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Matt Vickers (Stockton West) (Con)
I beg to move,
That this House has considered Government support for high street business.
It is a pleasure to serve under your chairmanship, Sir Desmond. High streets and town centres play a huge role in our communities. They are a place where people come together, they define our sense of place, they can be a source of local pride and they can be home to a huge number of jobs and opportunities. Retail is the largest private sector employer in the UK. When coupled with the hospitality sector, they are some of the biggest drivers of social mobility. There are endless stories of those who started as shelf stackers or pint pullers making it to the boardroom, with jobs that are accessible to all and where hard work can pay off. Then there are the small family businesses—the people-powered engine room of our economy, with individuals who dared to take the risk and have a punt, who get up early to drive their businesses forward, creating jobs while adding colour, flavour and vibrancy to our town centres.
In recent times the rise of online shopping and changing consumer habits, coupled with the cost of living, have created a challenging environment for many businesses operating on our high streets. It is for that reason that now more than ever we should back the great British high street. It is also why it is so astonishing that the Government’s Budget not only failed to back our high streets, but actually seems to be beating them into extinction. The national insurance tax raid, the slashing of small business rates relief and the ending of the community ownership fund will do irreparable damage to our high streets, and that is before we mention the impact and costs of the Employment Rights Bill.
In the last Parliament I campaigned for the 75% relief for leisure, hospitality and retail businesses. That was game changing for many, but with the stroke of a pen the Chancellor slashed that relief, ending the lifeline that was thrown to many employers. It is estimated that that will represent a 140% increase in business rates for more than 250,000 high street premises in England. The average shop will see business rates increase from £3,589 to £8,613. The average pub will see its business rates increase from £3,938 to £9,451, and the average restaurant will also see its bill rocket from £5,051 to £12,122. That is a huge cost for small businesses in an already challenging environment that will prove insurmountable for many. But it does not stop there.
The Government’s national insurance tax raid—their jobs tax—is doing exactly what everybody said it would do. Job losses in the retail sector are already mounting up. Tesco has announced plans to axe 400 jobs. New Look is expected to close as many as 91 stores.
Wendy Morton (Aldridge-Brownhills) (Con)
I am grateful to my hon. Friend for bringing forward this debate. The point he makes is a really important one. He has mentioned New Look and Tesco. I think we have already heard comments from Marks and Spencer; HSBC is another group. We are hearing of job losses from some of those big high street names, but smaller businesses are affected as well. Does he agree that we cannot simply keep squeezing and squeezing businesses and thinking, “Well, they are making lots of profit; they can pass it on to their customers.” We squeeze them out of business, which means loss of jobs, loss of vibrancy on our high streets and loss of that sense of community that is so, so important.
Matt Vickers
As a former Woolies worker, I know only too well the consequences for businesses. Not only are we squeezing many businesses out of a future; there is a cost to be paid on the prices in those stores and costs on those jobs and the opportunities that they provide for young people and others to get on in life. There are huge costs to what has been done. We can only squeeze so far. The pips are definitely squeaking in retail.
Sainsbury’s has announced plans to axe 3,000 jobs. Retail and hospitality are already two of the most taxed businesses in our economy, but the sectors employ large numbers of people in entry-level or part-time roles, so are disproportionately hit. A CBI survey of business leaders found that 62% are slashing hiring plans. Almost half will be forced to lay off staff, and 46% are looking to delay pay rises for their workforce. Almost every Labour Government in history has left office with more people out of work than when they arrived. With these measures it looks like the Government are trying to set a record. All too often we see employment figures as numbers, but the jobs that will be lost as a result of this measure are not just numbers; they are families without the security of a pay packet, people stripped of ambitions, dreams and aspirations and left on the scrapheap.
The commercial director at the British Independent Retailers Association gave a realistic but depressing summary of what the Budget means for retailers. He said it was the
“Worst Budget for the high street in my 35 years working in retail”,
and that it showed a
“complete disregard for the thousands of…shop owners who form the backbone of our high streets. Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases; their business rates will more than double…while they’re hit simultaneously with employer National Insurance increases.”
The outlook is bleak for traders because of the Budget, but it goes beyond that.
The previous Government sought to support high streets by responding to changing consumer habits and investing to reconfigure our town centres and create other reasons to go to them. Funds such as the community ownership fund allowed people to take back control of their community assets and turn around vacant, lifeless high streets. They were about more than a lick of paint. They were about creating valuable community spaces and restoring pride in our towns.
Caroline Voaden (South Devon) (LD)
Dena, a constituent of mine who runs a small high street business, is seriously concerned about the possible removal of small business rate relief. Does the hon. Member agree that a commitment from the Government about the future of rate relief would give reassurance to high street business owners like Dena?
Matt Vickers
The hon. Member is right. For many small businesses, the specific relief for leisure, hospitality and retail has already been slashed from 75% to 40%, the end consequence being a more than doubling of what they are paying. It is just not affordable for businesses that are struggling to carry on employing people and doing business, especially with the other challenges that come their way. It is simply not affordable. It is the wrong thing to do, and it has a cost for our communities and those employers.
As I said, funds such as the community ownership fund were not just about a lick of paint but turning around vacant and lifeless high streets, and they created community spaces that were valued, restoring pride in our towns. What is more, community-owned assets are estimated to contribute £220 million to the economy each year.
My constituency of Stockton West saw real progress under the last Government in taking our town centres forward. In Thornaby, the £23.9 million town deal we secured from the last Government has allowed us to achieve many things, including the creation of a new vocational training centre, security and energy interventions in some of the most challenging housing, upgrades to cycling infrastructure and much more. It is allowing us to build a new swimming pool in the town centre, which will drive footfall to businesses.
