BUSINESS leaders have called for councils to reject all out-of-town retail developments for the next five years to help Scotland’s high streets recover from the covid pandemic.

The Federation of Small Businesses (FSB) manifesto for the local authority elections says “bold action” to put city, town and village centres first is required.

The small business group has also urged councils to fully reopen their headquarters or main offices in town and city centres to help boost footfall and turnover.

The FSB report called ‘The Power of Local’ says: “Over the last five years, the centres of Scotland’s cities, towns and villages have taken an enormous hit. 

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“The places we call home have been fundamentally changed by covid, with the rise of remote working and online shopping adding to the continued loss of hundreds of bank branches and retail outlets. 

“The effects have been most acutely felt in the small businesses that populate every high street across the country. Many independent retailers have struggled to compete with global online giants and out of town chain stores, while those in smaller premises have found covid physical distancing rules disproportionately difficult to comply with.

“And, of course, local cafes, restaurants and pubs have had a particularly hard time.”

However it said the experiences of the pandemic had also led people to rediscover the value of their local neighbourhood and spend money closer to home.

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It added: “As a result, some businesses in buoyant local economies are doing well, including those new independent businesses that have been created to service demand from higher levels of homeworking.

“For local places to realise and capitalise on these economic opportunities, however, the help and support of local authorities will be required.

“In acknowledging the lack of funds available within local government to transform every one of our towns, villages and cities, we believe councils should, first and foremost, put their town centres first. 

“This will require bold action to reject applications for out-of-town retail developments for the next five years.”

The manifesto also says local authorities could also deliver a major boost to local economies across Scotland by ‘thinking local’ when it comes to procurement.

Currently, the average Scottish local authority spends less than a third - 29.1% - of this budget with businesses from within its boundaries.

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But the FSB says that if all councils gave local firms two additional percentage points of their total procurement budgets per year, it would deliver a £140m annual boost to local economies across Scotland.

It also urges councils to support new businesses, with a focus on boosting new-starts led by traditionally under-represented groups, including women and migrants.

Andrew McRae, FSB’s Scotland policy chair, said: “Businesses and councils across Scotland have a shared interest in local economic recovery.

 “Working together, they can be huge drivers of change in their communities. That’s why we’re urging parties and candidates at this year’s elections to get behind the great firms on their doorsteps. 

“Modest procurement spending targets could deliver massive compound benefits. With councils facing their own budget pressures, this move would squeeze additional value from taxpayers’ cash.”