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North West confidence remains robust as UK average falls

THE latest Business Barometer from Lloyds Bank Commercial Banking found that, while overall confidence across the country fell 7 points during December, the North West's figures remained robust. Companies in the region report steady confidence in their business prospects at 27% and economic optimism at 12%, giving an overall confidence figure of 19% equal to that of November 2018. However, North West firms' resilience in December 2018 came on the back of confidence falling sharply to its lowest level all year during November 2018. Companies' hiring intentions also fell by 4 points in December 2018, leaving a net balance of 13% of businesses in the North West Region of England, now expecting to hire more staff during 2019, if Brexit is not a major issue. A net balance of 8% of North West firms said they felt that the UK's exit from the European Union was having a positive impact on their expectations for business activity, a figure that has unchanged since November 2018. Across the country, overall confidence fell 7 points to 17%, as firms' optimism about the economy dropped 10 points, to 7%. Companies' confidence in their own business prospects slipped 5 points to 26%. Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said:- "While it's disappointing not to see figures bounce back from November 2018's drop, the broader picture shows the North West remains 1 of the strongest economic regions in the UK, bucking the national trend by holding steady during December 2018. As business leaders look to 2019 and hope for greater clarity in the months ahead, we expect to see confidence returning to higher levels."

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends, both regionally and nationwide. Nationally, Businesses in London showed the most confidence, at 32%, ahead of the West Midlands, at 27%, and Wales was at 20%. Those in Scotland were the least confident, with an overall confidence of minus 9%, 26 points below the national average. Overall business confidence fell across all industry sectors. Businesses in the manufacturing and construction sectors were most confident in their prospects at net 23% (down 9 points) and 22% (down 7 points), respectively. Confidence of retail businesses was 9 points lower, at net 21%, while confidence was lowest in the services sector at 13% (down 7 points).  Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said:- "Tentative signs of a recovery in business confidence last month proved to be short lived, as businesses end the year more concerned about their trading prospects and the wider economy. The expected slowdown in economic growth in Q4 could well be extended into early 2019, but there is potential for a rebound in sentiment should there be some respite in uncertainties that firms currently face."

Sir John Timpson has called for a:- "Locally driven approach to high streets."

THE Town Centres Expert Panel has called for a community focused approach to tackling the challenges facing high streets and Town Centres in a new report published, on 20 December 2018. The Government appointed panel made up representatives from the retail, property and design sectors has published practical recommendations to reinvigorate Town Centres by creating their own community hub which, alongside retail, includes leisure and social services and more residential property. The report puts community involvement and local leadership at the centre of a plan to create the Town Centres of the future.

Panel chair Sir John Timpson has called for an:- 'Upside Down Government' approach which would empower local leaders to implement their plans to reinvent their Town Centres. They would be supported with expert advice from a Town Centres Task Force and funding from the Government's Future High Streets Fund.

Another recommendation includes calling on local communities to celebrate their Town Centres with a:- 'National High Street Perfect Day' to tackle litter and graffiti so people can take pride in their local Shopping Centres.

Chair of the expert panel, Sir John Timpson said:- "When the panel was formed, we knew high streets would never be the same again, but we were delighted to discover places where imaginative developments have increased footfall and reduced the number of empty shops. By helping our Towns create their own individual community hub, I believe we will have vibrant Town Centres to provide a much needed place for face to face contact in the digital age. I have learnt, from my own business, that the best way to get things done is to give people on the front line the freedom to get on with the job in the way they know best. We are applying the same Upside Down Government principle to the development of our Town Centres, with our Town Centre Task Force there to mentor, encourage and clear any obstacles out of the way while giving the clear message to inspirational local leaders that they are free to turn their plans into reality."

High Streets Minister Jake Berry MP said:- "High streets and Town Centres play an important role in the life of our communities. I thank Sir John and the panel members who have worked extremely hard and proposed tangible ways to keep these treasured spaces alive and thriving for generations. We have already taken action by announcing plans to set up a Future High Streets Fund and Task Force, alongside slashing business rates for up to a third of small retailers. We will carefully consider these recommendations."

The panel was appointed by High Streets Minister Jake Berry MP earlier this year to diagnose issues affecting our high streets and Town Centres and advise on measures to keep them thriving.

In October 2018, the panel provided interim recommendations, which the Government responded to by announcing the creation of a ₤675 million Future High Streets Fund to help improve and restore high streets as well as a Town Centre Taskforce to give local leaders support in implementing local schemes. Today's report sets out further advice of how to implement this funding.

The panel's recommendations include:-

►  The creation of a Town Centre Task Force to support local leaders, acting as a single voice in finding unique solutions for communities.

►  The Future High Streets Fund to help local Authorities with both finance and resource. In October's Budget, the Chancellor announced a ₤675 million Future High Street Fund towards better spaces for communities in response to Sir John Timpson's interim recommendations made earlier this year.

►  Immediate measures to help high streets and Town Centres including a:- 'National High Street Perfect Day' - 1 day a year where local communities would take ownerships of ensuring their Town Centre looked as good as possible.

►  The panel encourages local communities to think innovatively about empty properties and welcomes the Government's Open Doors scheme which opens empty shops to community groups.

►  Local Authorities encouraged to review parking provision in favour of local businesses to encourage footfall.