For years, Thornaby’s skyline was dominated by the eyesore that was the disused Golden Eagle hotel, but now, thanks to money from the last Government and following a long debate with the council, it is finally coming down. Those moves are game changing for Thornaby. They will drive further footfall to local businesses and restore pride in our town centre.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
My hon. Friend is demonstrating what a great champion he is for Stockton West and why he has a reputation in this place for being one of the hardest-working MPs in Teesside. Does he agree that high streets are a lifeline for our local communities? In the Scottish Borders, I am fortunate to have a whole number of small and vibrant high streets, but their businesses are being hammered, not only by the Labour Government’s tax hikes through national insurance but the SNP Government’s tax hikes through business rates.
Matt Vickers
I could not agree more. Looking at the value of high streets, it is not just about businesses and jobs. They are places where people come together, and they can tackle isolation. There is also the feeling of pride in our town centres. Businesses only have so much money to give in tax, and it is going that bit too far now, to the point where we will lose businesses forever.
I will carry on my list of wonderful things that are going on in Stockton. In Yarm, levelling-up money from the last Government has meant that we are seeing nearby Preston Park improved and upgraded with new exhibition spaces. There are upgraded toilets, a café and more parking. We are sorting the disused aviary and creating a tribute to our railway heritage. This will drive visitor numbers to our area and complement the changes taking place in the high street, where we have seen the town’s skanky public toilets replaced. Streetscape interventions are planned to make the town centre more accessible, and we have gained a much-needed car park. The levelling-up money from the last Government has also helped the town council in Yarm to deliver on its ambition to renew our town hall, creating a visitor centre fit for the amazing high street that Yarm has.
In Stockton, £16 million of future high streets funding has allowed for the complete reconfiguration of our high street, also making way for our new £25 million diagnostic hospital. Securing the money for the diagnostic hospital remains my proudest contribution during my time as an MP, because I know the huge difference it will make to the people of Stockton. We ran a petition and gathered thousands of signatures to demonstrate public support. I was involved with the NHS trust and local authority officers drawing up the bid at its inception, and, when the bid was initially rejected due to a prolonged delivery timetable, I met the Secretary of State to hear his reasoning, and then, that same day, met directors from all the stakeholders to come back with a renewed timetable and a plan to unlock this investment.
In the very near future, the doors will open on that centre, which will provide 104,000 lifesaving tests, checks and scans to local people every year and, importantly, it will be yet another reason for would-be punters to come to our town centre and support local businesses.
Those interventions, funded by the last Government, are game-changing for my community and other communities across the country, repurposing our town centres to drive footfall and keep them as the vibrant hearts of our communities. But now the taps of governmental investment look to have been turned off: efforts to innovate and reconfigure town centres will be paused; our high street businesses are being battered by the Budget; and the consequences are there for all to see. Too many businesses are closing; too many jobs are being lost; and boarded-up high streets and town centres will eat away at the pride people can have in their communities and town centres.
I ask the Minister whether the Government really appreciate the challenges posed to high street businesses by the national insurance increase, and, similarly, the impact of slashing the business-rates relief for small leisure, hospitality and retail businesses. Will communities across the country ever again be able to benefit from the game-changing interventions brought about by the community ownership fund, the levelling-up funds, town deals, and other such funds, which allowed for those interventions to protect the future of our high streets?
As a former Woolworths worker, I could go on all day about the loss of iconic retailers, and about the impact of the Budget on post offices, on local pubs, and on opportunities for young people. And I will not even mention my Labour council’s ridiculous plans to introduce car parking charges in Yarm and Stockton high streets—I have probably said enough on that. I will leave it at that. Suffice it to say that I am a fan of the great British high street, and believe that securing its future should be a priority for any Government.
Sir Desmond Swayne (in the Chair)
We will start with an informal limit of five minutes.
Gregor Poynton (Livingston) (Lab)
It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Stockton West (Matt Vickers) on securing this important debate.
I will focus my remarks on Scottish high streets, which should be the beating hearts of our communities, because thriving high streets, and the businesses based there, promote thriving local economies. More than that, they promote a thriving civic culture, a genuine sense of pride among people about the place in which they live and the community that they are part of. Yet, right across Scotland, our high streets and our main streets have seen better days. But the decline of these high streets, main streets and town centres is not inevitable, and communities across Scotland are already taking innovative action to arrest that decline.
I will share just one example from my constituency. I recently had the pleasure of visiting West Calder and Harburn Community Development Trust, which is transforming the iconic Central Bakery in West Calder into the Scottish Co-operative discovery and activity centre. It is an incredible £6 million project that will create jobs, investment and training opportunities in the area, and will honour our co-operative roots.
A few months ago, I met with the traders from West Calder, and they have a vision for the main street that is about solidarity among their businesses, supporting each other to grow and thrive. Projects and businesspeople such as those demonstrate that, with vision, energy and determination, the decline of our town centres and high streets is far from inevitable—and, more than that, that rejuvenation is possible.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
My hon. Friend is making an excellent speech, because, for too long, places such as Slough have been painted with empty and boarded-up shop faces. Local businesses are of course at the heart of our community, but, after over a decade of cuts by the previous Tory Governments, and rampant antisocial behaviour, they have been struggling, and have been left hollowed out. Does my hon. Friend agree that allocating more resources and attention to places such as Slough high street is more vital than ever to boost the confidence of local businesses and residents and help revitalise town centres?
Gregor Poynton
Yes, I completely agree with my hon. Friend. I also think that his point about antisocial behaviour is a strong one; these town centres and high streets need to be places where people feel safe and want to spend time with their families.
