City and Town Centres: Regeneration

Wednesday 16th October 2024 Westminster Hall

[Martin Vickers in the Chair]

14:30

[Catherine Atkinson (Derby North) (Lab)]

I beg to move,

That this House has considered the regeneration of city and town centres.

It is a pleasure to see you in the Chair, Mr Vickers. In less than one month, our city and town centres should be at their best. On Remembrance Sunday, they will be full as we gather at the war memorials that are, rightly, the focal points of our public spaces. As we look around and hear the “Last Post” and the “Reveille”, we will feel an intense pride in the people we are with, our history and our home.

We want our city and town centres to instil in us that same sense of pride. But in too many of them, the backdrop will include empty shops and units. Remembrance Sunday is a time when our town and city centres will be full of people, but, for too many, the footfall on most days is far lower than needed to support local businesses and venues.

In Derby, we are proud of our city—of what we make, of our history and of our creativity. We want our city centre to reflect that. We must have public spaces in every town and city that people can feel proud of and safe in, and want to come to—not just on Remembrance Sunday but the following day, and every day. I am hugely optimistic about creating centres that are fit for the future. It is wonderful that so many Members are here today, demonstrating that the political will is there.

It is fantastic to be able to open today’s debate on city and town centres because without a great centre, there can be no great city or town. The centre can often set the character and personality of the rest of the town or city. Seven in 10 of us judge the vitality of an area, as a whole, on the high street alone. An attractive centre means that we are more likely to visit and spend time, invest or start a business, work or study, or permanently move to the area—all essential to that elusive agglomeration effect that drives economic growth, attracting talented people and providing a space for them to share knowledge.

That is what we are doing with major regeneration schemes in Derby. I have pledged my support for Becketwell, with a 3,500-capacity performance venue and a transformed market hall for stallholders due to open next year. Last week, work started on the redevelopment of the Friar Gate goods yard after 50 years of the building lying vacant. The University of Derby is also building a new business school, while Derby is this year’s No. 1 city for new graduates, with an average graduate salary of more than £40,000—the second-highest outside London, according to recruitment experts Talos360.

For those reasons, Derby is attracting a lot of inward investment. I pay tribute to the leadership of the council leader, Nadine Peatfield—and, before that, of my hon. Friend the Member for Derby South (Baggy Shanker)—in driving regeneration forward. I also thank the Minister for listening to the case that we made for the restoration of the historic Guildhall theatre and the redevelopment of Derby theatre, and for the £20 million that we now have to take that forward. It is exciting to be part of transforming the city centre with Marketing Derby and the business investment district: our city centre businesses pulling together.

The Centre for Cities reminds us that

“successful city centres are the most productive parts of the UK economy”

and of the role of national Government in accelerating planning reforms, facilitating substantial public investment to kick-start projects and focusing regeneration schemes on our centres. But no matter what new buildings and infrastructure we are able to build locally, it is the foundations that the Government will lay that I want to turn to. The flagship five-point plan to rejuvenate high streets is fundamental, but, as broad as that is, the issues go wider—into culture, transport, devolution, housing, small-business support and beyond. In essence, there needs to be a whole-Government approach, and that is what I want to turn to.

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

Will the hon. Lady give her opinion on business improvement districts? Does she think they are valuable for rejuvenating the economies of market towns and small cities across Britain?

[Catherine Atkinson]

The bids we have seen in Derby have been really useful. Partnerships for Better Business, which supports business improvement districts, has made suggestions on empty shops, which I want to come on to.

The whole-Government approach should first include tackling crime and antisocial behaviour to take back our streets, as the Home Secretary says, and take back our town and city centres. When high streets feel unsafe, consumers choose other shopping options—that is how the Association of Convenience Stores puts it. So we need the patrols, the neighbourhood policing and the respect orders to ban persistent offenders from town centres, the removal of the previous Government’s £200 prosecution threshold, and a new, specific offence for assaults on shop workers. I pay tribute to the work of the Union of Shop, Distributive and Allied Workers and Co-op for their campaigns on that. There is also hope from technology: companies such as Derby’s Barron McCann are using artificial intelligence and biometrics analysis to support retailers to detect and prevent theft.

Secondly, we need support for businesses. That includes reforming business rates to level the playing field between the high street and online giants, tackling late payments, better incentivising investment and supporting entrepreneurship. We have amazing businesses, such as Mr Shaw’s House on Sadler Gate in the cathedral quarter, and we want to see them thrive.

Thirdly, we need support for arts and culture. While Derby’s redevelopment plans are in motion, we need to sustain the amazing offer we already have, such as our museums, including the Museum of Making housed in the UNESCO-inscribed Derby silk mill, the cultural hub of the Quad, Artcore and many others. The work they do is so important for our city, but they need support so that they are ready to take full advantage of the increased footfall that we will see.

Fourthly, we need better public transport links, particularly from new housing developments to our centres. Cycling UK have great examples of where cycling lanes and pedestrian-friendly streets have revitalised parts of city centres. Finally, we need an agile approach to the city centre space to support a mix of retail, public services, independent small businesses, entertainment, housing and more green and family-friendly spaces. I hope hon. Members will provide many other examples of the policies that are mission-critical to local city and town centres.

[Jo Platt (Leigh and Atherton) (Lab/Co-op)]

My hon. Friend is making some excellent points on regeneration for towns and cities. The high streets of Leigh, Atherton, Golborne and Tyldesley in my constituency are huge assets to our local communities. However, as my hon. Friend has explained, we have all witnessed the decline over the last few years. Does she agree with giving local authorities powers to better hold absent property owners to account, to bring decaying properties back into use? Does she also agree that co-operative models, such as local ownership, are another solution that will significantly benefit our economy?

[Catherine Atkinson]

My hon. Friend is a great friend to her local high street businesses. The Government have made a commitment on the community right to buy, and the Co-op party makes a strong case for devolved community ownership funds. I thank my hon. Friend for her intervention.

I turn to the scourge of vacant properties, which we need a particular focus on. Derbyshire Live estimated in May that more than 80 shops in Derby city centre were currently up for sale or to let—an increase of about 60% on two years previously, when it carried out the same survey of the major shopping streets. In the last few months, we have seen green shoots, with about 30 new businesses opening in Derby city centre and I have high hopes for the effect of the regeneration we have planned. We have some stunning architecture, but unused buildings fall into rack and ruin. Empty units are such a blight on town and city centres that I want to call today for a specific Government strategy on vacant shops.

[Mr Jonathan Brash (Hartlepool) (Lab)]

My hon. Friend is making an excellent case for our high streets. In Hartlepool derelict commercial properties are a similar problem. Just in the last few days the old Odeon building in Hartlepool was the victim of arson and is being demolished as I speak. Do we not need to give far greater powers to local authorities, as has already been mentioned, particularly around compulsory purchase, to get these buildings out of the hands of private developers who, frankly, are not interested in the pride and community of our high streets that we are arguing for today?

[Catherine Atkinson]

That is certainly one option that we must explore. I know that my hon. Friend has been a strong advocate for investment in Hartlepool.

Fairly or unfairly, many people will judge how well the economy does on whether the number of empty shops in their local town or city centre noticeably rises or falls.

[Louise Jones (North East Derbyshire) (Lab)]

My hon. Friend has spoken about the negative impact that empty shops have; I welcome her calls for a strategy. Does she agree that any strategy must take into account the importance of public transport so that those who wish to make use of our high streets have access to transport that is regular, reliable and affordable?

[Catherine Atkinson]

I agree with my hon. Friend, whose constituency includes five towns; I can understand why public transport is important to ensure their success and that they thrive.

We need a number of options and a new relationship with the owners of empty properties. They must understand that if they invest in our centre, they have a special public responsibility. An avoidable eyesore is not acceptable for any period of time. When there is a vacancy, there should be immediate work to ensure that the street scene remains attractive, with advertising displays or local art commissions in the windows of local vacant units. There should be a presumption of meanwhile use or pop-ups. I commend Carley Foster, professor of services marketing at the University of Derby, for her work on pop-up retail.

