Business Briefing: Changes to make Ross-shire an even more attractive place to do business take effort but would be so worth it

In these difficult times, wouldn’t it be wonderful if we could make Ross-shire’s towns and villages first-choice places for both starting and relocating businesses? Of course it would, but first we have to overcome a national problem.

While some of Scotland’s high streets are bristling with brilliant independent local firms and alive with civic pride, others appear gap-toothed and dilapidated. Long-term empty properties blight many high streets, and these eyesores have now been joined by units left empty by the collapse of once mighty retail chains.

Now, for the first time, a Scottish Government Review has been honest about the damage inflicted on the country’s settlements in recent decades. The spread of out-of-town developments – including supermarkets – the exodus of key public and private sector institutions from town and city centres, the general disinvestment in those centres, and the growing phenomenon of online shopping have all taken their toll. Quite simply, out-of-town and online shopping, plus the departure of salaried staff working in council offices, banks, police stations and so on, have reduced precious footfall and all-important spend. The Review Group, with FSB Scotland representing private sector interests, published its new report, ‘A New Future for Scotland’s Town Centres’, earlier this month. Pointing to past failings, it makes a number of radical recommendations for the future.

The most important factor impacting on the vitality of towns and cities is the strength and vibrancy of their beating hearts – their small business communities. By encouraging smaller businesses to remain, and more independents to start up or occupy empty units, we are keeping town and city centres alive. However, FSB research demonstrates that towns need mixed, diverse groups of operators at their cores to thrive.

The so-called ‘Town Centre First’ policy has been in place for nearly a decade and it hasn’t delivered. We really must make Scottish public sector organisations come good on their promises to stop moving to the edge of towns and base their services at the heart of communities instead. Similarly, attempts to put more housing in our town centres have been slow and stuttering, and they haven’t delivered the scale required.

We must also attract a wider variety of private sector non-retail operators into town centres by making it easy and affordable. Standard small-business leases would level the playing field in the Scottish commercial property market, and the fact that the majority of our members have been forced to pay rent as normal throughout the Covid crisis suggests that the power dynamic between big property owners and small tenants should be examined too. Similarly, the tax regime could be rebalanced to protect smaller town centre businesses through rates relief schemes.

Of course, these measures will take time and money, hence the call to make the Scottish National Investment Bank invest in our high streets’ most problematic empty properties, turning them into business incubator units, community spaces and homes. Developing existing buildings and brownfield sites is much better than starting afresh on greenfield, both economically and environmentally. We also need a moratorium on new out-of-town developments, and more consideration of transport needs.

Ross-shire is wonderful, but it could be an even more attractive place to start up or relocate businesses. Maximising its full potential will require cash, property reforms and buy-in from larger businesses, the public sector and locals committed to change, but it’s worth it!

David Richardson is the Highlands and Islands development manager for the Federation of Small Businesses.

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