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Placemaking: a blueprint for the high street

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Placemaking report document

The UK’s hospitality sector creates places where people want to live, work and invest, whilst also contributing more than £140 billion in economic activity.

However, hospitality is more than its economic contribution – the sector is the lifeblood of the UK, employing local people, providing a world class infrastructure to tourists and facilitating social cohesion.

Placemaking is a strategic, long-term approach to shaping the physical environment, economic activities and community dynamics of local areas. Effective placemaking ensures that towns and city centres are not only commercially viable, but socially meaningful, creating spaces where people can gather, interact and participate in community life.

However, hospitality businesses depend upon functioning local services and a supportive policy framework in order to truly unlock economic growth. Businesses across the UK often have to navigate restrictive local policies that hinder growth due to planning, licensing or broader development considerations. When frameworks are overly burdensome or misaligned with economic growth objectives, they constrain the sector’s capacity to contribute fully to placemaking.

The below recommendations are policy levers that can be pulled by Government to deliver effective placemaking, which would unlock hospitality-led regeneration. 

How Government can deliver placemaking

The planning system as a barrier to investment

A functioning planning system is essential for both business and Government, incentivising investment in town and city centres and helping the UK reach its target for growth and national renewal. Despite some positive improvements having been made to the planning system over recent years, such as the introduction of Class E and initial steps made to reform planning committees and statutory consultees, several structural issues still exists, acting as a significant barrier to investment.

Delays in the planning system have been worsening significantly since 2014-15, and show little sign of improving:

  • In 2014-15, the percentage of major applications decided within the statutory time period of 13 weeks was 47%. Now it is just 19%.
  • There is a similar trend for minor applications, where, in 2014-15, the percentage of applications decided within the statutory eight-week time period was 64%, but has since fallen to 41%.

This has, in part, resulted in the number of overall applications decreasing. In 2014-15, a total of circa 473,000 planning applications were received, which, in 2023-24, fell to c.333,000. Whilst this data is not exclusive to the hospitality sector, and indeed there are many other external factors that are likely to have contributed to this decline, this is undoubtedly an alarming trend which has, in part, been caused by many of the issues outlined below.

Problems and solutions to reform commercial planning

To prevent further delays and issues with the planning system, the Government should:

LEGOLAND, Merlin EntertainmentsCase Study

After a series of individual applications, Merlin was encouraged by the Royal Borough of Windsor & Maidenhead to take a more strategic, long-term approach, setting out a vision for the next decade. Merlin did just this and after extensive pre-application engagement, submitted a hybrid planning application in June 2017. The planning officers involved were reluctant to allow Merlin to have a direct dialogue with statutory consultees, and when responses from the latter were received, they were not passed on in a timely manner, elongating the entire process.

After a committee date was secured in May 2018 (some 11 months after submission), there was a recommendation for refusal, principally due to officers considering that the economic benefits did not outweigh the technical harm to the Green Belt. Despite this recommendation, elected members took a different view: that there were very special circumstances which outweighed any harm to the Green Belt, and they were resolved to grant permission (which was issued in April 2019). Soon after this, a third party (CPRE Berkshire) submitted a Letter Before Action (in line with the Pre-Action Protocol), setting out the grounds of a potential Judicial Review claim, and asking for the planning consent to be quashed.

With the initial decision (the resolution to grant consent) having been made in May 2018, Merlin had to wait over 43 months before being able to proceed with implementing what councillors voted in favour of. During this time, the resulting investment in the local economy, including the creation of new jobs, had been put on hold; and Merlin then had to look afresh at the approved plans to establish the extent to which changes to market conditions had impacted on implementation, almost four years on.

Recommendation: To speed up future decision making, the Government should introduce a dedicated fast-track system for both minor and major commercial applications.

Benefit: In such a system, local planning departments could be permitted to charge an additional fee to determine applications under the statutory time limit. For major applications, the determination period could be 10 weeks, with five-week periods offered for minor applications. It is right that the criteria for using such services should be as broad as possible, to allow many businesses to make use of the service, whilst ensuring local planning departments can raise much-needed additional resource.

Recommendation: As a last resort, and where local planning departments are consistently falling behind targets with delays worsening, there should be a freezing of increases to planning fees.

Benefit: This would provide a greater incentive for local planning departments to meet their targets. Whilst we are understanding of the resourcing challenges facing local authorities, businesses should not be responsible for paying increased fees where the service offered to them is continuing to worsen.

 

How local authorities can deliver placemaking

It is not only central Government that has a role to play in delivering effective placemaking. Local authorities are uniquely positioned to shape successful places, with a detailed understanding of how their local economies function, and which levers can be deployed to support economic growth and community vitality.

BristolCase study

A placemaking session was held in Bristol, convening representatives from local authorities and hospitality businesses, highlighting the integral role of the hospitality sector in effective placemaking. There was clear alignment around the value of strategic initiatives such as the Harbour Commercial Prospectus, which identifies development opportunities and actively encourages business engagement in shaping these spaces. Complementary approaches, including cultural activation strategies, the use of Shared Prosperity Fund grants to bring vacant properties back into use, and the activation of council-owned land for events, demonstrate how coordinated interventions can enhance vibrancy and economic activity.

The discussion reinforced the broader contribution of hospitality to local identity and place appeal, with a strong consensus that thriving communities are closely linked to the presence of diverse hospitality offer. This highlights the sector’s importance not only as an economic driver but also as a key component of social and cultural infrastructure.

At the same time, a number of structural and delivery challenges were identified. Effective ground floor use, pedestrianisation, and the provision of pavement licences were recognised as critical tools in shaping attractive and safe environments. However, inconsistencies in coordination between combined authorities and local councils can limit the effectiveness of these measures. In addition, existing funding mechanisms do not always align with local capacity or support the development of in-house expertise.

The session highlighted the need for a more strategic and coordinated approach to embedding hospitality within placemaking frameworks. This includes the early designation of hospitality zones, supported by aligned planning, licensing, and development policies. The importance of clear leadership, potentially through a designated champion or delivery group, was also emphasised, alongside the need for stronger collaboration between planners, developers, and licensing authorities to ensure hospitality is fully integrated into long-term regeneration strategies.

Further information of these recommendations can be found in the full Placemaking Report attached.

How businesses can deliver placemaking

Hospitality businesses are not just occupiers of space; they are active curators of place. Effective engagement with regulation, particularly around planning and licensing, is therefore not simply a compliance exercise. Done well, it is a strategic tool to strengthen reputation, build trust and unlock growth.

The below sets out how businesses can actively support placemaking through structured engagement, alongside the benefits this brings and the practical steps it can trigger.

Overarching recommendations

  1. 1

    Engage early, not reactively.

    Begin dialogue with communities and councils at concept stage, before formal applications are lodged.

  2. 2

    Treat planning and licensing as strategic relationships.

    Move beyond compliance to partnership, with named contacts and regular check-ins.

  3. 3

    Align proposals with local priorities.

    Explicitly reference Local Plans, licensing objectives and economic strategies in applications.

  4. 4

    Embed community voice in operations.

    Establish structured feedback channels and visible accountability mechanisms.

  5. 5

    Demonstrate social value through skills.

    Partner with local colleges, offer apprenticeships and communicate employment outcomes as part of placemaking impact. 

  6. 6

    Be transparent and data-led.

    Share evidence of economic contribution, local employment and responsible management to build trust. 

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