A number of possible solutions should be looked at. As has already been mentioned, community ownership will play a key role. The Government’s community right to buy will help local people acquire valued community spaces if they come up for sale, with support and financing help for community ownership to ensure that communities can use the powers that they will have. The organisation Power to Change suggests a civic high streets accelerator to do that. Another way to get occupancy up would be high street rental auctions. I understand we would need only secondary legislation, so I would be grateful for an update from the Minister on the timing of that and an assurance that the auctions would include protections for vacant pubs so that they are not lost.

Partnerships for Better Business Ltd, which supports the business improvement districts, suggests that a penalty could be applied to vacant properties similar to that available to vacant residential property. We should also look at compulsory purchase orders when owners or property agencies completely and entirely fail to engage. On the other hand, there must be a real celebration and appreciation of the owners who do the right thing and keep occupation rates high and our city centres looking at their best.

In conclusion, I am so grateful for having been granted this debate to speak about my pride in our heritage, small businesses and plans for regeneration in Derby, and for that opportunity to be granted to other hon. Members here today. I hope the Minister can update us on the Government’s progress on the five-point plan to support small businesses on our high streets.

I have called today for a specific strategy on vacant shops and for cross-Government co-ordination of efforts to regenerate our town and city centres so that when it comes to future Remembrance Sundays, we look around not just with absolute pride in the people but in every aspect of the built environment. We want to see city and town centres fit for heroes—yes, those remembered in the war memorials, but also the everyday heroes: our constituents, who work day in, day out for their families and communities. They deserve nothing less.

[Several hon. Members rose—]

[Martin Vickers (in the Chair)]

Order. I remind Members that they should bob if they wish to be called. It is highly unlikely that we will fit everyone in, as we have a long list of speakers. I will impose a time limit if necessary, but initially I ask Members to limit themselves to three minutes. Even then, I fear that people near the bottom of the list will probably not be called. Please help by keeping interventions to a minimum.

14:45

[Bradley Thomas (Bromsgrove) (Con)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank the hon. Member for Derby North (Catherine Atkinson) for securing this debate.

Regardless of politics, so many of us have seen how town centres have changed over probably a couple of decades. It is pertinent to acknowledge the factors that have contributed to that for so long; the rise of the internet is a predominant one. When I am out and about in my constituency, people often ask me what we are going to do about high streets. I always think that there is an onus on us to do a little more. If each household in my constituency spent an extra £5 per week in the local economy, it would keep about £12 million a year in it and our high streets would benefit.

I agree with a reasonable amount of what has been said. I, too, am hugely optimistic for the future of our town centres. They are the most visible barometer of the vitality and vibrancy of the places we represent. It is critical that we look at the issue through two lenses: the national piece and the local factors. Nationally, we are in need of business rates reform. The business rates system has not been updated to keep pace with changing retail habits and the business environment that we seek to create, with a new culture of investment that will catalyse our town centres and other places.

I will not dwell on business rates reform, because I want to make a few other points. The first is about what can be encouraged at a local level. I am keen to see local councils taking a much more active role in championing their towns and communities as destinations for investment. I say this not through the lens of the planning system, but from the perspective of discovering the vision and potential of the place. What is the quality of the built environment? Which natural, cultural and heritage assets are the hooks to attract high-quality investment from large corporates, from institutional investors or even from local entrepreneurs who want to create a sense of vitality in their area while creating a living for themselves?

I call on the Government to encourage and support as many councils as possible in the creation of local investment prospectuses that will drive unique investment to capture and catalyse the potential of each of our places. Hanging off that is the role of urban design. Since many years before my election to Parliament, I have spoken about design. Those who know me well will probably be sick of hearing me talk about it, but it is fundamental.

The hon. Member for Derby North talked about the quality of the built environment. We have to shift our mindset away from good design being seen as a cost, and see it instead as an investment on which we get so many returns, both tangible and intangible. It is about how we can design out crime, design in health and wellbeing and inspire a sense of pride in a place where people do not just want to live. Hanging from that is a catalysed sense of economic renewal.

Skills are also fundamental. If we get this right, focus on our town centres, join the dots with the wider economic renewal of our constituencies, and focus on a long-term industrial strategy and skills agenda, we can really make a difference. I call on the Government to focus on how we can empower local councils, on a long-term industrial strategy for the UK, and particularly on the roles that skills development can play in catalysing our areas.

14:49

[Mr James Frith (Bury North) (Lab)]

It is a pleasure to speak under your chairmanship, Mr Vickers. I congratulate my hon. Friend the Member for Derby North (Catherine Atkinson) on securing such an important debate for those of us who are a bit geeky on towns.

It is always nice to stand up in the presence of my good friend the Minister. This is the first time that I am in a position to address him as the Minister in a formal capacity, so let me congratulate him in the hope that it bumps me up the line for community ownership funding as we await the difficult decisions that the Labour Government have to take. First and foremost, I ask that bids that are already in do not fall victim to the general election, that there is no fancy footwork and that we can be assured that the funding bids that made the cut under a previous Administration will now receive funding and authority.

I am delighted to be back as the Member of Parliament for Bury North. My constituency has three key towns: Tottington, Ramsbottom and Bury itself. This debate is also about cities, but I want to remark specifically on the role of towns, which are often in the shadow of our greatest English cities, of which Manchester is the nearest to Bury. The plight of our football club shows that community assets are often diminished by policy or decisions taken about us without us. Towns feel ignored when decisions on cultural assets, social capital and economic capital that affect us are taken elsewhere.

People in Bury want a degree of self-determination. We have an innovative council that has been trying for well over 10 years to do as much as possible with a diminishing amount of money. Austerity continues, whether that is in the special educational needs crisis, in investment in our road networks or in whether we can afford to cut the weeds and make places look nice enough to visit. It is about the simple things, alongside bigger fixed items such as funding, having a plan and bringing the buses back into public ownership, as our friend Andy Burnham, the Greater Manchester Mayor, has done so effectively. It is also about taking the last Conservative Government’s levelling-up analysis, which was accurate, and saying, “They were right with the analysis, but they forgot to do the impact assessment. They forgot to do the impact, full stop.”

It is not enough to point at projects that may or may not be funded and pit one local authority area or town against another in the “Hunger Games” style of funding that my right hon. Friend the Secretary of State for Culture, Media and Sport has described. I ask the Minister for an assurance that the three-year pact with local authorities and the funding that we are due to get for our towns will both be clear as soon as possible after the Budget. I also ask that while waiting for the three-year pact, we do not drop the ball on what is required right now. Despite the financial inheritance of a £22 billion black hole, this Labour Government are saying, “We will not let the mess we have inherited determine every single decision we make about towns and cities and their redevelopment.” Self-determination is hugely important.

My final comment is about the assets that we enjoy in Bury, from Broad Street Social—I think I am allowed to mention my favourite bar and my good friend Jen Smith, who helped me to prepare my remarks—to Wax and Beans, which is a great independent record shop, Bloom, which is a terrific eatery and coffee shop, and a wine shop called Kwoff; the House is getting a bit of a sense of where I spend my time. Crucially, people need that time off work, whether it is through flexible working or through a rebalancing of expectations post-covid with their employer, to get out and spend their hard-earned money in the towns that we all want to see thriving. I welcome this debate, in which there is still plenty more to say, and I congratulate my hon. Friend the Member for Derby North once again.

[Several hon. Members rose—]

[Martin Vickers (in the Chair)]

Order. Our first two Back-Bench speeches have been slightly over the three-minute mark, but Rachel Hopkins will now demonstrate how to keep to time.

14:54

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

It is a pleasure to see you in the Chair, Mr Vickers —challenge duly accepted.