As I was saying, the rejuvenation of our high streets and town centres is possible, but the problem in Scotland is that the Scottish Government have failed to share that vision, energy and determination. Sadly, there has been little in the way of action from the SNP but—as always with the SNP—over its 18 years in power there has been no shortage of reports. Since 2013, we have had the national town centre review, the town centre action plan, the town centre action plan year 1 progress report, the town centre action plan year 2 progress report, the town centre action plan review, the “A New Future for Scotland’s Town Centres” report, a joint response to that report with the Convention of Scottish Local Authorities, and the town centre action plan 2, which is a response to that response. Little wonder then that David Lonsdale, the director of the Scottish Retail Consortium, spoke recently on the need for coherent policymaking. The fact is that Scotland’s town centres are yet another casualty of the SNP’s mismanagement and chaotic government.
John Lamont
In a rare moment of consensus, I agree with the hon. Member’s criticism of the SNP Government. Does he agree with me that one of the changes that could be made in Scotland is to the planning system? If we allow our high streets to be more flexible in how they respond to challenges, that is a way to get new life into something that has been traditionally at the heart of the community.
Gregor Poynton
I completely agree. We need to be much more creative about how we use the units. Some of these businesses, frankly, are not coming back to our high streets so we should be honest about that and look at other options such as childcare, co-working spaces and housing in town centres to help rejuvenate those places and get them into action. That creative policymaking in planning is absolutely required.
The Scottish Government can take a number of steps. First, we need a level playing field between the small businesses based on our high streets and the global online retailers. Secondly, as has been discussed, more thought needs to go into the housing stock being built in our towns. With many buildings left empty, it is right to relax planning rules to make it easier to convert shop fronts into flats, while still ensuring quality housing for their residents. Thirdly, the way people work now has changed, and our town centres must reflect that, so we need to prioritise superfast broadband in our town centres. Local planning should also take childcare into account, ensuring the businesses can thrive in the places to be. Fourthly, councils should be encouraged to use the powers available to them to make ownership data on high street properties public, so that the community has the opportunity to step in and take over some units. Finally, as my hon. Friend the Member for Slough (Mr Dhesi) said, town centres will never thrive unless people feel safe in them, so a focus on safety is key.
All those ideas can perhaps contribute to making our towns better places to live; none would constitute a revolution, but they would be revolutionary for millions of people because, for too long, main streets in towns and villages such as Fauldhouse, Broxburn, West Calder, Uphall and others in my constituency have been neglected by the SNP Government. This can change: we can refresh and rejuvenate our high streets, but it will require fresh and rejuvenated leadership.
Sir Desmond Swayne (in the Chair)
Order. We have done our sums; Members have three minutes each.
Dr Al Pinkerton (Surrey Heath) (LD)
I would thank you for calling me, Sir Desmond, but you have given me a real challenge. Nevertheless, it is a pleasure to serve under your chairmanship. I thank the hon. Member for Stockton West (Matt Vickers) for securing this important debate.
We all know that for generations, high streets have been at the heart of our communities—providing spaces for our local businesses to thrive, for social connections to flourish and for economic growth to be driven from the grassroots, yet across the United Kingdom, high streets are in decline. Businesses are closing at an alarming rate, there is crime and antisocial behaviour, depressing footfall, and outdated business rate systems stifling local enterprise.
In my constituency of Surrey Heath, we have numerous high streets across market towns and villages, all of which are interconnected to a larger ecosystem. Camberley, our historic market town, has struggled to grow over the past five years. Despite being just 28 miles from central London, the town centre is suffering from increased vacancy rates, crime, antisocial behaviour and public infrastructure that persistently fails to meet the needs and expectations of local businesses and residents.
Our high streets should be hubs of activity, but they have been undermined by the long-term absence of Government support and mounting economic pressures. One of the greatest challenges that I hear about from local businesses is related to the broken business rates system. In 2025-26, for example, despite paying business rates in excess of £30 million, businesses in Surrey Heath will see just £900,000 of their contributions re-invested into their local community, which is just 3% of the business rates raised. The vast majority of revenue raised through business rates is spirited away from the place of generation and collection by central Government.
Of course, that is not in any way unique to Surrey Heath. It is a national problem that discourages investment in our high street while allowing online retailers and large multinationals to operate under a significantly lighter tax burden. The Lib Dems have long argued that the business rate system is outdated, unfair and penalises bricks and mortar businesses, which are vital to our communities,
Sarah Dyke (Glastonbury and Somerton) (LD)
My hon Friend is making a fantastic speech. He will know the importance of pubs to our high streets, particularly in rural areas, to drive footfall and support our rural economies. I spoke to a tenant of a pub in Castle Cary who is trying to develop a community space for social and cultural cohesion, at a time when the town is growing quite significantly. Does my hon. Friend agree that the Government’s proposed changes to business rates for properties with rateable values above £500,000 are potentially ruinous for many pubs on our high streets and in our rural villages?
Dr Pinkerton
I agree with that assessment. I have pubs in my patch that say exactly the same things to me. They are not in the same kind of more rurally sensitive communities that my hon. Friend refers to, but I fundamentally agree with her analysis. That is not a situation that is unique to Surrey Heath or to my hon Friend’s patch at all. I hope that the Government will commit to fundamental reform of that particular tax structure. Another issue that I am seeing in Surrey Heath is the growth of shoplifting and antisocial behaviour. It deters customers, it suppresses footfall and it makes it more difficult for businesses to operate and thrive.
In Camberley, our main market town, that is causing significant losses to businesses, and business owners tell me that they are tempted to move away from our community altogether because of the challenges they face. Police have issued dispersal orders across many market towns across this country, but I would like to ask the Secretary of State explicitly what assessment he has made as to the effectiveness of those particular measures. There should be far greater police visibility in our town centres to deter crime and to give businesses the encouragement and support that they need to thrive.
