The simple approach of concentrating existing resources on the most disadvantaged towns can achieve much. However, there does need to be a clear distinction between relatively affluent towns and those disadvantaged and economically fragile towns with businesses that are currently struggling to pay their existing rates bill. Research conducted for the Rural Development Commission pointed out that some small towns struggle to cope with the existing rate burden. Careful consideration and wide consultation is needed to find a workable mechanism to fund TISs in market towns. This is another area in which market towns are different from larger towns.
Small towns have a much larger proportion of small independent businesses.
They do not have the large multiples who often have the resources to fund and support TISs and other initiatives such as town centre management. The business profile of the High Street is a critical factor in determining the ability of the town to provide private sector finance for regeneration through commercial rates or other contributions. Action for Market Towns believes that a special case should be made for disadvantaged small towns. In real terms this means that LAs are unlikely to make these unpopular decisions and therefore unlikely to implement them. Coupled with the fact that some local authorities may have many disadvantaged towns within their district therefore making it particularly difficult to find resources to off set UBR reductions.