I congratulate my hon. Friend the Member for Derby North (Catherine Atkinson) on securing this debate and on her brilliant opening speech. Hon. Members have talked about the town and city centres at the heart of our local communities. Unfortunately, under the previous Government, they were overlooked, underfunded and undervalued for too long. That has manifested itself in empty retail spaces, boarded-up shops and the loss of banks and local independent businesses in our communities.

The British Retail Consortium has found that 6,000 shops have been lost in the past five years. In many cases, overhead costs such as business rates had a material impact on the decision to close, so I welcome Labour’s plans to tackle the issue head on and reform the business rates system, levelling the playing field between the high street and the online giants, better incentivising local investment, tackling empty properties and supporting entrepreneurship.

Supporting our small businesses in Luton South and South Bedfordshire is of great personal interest to me. I have just launched my fourth annual small business awards, for which residents can nominate their favourite local business so we can support and promote business owners across the constituency. Small businesses are the backbone of our communities and deserve to be celebrated.

We must not underestimate the role of our local authorities in the regeneration in our towns and cities and the creation of place. The Local Government Association, of which I am proud to be a vice-president, has emphasised the importance of local councils in leading projects in partnership with residents, local businesses and other anchor institutions. They are best qualified to identify what their community needs. The LGA has also highlighted the need for councils to have access to one pot of long-term funding, alongside the resources and flexibility from central Government to work with local partners. That will allow councils to invest in local infrastructure and support local growth in a way that recognises the unique challenges and opportunities facing each place.

I am glad that our Labour Government recognise the vital role that local authorities play and are committed to ensuring that they have the tools they need to effectively develop and implement plans to support their high streets. We are seeing evidence of that regeneration in Luton: significant work is already under way to stimulate economic growth within the town centre, including the development of The Stage, a multi-purpose facility in Bute Street, under the levelling-up fund.

It would be remiss of me to highlight the brilliant regeneration going on in Luton without mentioning our fantastic football club, Luton Town. I was lucky enough to watch the wonderful match at Wembley in May last year when we gained promotion; ever the optimist, I hope to see us back there. Our Premier League promotion meant that people from all over the country came to Luton to see exactly what we are about. We are a beautifully diverse town with a thriving cultural scene and a sense of community. The redevelopment of the Power Court area, including the relocation of Luton Town’s stadium, is a defining milestone in this mission. The plans for a larger-capacity football stadium, as well as retail space, a hotel and a music venue, mark a regenerative era for the town and represent the increasing ambitions that Luton holds for its football team.

With exciting regeneration plans under way in Luton, an accessible station and a connected local transport network have never been more necessary. I will continue to campaign for an access-for-all lift at Luton station and a complete regeneration of the station itself—but that is a debate for another time.

I am glad to say that the regeneration and improved sustainability of our town and city centres, which were once an afterthought, are now a primary focus for our new Government as we work to deliver economic growth and raise living standards across the country.

[Martin Vickers (in the Chair)]

That speech lasted for four minutes, so we are getting better. Jim Shannon will take only three.

14:58

[Jim Shannon (Strangford) (DUP)]

I will certainly endeavour to do so, Mr Vickers. I thank the hon. Member for Derby North (Catherine Atkinson) for setting the scene so very well and for giving us all an opportunity to participate.

As ever, I will give a Northern Ireland perspective. I have three towns in my constituency: Newtownards, Comber and Ballynahinch. The main town, Newtownards, is thriving. It is bucking the trend of high streets across the UK, but its success is because of the independent traders and retailers who work in their own small shops and are part of the local community. From Sheldon Galleries, which produces artwork of local and international renown, to independent clothing boutiques and shoe shops, the town centre has fought hard to remain relevant, although it is not immune from empty spaces and old shutters.

What is the secret? One of the secrets is having vibrant chambers of trade. We are pleased to have one in Newtownards, one in Comber and one in Ballynahinch. Despite their hard work, people in local chambers of trade, such as Derek Wright in Newtownards, cannot save the high street alone. Their contributions and partnerships are important, but they are not the only thing. Government help must play a part.

I welcome the Minister to his place. I am pleased to see him here; we have had many debates in Westminster Hall on different subjects, and I am looking forward to his response. I am ever mindful that he is not responsible for Northern Ireland, but I want to set the scene and raise some issues relevant to the debate. The chambers of trade need Government investment, because we have a circular economy: those local shopkeepers will use that money to buy locally and, importantly, spend locally.

After years of trading—100 years, in some cases—our shops have adapted to the times. We have family businesses, clothes shops, antique shops and coffee shops; the coffee culture in Newtownards brings people to the town centre. There are also restaurants and pubs; the hon. Member for Bury North (Mr Frith) referred to pubs, which are an integral part of any town.

I once read a sign that said, “Your custom is not paying for a CEO’s holiday home. It pays for me and my children to swim in the local pool. It pays local people’s wages. It keeps your money and work within our community.” That is a paraphrase—it would have been an awfully big sign if it were word for word—but the point really struck me. In the age of online purchases, the importance of the high street and the economy cannot be overstated, which is why I was incredibly concerned when the news came that the city deals had been paused. We are very pleased in Ards and North Down about the Belfast city deal, and we hope to feel some of the benefits that spin off from it. The tourist attractions in the area and the Bangor waterfront redevelopment will breathe life into Bangor. The title “city deals” hides the impact on smaller towns, but such deals are vital for their survival.

The high street is the lifeblood of the local economy. We rightly encourage our retailers to go online and make the most of a bigger audience, but we also need to retain face-to-face customer service and kindness. That will only come if our Government prioritise people and sow into the regeneration of our town centres. There is everything to play for, and we all need to play by the same rules.

15:01

[Connor Naismith (Crewe and Nantwich) (Lab)]

It is a pleasure to speak in this debate, which I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for calling.

Town centres are not merely a collection of shop units in our town centre. They form part of the social fabric of our communities, and they deserve—mine certainly does—a Government who will proactively regenerate that social fabric. As the MP for Crewe and Nantwich, the place I am proud to call my home, I have witnessed the decline of Crewe town centre. It is not lost on me that the emergence of online retail has had a part to play in the decline of our town centres. We need a Government who stand ready to respond to these changing circumstances, not one who simply expect the market alone to sort it all out.

I believe that each town across this country has its own distinct draw, and local authorities need to be empowered by the Government to reflect that. In my constituency, we have demonstrated how hospitality, leisure and experience-based initiatives can drive improvement. We have had fantastic events such as Nantwich Food Festival, and investment by our Labour-led council in Crewe Market Hall has transformed the venue into a thriving modern food, drink and entertainment space.

[Andrew Cooper (Mid Cheshire) (Lab)]

Does my hon. Friend agree that town centre events have a really important role to play in driving the vitality and viability of town centres that have been in decline? In my constituency, for instance, Northwich town council, the business improvement district, rotary clubs and various community groups have partnered to put on a full events programme over the course of the year. That really drives footfall into the town centre and has helped us to promote it as a destination for businesses considering investment.

[Connor Naismith]

I absolutely agree. Local stakeholders and organisations coming together to put on community events that drive footfall into our town centres is a way for us to tackle the challenges of retail struggling in the modern context.

Additionally, at the heart of our local community in Crewe are our vital small businesses—the lifeblood of our community. They have the community at the heart of their agendas and understand what is best for their local areas. Ensuring their success will be our success, and I hope to see the Government proactively pursue that agenda. To that end, I welcome the Government’s commitment to business rates reform, which will have a huge impact on our ability to support small businesses and encourage those that are not currently on the high street back there.

