Major high street chains urged to put something back into the high street‏

Bill Grimsey with local MP Simon Danczuk talking with shoppers on a recent visit to Rochdale

Major retail and leisure chains that have enjoyed years of healthy profits are being urged to put something back into the high street through a one off levy on UK sales, a retail veteran has argued.

Bill Grimsey, the former chief executive of Iceland and Wickes, has recommended in his alternative review into the high street that national retail and leisure chains should invest 0.25% of one year’s UK sales from 2014 into a local economic development fund to help sponsor start ups and new ventures on the high street. This would create a powerful fighting fund of around £550million. So far, the Government has spent around £20million on high street initiatives.

Paul Turner Mitchell, a local independent retailer who was a member of the Grimsey team compiling the alternative review into the high street said: “Many of the large chains have left Rochdale recently as they look at consolidating their stores numbers and move their focus onto other channels of retailing. This is hurting places like Rochdale and medium-sized and smaller towns across England. The large chains have made substantial profits over the years and delivered handsome returns to their shareholders. This is about giving something back to towns that have historically supported them and making funds available to help them rebuild.”

“I honestly think the time has come for the big chains to put something back and help re-design the high street,” said Grimsey. “What we’ve seen in a lot of secondary town centre locations is that as the chains move out to more lucrative out of town sites they’re hollowing out the high street.

“The big players have made a lot of money out of the high street over the years, and they should put something back. They could achieve far more than the Government has and leave a lasting and powerful legacy. If this money was spent wisely it could make a massive difference.”

Grimsey said a levy would work best if the money were administered through a central fund overseen by independent trustees that would include some of the biggest contributors to the fund.

“It would be absolutely vital that business had confidence in how their money was being spent,” he added.

Nick Hood of corporate health specialists Company Watch, who is a member of the Grimsey Review team, added: “Delivering the radical change so urgently needed on the high street comes with a substantial price tag. The bill can’t just be dumped onto severely strained local authority budgets or funded from some bare Whitehall financial cupboard. Large retailers still need healthy high streets, despite the relentless growth of multi-channel shopping, and must make a substantial contribution to the cost. They will be investing in a better retail future, from which they stand to reap the greatest benefit.”

Grimsey’s call for a levy on major retail and leisure chains is one of 31 recommendations to feature in his alternative review of the high street, which will be launched on Wednesday. Other issues that he examines include business rates, long term planning, using technology to create ‘networked towns’, car parking, access to finance for small business, charity shops and planning regulations.