Keir Starmer pledges £5billion to rescue Britain's high streets after longest downturn in decades - is your local getting a boost?

Britain’s high streets are in the middle of their toughest spell in 16 years, with shop sales falling every single month for the past year. Experts say it’s the worst slump since the 2009 financial crash, leaving stores struggling and shoppers still holding back because of rising bills.

“The cost-of-living crisis is still upon us,” warned Co-op boss Shirine Khoury-Haq, as retailers brace for more difficult months ahead.

To tackle the decline, the Government has announced a £5billion Pride in Place programme to breathe life back into 339 neighbourhoods across the country.

Under the plan, 169 areas will get £2million a year for the next decade, giving local communities the power to restore high streets, revive parks and save much-loved shops from closure.

Prime Minister Keir Starmer said: "For too long, people have watched their towns and streets decline powerless to stop boarded-up shops and neglected parks. That ends now."

Conservative shadow communities secretary Sir James Cleverly said the money would be "dwarfed" by tax rises.

The announcement is part of Labour's attempt to tackle the electoral threat posed to them by the rising popularity of Reform UK, which some in government believe is partly driven by a loss of pride in local areas.

The Government has stressed that communities themselves will have the final say on how the money is used, with spending only approved if local groups, organisations and social clubs are involved in the decision-making.

Unlike the previous Conservative levelling up scheme, councils will not compete for funding.

Instead, areas were chosen using measures such as the Index of Multiple Deprivation and the Community Needs Index.

The £5billion package includes £1.5billion already pledged earlier this year to 75 of the country’s most deprived neighbourhoods.

Since then, residents have been drawing up plans for how to use the cash. In Peterhead, that means installing more CCTV to tackle anti-social behaviour.

In Blyth, the focus is on staging a cultural festival and bringing empty buildings back into use. In Torbay, locals are discussing support for an Agatha Christie heritage trail.

Against this backdrop of weak sales and stalled investment, ministers are under mounting pressure to prove that new funding pledges can deliver real change for struggling town centres

Shoppers are unlikely to see any relief soon, with retailers warning sales could fall again in October as consumer confidence slips further.

Business leaders say the run-up to the Chancellor’s Budget on November 26 looks especially tough, with fears growing that higher taxes could make matters worse.

Martin Sartorius, principal economist at the CBI, said: "The Government's fiscal decisions are continuing to bite, and retailers' struggles send a clear signal: business cannot be asked to balance the books again at the autumn Budget.

"Smaller businesses are being hit hardest. Research by Barclays shows that rising costs have knocked their confidence badly, leaving around £60 billion of potential investment sitting idle as firms put off plans to grow amid ongoing uncertainty.

Several major retail chains are confronting severe operational challenges as the downturn deepens. Mitchell & Butlers, which operates Harvester, Toby Carvery and All Bar One, faces a projected £130 million impact in 2026 from inflationary pressures, with London sales particularly affected.

Furniture retailer DFS described market conditions as "subdued" despite modest improvements in housing activity. Meanwhile, Marks Electrical witnessed its share price plunge by 16.1 per cent as customers curtailed spending on electrical goods.

Coffee chain Starbucks has entered consultations regarding potential closures among its 520 UK locations, even whilst planning 80 new openings. The contrasting strategies highlight the uneven nature of the retail crisis, with some sectors and locations proving more resilient than others.