None the less, there are challenges that I know not only my constituency faces, as we have heard from the contributions so far, including that of empty shop units, which has been mentioned often. Local councils need to be given power to take a more active role in the take-up of empty units. The disused Marks & Spencer building in Crewe is a great but sad example of just that, with significant heritage and value that makes it an important asset to our community, but damage inside that makes it a poor attraction commercially, meaning that it has stayed unoccupied and is of no local benefit. I ask the Minister, what steps are the Government taking to ensure that we can breathe new life into buildings, such as that one, in the heart of our town centres?

Furthermore, connectivity remains an issue affecting many northern towns such as Crewe. Our railway heritage is a fantastic asset for regional and national connectivity, but it presents a challenge, with railway bridges and tracks creating connectivity problems in the town centre. I hope that the Government’s planning reforms will give more power to local authorities or prospective private investors into towns across the UK. The Government’s commitment to cross-departmental working will support greater connectivity within our town centres. I want the Government to put local communities at the heart of decision making. In our manifesto, we talked about returning power to local communities, and I urge the Government to make good on that promise.

[Martin Vickers (in the Chair)]

In order to try to get most people in, I will now impose a fixed three-minute time limit on speeches. I call Darren Paffey.

15:07

[Darren Paffey (Southampton Itchen) (Lab)]

It is a pleasure to serve under your chairship, Mr Vickers, in my first Westminster Hall debate—or at least the first one I have managed to get called in, for which I am very grateful. I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for securing this important debate and for setting out the issues so eloquently.

Southampton has been both a town and a city. Since 1964, when it became a city, it has grown to be not only a vibrant and diverse urban community, but also an economic hub and a centre of oceanographic innovation, with a world-leading shipping industry and emerging green tech businesses. It is a privilege to speak today with optimism about the future of my city, and that of the towns and cities represented by colleagues here, because of this Labour Government. The announcements that the Prime Minister made on Monday after the investment summit were a breath of fresh air and hugely welcome. I am here to speak up for my constituents in Southampton Itchen—to ensure that they get a fair slice of that £63 billion pie.

As my hon. Friend the Member for Bury North (Mr Frith) quite rightly stated, the last Government’s levelling-up agenda did not exactly do what it said on the tin; too many towns and cities have been left behind. The Prime Minister has made it clear that the Government are committed to revitalising communities. Southampton Itchen is perfectly positioned to seize these opportunities, so perhaps the Minister could outline the process and timetable for getting some of that investment out into our cities and towns. We must ensure that the investment reaches our town centres and high streets, which connect our constituents and provide them with jobs and opportunities. We must also ensure that decision making and place shaping is led by local leadership. Southampton, along with others in the area, is looking at a devolution deal. Again, I ask the Minister to be sympathetic to the call for national and local leaders to work together for the benefit of all.

Any visitor to the city centre of Southampton will come across Westquay, a state-of-the-art shopping centre that draws shoppers from across the region; the port, a critical hub of trade for the UK; and the Cultural Quarter, a centre for learning, arts and diversity, and a mosaic of small businesses. But they will also see stalled development sites and district centres that are too often forgotten, so although the investment is important and a welcome departure from the last 14 years, we have to regenerate well—all our commercial spaces and jobs, but also dentists, GP surgeries, schools and so on—so that people love where they live.

15:10

[Andrew Pakes (Peterborough) (Lab)]

It is a privilege to serve under your chairpersonship, Mr Vickers. I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for starting the debate.

This is an important debate, as the turnout today shows; so many of us, from both sides of the House, are concerned about our high streets. Few things are as symbolic of the broken nature of Britain as the decline of our high streets. Empty shops, fewer police officers, drugs and antisocial behaviour are just some of the issues that businesses and residents raise with me about my own city centre.

In Peterborough, we are blessed with a heritage that many would be proud of: a world-class cathedral; a new town and development corporation legacy; an incredible museum and access to the arts and culture; and diversity that brings together world cultures in one city. Despite that inheritance, it has been a tough decade for all our high streets and the city centre. Despite the promises, we have not seen an increase in police. Drugs and antisocial behaviour remain a problem in too many areas. Under the last Government, Peterborough lost its John Lewis and M&S, and suffered incredible cuts to local government that have made all our lives harder.

This debate goes to the heart of the question of what kind of community people want to live in—it is not just about city centres. We have had broken promises over the long-awaited regeneration of Lincoln Road in Peterborough, and we have seen wear and tear in our new town centres, like Bretton and Werrington. Regeneration matters so much because the raw ingredients for Peterborough are there, but they need leadership, action and investment. Peterborough cathedral’s Monsters of the Sea exhibition this year attracted over 30,000 visitors, so we know what can be done. Anglia Ruskin University Peterborough, our new university, is bringing new life to the city. A new business improvement district called Peterborough Positive, which is two years in, is establishing itself as a voice for local businesses and traders; I place on the record my thanks to Pep Cipriano, Sean Page and the BID team for their work.

I also thank our Labour mayor, Dr Nik Johnson, Cambridgeshire and Peterborough combined authority, Network Rail and the council for their work on our new station regeneration programme. That project is welcome, but should have come much sooner. It is the first phase of regeneration of our city. The next phases will show the ambition of the Government, the council and the mayor, for a city with a new bus station that has accessibility at its heart, and a new indoor pool to replace the one shut by the previous council.

I urge the Minister to ensure that in the Government’s plans for our high streets, we make it easier for cities like mine. We need a clear message to the council that it has a leading role to play in shaping our future, and action to help small businesses, shopkeepers and hospitality by tackling late payments, taking a tougher line against retail crime and reforming business rates. Most of all, we need a plan and vision, backed up by the investment and funding to turn our city around and create the jobs, community and prosperity we need.

15:13

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers, and I congratulate my hon. Friend the Member for Derby North (Catherine Atkinson) on securing this debate.

I want to focus my remarks on empty shops. Mr Vickers, as my constituent you will be very familiar with some of the comments that I will make. This is not a new story; the decline of town centres has been overseen by a decade and a half of neglect without a national strategy to ensure that communities continue to have healthy, thriving high streets and town centres. It has fallen to local areas to undertake plans themselves—expending significant cost and time—to present plans to Government and then to gradually eke out funds, at sporadic intervals, to try to fulfil their local vision. That has happened in Grimsby and Cleethorpes. An endeavour under the banner of the Greater Grimsby town deal board and the commitment of local businesses brought about the establishment of the 2025 Group, whose members are working together to deliver the kinds of improvements that will make areas attractive and safe, to encourage the increased use of expanding town centre facilities.

I have long argued that town centres and high streets need to evolve to survive, but that requires intervention when the market fails. Initiatives such as the new Horizon Youth Zone on Garth Lane, the introduction of a community diagnostic centre—that is not without its issues but I am raising them separately with the Health Secretary—or the proposed new transport hub will all go towards making Grimsby town centre much more attractive.

We have some brilliant businesses in our town centres and on our high streets that all worked so hard through the pandemic to keep going in the face of rising bills. They have dug deep and kept their doors open. I went to the Great Big Small awards recently and I was pleased to see so many businesses celebrating and being celebrated for their contributions to the vibrancy of the offer across north-east Lincolnshire. Although I do not have time to mention them all—I really wanted to—I will say that Buzz Café has the best chips in the world. If any Member wants to come for Fish and Chips Friday, they are very welcome.

In Grimsby and Cleethorpes, we have loads of empty shops, whether we are on St Peter’s Avenue or the marketplace just behind. The plan is to pedestrianise the marketplace, and local businesses are really worried that that will affect footfall for them. Companies, particularly banks, are leaving big gaps that lie empty for extended periods of time. When they are filled—this is an issue that I have raised before—they are filled with vape shops and barbers and there is a real lack of a range of different options. I really support the comments made by my hon. Friend the Member for Derby North about keeping the quality good, the appearance less gaudy, and the impression of the area at a high level so it is improved and is made more, not less, attractive.