In conclusion, and because I only have a few seconds left, will the Minister say whether the Government have considered reforming business rates to ensure local communities retain more of the revenue generated by local high street businesses—as these communities expect to happen already? Also, what support is in place for high street businesses facing closure due to crime and antisocial behaviour?
Chris McDonald (Stockton North) (Lab)
It is a pleasure to serve under your chairmanship, Sir Desmond. I thank my neighbour, the hon. Member for Stockton West (Matt Vickers) for securing the debate and particularly for devoting so much of his speech to outlining some of the achievements of our local Labour council in Stockton in developing our town centres.
Stockton is known for having the widest high street in Britain, but it is the breadth of the vision of our Labour council that I would really like to share with colleagues today, because I think there are some opportunities that might be of benefit to other areas. Labour councillor Nigel Cooke said many years ago that the future of the high street is about leisure, culture and recreation as much as it is about shops, and Stockton Council have put everything behind achieving that. The single biggest, most noticeable thing anyone will see on Stockton High Street—or will not see if they go today—is the former Castlegate shopping centre, which was demolished by the council to much local opposition. That resulted in a much higher rate of occupancy, up to 90%, at the other end of the street, but opened up for the first time in hundreds of years a vista across the high street to the river, the Cleveland hills and Roseberry Topping beyond, creating an urban park that will be the centre of events in the future. Stockton has turned itself into an event town, hosting many events on the high street and in the other towns in the borough throughout the year.
That has given us the opportunity to attract new businesses into the borough. Contrary to the usual doom and gloom about Stockton we hear from the hon. Member for Stockton West, I took the opportunity to talk to the Stockton business improvement district before coming here today, and it told me that three businesses this week are planning to open up on Stockton high street in the hospitality and leisure area. We have great entrepreneurs such as Nathan Lee, who has bought the Teesside Princess pleasure cruiser and who is fizzing with ideas for things that he wants to do to bring more footfall to our high street in that area. Remember Me Tearooms were sort of blocked in beside that terrible shopping centre and will now increase capacity so that they can serve people who are visiting the park. It is not only happening in Stockton town centre, but also in Norton, another lovely town in our area, which is a basis not only for the daytime but the night-time economy.
That brings me to safety. In our area, under the last Conservative Government, police officer numbers reduced by 550 compared with under the last Labour Government, but I made a commitment to have more officers on the street. With the £2.4 million we are getting from the Government, there will be 40 additional officers on the street.
Matt Vickers
Does the hon. Member know how much national insurance contributions are costing our police force, and the impact that they will have on police numbers in Cleveland?
Chris McDonald
As the police and crime commissioner for Cleveland said, the increase in national insurance contributions will not have an impact. In fact, overall there will be an increase of 40 police officers in Stockton.
Chris McDonald
I will not give way any more. The hon. Member might want to listen to what I have to say and intervene later. There will be an increase of 40 police officers, including some dedicated to the high street, so that people feel safe. They did not feel safe under the last Government; that was what drove people out of the high street. Civic enforcement patrols and police officers will ensure that people feel safe in Stockton. This Government have also ended the effective decriminalisation of shoplifting for items under £200. Rather than standing with shoplifters, we are standing with shop workers.
I think that every child who grows up in Billingham thinks that every town in the country has an ice rink, but they do not. There is one in Billingham, and the council has invested in Billingham Forum, where it is. The last Government left the residents of Billingham in the shameful condition of having been promised £20 million, but with no money there, and I thank the Government for coming forward with that funding, so that we can bring 10 derelict buildings back into use and create new commercial and retail space.
What about the future? The council is creating a health and care zone alongside our new diagnostic centre. It is not a hospital—it is a centre. Teesside is hoping to have a medical school there as well, so we will have medical students there. I am supporting and championing these initiatives. Quite shortly, Billingham will be the UK’s largest centre for biomanufacturing. I encourage all colleagues to come to Stockton for the Stockton and Darlington railway 200th anniversary this year, and we will welcome them to our town.
Wendy Morton (Aldridge-Brownhills) (Con)
It is a pleasure to have the opportunity to contribute to this debate on high street businesses, and I thank my hon. Friend the Member for Stockton West (Matt Vickers) again for securing it. He clearly demonstrates what a local champion he is for his constituency. I have visited Stockton on many occasions, and I have even been to Billingham and been on the ice rink—more than one or two years ago.
High streets are the beating heart of our communities. They provide jobs, essential services and a vital sense of place, but all too often small businesses feel that they are fighting an uphill battle—grappling with rising costs, declining footfall, an ever-changing retail landscape and, of course, Government policy. Many of those challenges are not new, but they have been fuelled by covid, the cost of living crisis and rising inflation. I increasingly hear from businesses in my constituency that more needs to be done.
In Aldridge-Brownhills, we are fortunate to have a vibrant network of independent businesses, many of them family-run shops and essential services that our residents rely on every day. One of these is The Plaice to Eat, which is the most fantastic local fish and chip shop in Brownhills. If hon. Members are passing, I recommend its battered chips, with are a local Black Country speciality.
John Lamont
My right hon. Friend is making an excellent speech. On behalf of Scottish Members, can I also recommend a deep-fried Mars bar supper and a haggis supper, which are other delicacies that fish and chip shops might be able to provide?
Wendy Morton
My hon. Friend reminds me of a visit to Scotland, many years ago, when I tried a deep-fried Mars bar; I think it was in Blairgowrie. I must admit that I have never had deep-fried haggis—I am not sure about that one—but I have certainly tried the Mars bar.
Despite their hard work and determination, many businesses are struggling. I am in regular contact with local businesses, and they tell me quite candidly about the financial pressures they face. One issue that comes up time and again is the crushing burden of employer national insurance contributions. Quite simply, they are a tax on jobs. They actively punish the very businesses we should be supporting. Businesses are being squeezed into cutting staff hours and freezing recruitment. In some cases, as we have heard, they are shutting their doors altogether. Household names that we have heard today—WHSmith, New Look and HSBC—are among those affected. When they are gone, they are gone forever.
