Only 3% of people in Wales believe their town centre to be thriving, a report on the current state of Welsh towns and high streets has revealed.
The report, published by the Federation of Small Businesses (FSB), outlines the challenges towns have faced in recent years.
Informed by FSB small businesses and the members of the public, it reported that 67% of people described their town centres as ‘bleak’ or ‘bad’.
The report also stated that outside challenges for towns and SMEs, such as the shift to online retail by consumers and the rise of out of town developments, have been exacerbated by the pandemic.
However, many town centre businesses viewed car parking as a barrier to their success and that business rates were an unfair charge that hindered their viability.
While 65% of small businesses have seen a reduction in consumer demand over recent months.
Despite efforts by the Welsh government to support towns through targeted regeneration investment programmes, 46% of people felt unsatisfied with the actions policy makers have taken to improve their town centre.
Thriving small independent shops were ranked as the highest priority for the future of their town centre by people.
The organisation, which represents small and medium-sized businesses, said the report revealed a sobering reality on the state of these spaces and called for a town-centre approach to be fully embedded across Wales.
It has also called for a series of recommendations informed by the experience of its FSB small member businesses.
FSB Wales policy chair, Ben Francis said: “The pandemic has exacerbated many existing concerns about the future for SMEs in Wales, from concerns about the impact of out-of-town developments to the rise of online retail, disconnected from the people and places they serve.”
“We are calling for a town centre approach to be fully embedded across Wales, with strategies underpinned by clear objectives and metrics around footfall and vacant premises to be regularly reviewed.
“While laudable and innovative effort is being made to repurpose vacant space within towns we also need to ensure that retail – particularly independent businesses - remain at the heart of a positive conversation of what we want our towns to be. Our research demonstrates the importance of this to the public."
Mr Francis added: “Both Welsh Government and local authorities must balance the desirable attributes of successful town centres and high streets with environmental goals and wider policy objectives. As we look to the recovery, the importance of place-making and the undeniable impact of successful and thriving local economies must be recognised by our decision makers.
“We believe that no matter where you live, there should be a plan to support thriving town centres and high streets that is clearly communicated to residents and small businesses. That local engagement and dialogue is essential if we are to regrow our town centres in a way which engenders pride and ownership from businesses and the public.
“Given the importance of towns and high streets to the economic health of our communities, this mission needs to be central to any plan for the Welsh economy and needs to draw in the efforts and resource of Welsh, local and UK governments and should be key to the approach by the four economic regions of Wales as well as the debate about Levelling Up.
“While there seems to be no lack of will among decision makers, success will only be delivered by a truly joined-up approach.”
