Retail vacancy rates have continued to fall for the fourth consecutive quarter, down 0.6 percentage points from this time last year. The decrease in vacancy rates has been seen across both shopping centres and high streets suggesting that, despite the cost of living crisis, retailers remain optimistic. 

This downward trend may result from the anticipated transition towards hybrid shopping - the use of a physical space to showcase brands, create brand awareness and loyalty and drive customers to a retailer's full offering online. It may also stem from efforts to make shopping centres and high streets into community spaces, with retail and leisure sharing spaces to increase footfall. As an example, my local high street has started running activities during the school holidays, with crafts, scavenger hunts and other activities brining people to the centre and driving sales.

But uncertainty still lays ahead. Corporation tax is already set to rise in April 2023. It is also expected that tax rises will be announced across the board in the financial statement due on 17 November. We have already been told by the Treasury that in order to balance the books "it is inevitable that everybody would need to contribute more in tax in the years ahead." It remains to be seen whether this will include further taxes on businesses but, in any event, with consumers having less in their pockets to spend, retailers are bound to feel some impact.