Gloomy predictions about the future of the high street have been a common theme in the news over the last few years. A host of well-known brands are either gone or seem to be struggling against the modern shopper’s thirst for online options.

In the past year alone, high street stores covering a vast range of sectors have closed completely, from Maplin to Toys R Us. It seems time, then, to ask if the high street is really doomed and what, if anything, can be done about it?

The Closures and The Struggles

The first sign for many that the high street might not be as healthy as it once was came back in 2008, when high street stalwart Woolworths unexpectedly announced closure of all of its 807 storefronts. The result was job losses of 27,000 and a public wondering if this was a sign of things to come or simply the result of Woolworths failure to adapt to a modern marketplace. It turns out the answer could actually be both.

Since then, the UK high street has seen small spikes of reprieve, but internet shopping has only become more popular. This has resulted in an attendant, large drip in high street profits. In the last year alone, Maplin, Toys R Us, Mothercare, Prezzo and Carpetright have all closed, showing how the high street crisis reaches across all kinds of businesses. Within the last month, Poundworld has announced the appointment of administrators, and House of Fraser has outlined the need to close stores and cut costs. Only in the last week has New Look revealed a £243 million loss for the last financial year.

BDO, which monitors high street sales month to month, revealed that high street sales were down in May 2018 by 2.2 percent over last year, showing that it is now 8 months since like-for-like sales have grown by 1-percent or more.

The Possible Solutions

Business rates are a big area of contention currently, and a lowering could have real benefits. Labour has repeatedly stated that the business rates system is unfair and penalises brick and mortar stores, whilst online retailers are largely unaffected. The government increased business rates back in April – for the second time in two years. The major issue is that major online retailers like Amazon use out of town warehouses, which have much lower property values that city centre retailers. This has led many business leaders to point out the issue and decry it as unfair.

Beyond this, high street businesses will have to focus their attention on the online market, hoping they can offer in-house deals and service that will tempt online shoppers away from super-sized retailers like Amazon. High street retailers will have to get serious about their online offerings, or they may have nothing to offer at all. 

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The UK economy is in a strange place. Employment figures are at a record high, but overall growth remains sluggish. Rosier figures for the long-term health of the economy come along, then they’re downgraded. Small businesses are flourishing, but major high street retailers are going out of business on a weekly basis.

One clear and strong success story, however, is the UK tech industry. Showing amazing growth and proving attractive to investors, there seems to be no slowing the sector.

The Facts

Fresh figures from Tech Nation have echoed other sources in showing the tech industry is growing 2.6 times faster than the rest of the UK economy. In 2016, it was worth £170 billion, in 2018 this figure has grown to £184 billion. The report also showed that, outside of London, there are 16 ‘silicon suburb’ towns across the UK with a much higher than average tech employment rate, with towns like Bristol leading the way.

The report also underlined how fast tech firms in the UK are growing. UK GDP grew by 1.7 percent in 2016-17, but over the same period the tech sector grew by 4.5 percent. Alongside this was a five-times rise in the number of jobs in the tech industry, making it one of the healthiest and fastest growing employment sectors.

The Investment

All of this growth inspires, and in turn is fuelled by, a great deal of investment. International investors were particularly enthused by the UK tech industry, pouring money into firms in the hopes of finding the next Deliveroo or Zoopla. In 2016-17, British tech companies raised a total of £4.5 billion from venture capital sources, a doubling of the previous years total.

This could be, in no small part, due to the fact that many of the UK’s tech firms have an international reach and investors see great technology with an in-built global reach. A full third of London tech businesses, for example, have foreign clients, which outstrips the reach of California’s Silicon Valley. Domestic and foreign investors are seeing companies that have a bright future, very healthy growth and international reach. So, it should come as no surprise UK tech companies represent an attractive investment.

This has been shown in a number of high profile exits. Machesterfashion.com was sold for £750 million to a private equity investor and Leeds firm CallCredit was purchased for £1 billion. The incredible growth and underlying base for UK tech firms is providing fertile ground for firms with good ideas and the drive to succeed, with buyers and investors on hand to capitalise.

If you’re an ambitious tech firm, take a look at our business finance and capital investment options, we can help you get your hands on the money you need to move forwards in one of the most vibrant, successful sectors in the world. 

As the UK moves ahead with Brexit and inches closer to exiting the European Union, there will be an increased emphasis on how much business the country does abroad. This means a greater focus on exports to new trading partners, and an increased flow of goods to already established markets like American and China.

Luckily for businesses in the UK that export, the government is putting its best foot forward in nurturing and helping exporters grow and find success.

