Local Government Minister Grant Shapps is urging parish councils to safeguard struggling village shops and pubs for the benefit of local people.

If a community shop, pub or village post office is threatened with closure, parish councils can use their powers to keep it running, including through the provision of financial support. The British Beer and Pub Association (BBPA) said 893 pubs closed last year and 400 village shops closed in 2008. In opposition the government had promised to give more powers to local communities and this is now happening.

The Minister says Parish councils can halt the haemorrhage by giving small grants or, where appropriate, borrowing to make an investment, such as purchasing a freehold on a property.
He believe many parishes are not using these powers when they could, so this new call is a reminder to councils to sit down with their local community and make sure every effort is being made to keep rural services alive.

Also, from next year new powers in the Localism Bill will see the Government shifting even more powers from Whitehall to neighbourhoods, giving councils new freedoms and flexibilities to protect local services and drive growth.
The Bill will enable parish councils, after negotiation with district councils, to offer discretionary business rates discounts to local businesses; and they will also have more power to devise policies in their neighbourhood plan that will protect local shops.

"The village shop, pub or post office is often the beating heart of a community. So when one is threatened with closure, often for a reason as simple as the shop owner or pub landlord retiring, I would expect the local parish council to pull out all the stops to keep it going’ said Mr Shapps.

"Some have done this brilliantly, but many have watched local amenities close when the power to save them was within their grasp. This is not about propping up failing businesses; it is often about providing temporary financial assistance or putting new community-run facilities in place, so vital services that people rely on are maintained.

"So if an important local business is struggling, I would urge the parish council to sit down with their community and explore every option to keep it running for the benefit of local people."

Mr Shapps said that he had seen many examples of where parish power had been successful, such as:
• keeping a local Post Office in Worcestershire open by purchasing its freehold and keeping its rent low
• borrowing to invest in a new community shop in West Sussex, which will offer a range of services and be a hub for the local community; and
• using parish property in Devon to host a local Saturday market, and helping it expand by purchasing adjoining land.

The Minister is encouraging local people to use National Pubs Week to talk to parish councils about any local pubs that are under threat, and explore how they can be saved using the new powers available.