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High Streets
19 October 2021
Lead MP
Janet Daby
Lewisham East
Lab
Responding Minister
Neil O'Brien
Tags
EconomyTaxationHousingEmploymentBusiness & TradeLocal Government
Word Count: 11938
Other Contributors: 13
At a Glance
Janet Daby raised concerns about high streets in Westminster Hall. A government minister responded.
Key Requests to Government:
The speaker calls for a review of all tax breaks and asks the Government to be serious about investing in a sustainable way that allows home-grown businesses to flourish. She also requests HSBC to reconsider closing their branch in Catford, which is needed due to its high demand.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The speaker is concerned about the collapse of UK high streets due to pandemic closures and unreasonable taxation. She mentions that shopkeepers, their staff, and customers are experiencing a poorer standard of living. The growth of online retail has reduced footfall in high streets and town centres, benefiting large online businesses while crushing local independents. The current system of business taxation is outdated and unfair, with small businesses being taxed into extinction while major online businesses pay only nominal taxes. The speaker also highlights the closure of HSBC branches in her constituency, which are needed due to not everyone's ability to adapt easily to online banking.
Alex Cunningham
Lab
Stockton North
Mr Cunningham praised the Labour-led Stockton council's ambitious plans to revitalise high streets, citing examples such as transforming an old shopping centre into a park and library. He highlighted the need for better business rate reforms and criticised the administration of the £3.6 billion towns fund that has disadvantaged some areas like Billingham in his constituency.
Alison Thewliss
SNP
Glasgow Central
Concerned about the disruption caused by COP26 to local businesses in Glasgow and the need for a city centre strategy that includes housing, schools, and healthcare. Emphasised the importance of encouraging cycling and walking over driving and highlighted the impact of increased energy bills on small businesses.
Barry Sheerman
Lab
Huddersfield
Congratulated the hon. Member on securing the debate, suggesting a windfall-profit tax similar to that introduced by Mrs Thatcher in 1981 on banks to target those who have profited during the covid years. Suggested a partnership with the hon. Lady's communities to work under United Nations sustainable development goals and build a network of towns and cities. Barry Sheerman questioned whether the Government missed an opportunity with the plastic bags charge, asking why most money generated did not flow into community regeneration and suggested a need for this money to regenerate local businesses.
Truro and Falmouth
Celebrated Truro's high street ranking improvement, highlighted the role of business improvement districts in her constituency, and appealed for further details on the next tranche of the towns deal to support Falmouth. She also called for greater representation of rural and coastal issues regarding high streets at the central debating table.
James Murray
Lab Co-op
Ealing North
The high streets in James Murray's constituency are at the heart of communities, home to numerous independent traders. He highlighted USDAW's call for an urgent recovery plan involving Government and retailers addressing structural challenges including reform of business rates which were behind two-thirds of store closures in the past two years according to BRC's retailer survey.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Mr Jamie Stone highlighted the Scottish Government's role in high street issues and suggested a discussion between the Scottish Government and the Convention of Scottish Local Authorities to tackle business rates. He also raised an alarming email about a 70% increase in electricity costs for three hotels in Caithness, which could be indicative of similar problems across the UK.
Jim Shannon
DUP
Strangford
Mr. Jim Shannon praised the efforts to support high streets in his constituency, Newtownards. He noted that over 726,000 people have lost their jobs since the start of the pandemic and emphasized the importance of retaining local businesses and independent shops despite financial losses. He highlighted a 'Spend Local' voucher scheme introduced by Northern Ireland's Economy Minister to encourage spending on high streets rather than online.
Margaret Ferrier
SNP
Rutherglen and East Kilbride
Congratulated the hon. Member on securing today's debate, noting an increase in businesses moving away from physical retail space to online models due to associated savings such as business rates or non-domestic rates for Scots. Mentioned this move has a heavy impact on local communities, leading to fewer jobs and reduced accessibility.
Matt Vickers
Con
Stockton West
Matt Vickers, chair of the APPG on retail, acknowledged the importance of retail workers during the pandemic and discussed the challenges faced by high streets due to outdated business rates. He mentioned that 83% of retailers feel likely to close stores if business rates are not reduced, stressing the need for government action to support innovation and address crime in town centres. Mr Matt Vickers agreed with Mr Stone but questioned whether it would have been better if a project had opened earlier and at a lower cost, suggesting that public money needs to be well spent.
Owen Thompson
SNP
Penicuik
Mr Thompson thanked the hon. Member for securing the debate and highlighted the urgent need to support local high streets, noting that they are vital for local economies and community spirit. He suggested a national digital sales tax could help level the playing field between online retailers and physical shops. Mr Thompson also emphasised the importance of devolving funding to Scottish Government to allow them to implement plans such as town centre action plans and 20-minute neighbourhoods. In his constituency, Penicuik, he praised local leadership for driving forward the business improvement district successfully.
Rachael Maskell
Lab Co-op
York Central
Maskell highlighted the challenges faced by York's high street, including empty shops, labour shortages, and offshore landlords. She called for a property-based tax system to be replaced with one based on profit or turnover, and requested discussions about introducing the youth mobility visa for EU citizens to address labour shortages. She also emphasised the importance of repurposing large vacant spaces for independent social enterprises and advocated for York's transformation into a family-friendly city.
Britcliffe acknowledged the struggles faced by high streets in Hyndburn and Haslingden, noting a decline in independent stores. She praised Government initiatives such as the £3.6 billion towns fund and the levelling-up fund for their positive impact on local economies. Britcliffe also highlighted her efforts to secure an economic development officer position at Hyndburn Council to support businesses and restore civic pride.
Barnsley South
Stephanie Peacock highlighted the uneven impact of the pandemic on high streets, with wealthier areas faring better than poorer ones. She pointed to a decade of austerity leading to the closure of 10,000 shops, 6,000 pubs, and more, particularly affecting semi-rural communities in her constituency. Peacock called for reversing these figures and levelling up high streets through measures like bringing empty commercial properties back into use and promoting entrepreneurship.
Government Response
Neil O'Brien
Government Response
It is a huge pleasure to serve under your chairmanship. I congratulate the hon. Member for Lewisham East on securing this debate on the future of our high streets. The Government has committed unprecedented levels of support and funding for high-street businesses throughout the pandemic, totalling £352 billion, including £60 billion of business rates relief, grants, loan schemes, and job retention scheme, supporting more than 90,000 jobs in Lewisham East alone. Additional restriction grants worth £2 billion were made available to local authorities. The welcome back fund provided £56 million to help businesses reopen safely post-pandemic. A commercial property eviction moratorium was also extended until March 2022, and legislation is being planned for a process of binding arbitration to resolve rental disputes. Over £830 million has been allocated through the future high streets fund supporting regeneration plans in 72 places across England, while the towns fund supports 101 places to spur growth and create jobs. The levelling-up fund will invest £4.8 billion in infrastructure projects to connect communities faster than ever before. A 'Build Back Better High Streets' strategy was published which aims to deliver visible changes to local areas and communities across England, transforming derelict buildings, supporting businesses, improving public realm and fostering community pride. The Government has introduced temporary planning changes including the use of marquees and canopies by pubs and restaurants, longer hosting periods for market stalls, car boot sales and fairs without needing a planning application, and a new class E use order allowing offices to become cafés, shops, health surgeries or nurseries without requiring planning permission. A permitted development right allows the creation of much-needed homes in town and city centres, extending upwards to create new homes and demolishing vacant buildings for quality housing. The Government remains committed to working with Members from across the House, local authorities and businesses to ensure our high streets remain the beating heart of communities for generations to come.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.