York BID AGM & A New Political Landscape – by Andrew Lowson
150 people attended the York BID AGM! In my post-event/general election blog, I cover how maintaining the bottom line feels increasingly hard for businesses as cost pressures remain, yet there is hope that political consistency at the national and local level will set foundations for business growth.
Things feels flat, but history shows growth often follows an election…
Whilst I always try to look at things ‘glass half full’, I cannot ignore the feedback from many businesses that making money is hard work at the moment. This fits with recent economic surveys that shows the UK is in a no growth state. Interest rates on financial loans are being offered out at 15-19% – hardly attractive to a business pondering growth! Retail and hospitality tell me that consumer patterns continue to be problematic. Peaks and troughs are difficult to spot and therefore hard for businesses to staff. The awful ‘summer’ weather has also impacted hospitality in particular.
What is interesting is that the data we have shows that spend in Q1 of 2024 was up on Q1 2023, and our most recent spend data shows June 2024 4% up on the same period last year. Inflation needs to be taken account of, but the reason this news won’t really resonate with many businesses is because it’s set against a backdrop of high supply chain costs, increased staff costs and COVID loan debts. Businesses need stability so they can feel in control of overheads, which then gives that confidence for growth. On the plus side, data shows that after 5 of the past 8 general elections, after 2 months growth picks up. . . so bring it on!
Labour are firmly in control of our city! Now is the time to tackle long-running issues…
The general election brought the change of government many predicted. This followed Labour taking control of City of York Council over a year ago and we recently had the successful election of a Labour Mayor for York and North Yorkshire; Winstons of York’s very own David Skaith! York has suffered from political merry-go-rounds in the past, so there is hope that some joined up decision making can tackle some of the consistent bugbears of the business community, namely; better capacity in the planning system; a local housing plan; a clear and visible transport strategy; and more clarity on what is meant by sustainable tourism.
We welcomed Allan Cooke from Arlington Real Estate highlighting his ambitions for York Central, with one of the first phases being a new hotel at the back of the station, which raised eyebrows among a few hoteliers in our audience! However, audience Q&A focused more on the need to ensure that any accommodation built on York Central is aimed at being affordable for locals and not holiday lets, which many hoteliers see as a key threat to traditional accommodation providers. Cooke responded by saying that relevant planning will ensure targets for 40% (or higher) affordable housing will be met. This will be watched by many who would like to see similar legislation in York’s traditional city centre.
The basics are still important, but don’t forget customers increasingly want experience!
Businesses continue to tell us that the basics of city appearance, cleanliness and safety remain paramount. Pride in our public realm is something we should all have. It gives a message to visitors, but it also says something about us! When York BID led on a rejuvenation project earlier this year, the feedback we received from locals, on basics like painting railings and benches, was incredible. We had people telling us they’d walked past infrastructure for years with the lack of ‘TLC’ bugging them. Some even offered to pick up a paintbrush and join in!
Whilst we like the basics to be right, in other areas we must continue to follow trends and innovate. At the AGM, we talked about the ‘experience economy’ and highlighted how new businesses, such as Roxy Ball Room on The Stonebow, have recognised that young people do not solely want to drink, and have introduced a venue where you can eat and play a variety of games. York is, of course, perfectly propositioned for experience, thanks to its abundant history. Many businesses have adapted to take advantage of this, whether that be ghosts, wizard wands or potion makers!
But good retailers have always done experience in the shape of great branding, product and customer service. A spokesperson from Porters on Stonegate told me that they ‘don’t do online’ as they don’t want a race to the bottom with internet Goliaths; rather they have confidence in their interpersonal skills and are looking forward to building a loyal customer base in York. So if anyone tells you physical retail is dead, they are not looking at the success stories of business people who thrive on face-to-face interaction; and in a digital world, that is something to celebrate!