Let us be clear: this is not just an economic issue; it is a community issue. When a high street business closes, that affects us all. It means fewer jobs, less investment in our local economy and empty shop fronts, which drain the vibrancy of our centres. The Government cannot claim to support small businesses while quietly taxing them out of existence.
In Brownhills, one of the most pressing concerns is the derelict Ravenscourt shopping precinct. Once a thriving hub, it has now become an eyesore and for far too long has attracted antisocial behaviour. Local business owners and residents are rightly frustrated by the slow progress. I am, too. My local council and our councillors are working incredibly hard to deliver on this, with plans for redevelopment including the prospect of a new supermarket, but delays, the need for a complex compulsory purchase order, and drawn-out negotiations over remaining units are stalling much-needed investment.
Such stagnation is not unique to Brownhills. Across the country, high streets are being held back by vacant buildings that discourage footfall and undermine local economies, and the increase in employer national insurance contributions only adds to the difficulties. If this Government are serious about revitalising our high streets, there are two things they could do to make a big difference to all our high streets: look again at both employer national insurance contributions and business rates.
Josh Fenton-Glynn (Calder Valley) (Lab)
It is an honour to serve under your chairmanship, Sir Desmond. I thank the hon. Member for Stockton West (Matt Vickers) for securing this debate, which has been a wonderful tour of Members’ high streets, although, as a member of the Health and Social Care Committee, I cannot recommend a deep-fried Mars bar.
I pay tribute to those who, on top of running their own businesses, put time into a broader business community, such as Calder Valley’s town deal boards, including in Todmorden, Elland and Brighouse, and those who have helped their towns to thrive by having a bigger vision for what their towns can be. Even though I did not always see eye to eye with local businesses on parking charges when I was a councillor, those businesses show how the spark of an idea can end up as a dream that becomes part of a community of successful businesses, because success breeds success.
Calder Valley is a series of towns, all of which have their own personalities. A great proponent of this theory is the Totally Locally campaign, a national campaign that was founded in Calder Valley and remains active in the towns of Brighouse, Elland, Todmorden and Hebden Bridge. It extols the virtues of local businesses’ working together and the power of spending money locally. Their annual “Magic Tenner” campaign uses analysis from the New Economics Foundation that found that £10 spent in a local shop could be worth as much as £50 to the local economy, as those local shops use local suppliers, so the money is recycled again and again. The campaign highlights that by having participating businesses offer deals for a tenner, and we are going to see that operating throughout Calder Valley and across the country starting next week and running until 16 March. I urge people to take part in those Totally Locally campaigns. I pay tribute to the small-business owners of Calder Valley who started with a dream and ended up building a proud business community.
Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairship, Sir Desmond, and I congratulate the hon. Member for Stockton West (Matt Vickers) on setting the scene. I wish to give, as I always do, a Northern Ireland perspective to this debate. I know the Minister is eager to hear it, and I am pleased to provide it.
There are so many issues facing our local high streets; I will name just a few. There are the empty units that ultimately reduce footfall as well as consumer choice. There has been a dramatic increase in online shopping—in a couple of clicks, customers can now order nearly anything they want online. Local businesses are struggling with the high cost of energy, rent and business rates. The price of electricity and gas has to be sustainable for businesses for the future.
I want to mention two towns. Ballynahinch is a fantastic place to nip down to and do some shopping. Newtownards is the main town of the borough, where you can get everything you want in terms of home comforts and food. It has been a market town since the 1600s and I am pleased that, even today, we have the market every Saturday in Newtownards town. It brings in people from all over the Province and creates, by its very nature, a buzz around the area on the weekends.
I love to see the many independent retailers on the high streets, as they are the backbone of the economy. In Newtownards we have hairdressers, salons, fashion shops and family-run coffee shops. We have a coffee culture in Newtownards now as well. The charity shops cannot be dismissed, by the way, because there are always good products for sale. My mother was one of those people who was always keen to buy something for a pound—definitely an Ulster Scot, that’s for sure. We must continue to invest in public spaces to fill the gaps and engage further with local councils to see what more can be done to revamp business rates so that local shops can afford to stay open.
Mr Dhesi
After more than a decade of Tory Government neglect, the number of police community support officers has halved, and the number of special constables is down by more than two thirds since 2012. That has left places like Slough High Street plagued by an epidemic of antisocial behaviour. Does the hon. Member agree that this Government must continue to prioritise the safety of our high streets and ensure that they can thrive, especially by targeting shoplifting?
Jim Shannon
The hon. Gentleman is absolutely right—of course he is—about making sure that high streets are safe and secure. We have had a number of knife threats in shops in Newtownards, and if it had not been for the presence of the police there to stop that, it could have escalated to something very much worse.
I look to the Minister for his commitment to local businesses. I make this request of him, as I often do: will he engage directly with the Ministers in the Northern Ireland Assembly? I think it is better when we do things together. We can exchange good ideas and see how we can do things better.
Euan Stainbank (Falkirk) (Lab)
It is a pleasure to serve under your chairmanship, Sir Desmond. I have never kept it a secret that I am a proud Falkirk boy, I live in our town centre, I do most of my shopping on our high street, and a couple of hours before the Bairns kick-off on a Saturday at 3 pm you will rarely find me more than a few feet far from a pint at one of our town centre pubs. Businesses on Falkirk High Street have for years been calling out for support, whether it be on parking, where the SNP Falkirk council stopped the popular “Free after 3” parking scheme, or the closure of Falkirk town hall in 2022. That was previously a major earner for our town centre on show night. Luckily, a replacement town hall in the centre of Falkirk is finally progressing, with cross-party support. It is something I strongly endorse as a measure to regenerate our town centre. I acknowledge that for businesses across the UK there are challenges, but this is felt sharply in Scotland; about three shops a day closed in 2024.
