Part of the debate – in the Senedd at 5:12 pm on 8 January 2020.
We all wish to see bustling high streets at the heart of our towns. To achieve this, we need thriving local businesses and positive engagement by our communities with their high streets. However, the sad reality is that today many of our high streets are in crisis. Too many shops in Welsh town centres are empty. Figures from the Welsh Retail Consortium show that, in the most recent quarter, Wales had a retail vacancy rate of more than 13.4 per cent. This is a higher shop vacancy rate than any other part of the United Kingdom.
There are many reasons for the decline in our high streets: changes to people's lifestyles have meant changes to the ways they shop; the development of out-of-town retail, in some cases, has had a detrimental effect on town centres across Wales: shoppers like and appreciate the convenience and choice offered by out-of-town retailers, with the benefit of free parking; e-commerce is one of the fastest growing markets in the Europe, with more and more business being carried out on the internet. All these factors combine to increase pressure on our high streets.
Without taking action, they will just disappear, Deputy Presiding Officer. They cannot survive unaided. We need a package of measures to support local businesses and communities. That means addressing the issues of non-domestic rates. The Welsh Government's written statement yesterday on rate relief was welcome here. However, local businesses in Wales are still being hampered by high non-domestic rates that are stifling business creation and hindering their growth. Non-domestic rates in Wales raise over £1 billion.
The lack of Government support has resulted in our town centres being blighted by empty shops. This brings the risk of vandalism and crime, adding to the run-down appearance of our communities. As the Federation of Small Businesses recognises: for renewal to take place, town centres need to be more business-like and they need to learn from our competitors, like other devolved nations. The behaviour and expectations of consumers has changed and we need a more informed approach to town-centre management.
I believe that business improvement districts have a vital role to play in the regeneration of our high streets, but it's not just about shops. Leisure and services have essential roles to play. We need a balance of large retailers, small shops, leisure services, cafes, bars and restaurants, as well as housing. We need a town strategy that goes beyond the targeted regeneration strategy outlined by the Welsh Government's Vibrant and Viable Places approach, one that recognises the particular problems faced by our seaside and market towns and provides the retailer support these communities need and deserve.
The Welsh Conservatives would unleash Welsh potential by establishing a fund for our seaside market towns worth £200 million over five years. This funding commitment would be far more ambitious than the Welsh Government's current top-down regeneration strategy and would enable these communities to grow and thrive. Deputy Presiding Officer, there is an urgent need to revitalise our high streets as centres for economic growth and we need to act now.
Finally, as a matter of fact, since 2014-17, £124 million has been spent on 18 areas, Ministers. What is the development there? EU funding—£150 million in the last six or seven years, and also £100 million for the regeneration national plan, which should be carried on until 2021. What is the development in those areas? Are the vacancies on the high streets getting better? No, they're getting worse, especially in my region in south-east Wales—we are really suffering. The most deprived areas in the United Kingdom are in my region.
I think it's a big shame to us here. We are doing a lot of verbal—. I heard our colleague on the other side of the bench here talking about all these blames going towards the other side of London. That's not the case. Nearly £370 million in the last seven years and where has the money gone? Regeneration for local communities—what happened there? There are still many empty shops—. I don't want to learn lessons from Plaid Cymru. They gave an example of UN law and the other side of the bridge. Why can't they ask the Government to make sure they deliver the best possible service to our communities? We should regenerate our poor communities in all of south-east Wales.