15:16

[Mr Bayo Alaba (Southend East and Rochford) (Lab)]

I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for securing the debate, which is incredibly important to me and my constituency of Southend East and Rochford. When we talk about high streets and city centre regeneration, we are talking about so much more than just the retail industry. The ripple effect is clear: declining footfall also threatens hospitality, cultural amenities, tourism and employment. The list is actually endless.

One reason why I stood to be the MP for Southend East and Rochford is that I can see how much potential the area has to offer. For a coastal community in the commuter belt of London, regenerating the city centre and high streets, such as Hamlet Court Road, will be key to unlocking a prosperous local economy. I have met a multitude of local businesses to understand the challenges they face and discussed a strategy to revive our high streets. They have told me about the difficulties in covering business rates, utility bills and the decreased footfall caused by antisocial behaviour, which ironically increases as our shops and venues close down.

A by-product of a vibrant high street is that it is a gateway for young people, providing soft skills and equipping them for the future. Last week, I met with bar operators on Alexandra Street who I know will be vital to the regeneration of the city centre in Southend. Independent businesses, such as IndiRock, are reinventing what the high street has to offer and paving the way for businesses to come. I have had a long career in regeneration and the hospitality industry and, chatting to the organisations at the forefront of Southend’s offer, I felt inspired that there was a collective of new businesses looking to reanimate the town centre. It is now our obligation to support them with strong, forward-thinking policy, giving them the foundations to grow their business and to elevate the communities that they are in.

Another important aspect of a vibrant high street is the circular economy, which is limited in Southend East and Rochford because of its struggling high streets. We need to put the mechanisms in place that see every pound spent circulated locally three, four or even five times. That is the goal of any community that wants to future-proof its relevance. Economic growth is the defining mission of this Government and ensuring thriving local high streets is essential to that. As MPs, we need to work towards effective partnerships with local authorities and business associations to realise that mission locally and to restore vibrancy to our high streets. I am filled with the hope that visitors to Southend East and Rochford will step off a train from Southend Victoria or Southend Central and will know from the thriving, bustling and prosperous high street that our local area is well worth a return visit.

15:19

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

It is a pleasure to serve under your chairship, Mr Vickers. I congratulate my hon. Friend the Member for Derby North (Catherine Atkinson) on securing this important debate. After 14 years of Tory government and 17 years of the SNP—failed Governments both—those of us who represent Scottish constituencies need it now more than ever.

Kirkcaldy is the biggest town in my constituency. Two weeks ago, I held a roundtable for business owners and managers on Kirkcaldy High Street to discuss the urgent need to revive our town centre. They expressed their concerns about a high street that is far from what it used to be, with empty shop fronts that do not reflect the ingenuity or industriousness of Kirkcaldy’s people. The shop front vacancy rate on the high street sits at over 25%, and the number of businesses declined by 22% and 14% in Cowdenbeath and Kirkcaldy, respectively, in the three years after the pandemic. Perhaps the most disheartening thing about the vacancy rate is that when a unit becomes vacant, residents feel it is unlikely that anyone will fill it again. We have to change that.

Attendees at my roundtable expressed fear of a vicious cycle, which other MPs have mentioned today. They worry that as the closure of shops leads to lower footfall in cafés, restaurants and pubs, the eventual closure of those establishments is more likely, too. Despite the important work of Fife council, that is what happens after almost two decades without a proper national economic development strategy or industry strategy. That is the effect on town centres such as Kirkcaldy’s.

I am grateful that the Labour Government have seen success in the investment summit this week, and that we have a consultation on the new industrial strategy. We must ensure that it helps towns and cities to thrive as part of a cross-Government approach, rather than having them fight among themselves for scraps of investment. Business rates have also been mentioned by a number of colleagues. That is a devolved issue, and we in Scottish Labour have long called for a rebalancing of rates between online and physical retail premises.

There is much more to say, of course, but finally I want to mention that I have been encouraged by community action in my constituency to improve our high street. Retail must be part of the solution, but so must other activity. I particularly commend the work of Love Oor Lang Toun, which references the epic length of our seafront. I also warmly congratulate the Adam Smith Global Foundation on the success of the new Kirkcaldy lottery, which should also help with regeneration on our high street. There is so much to do to ensure that regeneration on our high street gives us a future to look forward to, and not just a past to be proud of.

15:22

[Jess Asato (Lowestoft) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for securing this debate.

We have all heard about the challenges facing our high streets, and, in Lowestoft and Beccles in my constituency, the difficulties are all too real. Last year, a survey found that out of the 366 premises in Lowestoft, 96 were empty. In Beccles, our last remaining bank for business, Lloyds, is set to close, forcing businesses that rely on it to travel to Lowestoft on gridlocked roads to do their banking. Poor mobile connectivity in Beccles is also hampering our residents’ ability to do business effectively. We also lack a real plan to support Lowestoft’s nighttime economy, which includes our wonderful theatres, the Marina and Players, our cinema—the most easterly in the UK—and our excellent restaurants such as MarkG. We lack buses that run into the evening, and later trains from Lowestoft to Ipswich.

I am glad, however, to say that in Lowestoft we have seen signs of life returning to the high street. Our heritage action zones have breathed new life into beautiful old buildings. Plans such as the £24.3 million cultural quarter and the £4.8 million creative hub in a former post office are incredibly exciting. Those investments are not just about buildings; they represent a belief in the future of our town. We are reimagining our future as a green energy gateway to the east of England and as a cultural destination, led by the excellent team behind the First Light festival. Meeting with businesses in the town, I see that belief, and I am confident that Lowestoft has what it takes to bounce back fully. I made a pledge during the election to open a parliamentary office on the high street should I win, and I am delighted that soon I will do just that.

Lowestoft is a beautiful place with potential that is beginning to be unlocked by entrepreneurs, community leaders and the fantastic people behind Lowestoft Vision. The momentum we are gaining needs to be sustained. That is why this Government’s plans to boost business and build back the high street, whether by tackling antisocial behaviour or giving communities the power to revamp their high streets, are so important.

I hope that the Minister can reassure us that the Government are working at speed to review business rates so that our small high street business are not disadvantaged compared with the online giants. I am confident that there is a way forward, so that our high streets are once again not just surviving but thriving.

[Several hon. Members rose—]

[Martin Vickers (in the Chair)]

Order. We have three more speakers, so would they take two minutes each? I call Amanda Martin.

15:25

[Amanda Martin (Portsmouth North) (Lab)]

Thank you for your chairmanship, Mr Vickers. I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for securing this debate and raising compulsory purchase orders and auctions, which I know will be welcome in my city.

Portsmouth is a proud city of heritage, the Royal Navy and development, but so much of that is in the south. In my constituency of Portsmouth North, there are forgotten high streets—Cosham, North End and the London Road that runs through the centre, none of which have received high street funding and all of which are in desperate need of regeneration. My constituents write to me to complain of high streets where bookies, vape shops and massage parlours proliferate, where pubs are boarded up, and where there are no quality businesses or family-friendly spaces.

What do we need to do? We need solutions. We need a holistic, creative approach to place making and regeneration that includes the voices of the community and develops the public realm into useful and beautiful spaces. We should not shy away from expecting where we live to benefit our lives and wellbeing. Building up capacity in local authority planning is crucial.

Where excessive retail or office space leads to vacant shops, that creates a feeling of decline. With cross-Government co-operation and support for local authorities, we could repurpose those buildings, providing the new primary—[Interruption.]

[Martin Vickers (in the Chair)]

Order. There is a Division in the House. The sitting is suspended for 15 minutes.

15:26

Sitting suspended for a Division in the House.

15:26

On resuming—

[Tim Roca (Macclesfield) (Lab)]

I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for calling this debate. It is incredibly important and she is proving herself a powerful advocate for her constituents.

One issue we contend with is the inheritance from the previous Government. In this area, like so many others, it is clear that they were a dismal failure. Over 14 long years, sometimes supported by our Liberal Democrat colleagues, 420,000 traditional retail jobs were lost and 10,000 retail stores closed their doors. Macclesfield has been no stranger to that. Residents know of the long depressing decline of “Mac” town centre, with empty shops along Mill Street.

