Agenda item
The Retail and Hospitality Sectors in the Cotswold District
- Meeting of Overview and Scrutiny Committee, Monday, 2nd February, 2026 4.00 pm (Item OS.298)
- View the background to item OS.298
Purpose
To report on the health of and the challenges faced by the retail and hospitality sectors in the district.
Cabinet Member
Councillor Tristan Wilkinson
Lead Officer
Paul James
Minutes:
The purpose of the report was to provide an overview of the state of the retail and hospitality sectors within the district.
The report was introduced by Paul James, Economic Development Lead, who highlighted the following points:
- Findings showed multiple combined pressures on the retail and hospitality sector, although district vacancy rates remained comparatively low.
- The report had been shared with County Economic Development colleagues and business groups.
- Town centres initiative work was underway in Lechlade, Moreton-in-Marsh and Tetbury using UK Shared Prosperity Fund support and specialist consultants to analyse vacancies and barriers to occupancy.
- Early findings indicated some vacant units had not been actively marketed.
- The Council’s influence over national policy and taxation pressures was limited, but possible actions included lobbying government and reviewing pavement licence fees.
- Concern was noted about the lack of confirmed replacement funding for the Shared Prosperity Fund and Rural England Prosperity Fund after the end of the financial year.
Councillor Lisa Spivey arrived at 16:15.
In questioning and discussion, the following points were noted:
- It was suggested that the report gave insufficient attention to long-term community resilience, including the impacts of unsustainable tourism and environmental pressures. There were concerns raised that high tourism levels in some areas affected retail mix, affordability and year-round viability of shops providing essential services for local residents.
- The officer explained that the report was intended as a high-level snapshot of the retail and hospitality sectors, which had been considered important for employment and local services, rather than a detailed resilience assessment.
- The officer advised that detailed analysis of retail mix had only been undertaken in selected towns through targeted studies, and that wider consideration would be more appropriately addressed through the Local Plan process.
- Clarification was provided that the reported 50% increase in shoplifting since 2020 referred to the number of incidents rather than value; Gloucestershire rates remained lower than many areas, and retailer cooperation and shared alert schemes were identified as key measures to help reduce theft.
- Whilst the report focused on town centres, hospitality and retail businesses outside town centres also required support, particularly more isolated businesses. The UK Shared Prosperity Funding had enabled the Growth Hub to deliver district-wide outreach support but this service was at risk due to the existing funding ending, with some continued support potentially through recently approved strategic economic development funding.
- It was clarified that the current town centre initiative covering three towns was already planned and funded through the UK Shared Prosperity Fund, and whilst it would produce recommendations for follow-up action, no additional consultancy work had yet been commissioned.
- There were currently no plans for fully integrated development plans for town centres, but the Town Centre Studies in the report recommended establishing locally supported, place-based partnerships in each town to agree and lead improvements.
- A draft version of the full report had been circulated to the relevant town councils for comment, and the final version would be published once amendments were made.
- A feasibility study into a Business Improvement District had previously been undertaken for Cirencester, but it had not taken forward due to limited support and the requirement for majority approval by businesses through a formal ballot. It was highlighted that in smaller towns, the cost of administering a Business Improvement District could outweigh the revenue generated, making such schemes less viable.
- Concerns were raised that rising taxes and business costs presented a challenge to local businesses, while event organisation to support the visitor economy required significant resources, though small-scale activities like quizzes or live music could be managed by individual businesses.
- The discussion highlighted concerns that converting hospitality or retail properties to residential use did not always yield the desired outcomes, and that support was needed to encourage landlords to keep premises in commercial use. Local stakeholders may include business groups, authorities, or agencies depending on context. The new power for councils to auction long-vacant commercial properties was available but not widely used. Parking remained a challenge, though the Council’s new parking strategy aimed to address these issues.
- A paper would be presented to Cabinet in March regarding the awarding of a contract for the replacement of 31 car park ticket machines. The specification for the new machines would address previous issues with internet connectivity.
Councillor Angus Jenkinson proposed submitting the following recommendations to Cabinet. Councillor Ian Watson seconded the proposal.
Recommendations:
- That the Council writes to the local Members of Parliament inviting them to lobby on behalf of local businesses in the retail and hospitality sectors faced with the challenges of increased Business Rates and employment costs.
- That the Council continues to liaise with agents and landlords to encourage them to advertise more prominently their let vacant retail properties.
- That the Council considers how to minimise the loss of retail space to residential, particularly in the district’s smaller towns, through the Local Plan.
- That the Council considers developing an integrated strategy for town centre economies, building communities not just housing, with a view to enhancing the Cotswolds’ unique visitor economy.
- That the Council writes to the government to advise them of the looming crisis in the retail and hospitality sectors and highlight the vulnerability of high streets and small communities that rely on access to them for essential local retail provision and employment opportunities.
Supporting documents:
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O&S Retail and Hospitality report February 2026, item OS.298
PDF 577 KB -
Annex A cotswold town centres initative design fomat executive summary, item OS.298
PDF 7 MB