I welcome this Government’s commitment to rebalancing the tax burden away from the high street and towards the out-of-town giants. I urge them to move quickly and firmly in that direction. The Scottish Government must also look at that urgently for our high street.
Gregor Poynton
Does my hon. Friend agree with me that the Scottish Government need a new direction on business rates, because not only have they not passed on the money—the Barnett consequentials that have come from the UK Government—to hospitality and retail, but they have failed the town centres over the last 18 years?
Euan Stainbank
Absolutely. This is a point that many hospitality businesses have made. It was a narrower scope for business rates relief that was passed in yesterday’s Scottish Budget Bill than was the case in the Labour Budget, which I welcomed. The Scottish Government should revisit that decision.
I pay tribute to the fantastic work that the Falkirk business improvement district does in our town. It knows how to deliver on local priorities; not only is it on the ground with its finger on the pulse of the challenges facing Falkirk High Street, but it is accountable to the town centre businesses in Falkirk that pay the BID levy. I thank Linton Smith, who is stepping back from the Falkirk Delivers board after an exceptional 30 years of service to our town. Elaine Grant and all her team at Falkirk BID are an asset to our high street.
Although the impact of energy shocks around the globe and the behaviour of energy giants have left consumers’ bills spiralling over the last few years, the impacts on high street businesses have also been clear. I have heard stories from Falkirk High Street of bills quadrupling over the winter, compared with where they were before the pandemic, and staff wearing two jumpers while working indoors. We must get serious across this House about building cheap, clean, British energy as soon as possible, so that both our constituents at home and those who open businesses on the high street can benefit.
Increasing criminal behaviour on our high street is another concern. In my teens and early 20s, I worked pulling pints and serving tables, and when walking back to my car or jumping on a bus I noticed an incrementally more hostile atmosphere. Unite Hospitality has led the way in relation to that trend, and I reiterate my endorsement of its Get Me Home Safely campaign, which I and, at the time, council colleagues passed at a meeting of Falkirk council in 2022. Hospitality workers have endured unacceptable threats and physical and sexual violence, and we must do more to work with employers to make our high streets safer.
My constituents Carolyn and Gordon are the long-term proprietors of Gordon’s Newsagents in Camelon. Recently, they were subjected to two incidents of theft, violence and vandalism when they refused to sell alcohol to those who had failed to provide identification. Crime impacts margins and increases the likelihood of shop closure.
I will finish on this point. Businesses comply with licensing conditions to protect young people and prevent crime and disorder. Their story signals that they often fail to receive the same protection in return. We need more police on our streets.
Sir Desmond Swayne (in the Chair)
We will now hear from Jas Athwal, after whom we will hear from Steve Darling. May I ask you, Mr Athwal, to be very brief?
Jas Athwal (Ilford South) (Lab)
Thank you for calling me, Sir Desmond. I thank the hon. Member for Stockton West (Matt Vickers) for securing this important debate.
If we want to revive our high streets, we need innovative solutions that bring customers back, as well as the basics of law and order, as has been mentioned. People must feel safe and it must be a pleasant experience. In my constituency of Ilford South, parking charges were preventing shoppers from visiting the high streets. Shops could not compete with the large supermarkets that offered free parking. As leader of the council, I listened to their local concerns and we intervened. Despite facing relentless cuts across the council, we introduced one hour of free parking. Of course, that one simple decision ensured that footfall came back to our high streets: one simple change made a huge difference.
Ilford is certainly home to growing businesses, but one of the biggest issues for businesses is the lack of footfall from outside the area. That is why accessible local transport is so vital. I welcome the Superloop introduced by the Mayor of London, as well as the Elizabeth line, which has turned Ilford into somewhere people flock to from miles around.
Before the election, a major barrier to budding entrepreneurs was the challenge of securing affordable premises. Last year, the Government launched the high street rental auction scheme, empowering local leaders to auction leases on premises that have stood empty for over a year. With one in seven properties on our high streets sitting vacant, the initiative is a crucial step towards reversing that trend. Despite the decline, our high streets can be revived and businesses can flourish once again through increased incentives for customers, lower burdens for businesses, a pleasant experience for shoppers and a level playing field for all.
Sir Desmond Swayne (in the Chair)
I call Steve Darling. Five minutes, please.
Steve Darling (Torbay) (LD)
I will not take up all that time because I know that time is pressing.
First, I congratulate the hon. Member for Stockton West (Matt Vickers) on obtaining this extremely important debate. The issue has been well debated so far. I will focus on antisocial behaviour and its impact, with communities feeling unsafe to go out into our town centres. I go back to the cuts, probably about 14 years ago, to the Supporting People budget. Effectively, 90% of that budget was binned by the Conservative council at that time. It was supporting people with drug and alcohol issues, as well as many other vulnerable people who needed support.
At the last count in Torbay, 40 people were sleeping rough across the bay, which is absolutely shocking. The number has more than doubled. Sadly, people sleeping rough make others feel unsafe, and therefore unwilling to go into our town centres. We need more funding to support people, but we also need the stick of more bobbies on the beat—more uniformed officers who can be seen supporting our communities.
I will turn to the main meat here. We have seen the steady decline of our town centres over decades. Out-of-town and now online shopping have had a devastating effect on our town centres. We need to ensure that local authorities have the ability to place-shape, whether that is having influence over stopping immediate transfer from retail to residential, or whether it is enhancing and speeding up the abilities of compulsory purchase orders. I am only too alive to one case in my constituency of Torbay. It straddled the Ukraine war, which meant that we saw a massive boost in the cost to redevelop Paignton town centre, and now that particular location is just a car park. We have that uncertainty, and if we want to drive that imagination for our communities, we need certainty, so please can we look at streamlining those compulsory purchase orders?
