The UK Government has launched a £150 million package to revive struggling high streets. This new funding targets areas with high vacancy rates, aiming to restore essential shops and community pride through local, independent business support
The UK Government has announced a £150 million investment package designed to rejuvenate struggling high streets and return essential services to local town centres. Published on 31 January 2026, the funding aims to reverse years of decline in areas with high vacancy rates and a lack of traditional shops such as butchers, grocers, and bakeries.
Communities Secretary Steve Reed described high streets as the “beating heart of Britain” and emphasised that the cash injection is intended to restore community pride. The plan focuses on giving local people and councils more control over their immediate environments to ensure that town centres remain vital meeting points.
New government funding and targeted support for local businesses
The £150 million will be directed toward the areas hit hardest by economic shifts and the rise of online shopping. Rather than a top-down approach, the government intends for communities to lead the renewal process. Key priorities include:
- Supporting the growth of local, independent businesses.
- Renovating neglected or dilapidated shopfronts.
- Converting empty units into active retail or community spaces.
This investment marks the first major step in the government’s new High Streets Strategy. More details regarding specific local allocations are expected to be released in the coming months.
New powers for Local Councils
To further protect the character of town centres, the government is empowering councils to restrict the growth of certain types of businesses. Local authorities in England will now find it easier to block the opening of new betting shops and vape stores if they believe such outlets negatively impact the community.
The package also builds on the existing “Pride in Place” programme, which has already provided support to over 330 deprived communities. This includes assistance for more than a thousand local pubs that have expanded their roles to offer additional community services beyond serving food and drink.
Legislative changes for community ownership
The initiative is supported by the English Devolution and Community Empowerment Bill, which introduces a “community right to buy.” This allows local groups a first right of refusal when valued assets—such as sports clubs, pubs, or historic buildings—go up for sale.
Furthermore, the government has moved to prevent “pub deserts” by banning the closure of the last remaining community facility in a given area. These legislative measures aim to ensure that the physical and social fabric of the UK’s high streets is preserved for future generations.
