High Street Rental Auctions

Wednesday 26th February 2025 Westminster Hall

[Martin Vickers in the Chair]

10:09

[Jessica Toale (Bournemouth West) (Lab)]

I beg to move,

That this House has considered Government policy on high street rental auctions.

It is a pleasure to serve under your chairmanship, Mr Vickers. As many Members know, our high streets are the beating heart of our communities. They are not simply places where people shop. They are gathering points and cultural centres and they serve as symbols of local identity. They fuel local economies, support countless small businesses and provide many thousands of jobs. They inspire confidence in our communities and encourage residents to stay connected to the areas they live in.

For too long, our high streets have been neglected. They have become defined by the number of empty shop fronts and “to let” signs they sport, rather than by the vibrancy and the footfall that once sustained them. When people stop visiting town centres, antisocial behaviour and crime are allowed to flourish, creating vicious cycles that benefit only those looking to create disorder and discord in our communities.

Town centres were once a great source of pride for our communities, but their decline has had real consequences. We cannot deny that the retail landscape has changed, and it is a challenge to adapt to this new reality. The rise of online shopping, out-of-town retail parks and over a decade of austerity have left town centres struggling to adapt. This is a national story that I am sure Members across the House will recognise, and it is one that characterises our experience in Bournemouth West.

My constituents are rightly frustrated by the state of our town centre. It is the No. 1 issue that people bring up on the doorstep and in conversation. Time and again, I hear that people feel unsafe—they are worried about reports of drug use and homelessness—or that there is nothing for them to do in the town centre. Empty shops, a lack of variety and overall decline have led many people to change the way that they interact with Bournemouth, and sadly, many of my constituents have not visited the town centre in many years due to its falling reputation.

Bournemouth was once known for its vibrant shopping streets, its summer tourism and its cultural heritage. Long-time residents yearn for the days when we could walk down the old Christchurch Road and pop into Beales or Dingles, or head over to the Westover Road, which was often referred to as the Bond Street of Bournemouth, with its luxury brands and high-end goods. That is the Bournemouth I remember from my childhood—a town that was thriving and safe. My parents never thought twice about letting me get on the bus or the train to spend the day in Bournemouth with my friends.

Over the past decade, we have seen an increasing number of shop closures and long-term vacant premises, with no apparent plan for repurposing or reuse. Changes in consumer behaviour, the arrival of Castlepoint—an out-of-town shopping centre—and the cost of living crisis have all had their part to play, and we currently face a staggering 15% vacancy rate of shop fronts, which is far above the national average. The failure to revitalise these spaces has more than just economic consequences; it has major implications for the way people feel about our town.

[Leigh Ingham (Stafford) (Lab)]

I thank my hon. Friend for securing a debate on an important issue that is raised regularly with me in Stafford. I have spoken to a local small business owner, Alison, who is concerned about the vibrancy of Stafford high street and told me that a shop nearby had been closed for over two decades. Does my hon. Friend agree that these powers are long overdue and that by giving local authorities greater control, the Government have taken a vital first step towards revitalising our high streets?

[Jessica Toale]

The story my hon. Friend tells about the shop in her constituency is one that I am sure many of us recognise from our own. High street rental auctions can have a transformative effect in many towns around the country, and I will come on to that.

Despite the challenges we face, Bournemouth has much potential and so much to offer. Its beach was recently rated the 12th best in the world by Tripadvisor users. It has amazing examples of heritage architecture just waiting to be repurposed. If we were to design the town of the future, it would have the beautiful gardens that run like a central artery through our town, connecting the beach to the town hall.

I am pleased to say that there are lots of green shoots to celebrate. Bobby’s, in the Square, has been repurposed into a multi-use space, including Patch, a collaborative workplace for small businesses and start-ups. That has huge potential to serve as a community hub, hosting local events—including one that I am hosting next week on women’s safety in the town centre—and providing support to new entrepreneurs. The former House of Fraser building is also being converted, into student accommodation, and its large commercial space is being converted into smaller units, making them more accessible to a wide range of businesses.

The Ivy has arrived. Home-grown businesses such as Bad Hand Coffee and Naked Coffee have transformed unused spaces and are supporting an ecosystem of retail and hospitality. We have a burgeoning tech and creative industries sector, supporting the town and making use of the talent coming out of our world-leading universities and colleges. I will also namecheck Trove, Calabrese, Revival café and Brazilian Snacks. They are all local businesses making an outsize contribution to our high street. I encourage as many of my local residents as possible to rediscover and to champion all the good things that are happening in Bournemouth.

However, the scale of the challenge is still enormous. For too long, Governments have left it to the market, which has seen the managed decline of our high streets. To tackle that challenge, we require urgent action, collaboration between central and local government as well as the private sector, and creativity in how we imagine our high streets and town centres of the future—with a mix of culture, retail, hospitality and community spaces.

That is why I welcome the Government action to introduce high street rental auctions. They are taking the action that the last Government failed to take and giving local authorities the power to bring vacant commercial properties back into use. I am proud that Bournemouth, Christchurch and Poole council has been selected as an early adopter for the scheme.

[Catherine Atkinson (Derby North) (Lab)]

We are seeing some really exciting investment in Derby city centre, with a new performance venue, a new business school and the reopening of our market hall, but like so many city and town centres, we struggle with too many empty shops. Does my hon. Friend agree that high street rental auctions could be a really important tool in tackling empty shops, and how does she think that councils can be supported to use these new powers?

[Jessica Toale]

Yes, these auctions are a promising step forward and could be transformational for many towns across the country. I will come on to the local authority points in a moment.