My campaign office had to move because, under the parliamentary budget, we could not afford the rent and business rates. There is also a huge empty building where Marks and Spencer was, because out-of-town retail parks were approved, going over the heads of local councils and against the wishes of local councillors. Those are damaging the vitality of our town centres. We do have phenomenal businesses in Macclesfield, and we have the Treacle Market, which is famous in the region.

There is a debate as to whether a bid would be right for our town, but if we are serious about supporting our town centres, we need to reform business rates; we need greater devolution in Cheshire; we need to back Great British Energy to reduce energy costs for businesses; we need to deal with the issue of empty shops—I like the strategy idea mentioned by my hon. Friend the Member for Derby North—we need to exploit housing opportunities, so that we have the right mix in our town centres; and we need to improve connectivity. In Macclesfield, we have seen a huge decline in bus links to our outlying villages, and we need to restore that.

I am therefore glad to see that the Government are moving on these issues. I will be backing local businesses in my constituency by using them, and, down here, by advocating for the tax, devolution and investment changes that they need to help revive our high streets and town centres.

[Martin Vickers (in the Chair)]

I call the Lib Dem spokesperson, Vikki Slade.

15:46

[Vikki Slade (Mid Dorset and North Poole) (LD)]

It is a pleasure to serve under your chairship, Mr Vickers, and to represent the Liberal Democrats for the first time as a Housing, Communities and Local Government spokesperson. The regeneration of towns and cities is an intensely local matter, and it must be approached from a local perspective. Telling people what will fix their towns is the best way to fail. Cities and towns evolved over many decades, and the vestiges of every generation serve as a reminder of what once was, and local authorities need to balance the need to retain the heritage of a place with having an eye to the future.

Toxic nostalgia about how places were when we were young can be a dangerous inhibitor to regeneration. “When we were young” is subjective. For example, the department stores that sorted out our parents’ wedding lists, immortalised by Mrs Slocombe and Captain Peacock, belied the slum conditions and heavy pollution in the cities right outside those stores, and the Woolworths and Blockbuster Videos on the high streets of my childhood are remembered much more fondly than the massive dole queues on those very same high streets. We also forget how the infamous pick ’n’ mix counter destroyed so many independent sweet shops.

City centres have always changed over time, and if we want to avoid another decade of decline after the shocks of Brexit and covid, we need the Government to invest, and to hand the resources and responsibilities to councils and communities. We also need to make sure, as previously mentioned, that our towns and cities give visitors an experience. Shopping will still be part of that, but rarely do people go to the city for just shopping; it is now for eating, playing, meeting, working or living, and we need to make sure that high streets are not just about retail any more.

The Government need to help businesses become more efficient and make the most of technology, but also to provide people with the skills to adapt to their second or third careers. That could be through better use of the apprenticeship levy and supporting both further education colleges and specialist skills providers in offering more bespoke and more agile courses, particularly for people for whom traditional education has failed. One example is Mike Taylor Education in my constituency, which offers high-quality barbering courses from a high street location and supports other thriving businesses with their future workforce.

Liberal Democrats want to see the various pots of money, such as the future high streets fund and the towns fund rolled into a single pot, like with the shared prosperity fund, and we want to avoid the cliff edge that we are expecting in March 2025, so that councils know where they stand for at least another year while a longer term funding cycle is developed. We must learn lessons from the past: under a previous Conservative Administration, Bournemouth’s council approved an out-of-town shopping centre, which led to a mass exodus of most of the corporates from the town centre.

[Amanda Martin]

Does the hon. Lady agree that we need some focused solutions? She has talked about holistic approaches, about the changes in our high streets and about how we need them for communities. That could be for new GP surgeries, for nurseries—whether private or local authority—for pop-up markets, which we have heard about, for art studios, or for facilities that we need, such as baby changing and public toilets. Does the hon. Lady agree that, in order to do that, we need to reform business rates and ensure our local authorities’ planning departments have the capacity to look at those changes? Does she agree that we need cross-Government working, including with the Home Office to make our streets safe, and the Ministry of Housing, Communities and Local Government to support local authorities and update planning systems—

[Martin Vickers (in the Chair)]

Order. I think you are trying to have the 30 seconds you lost. Interventions should be much shorter.

[Vikki Slade]

I will come to business rates later, and I absolutely agree that meanwhile use is important.

The out-of-town shopping centre was such a catastrophe because it was cost-effective for major retailers to go there as they did not need to navigate the town centre traffic, there was no need to maintain historic or awkward buildings—the hon. Member for Macclesfield (Tim Roca) spoke about the difficulties with his Marks and Spencer—and customers and staff could be given free parking. We are seeing similar mistakes in my constituency of Mid Dorset and North Poole: low-cost supermarkets are buying up seemingly easy plots on the edge of town, forcing everyone into their cars to visit, rather than investing in underused or empty awkward town centre units. Central Government might be able to invest in them in order to drive people into town.

[James Naish (Rushcliffe) (Lab)]

I was the leader of Bassetlaw district council. Bassetlaw was the home of Wilko, which of course went under two summers ago. Only a month or so later, the Government announced that 55 towns would get £20 million to create shiny projects. Does the hon. Lady agree that we should think differently about retail units that play a social function, as well as an economic function, in our town centres?

[Vikki Slade]

I am delighted that Poole was one of the places to get its Wilko back a little while ago—that was a great celebration. The hon. Gentleman is absolutely right: some town centre units are anchor spaces, and planning and financial levers such as allowing councils to keep their locally generated business rates could transform them by allowing them to work with businesses. Currently, councils have to back-fill those lost business rates sent to the Treasury; council tax payers fund that, which is a big ask for them.

As many Members have said, business rates must be an urgent priority from the Government—

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

indicated assent.

[Vikki Slade]

I am confident from the nodding I see that that they will be. In fact, that is what first got me interested in politics: I felt the unfairness of business rates when I had my own high street business. The Liberal Democrats want to replace business rates with a commercial land owner levy, alongside an increase in the digital services tax, which would boost investment and cut taxes for businesses in nine out of 10 English local authority areas. It would benefit retailers and other small businesses, and would reduce the burden on councils as there would be fewer land parcels to tax.

There is deep concern, not just from the Liberal Democrats but from the LGA, which represents the whole local government family, about the unfettered use of permitted development. Converted offices often provide poor living spaces, and using permitted development means that affordable housing and community infra- structure is not provided. That puts a greater burden on local people and services, and negatively impacts community cohesion.

City and town centres need the same careful plan-led development as suburban and rural areas, and community consent must be at the very heart of regeneration. If we do that, I am sure many of the 1.5 million new homes that the Government plan can be delivered, but that will only work alongside high-quality design and a substantial injection of grant funding. Housing development in urban areas is complex and expensive, and organisations such as Homes England and other funding will be needed to provide that support. Cranes in the sky are the best energiser of the local development market, and sometimes councils must blink first. Schemes such as Holes Bay in Poole need urgent support so that we do not miss the opportunity to thrive under this brand new Government.

Towns and cities need people to come in, so we must urgently reform transport. We must welcome the potential for councils to franchise bus services if it is right for them, but it is not just about buses: the national grid must be boosted so that electric vehicles can be turbo-charged, and we need a 5% reduction on VAT on public charging so that everyone has the right to drive EV.

We really need legislation on the use of e-scooters. We must improve our pavements, deal with delivery mopeds, which are making people’s lives an absolute misery, and tackle congestion on our streets.

A vibrant town centre needs arts and culture, reflecting our diverse populations. Events such as Wimborne folk festival and Wareham Wednesdays draw people in from surrounding towns and villages. Bigger events, such as Arts by the Sea in Bournemouth and Poole Oktoberfest, draw people in during seaside shoulder time and— I agree with the intervention made earlier—they create the opportunity for investors to see our towns at their best.

