The government has announced a £150 million cash injection for struggling high streets across the UK, but small business owners and industry leaders have warned the funding risks being little more than a “trivial sticking plaster on a gaping economic wound”.
The funding, unveiled as part of a forthcoming High Streets Strategy, will be targeted at town centres hit hardest by years of shop closures, rising costs and declining footfall. Ministers said the money would help revive high streets blighted by boarded-up units and the loss of essential local retailers such as butchers, grocers and bakers.
Further details on how the £150 million will be allocated and which areas will benefit are expected to be announced in the coming months.
Steve Reed, the communities secretary, said the investment marked an important step in reversing the decline of town centres.
“Our high streets are the beating heart of Britain, where communities come together and local businesses can grow,” Reed said. “Town centres have suffered from high streets falling into decline, and that is why we’re taking action to turn the tide with this crucial investment and more to come.
“We have listened to what people are telling us and that’s why we’re giving them the power and control to breathe new life back into our high streets and restore the sense of pride communities feel.”
However, many business owners say the scale of the funding is dwarfed by the pressures facing high street firms, particularly rising business rates, higher wages and weak consumer spending.
Jess Magill, co-founder of Powderkeg Brewery, said the government was acknowledging the problem but failing to address its root causes.
“While it’s great that the government is recognising the problem, the level of funding is nowhere near enough,” she said. “With business rate hikes, the government is taking away with one hand and throwing crumbs back with the other.
“Many towns are stuck with run-down retail centres owned by private property firms happy to leave units empty. Add to that the squeeze on household budgets and it’s clear we need far more than this to stop shops, pubs and restaurants closing.”
Others questioned how far the money would stretch once divided across the country.
Clive Bonny, managing director of Strategic Management Partners, said the numbers did not stack up.
“The UK has around 325,000 small independent high street retailers,” he said. “£150 million spread across them works out at only a few hundred pounds per business. We need transparency on who gets this money, how it will be spent and what return on investment the government expects.”
The most scathing criticism focused on the broader economic context facing high streets.
Rohit Parmar-Mistry, founder of Pattrn Data, said the funding failed to address the underlying causes of decline.
“This initiative is a trivial sticking plaster on a gaping economic wound,” he said. “You can repaint shop fronts and open community hubs, but if local people have no disposable income, businesses will still fail.
“The decline of the high street isn’t cosmetic – it’s systemic. Real regeneration comes when people have money in their pockets to spend. Until that’s addressed, this is just managing decline with a smile.”
The criticism comes amid mounting pressure on the government from retailers and hospitality firms warning that rising taxes and the withdrawal of pandemic-era support risk accelerating closures in town centres. While ministers insist the £150 million is only the start of a wider strategy, business groups are calling for deeper reform on business rates, rents and consumer affordability if high streets are to recover sustainably.
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High streets to receive £150m boost – but business leaders warn it is “a sticking plaster on a gaping wound”
