How Britain’s high streets are making a comeback – and who’s driving it

Small businesses face rising costs and changing shopping habits, but communities still depend on their high streets. In Folkestone, recent changes highlight the challenge, says money.co.uk business accounts expert Joe Phelan.

Joe Phelan, money.co.uk business current accounts expert says:

“Britain’s high streets are bouncing back, driven not by nostalgia, but by a new generation of shoppers who value community, connection, and unique local businesses. For entrepreneurs, this revival brings opportunity, but only for those who are properly prepared.

Britain’s high streets have long been seen as under threat, squeezed by the rise of online shopping and the dominance of big chains. 

But new research suggests a different story is unfolding: a revival driven not by nostalgia, but by shoppers who want their local communities to thrive. Key findings show nearly half of Brits visit their high street at least once a week, and among 25-34-year-olds, many go almost daily. Additionally, over a third say their high street feels busier than a year ago, while with under-35s, the figure rises to nearly two-thirds.

This points to a genuine bounce-back in local shopping habits, powered by loyalty and community spirit rather than habit or convenience. 

While only one in four over-55s feel proud of their high street, that number jumps to 68% among 25 – 34-year-olds.

For younger generations, supporting local businesses is about more than just buying something: it’s a way of backing the communities they care about. 

These small shops are valued not just for what they sell, but for the jobs they create, the sense of connection they bring, and the character they add to the town centre.

Folkestone: a case study in community spirit

Not long ago, Folkestone seemed destined to become just another struggling British seaside town. With tourism in decline and a retreating high street, its story was all too familiar.

Everything changed with the vision of Creative Folkestone, an arts charity that saw opportunity where others saw decay. Focusing on the town’s neglected Old Town, it set about a remarkable transformation. 

Today, the once-quiet Old High Street has been revitalised as the “Creative Quarter”, a vibrant hub of independent galleries, artisan boutiques, and cafés that celebrate local character rather than chain-store uniformity.

Another standout example is the regenerated Harbour Arm. The historic pier, once part of the railway line to the old ferry terminal, has been completely reinvented as a major destination. 

The former station and its carriages now house a lively hub of independent food stalls, pop-up bars, and event spaces, operated almost entirely by local businesses.

This model has proved a huge success: visitor numbers skyrocketed from 80,000 in its first season (2015) to 2.35 million a year by 2021.

Such footfall provides a ready-made market for aspiring business owners, and as a result the town has become a magnet for entrepreneurs. 

Recent openings like the quirky coffee shop SIP at the Signal Box, stylish wine bar Pomus, and the vast Petticoat Lane Emporium aren’t just filling empty shops; they are writing the next chapter of Folkestone’s comeback story. 

They prove that when a community rebuilds with character and soul, it creates genuine opportunities for businesses that want to do more than just sell: they want to belong.

Folkestone’s story reflects a wider national trend: there’s clearly demand from shoppers who want to back their local high streets and spend time in these neighbourhood hubs. But that enthusiasm also highlights a challenge.

The challenge for new businesses

Without the right preparation, many entrepreneurs risk setting themselves up for avoidable challenges going forward.

With the high street showing signs of revival, now is a crucial time for small business owners to ensure their plans are clear, research is thorough, and their businesses are built on solid foundations. 

In fact, a recent survey of more than 800 entrepreneurs by Grow London Local found:

• Over half of early-stage London business owners are operating without a business plan
• Almost half hadn’t reviewed their competition
• 46% didn’t conduct market research before launching
• Nationwide, 59% of small business employers lack a plan, rising to 77% among solo entrepreneurs

But it’s never too late to start. A clear business plan helps founders map out goals, anticipate challenges, understand their market, and track finances. 

So, start by separating personal and business finances through a dedicated business bank account to keep money organised, while having a business credit card can help manage cashflow and provide flexibility during the early stages. Then delve into any business goal logistics. 

Flourishing high streets need strong foundations

Britain’s high streets may not return to the way they once were, but they are evolving, becoming places where values, community, and experience matter as much as transactions. 

With a solid foundation in place, small businesses have a genuine opportunity to thrive in this renewed environment, helping high streets flourish not just as shopping destinations, but as vibrant community hubs.”