We need to make sure that councils can afford to support tourism. The squeeze on councils over the last decade under the Conservatives has made it virtually impossible for councils to fund these non-statutory things. I would like the Government to keep considering options such as tourism levies, local visitor economy partnerships and other ways for local councils to generate income. Lib Dems call on the new Labour Government to properly fund local government, urgently close the £4 billion local government funding gap and let councils lead change.

As a former council leader I have witnessed how councils have had to reinvent themselves time and again. They touch every home and business, so investing locally will pay dividends. We know what works. Just as importantly, councils know what does not work. Just like the big industries that shaped our cities for the first half of the 20th century that are not coming back, the giant retailers that shaped our town centres in the second half are part of history, too. To create thriving communities, we need the Government to invest locally and let places choose how they regenerate.

15:56

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

It has been a pleasure to serve under your chairmanship, Mr Vickers.

[Sir Roger Gale in the Chair]

I am sure it will continue to be a pleasure to serve under the chairmanship of Sir Roger.

The debate has been wide ranging. It has gone from the commanding heights of the international economy to the truly micro. I commend the hon. Member for Derby North (Catherine Atkinson) for having brought together a wide group of Members with a clear interest in the role of local authorities and in regeneration specifically, but more broadly in the future success of our high streets.

It is always worth remembering that when there are international investment summits, 70% of people in work in the UK are in an enterprise with less than five staff. It is easy for big businesses to turn up and meet the Government. I very much welcome the investments that were announced at the investment summit. I welcomed them when they were announced under the previous Government and I welcome them again. But we need to make sure that those investments continue to manifest as a benefit on our high street.

The pressure of time perhaps meant the hon. Member for Derby North did not have the opportunity to talk about the input of people such as Councillor Barry Lewis, the leader of Derbyshire county council, and Councillor Ben Bradley, the leader of Nottinghamshire, who are examples of local leaders who have championed inward investment. Of course there are many from across the political spectrum.

Here in Parliament is an opportunity for us to reflect that although it is easy to describe the problem, we need to focus on what we can do to make a difference. My hon. Friend the Member for Bromsgrove (Bradley Thomas) shared some examples of that from his experience as a council leader. I hope that when the Minister responds he will have something to say about the impact of business rate reliefs.

Currently any English business that is a shop, restaurant, café, bar, pub, cinema, music venue, gym, spa, hotel or any form of leisure venue, can obtain a 75% discount on business rates, capped at £110,000 per business per year. I am aware that that rate relief is not available to the same extent in Labour-run Wales and aware that the Government are about to embark on some Budget decisions. But it is clear that the ability of businesses, such as those that are anchors on our high streets, to secure that relief has been extremely important, especially in the post-covid era, in making sure that our high streets remain vibrant. That sits alongside measures such as—

[Helen Grant (Maidstone and Malling) (Con)]

As we have heard today, town and city centres like mine in Maidstone desperately need a range of vibrant and varied shops and businesses. Does my hon. Friend agree that a reduction in business rates, not just a reform, would incentivise businesses to set up, especially independents and new start-ups? At the same time it would ensure that a level playing field starts to be set with e-commerce and home delivery services.

[David Simmonds]

My hon. Friend represents the county town of Kent and presses the case that the leader of Kent county council, Councillor Roger Gough, makes: as the county town, it is particularly important that Maidstone demonstrates a vibrant and thriving high street. My hon. Friend is a vocal champion for that.

Measures such as business improvement districts and local enterprise partnerships have enabled combinations of local employers, business investors, local authorities, land holders and housing providers to come together to look at how regeneration schemes can best be designed. There is cross-party consensus that local leaders know their communities best and are best placed to design projects to bring the maximum possible benefit.

I acknowledge that it has been challenging to implement the process set out in the Levelling-up and Regeneration Act 2023 and the schemes that followed from it. For many years, the EU cohesion fund was the key source of inward investment at a strategic level, and in the post-covid and the post-Brexit era, central Government have found it challenging to design a multi-year financial arrangement that replicates it, serves a similar purpose and is deliverable at scale. I wish the new Government well with that challenge.

The 2023 Act also included planning reforms that enable long-empty shop units to be converted to much-needed housing on our high streets. That reflects a longer-term change on our high streets from retail to night-time, leisure and hospitality economies. Those are the businesses that benefit from the highest level of business rate relief, and they are becoming mainstays on our high streets. A number of hon. Members have mentioned the benefit to microbusinesses of approaches such as safer by design, which uses planners’ expertise to build out antisocial behaviour and crime from buildings and developments from the start through their design, layout and physical security measures.

It is important to reflect on the successful regeneration projects of other nations. This debate is focused on towns and cities, but when German reunification took place, national politicians were clear from the start that the project to rebalance the country was going to take 30 years. They were also clear that it would start with significant investment in large cities to create employment and prosperity, and that that would then feed into the wider social and public infrastructure around those towns and cities to ensure that, in due course, everybody in the country could benefit from a higher standard of living. Although we set out an ambition on that scale with the levelling-up projects, we did not have anything like the time and resources to deliver it on the scale that we wanted to, especially with the relentless calls for higher spending on covid in the background, which were a key part of shaping the Government’s financial approach at that time.

I note with a degree of pride that an average of 400 new jobs were created for every single day that the last Government were in office over 14 years. We must remember that work is key to regenerating our high streets—if people have money in their pockets, they will spend it locally. When we left office, youth unemployment was half what it was when we entered.

I read the Crewe business improvement district proposal, which, like many such projects, started out with very specific words: this is a “private sector led proposal”. That is a recognition that private sector investment will be crucial, and I think we are seeing a similar recognition from the new Government.

I have two asks of the Minister. First, will he set out the timetable for the next round of devolution? If he is unable to do so now, would he give us an indication of when he will do so? There are local authorities looking to switch to the elected mayor model. The East Midlands combined authority will be significant for places such as Derbyshire, but there are many other parts of England that are looking to do that.

Secondly, will the Minister commit to, or give us a deadline for a statement on, the retention of the 75% business rate relief that was introduced by the previous Government and is still being followed by the Treasury? It has been critical for keeping investment and employment buoyant on our high streets. We need to make sure that vital lifeline is retained into the future.

16:04

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

It is a pleasure to serve with you in the Chair, Sir Roger, and to speak for the Government in the debate, which I congratulate my hon. Friend the Member for Derby North (Catherine Atkinson) on securing. She can tell by the attendance and enthusiasm of hon. Members that she has clearly struck a nerve. I support much of what she said, particularly her passion for the regeneration of our towns and cities to create safe and flourishing local communities.

I represent a Nottingham constituency, so although I will endeavour to get through the rest of the debate without making a Derby joke, that will be very difficult given our important local rivalries—if you see me starting to dance on the spot, Sir Roger, that is why. My hon. Friend’s points about pride, safety and vacancy are at the nub of the debate. I will cover them, as well as a number of contributions from other hon. Members, in my remarks.

Localism is important, and it was mentioned by the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), the Liberal Democrat spokesperson, the hon. Member for Mid Dorset and North Poole (Vikki Slade), and many other hon. Members. The hon. Member for Mid Dorset and North Poole characterised it as an “intensely local” debate. My hon. Friend the Member for Luton South and South Bedfordshire (Rachel Hopkins) talked about giving communities the tools. My hon. Friend the Member for Bury North (Mr Frith), who I know is now participating in the debate in the main Chamber, talked about local people being the real experts, and I totally agree with that. We made a clear commitment in our manifesto to work closely in a new partnership approach with local authorities and elected mayors to stabilise the funding system and build a new one.