Access to Finance

Back in October 2017, the government came up with a plan to enable SMEs in the UK to access funding from banks to boost their export potential. Via the Bond Support Schemeand the Export Working Capital Scheme, the aim was to make it quicker and easier to obtain much needed finance. Backed by the UK Export Finance Initiative, these finance tools are now even easier to access and deliver funds at a much quicker pace.   

Instead of weeks waiting for funding, UK exporters can now access finance in minutes. The government has worked with lenders to reduce paperwork – doing away with the government’s own UKEF forms – and harmonise bank applications for export with the government’s own regulations. Now exporters applying for finance interface with the bank only and they check the application against UKEF’s criteria. This means that banks can vet an application against UKEF guidelines and approve on the spot.

At the same time, the government has created a streamlined digital service through which all finance transactions flow. This means less paperwork and less time spent on the minutiae of finance deals.

Practical Support

The barrier for many businesses seeking to export is often red-tape. It can be a hard process working out what finance or schemes are applicable to the business at hand and many SMEs are often wary of sinking time into something that might not ultimately be relevant to them. The government has also noted this and responded accordingly.

‘Exporting is GREAT’ is the UK government’s effort to provide a comprehensive, one-stop-shop for exporters, from the new to the established. They have specific sections covering everything from guidance to assessing export readiness to finance options. 

They also offer in-depth sections on business planning and marketing. The scheme and attendant site is a great portal for seeing the various forms of finance and support available for those businesses ready to export.

There has probably never been a better time to start exporting or, indeed, to expand existing operations. The government is fully behind exporters and the range of advice and finance out there is comprehensive.

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With generation X seeking out ambitious job roles and aspiring to move out of their parental home and the older generation living longer than ever and many continuing to work, it seems that steps should be taken to bridge the gap between these two groups.

A suggestion has recently been put forward by the Resolution Foundation. The British think tank endeavours to improve the quality of life for individuals in low and middle-income families and feels like a £10,000 cash boost for the young and a rise in the taxes for pensioners could go some way to bridge the gap.

So, what exactly would this entail and just how feasible is it?

The chairman of the Resolution Foundation feels that the contract between the young and old has ‘broken down’ and without drastic and sudden action, the younger generation will become increasingly angry. 

Suggestions put forward by The Resolution Foundation include:

•  A £10,000 payment being given to all people at the age of 25. The payment would be funded by a newly issued ‘lifetime receipts tax’ that would replace the current inheritance tax.
• Making the financial earnings of those that are above state pension age subject to National Insurance contributions.
•  Abolish Council Tax and replace it with a new property tax that would target wealthier homeowners. 

The report that has been put forward by the organization is calling for an NHS ‘levy’. The figure would total £2.3bn and would be funded thanks to an increase in national insurance contributions, paid by those that are over the age of 65. 

The £10,000 payment that individuals would receive at the age of 25 could be used to pay for a deposit on the home, improve their education or even start their own business. With house prices rising though, there is concerns that this payment would do little to assist those ready to progress onto the property ladder or expand on their potential in the workplace.

Having said that, the proposals put forward by the Resolution Foundation would also mean the scrapping of the Council Tax system, which would be replaced by a new form of taxation that could target those more financially secure and that own their own property.

While the suggestions seem to take into account the best interests of both sides, just how far could they really go to wipe out years of political inertia?

The affordable housing crisis is one that is affecting millennials and those with aspirations of progressing up the property ladder alike. At present, the average one bed new build home in London will set buyers back a whopping £679,681.

This harsh reality is made even harder to swallow thanks to the fact that in most cases, a 10% deposit of the asking price is needed to secure a property.

Given these less than desirable truths, could factory-made homes help to solve the problem? Architect Richard Hywel Evans certainly seems to think so.

The nHouse

This new type of property is certainly ground-breaking and shies always from the traditional new builds we see being built up and down the country. The homes are manufactured in parts on-site and are then delivered and assembled in a location that the buyer chooses themselves.

Benefits to choosing factory-built homes

• More lightand space– The nHouse is 25% more spacious than the average new build property in the UK. Larger windows also make for light, airy spaces that buyers will love.
• Lower running costs – Thanks to a number of green features, these home will significantly reduce running costs and bills for those that choose them. Specific features include the use of carbon capturing timber and solar panels.
• Faster development – The shortage of homes in the UK means that building needs to happen fairly rapidly if it is going to keep up with increasing demand. The architects designing and building these homes make use of production line methodology, meaning that they are able to supply the homes to buyers in around half the time of average builders.
• A much lower price point – With all of these exceptional features, you’d think that purchasing one of these factory built homes would set you back a hefty amount of money. In fact, the exact opposite is true. Individual buyers will be able to a three bedroom house from £180,000. 

