A leading independent retailers association has welcomed the government's £150 million investment in high streets but warned that the funding could be undermined without fundamental business rates reform.

The British Independent Retailers Association (Bira) said the investment was encouraging and aligned with recent research showing communities want to take pride in their high streets.

Andrew Goodacre, CEO of Bira, said: "We welcome this £150 million investment in high streets. Recent research from Southampton University fully supports our belief that people want to be proud of their high streets, and we're pleased to see the government listening to communities.

"It's particularly encouraging that spending decisions will be determined by local people, and we hope local businesses will be involved in those decisions. Investment in the public realm, facilities, accessibility and property will all be crucial. We'd also like to see historic independent retail businesses, often operating in historic buildings, receive support to share their stories with the wider community."

However, Mr Goodacre warned that physical improvements alone would not revive high streets without addressing the tax burden on businesses.

He added: "For this expenditure to deliver lasting change, we need viable businesses on our high streets meeting customer needs. The harsh reality is that this substantial investment could be completely undermined by the burden of ever-increasing business rates forcing high street businesses to close, whilst preferential treatment is given to retail parks and large online giants.

"Restoring shopfronts and opening empty units is pointless if the tax system continues to penalise the very businesses we're trying to support. We urge the government to ensure its upcoming High Streets Strategy includes fundamental business rates reform to create a level playing field for independent retailers."

Bira, which works with over 6,000 independent retailers across the UK, campaigns for business rates reform, action on retail crime and support for high street businesses.