The shadow Minister rightly talked about the previous Government’s efforts: the future high streets fund, town deals, levelling-up fund, community ownership fund, UK shared prosperity fund, and long-term plan for towns—lots of different interventions. He has heard me say this before, but my analysis is that they are less than the sum of their parts. It is our job, as a new Government, to make good on our commitment to introduce a more allocative model, perhaps on a longer-term basis, with less central direction and more local decision making.

[Baggy Shanker (Derby South) (Lab/Co-op)]

Despite successive challenges from devastating local government cuts, the impact of lockdowns during the covid pandemic, and 14 years of under-investment from the last Government, we are fighting back in Derby. We have turned a corner, and I would say that we are actually on the up. We now have a Labour Government, a Labour East Midlands Mayor—who is key to this solution—and a Labour council.

Importantly, we have a really strong private-public sector partnership trying to deliver a cleaner, safer and more prosperous Derby, but there is lots more to do. Does the Minister agree that there is more scope to regenerate our city centres with a forward-thinking, collaborative Government who work with the private sector, but put working people at the forefront?

[Sir Roger Gale (in the Chair)]

Order. The Minister has a very limited amount of time to wind up. I appreciate that there will be hon. Members who have not said everything that they want to, but I ask them to resist the temptation of doing so if the Minister is to respond to the debate.

[Alex Norris]

I am grateful for the intervention from my hon. Friend the Member for Derby South (Baggy Shanker), and praise his work as leader of the council. This is politics-blind: we want to see a real alignment of national, regional or sub-regional government with the local authority and the local community, all working together in the shared interest and using tools and resources in the best way. That speaks to the new model that I talked about, as invited to by my hon. Friend the Member for Southampton Itchen (Darren Paffey). We want to bring resources together across Government—a theme mentioned by my hon. Friend the Member for Portsmouth North (Amanda Martin)—to get the best of it.

My hon. Friend the Member for Crewe and Nantwich (Connor Naismith) made a good point about local events. I am conscious that the biggest personal and professional embarrassment of my life took place in Crewe town centre 16 and a half years ago—it is a matter of public record—but nevertheless, I know it to be a vibrant town centre. The point made by the hon. Member for Bromsgrove (Bradley Thomas) about investment portfolios is exactly right, understanding that there should be, as the shadow Minister said, a global reach even to the most local communities. That is the environment we need to create.

Regarding the hon. Member for Strangford (Jim Shannon), I had a chance to talk to some business owners from Newtownards when I presented at the High Street Heroes awards for Retail NI, which does excellent work in this space. I am afraid that Ballymena won on that day, but I know the creativity is there. The key is—this is different, as he said, in a devolved sense—to get the tools and resources to the experts, who are the local community.

It is no secret that growth is at the centre of our mission and at the core of the new Government’s activity, especially local growth in towns and city centres, and the businesses in our communities that make our high streets successful. There is no one vision for that—it will look different everywhere, and that is a good thing—but there are common themes around safety, accessibility and the types and mix of businesses and services we want to see. I will refer briefly to a couple of those themes and to some of the work that has be done so far.

Prior to the election, we committed to our five-point plan on anti-social behaviour and shoplifting; banking hubs; late payments; revamping empty shops, pubs and community spaces; and business rates. That work is under way.

My hon. Friends the Members for Derby North, for Portsmouth North, and for Great Grimsby and Cleethorpes (Melanie Onn) mentioned vacancy. We will be bringing in high street rental auctions very soon—as my hon. Friend the Member for Derby North said, we need only secondary legislation—to give local communities the power, through their council, to bring vacant units back into use. I am really looking forward to that. We have also committed, as part of the English devolution Bill process, to go further with the community right to buy. I know there is a lot of interest in that; it is on its way. Those are real tools to help communities to shape place.

The theme of safety has come up frequently, and was mentioned by my hon. Friends the Members for Peterborough (Andrew Pakes) and for Southend East and Rochford (Mr Alaba). Combating violence in retail is a personal passion of mine. We know that that type of crime and violence in communities is a doom loop, because it creates more vacancies and makes people less likely to go out, which in turn creates an environment where such behaviour thrives.

As part of our safer streets mission, we have committed to a neighbourhood policing guarantee that includes returning patrols to town centres; 13,000 more police and police community support officers; and a named officer in every community for people to turn to. We want communities to have their say in how they are used and, most of all, to know who to talk to. To be clear, there will be tools to tackle people who persistently harm their local community—for example, new respect orders that have growing penalties and a specific offence of violence against retail workers. Those measures will make our communities safer to live in, work in and visit.

I am conscious that I am very near the end of the debate, which I think is at 4.14 pm. Is that right, Sir Roger?

[Sir Roger Gale (in the Chair)]

Given injury time for the Division, the debate will end at 4.18 pm, but the mover of the motion will need a couple of minutes to wind up.

[Alex Norris]

I might move my 1.5 speed down to 1.4 speed, then!

Hon. Members, including my hon. Friends the Members for Macclesfield (Tim Roca) and for Cowdenbeath and Kirkcaldy (Melanie Ward) and the shadow Minister, mentioned business rates, which we are very mindful of. As we have said, we intend to level the playing field between the high street and online giants to incentivise investment, tackle empty properties and support entrepreneurs in that venture. However, that measure has to be revenue-neutral because of the important work that business rates do.

Hon. Members invite me to make a slightly more fulsome commitment than I can today, because we are two weeks away from a major fiscal event. As they would expect, any significant tax announcement will be made then by the Chancellor, so I have to hold a little bit back. We have made the commitment we have made, however, and I have said what I have said today. We understand how important the issue of business rates is.

My hon. Friend the Member for Lowestoft (Jess Asato) talked about the loss of the final bank in Beccles, how that is a totemic moment for a high street or town, and the impact it has on footfall, which is at the heart of the viability and safety of businesses. We are very keen on and committed to banking hubs: we have committed to rolling out 350 by the end of the Parliament, and we expect 100 to already be in place by Christmas. I have no doubt that she will be an advocate for her community in that regard. Banking hubs could become not only important in arresting one of the major sources of decline we have seen over the years, but a very attractive anchor on a high street, helping to bring in other businesses. There is a lot to go for in the banking hubs space.

Hon. Members have mentioned planning. We do not have time to talk about the whole planning system, but we want an environment that promotes the new mix. The Lib Dem spokesperson, the hon. Member for Mid Dorset and North Poole, talked about not wanting to go back to the past, but it will not be, because we could order a book in two clicks on our phone—in this debate, heaven forfend. Instead, we know that the future will look different. Whether it is banking hubs, a mix of retail and leisure or, as the shadow Minister said, housing in the right conditions, it is about that new mix, and we want to ensure that communities have the tools and resources to shape place to ensure that they have that.

I will draw my remarks to a close so that my hon. Friend the Member for Derby North has time to sum up, and I will end where I started by congratulating her on introducing the debate. We have heard from hon. Members across the nations and regions of the UK. There are many common challenges, but there is a real enthusiasm for the powers and resources to shape place locally, and that is what this Government will deliver.

16:15

[Catherine Atkinson]

I thank the Minister, who I know cares deeply about this issue, and the shadow Ministers, the hon. Members for Ruislip, Northwood and Pinner (David Simmonds) and for Mid Dorset and North Poole (Vikki Slade). I also thank hon. Members for the insight and passion that we have heard from them. I was so proud to see so many of my hon. Friends elected to serve some of the most beautiful towns and cities in this country, and hearing now about the work they are doing to regenerate them and their huge optimism for the future has been a great pleasure. I will look to find further opportunities to ensure that we can continue this important debate.

I do not wish to cause any shock, but statistics tell us that a quarter of people have already started buying their Christmas presents, and I implore everyone to do that shopping in our towns and cities. There is a place for the app store, but when it comes to Christmas, the real store beats it every time. I thank all hon. Members again for coming and contributing so meaningfully to this debate.

Question put and agreed to.

Resolved,

That this House has considered the regeneration of city and town centres.