Jonny Hasdeline
Policy Manager, British Chambers of Commerce
Learn how local economies evolve amid ecommerce growth. Explore solutions and opportunities for businesses in the ‘Future of the Local Economy’ report.
Local economies play a powerful role in our daily lives. They impact how we live, work and spend our money. Crucially, they create a sense of community.
As retail is transforming in response to consumer habits, local economies are changing. The impact of the ecommerce revolution is being felt in your villages, towns and cities. Act now to help businesses facing challenges and harness abundant opportunities.
Rethinking urban space beyond retail shops
High streets were traditionally the beating heart of local economies where retailers had to be. However, that’s no longer the case, as ecommerce grows. In reality, there is too much retail space in many towns and cities; research by retail body Revo indicates that 40% of shops require repurposing in the next five years. Shops are no longer the primary reason for people visiting our urban centres. Instead, food and drink, culture and housing are as important.
Shops are no longer the primary reason for
people visiting our urban centres. Instead, food
and drink, culture and housing are as important.
Adapting local economies to digital retail
Alongside the high street challenge, retail digitisation has also provided opportunities for local economies. Some of the biggest beneficiaries of the growth of online shopping and business transactions have been SMEs and microbusinesses.
The ability of a one-person microbusiness operating from somebody’s dining room to sell and transact with customers both nationally and globally should be celebrated and appreciated. From an economic perspective, these are irreversible changes. The crucial question is: how do local economies adapt to these changes?
How to empower modern local economies
At the British Chambers of Commerce, we’ve recently published our ‘Future of the Local Economy’ report, which identifies some practical ways forward. Among the report’s recommendations are: devolving more power to regional and local government; accelerating the rollout of digital infrastructure; improving the planning process; and expanding bank hubs.
The future of business taxes in a digital age is clearly an ongoing debate. At the BCC, we’ve consistently said that the current business rates system needs reforming. Over a quarter of companies (26%) told our latest survey that they had changed investment plans because of business rates.
Our communities will look very different in the coming decades; it’s crucial that businesses lead that local transformation. Our high streets may be changing, but retail and, now, ecommerce have vital roles to play in that transformation.