The British government has launched a £5bn programme to help struggling town centres, shops and public spaces recover after years of decline.
The initiative, called Pride in Place, is being presented as one of the largest efforts in decades to tackle boarded-up stores, neglected streets and falling retail footfall.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Long-term funding to tackle decline
The programme will provide 169 areas with £2m a year over the next decade, giving communities a more stable source of investment than short-term regeneration grants of the past.
Another 95 areas will receive £1.5m immediately to upgrade shopping districts, parks and leisure facilities.
Ministers say the new powers will allow residents to reclaim empty retail units, block disruptive businesses and buy local assets before they close. Prime Minister Keir Starmer said: “For too long, people have watched their towns decline. That ends now.”
The UK has one of the highest shop vacancy rates in Europe. According to the British Retail Consortium, about 13.9% of retail units were empty in mid-2025, with many smaller towns recording even higher levels.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIndependent retailers cautious but hopeful
The British Independent Retailers Association (Bira), which represents thousands of small shops, welcomed the announcement as a long-awaited response to the pressures facing high streets.
Chief executive Andrew Goodacre said: “Our members want to be proud of their shops and high streets. Based on this proposal, it looks like we have been heard.”
Bira has argued that years of underinvestment, coupled with high business rates, have left many independents unable to compete with large chains or online rivals.
Goodacre added that meaningful relief on property taxes would help ensure the government’s plan delivers lasting benefits.
Part of a wider renewal plan
Officials said the Pride in Place fund is part of a decade-long Plan for Change, aimed at giving local people greater control over the future of their neighbourhoods. Housing Secretary Steve Reed said: “Building pride in place starts with people, not politics.”
Chancellor Rachel Reeves described the scheme as an effort to simplify the way communities can access funding. “This £5bn investment cuts through bureaucracy by giving local people power,” she said.
The government highlighted pilot projects already under way: in Elgin, more than 1,000 community proposals have been submitted, including plans to redevelop vacant shops; in Blyth, residents are investing in cultural festivals and restoring properties; while in Torbay, locals are proposing a heritage trail to attract visitors.
For retailers, the hope is that targeted investment will draw more people back to town centres, creating the conditions for small businesses to thrive again.
