Revitalising Scottish Town Centres: The Power of Local Enterprise

Town centres are a vital component of Scotland’s past and its future, but it is not unreasonable to have concerns about their present state of affairs. While they should be hubs for a range of activities, many at the moment have seen better days.

But, while empty shops and boarded-up premises attract attention in the media, there are definite signs that retail and commercial activity still has a spark of life in it, with local enterprises opening up where bigger and more national concerns have left off.

Spurred by a trend towards more local shopping, many towns are seeing premises being taken over by locally-owned and inspired food outlets, cafes and service offerings such as barbers and dog groomers.

A significant driver for this change in retail patterns has been the current business rates regime which, ironically, was instrumental in forcing the demise of many enterprises in the first place.

However, small, affordable units are now an attractive prospect for many people who want to start their own business and take control of their own destiny, but who are necessarily operating on tight margins and strict cost restrictions.

For such potential business owners, the Small Business Bonus Scheme opens up opportunities which can make all the difference to their viability. The scheme means 100% business rate relief is available for properties with a rateable value up to £12,000.

The upper rateable value threshold for individual properties to qualify for Small Business Bonus Scheme relief is £20,000. 

Small Business Bonus Scheme relief tapers from 100% to 25% for properties with rateable values between £12,001 and £15,000, and from 25% to 0% for properties with rateable values between £15,001 to £20,000. The cumulative value of ratepayer properties cannot exceed the threshold of £35,000.

Dog grooming salons became early beneficiaries of this system at a time when the huge numbers of “lockdown puppies” started to need attention and their owners realised how much work was involved in their care and ongoing health.

Their prevalence is diminishing as, while many operators are fully trained and regulatorily compliant, the authorities are cracking down on rogue operators who do not necessarily meet the required health and safety and hygiene requirements for such a specialised area.

In Dunfermline, the trend at the moment is towards hairdressing salons and, increasingly, beauticians and aesthetics clinics. Two aesthetics clinics have opened recently, one of which specialises in training, which might suggest more are on the way.

Encouragingly, the small office market is also showing signs of increasing activity. In the Glenrothes area, agents have noted a significant increase in the number of enquiries for this kind of premises.

These appear to be being driven by changes in the circumstances of people who started a business or were WFH during covid and now want more space back in their home, or have outgrown spare rooms and need serviced office accommodation.

Typically, such businesses need administrative space and packing and storage areas for products. Small offices have previously been tricky to fill but we are definitely seeing a rise in demand, which can only be healthy.

So, it could be argued that it is too early to write town centres off. If local enterprise continues to step up to the plate, they could have an entirely different and potentially even more sustainable future.

Lois Paterson is a Commercial Property Agent at the Dunfermline commercial department.

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