Finally, colleagues have mentioned the massive impact of the national insurance contribution hikes. Although the policy is still slightly over the horizon, its cold hand is sending a chill through the heart of our town centres. The Conservatives may have almost nailed down the coffin lid on our town centres, but I fear that the Labour party will actually put in the last nail with NICs.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate my hon. Friend the Member for Stockton West (Matt Vickers) on securing this important debate. He is right: high streets are the beating heart of communities and local economies across the whole of the United Kingdom. I see that in my own constituency, with the wonderful mix of retail, hospitality and services on high streets such as Wendover, Princes Risborough and Great Missenden, as well as those important smaller retail parades in villages such as Prestwood and Haddenham. They really are, as others have said, the beating heart of our local economies and communities.
Unlike Labour, the Conservatives want businesses to keep more of their hard-earned money to grow and invest. In Government, we delivered the biggest long-term business tax cut in modern British history, to the tune of £11 billion per year. We froze the small business multiplier, saving an average shop £1,650 a year, and extended the retail hospitality and leisure relief for a year, which directly supports high street businesses. We took a third of properties out of business rates completely through small business rate relief and froze the tax rate for the last three years. We introduced a 75% business rate relief for retail, hospitality and leisure, meaning that the business rates of the average pub in England were £6,650 lower than they would have been.
Meanwhile, breaking their manifesto promise not to increase the amount of cash raised by the levy, this Labour Government are delivering a stealth tax rise of £900 million this year and £2.7 billion next year through higher business rates. Rates paid by thousands of high street businesses will more than double next year as a result. Unlike Labour, we in Government cut national insurance contributions for businesses. We abolished an entire class of NICs and cut the NIC top rate from 9% to 6%. Labour’s first Budget launched a £25 billion tax raid on British business, breaking its manifesto promise and imposing a jobs tax. It has increased employer national insurance contributions, clearly breaking commitments made throughout its general election campaign. That jobs tax will increase the cost of employment to our high street employers and everyone else by £900 for the average worker.
Labour’s Budget nearly halved business rates relief for retail, hospitality and leisure, more than doubling the business rates of eligible businesses. Atlas Group estimates that the reduction from 1 April of the business rate discount for retail, hospitality and leisure firms in England from 75% to 40% in the ’25-’26 financial year will mean an average 140% rise in business rate bills for more than 250,000 high street premises in England. The average shop will now see its business rates bill spiral from £3,589 to £8,613 next April for the ’25-’26 year. The average business rate bill for pubs will increase from £3,938 to £9,451. Restaurants will see their average bill rising from £5,051 to £12,122.
In short, this Labour Government have
“complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets”;
not my words, but those of the commercial director at the British Independent Retailers Association. Labour looked business owners in the eye and told them it would be on their side, and at the first opportunity it imposed a slam dunk of measures to make it impossible to grow, to invest or even, in some cases, to survive. The Labour Government have zero credibility on this issue now. They are not the champions of our high streets that they want to proclaim themselves. The nation took them at their word, and their word has proven to be a gross misrepresentation.
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
It is a pleasure to serve under your chairmanship, Sir Desmond. Before I respond to the debate on behalf of the Government, I should say that I am a proud member of the Union of Shop, Distributive and Allied Workers, a union that works tirelessly on behalf of its 360,000 members to negotiate better pay and conditions for shop workers throughout the country.
I thank all the many Members who participated in this worthwhile and timely debate, and pay tribute to each and every one who spoke compellingly about the high streets in their constituencies. I also pay tribute to the hon. Member for Stockton West (Matt Vickers) for securing the debate and thank him for speaking so eloquently—I particularly enjoyed his reference to the “skanky toilets”—in support of our high streets. He has shown considerable interest in this policy area for many years, not least as chair of the former all-party parliamentary group for the future of retail. It is fair to say that he has been a persistent champion of high streets, not just in his constituency, but across the country, so his insights and views are always welcome.
I thank my hon. Friend the Member for Livingston (Gregor Poynton) for speaking so powerfully about the perpetual review roundabout that we see in Scotland in relation to planning and, alas, the Scottish Government’s approach to the high streets. I acknowledge the real, if temporary, cross-party consensus identified by the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont)—albeit that I am not sure there is quite as wide a culinary Caledonian consensus on the health and dietary benefits of the deep-fried Mars bar. I pay tribute to the hon. Member for Surrey Heath (Dr Pinkerton) and confirm that we share his ambition to improve safety on our high streets—an issue to which I shall return.
I also pay generous tribute to my hon. Friend the Member for Stockton North (Chris McDonald). There is no stronger champion than he for Stockton and for the interests of its residents. I was intrigued to hear about the three businesses that are planning to open on Stockton high street. That is indeed welcome news, and I commend and congratulate my hon. Friend on bringing it to the attention of the House. He also raised the critical issue of policing and public safety—again, I shall return to that.
The right hon. Member for Aldridge-Brownhills (Wendy Morton) spoke about the fiscal measures announced in the Budget, to which I will also return, although I note that she offered no alternatives in the course of her speech. My hon. Friend the Member for Calder Valley (Josh Fenton-Glynn) added a perhaps necessary health warning about deep-fried Mars bars and spoke passionately about the Calder Valley businessmen and women who started with a dream and built a proud business community. There could be no more eloquent description of the experience of many entrepreneurs on high streets the length and breadth of the United Kingdom.
