing, retail, and leisure facilities. The project is guided by extensive consultation with local residents, ensuring that the new high street meets their needs. By integrating foundational economy principles, the redevelopment aims to create a high street that prioritises accessibility, affordability, and community wellbeing.
Policy Recommendations
1. Strengthen Local Governance
Empowering local authorities and community organisations is essential to implementing foundational economy principles. This includes devolving decision-making powers, providing adequate funding, and fostering partnerships between public, private, and third-sector organisations.
2. Introduce Targeted Support for Independent Businesses
Policies such as reduced business rates for small businesses, grants for start-ups, and subsidies for local supply chains can help independent retailers thrive on the high street.
3. Prioritise Mixed-Use Development
Encouraging a mix of residential, commercial, and community uses on the high street can increase footfall and ensure that spaces are utilised effectively. This requires flexible planning policies that enable innovative use of vacant properties.
4. Leverage Public Procurement
Public procurement policies that prioritise local suppliers can stimulate demand for foundational economy enterprises. For example, local councils can prioritise contracts with businesses that source locally or employ local residents.
The Social Value of High Streets
High streets are more than just economic spaces; they are vital social and cultural hubs. They provide spaces for interaction, leisure, and community events, fostering a sense of belonging and identity. The decline of the high street is not just an economic loss but a social one. By adopting foundational economy principles, revitalisation efforts can restore the high street’s role as a cornerstone of community life.
Overcoming Challenges
While the foundational economy offers a promising framework for high street renewal, there are challenges to overcome. These include securing funding, navigating complex planning regulations, and overcoming resistance to change. Collaboration between stakeholders—including local authorities, businesses, and residents—is essential to addressing these barriers.
Conclusion
Revitalising the UK’s high streets is a complex but essential task. By embracing the principles of the foundational economy, policymakers and communities can create vibrant, resilient high streets that meet the needs of local people. This approach prioritises long-term sustainability over short-term profit, fostering economic and social wellbeing in equal measure.
The foundational economy offers a blueprint for reimagining the high street as a space that serves not just as a shopping destination but as a hub of community life. Through targeted investments, community-led initiatives, and a commitment to social value, the UK’s high streets can once again become thriving centres of local identity and resilience.
The time to act is now. By placing the foundational economy at the heart of high street revitalisation, we can ensure that these spaces continue to play a vital role in the life of our communities for generations to come.
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