While the merits of choosing to invest in these factory-built properties are significant, there are a number of issues that could mean that they struggle to get off the ground, one being urbanization.

Statistics have revealed that the number of people living in cities could increase to 66% of the entire world’s population by 2050. This would mean a need to move out of cities and into rural areas and is also likely to result in more flats being built in the UK. 

It’s no secret that there is a chronic housing shortage in the UK at the moment. The average estate agent typically has 42 homes on their books per branch but currently in London, where the housing shortage is at its most severe and concentrated, there are just 33.

The Prime Minister recently indicated that developers are to blame for the lack of housing in the UK, which is impeding millennials from stepping foot on the property ladder, but just how much truth is there behind her statements?

A vicious cycle

At present, land with planning permission for housing costs around £6 million per hectare. These steep rates are perhaps the reason why the Prime Minister feels that developers are to blame for the housing shortage in the UK. There is a lot of speculation that developers hoard land once they have purchased it, sit on it for a while until they obtain planning permission and then sell the land on for significantly more than what was originally paid.

There are also issued being raised regarding the bonus structures that many construction firms use, which mean that development bosses are cashing in on commission not on the number of houses that they build, but on their profits or share price. This could go some way to explain why many construction firms lack the incentive that is needed to build more houses and address the UK shortage.

This problem isn’t anything new either. An investigation by The Guardian in 2015 revealed that a staggering 600,000 plots with planning permission were owned by some of the largest property builders in the UK, but weren’t being built on.

Steps to change

In an attempt to deliver the homes that the UK needs, the Prime Minister has implemented reforms to the National Planning Policy Framework, which will see the use of land being maximised, protections for the Green Belt being strengthened and a greater emphasis being put on transforming planning permission into new homes.

But just how much of an impact will these changes have? They seem to have been met by stiff opposition by some interested parties, who feel that involving and empowering councils is a better course of action to take, but only time will tell whether the Prime Minister’s decisions will mend the draught that is currently stifling the UK property market.

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The Prime Minister has recently revealed that her second most pertinent concern, first of course being the ever topical Brexit, is to address the housing shortage in the UK.

Much of the criticism that she is putting out is aimed at local authorities that are to some in high power positons, guilty of being far too anti-development.

The housing shortages are of course impeding on the rights and chances of millennials who have dreams of owning their own properties, so how is the Prime Minister planning on addressing this and just how much will her proposals alleviate the problem?

The housing whitepaper

The government is currently planning to rewrite the rules of housing development and there will be a particular emphasis put on boosting the speed at which houses are built and ensuring that prices ease up to allow young purchasers the chance to get onto the property ladder.

The plans stipulate that:

-  Local authorities will have the ability to take into account how quickly a developer builds on a site before issuing future planning permission.

-  If councils are failing to publish housing plans quickly enough, independent inspectors will be able to take over in terms of decision-making.

-  When public land is sold off, those working for councils and hospitals will be given number one priority.

-  Homeowners and property developers will be able to add two storeys to existing properties.

The Prime Minister has also eluded to the fact that developers are in some way to blame for the significant lack of housing within the UK given the fact that there is a pattern within the construction and property development industry of hoarding land that should be being built on and sell the land once planning permission has been obtained.

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If your business operates in the retail sector, it’s likely that you have a website that enables you to sell your goods to customers.

Thanks to a shift in the way that people search for, engage with and buy products, the role of e-commerce has never been more prevalent.

From a superficial point of view, having an e-commerce platform may just seem like another way to utilize the benefits of technology, but have you considered how it can help you SME grow? Read on to find out more.

Global opportunities

Once you have set up an e-commerce website online, you are no longer restricted by your geographical location in the same way that you are if you just operate out of a shop. Thanks to the World Wide Web, you will be able to increase your visibility and reach your target audience from all corners of the globe.

A reliance on automation

Running a shop has a number of different costs associated with it including staff and physical space. In contrast to this, an e-commerce platform will already have the processes such as checkout, payments and operational capabilities built into it. When you are making these types of savings, it’s then easier to offer your customers promotions and discounts, encouraging them to keep shopping with you.

Readily available information

Often shoppers are looking for more than just products when they visit on an online store, they’re also in search of an experience. Having an e-commerce platform makes this easy to achieve. You can post blog posts and articles related to your products and can offer resolutions to common problems that your customers may face. This information can be readily available on a website and is much easier to engage with than it is in a shop. You can promote this content on you social media channels, which will in turn increase traffic to your site and result in increased sales.

Analyze demographic data

Are you struggling to sell certain products or finding that your sales dip towards the middle or end of the month? Having an e-commerce website will enable you to take advantage of analytical features to understand your customers more and what motivates them to shop.

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