Retailers in some of Wales’s tertiary towns need a lifeline now to ensure they survive bleak trading conditions.
That’s according to Stephen James from Bruton Knowles’ Cardiff office, who has backed calls for an immediate reduction in business rates to help retailers through the winter.
“Investment focus has been on the major cities and prime retail centres of South Wales – Cardiff, Newport and Swansea.
“Cardiff continues to go from strength to strength and the recently opened Friar’s Walk development in Newport is due to hit 98 per cent occupancy by the summer. Major investment and regeneration is also planned for Swansea city centre in conjunction with the local council.
“But tertiary towns such as Bridgend, Port Talbot and in the South Wales valleys have suffered a lack of investment. They don’t have a Friar’s Walk to encourage growth – and need further help now if they are to have any hope of slowing let alone reversing the decline.”
Stephen said European and Welsh Assembly funding had helped in these areas.
“But it is not enough. Further stimulus is needed in order to improve occupancy otherwise changing shopping habits and the growing burden of taxes will result in further closures and many of these centres dying.”
Devolution of business rates to the Welsh Assembly Government has recently been confirmed, allowing them to determine the overall size of their budget. As such now would appear an ideal opportunity to look at ways of transforming the system in Wales.
“One suggestion would be for property valuations to be undertaken every two to three years rather than every five years at present to reflect the fast-changing market.”
Stephen said continued unrealistic expectations by landlords and their property advisors at rent review / lease renewal has also contributed to the problem.
“By cutting business rates we will encourage speculative commercial property development and help the sector grow. Lack of speculative development on regeneration projects continues to hold the market back.
“If the commercial property sector does continue to pick up, further stimulus is required.
Based at Bruton Knowles’ Cardiff office, Stephen specialises in providing commercial valuation advice for major lending institutions, owners and investors.