House of Commons · Westminster Hall
07 December 2022 · 10 other contributors · 9,354 words
Opened by Catherine West Lab Hornsey and Friern Barnet
Responding minister: Kevin Hollinrake
Summarised by AI from the official record, so it can contain mistakes.
Catherine West raised concerns about employment and the high street in Westminster Hall. A government minister responded.
Key points
Key requests to Government
Labour would establish GB Energy, a publicly owned generator, to guarantee stable and affordable power. They propose a reassessment of property values and thresholds for relief to help small businesses. The Government should look at creative ways to attract people to town centres through community events and support high street businesses as part of their economic growth strategy.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
High streets face challenges such as changing technology, soaring energy costs, business rates, and closure of bank branches. Retail footfall is 19% lower than pre-pandemic levels, resulting in job losses and insolvencies. Many small businesses struggle to pay staff wages that reflect the increasing cost of living. Labour's plan aims to address these issues by offering sustainable support for energy efficiency and a root-and-branch replacement of the business rates system.
Highlighted the success of a scheme in Ipswich that improved parking and enhanced local shopping parades, suggesting it could serve as an exemplar for supporting local high streets.
Jim Shannon praised local high streets as the backbone of economies and constituencies, highlighting challenges faced by businesses during the pandemic. He mentioned specific examples from his constituency, including Wardens shop which has been operating for 145 years. He also discussed initiatives like Northern Ireland's high street voucher scheme that contributed £140 million to the economy. Shannon noted issues with derelict buildings and encouraged adapting to online business trends while preserving the importance of physical stores. Asked how businesses can be encouraged to maintain a presence on the high street while also going online.
Barclays bank is closing its branch in Ellesmere Port, following HSBC's closure announcement. These decisions are part of a wider trend affecting high streets and communities. The 12-week consultation period for Barclays' decision has been described as a box-ticking exercise. Two post offices in the constituency will also close due to commercial partner issues. High street decline is exacerbated by the lack of sustainable support from anchor organisations like banks and post offices.
The MP highlighted concerns about the lack of a Government strategy for saving high streets and ensuring fair pay in the retail sector. They cited PwC data showing 779 shop closures in the north-west since early 2022, alongside Centre for Retail Research figures indicating that high streets lost 177,000 jobs in 2020. The MP also mentioned a USDAW campaign aimed at creating a fairer playing field between physical and online retailers.
Ms Maskell highlighted the efforts of York BID, the York High Street Forum, and Indie York to support local businesses. She discussed innovative projects such as StreetLife on Coney Street and the Guildhall project involving the University of York, which aims to create 160 jobs and provide new business opportunities. Additionally, she mentioned Spark, a community space set up in old shipping containers that supports start-ups and hosts various events.
Mr. Moore highlighted the importance of celebrating Small Business Saturday, which marks its tenth anniversary. He encouraged constituents to participate in his small business award before nominations close on December 9th. The MP acknowledged the challenges that independent retail shops face due to the shift towards online shopping and called for a review of business rates, suggesting they should be more linked to turnover rather than space occupied. He also raised concerns about high street bank closures in Ilkley and advocated for banking hubs as a solution. Additionally, he criticized Bradford Council's parking charges in Ilkley, which he argued discourages tourism.
The high street is an anchor of community life, employing around 14% of the UK workforce. The Labour Party calls for a robust industrial strategy to support business owners, clean energy plans saving £98 billion by 2030, and reforming business rates to level the playing field between online retailers and physical shops.
Independent businesses in Coventry face challenges such as soaring running costs, high rent, and expensive business rates. This forces them to close permanently. The city risks losing the heart of its communities if high streets are allowed to fold. A fairer system to support small businesses is needed, along with local authority empowerment and easier access to premises for new startups.
The sudden closure of the Menai bridge by the Welsh Labour Government has decimated high streets in Porthaethwy and Beaumaris, and businesses in surrounding areas on Ynys Môn, during one of their most lucrative retailing seasons. The hon. Member questions whether the Welsh Labour Government should have invested more in the bridge to prevent this catastrophe.
The MP described the decline of Bolton's high street, noting an increase in empty shops and betting establishments. They attributed this to the rise of internet retailing and highlighted the need for a fairer tax system to support brick-and-mortar businesses against online competitors.
Government Response
Kevin HollinrakeIt is a pleasure to serve with you in the Chair, Mrs Cummins. I congratulate the hon. Member for Hornsey and Wood Green on securing this important debate. As she pointed out, high streets are crucial to local communities and contribute around 4% of UK gross value added and almost 3 million jobs nationally. With 26% of retail sales taking place online, it is important to note that small high street businesses also trade online but face challenges due to consumer choice driving transactions online rather than rates or other issues. The Minister highlighted the importance of flexibility in business models through initiatives such as the £4.8 billion levelling-up fund and the future high streets fund. He mentioned the creation of a new commercial business use class (class E) giving businesses freedom and flexibility to change use without planning permission, and powers for local authorities to tackle blight by requiring long-term vacant premises to be rented out. In response to concerns about bank branch closures and access to cash, he noted that banking hubs and post offices are part of the solution with £50 million annual subsidies provided by the Government. Clause 47 of the Financial Services and Markets Bill gives the Financial Conduct Authority new powers for access to cash provision where it is disappearing from high streets. The autumn statement's £13.6 billion business rates support has been welcomed, though scrapping a tax completely would be irresponsible without knowing what will replace the £22 billion raised annually in England. The Minister affirmed ongoing energy bill relief and further support for vulnerable sectors to be announced by year-end.