Reference to the whole of the United Kingdom brings me to the hon. Member for Strangford (Jim Shannon), who described his mother’s careful management of the family budget—an all-too-common concern during the cost of living crisis of recent years, after 14 years of Conservative economic mismanagement. Be assured, the Government want to ensure that businesses in every part of the United Kingdom—in Northern Ireland, in Scotland, in Wales and in England—benefit from measures that deliver economic stability and the Government’s mission of growth.
My hon. Friend the Member for Falkirk (Euan Stainbank), as both a proud Bairn and a self-described Falkirk boy, described where and how he spends his Saturday afternoons. I am not sure that every Member of the House would be wise to do that; none the less, it was helpful and educative for the rest of us to understand his commitment to the Falkirk community. He paid generous tribute to the hospitality workers in Falkirk and in communities and high streets the length and breadth of the country and highlighted the dangers they face. I concur that a new direction for Scotland is needed, not only in relation to our high streets, planning and retail crime, but much, much more fundamentally.
My hon. Friend the Member for Ilford South (Jas Athwal) spoke powerfully, and I noted his remarks carefully. The hon. Member for Torbay (Steve Darling) recognised a truth sadly missing from some of the other speeches when he acknowledged, candidly and rightly, that high streets have faced challenges for decades. These are constantly changing retail offerings that we need to recognise are subject to pressures far beyond the reach of individual Governments, but reflect changing patterns of life, of culture and of leisure.
The Opposition spokesman, the hon. Member for Mid Buckinghamshire (Greg Smith) spoke of high streets as the beating heart of our communities—on that at least we agree—before making a speech that omitted the fact that Liz Truss crashed the economy and left not only an impaired fiscal balance sheet, but a flatlining economy and devastated public services. Again, I waited with bated breath for the Conservatives’ official spokesman to offer their fiscal alternative, in the teeth of the criticism directed toward the Government—but alas, I waited in vain.
Mr Alexander
Time is against me. I want to address as many of the points raised today as I can, but before I do, I want to say a bit about the Government’s wider commitment to supporting our high streets.
Hon. Members in all parts of the House agree that high streets play a vital role in providing a place for communities to come together, to work, to socialise, to shop and to access essential services. The sectors that underpin the high streets play a huge role in our broader economy. The retail sector directly supports some 2.9 million jobs across the UK, and in 2023 generated £110 billion gross value added. The UK hospitality sector employs about 2.2 million people; it is estimated to have contributed about £52 billion GVA in 2023, and it remains a key driver of the UK’s tourism industry.
Let us be clear: high street businesses can prosper and grow only on firm foundations of economic stability—and that, alas, is certainly not what we inherited last July. Instead, we faced a £22 billion black hole created by the previous Government, featuring hundreds of unfunded pressures on public finances and countless uncosted measures that failed to withstand even the slightest scrutiny. The hon. Member for Stockton West spoke eloquently about his experience working for Woolies, but I respectfully point out that Woolies ceased to trade under a Conservative Government—a fact he omitted from his speech.
At the Budget, my right hon. Friend the Chancellor made some, frankly, very difficult choices, but decisions were necessary to fix the foundations of a broken economy—
Mr Alexander
Along with every Member who has spoken in this debate, the Government want to support strong, thriving, mixed-use high streets that generate high footfall and high degrees of social capital in their local communities. That is why we are focused on a five-point plan to breathe life back into local high streets—high streets that, if we are candid, have faced challenges from changing retail patterns for some decades now. The plan includes addressing antisocial behaviour and retail crime—an issue raised by a number of people around the Chamber—as well as reforming the business rates system, working with the banking industry to roll out banking hubs, stamping out the vexed issue of late payments and empowering communities to make the most of vacant properties, which was also raised frequently this evening.
In our first seven months in office, we have made good progress with our plan. As the hon. Member for Mid Buckinghamshire knows, just yesterday we introduced the Crime and Policing Bill, which will scrap the effective immunity for low-value shoplifting and do more to protect retail workers from assault; I hope it can find consensus in all parts of the House. We are providing additional funding to crack down on the organised gangs who target retailers and have done so with worrying frequency over recent years. Only this morning, we announced the expansion of the sector-based work academy programme—SWAPs—to create 100,000 more places over the next financial year. That will provide opportunities for participants in England and Scotland receiving certain benefits to train towards a job in hospitality and other high street sectors. We followed through on our promise to reform business rates and level the playing field for high streets across the country with lower tax rates for retail, hospitality and leisure properties, and we want to build on that momentum with our upcoming small business strategy, which will set out how we intend to support our small businesses on the high street and beyond.
Our strategy comes with a clear recognition that the way we work and live is changing in a fast-evolving landscape. We must therefore ensure that our approach reflects the continually changing reality of our high streets. We have to make sure that we are supporting services that are fit for modern life, recognising that—for all the eloquence with which people have spoken this evening—no two high streets are in fact the same.
Let me now turn to some of the specific issues that hon. Members addressed, including, critically, crime and antisocial behaviour. Business rates reform and our approach to national insurance contributions are some of the economic levers taken by the Treasury to support the high street; but to create thriving high street environments takes a whole-of-Government approach. The Department for Business and Trade is working closely with other Departments, particularly the Ministry of Housing, Communities and Local Government and the Home Office, to co-ordinate activity that supports high streets and their businesses.
A vital element of creating the thriving high streets of which so many Members have spoken is ensuring that they are a safe and comfortable environment both for business leaders and for shoppers. I have mentioned this week’s introduction of the Crime and Policing Bill, a central part of the Government’s plan for change and indeed our safer streets mission. The Bill will ensure that the police and courts have the necessary powers to help to tackle assaults against retail workers and shop theft. It will create a stand-alone offence for assaulting a retail worker, in order to protect staff, measure the scale of the problem and drive down retail crime. It is simply unacceptable that shop theft, and violence and abuse towards retail workers, continue to rise. We ask retailers to perform a significant act of public service—