The auctions require landlords to lease properties within a certain timeframe, preventing them from leaving spaces empty for years on end. The time restriction of 365 days in a 24-month period will help to tackle the persistent problem of vacant properties, which is a huge opportunity for communities such as mine in Bournemouth West. By enabling councils to take action, we can reintegrate those spaces into our high streets and bring them back to life.

However, it is crucial that we think about the long-term sustainability of this approach. I have been assured by landlords and agents in my constituency that there is a genuine desire to fill empty commercial properties, but business rates, antisocial behaviour and even parking charges constitute barriers, so to landlords it is important to say that the approach should be a tool of last resort. It is clear that such measures should be used only once a genuinely collaborative and good-faith approach between landlords and councils has been exhausted. The auctions should be seen in the context of other measures to which this Government have committed, ranging from supporting small businesses and tackling crime and antisocial behaviour in our town centres to the long-term reform of business rates. I am pleased that we are making progress on all these issues.

High street rental auctions are not just about filling vacancies. They are about creating vibrant, sustainable environments for businesses, residents and visitors alike, so can my hon. Friend the Minister provide assurances that high street rental auctions will not see our high streets filled with more vape shops and American candy shops? [Hon. Members: “Hear, hear.”] They can often be fronts for money laundering and other criminal activity. Additionally, we need to ensure that our local authorities have the resources and capacity to manage these changes.

[Neil Duncan-Jordan (Poole) (Lab)]

I thank my hon. Friend and constituency neighbour for securing this important debate. Our local authority, Bournemouth, Christchurch and Poole council, is part of the early adopters programme for this scheme, but when I contacted it recently to ask about the number of properties that it had identified in our area that were going to be part of the scheme, it told me that it was just one. Does my hon. Friend agree with me that we need to see a more ambitious approach from local authorities for the scheme really to be worth while?

[Jessica Toale]

I thank my hon. Friend and neighbour from Poole for the intervention. I certainly hope that our local authority will take an ambitious approach and I am working very closely with it to help it to identify areas within Bournemouth town centre. BCP council has expressed concern about the cost of having to implement such measures, and the potential for expensive legal challenges it may face as a result. I would be grateful if the Minister would outline how we can mitigate some of those issues, and how the £1.5 million that has been set aside is intended to be used.

I underline that this is a moment for action. The powers granted to local councils are a great step forward, but we need to ensure that the changes are not simply superficial. We must think about how we can make our high streets and the commercial offering work for everyone —for businesses, our communities and the economy as a whole. I will continue to champion the revitalisation of our high streets in Parliament; by working together, we can ensure that our high streets become the thriving, vibrant centres that they were always meant to be.

It is fantastic to see my hon. Friends the Members for Bassetlaw (Jo White) and for Mansfield (Steve Yemm), and my hon. Friend the Member for Darlington (Lola McEvoy) was meant to be here as well. Their local authorities are also early adopters of the scheme. I look forward to hearing their contributions and to continuing this important conversation. I also encourage other Members to speak to their own local authorities and push them to join this initiative.

We have a real opportunity to break the vicious cycles that I mentioned at the beginning of this speech, and to turn them into virtuous circles, where we fill our shops, increase footfall, reduce antisocial behaviour, and again build pride in our town centres and high streets across the country.

[Several hon. Members rose—]

[Martin Vickers (in the Chair)]

Order. I remind Members to bob if they wish to speak. If we are to accommodate all those who have given advance notice, we need to restrict contributions to about six or seven minutes. Members should bear that in mind. I call Gideon Amos.

14:41

[Gideon Amos (Taunton and Wellington) (LD)]

I congratulate the hon. Member for Bournemouth West (Jessica Toale) on bringing this key issue for our town centres to Westminster Hall.

I was elected on a platform that focused in part on bringing inward investment to Taunton and Wellington, and that passion is close to my heart. Taunton and Wellington town centres are already attractive and vibrant places to visit, to shop and for leisure. Occupancy rates in Taunton town centre have increased from 85% to 90%; more new businesses are moving in. Somerset County Gazette reports seven new businesses in the town centre in the past 12 months: Cornish Bakery, Koottaan, Desparia, Somerset Bakehouse, Toys “R” Us, Drippy Bear and Islands Caribbean restaurant—not a vape shop among them, which is good to see for our town centre.

In Wellington, street food and food festivals bring people in from far and wide, and a new banking hub has opened. My only objection to the new banking hub, which is great news for Wellington, is that it is run by the Post Office, with a sign above the door saying “Post Office”, but there is no post office inside. Wellington still needs a post office, and we hope that the Government will see the light and decide that buildings with “Post Office” on the outside should contain a post office. We will continue working on that as hard as we can.

On Sundays, Taunton has a fantastic new independent market, which brings people in from far and wide. However, one building is a particular issue for our town centre. It was built as a W & A Chapman department store in 1938, and was substantially remodelled in the ’60s, just after Debenhams took it over in 1959. It is a large, handsome building, and a real landmark in the centre of our town—one of the biggest buildings in the heart of our town centre, if not the largest. However, it has stood empty, sadly, for around four years now.

I welcome the high street auction provisions in the Levelling-up and Regeneration Act 2023, which could be extremely useful. However, the powers to allow councils to carry out high street rental auctions are subject to a number of restrictions. Auctions apply to commercial premises that have been vacant for at least one year out of the past two, which is a reasonable requirement—so far, so good. They must also meet a suitability requirement—this is getting a bit doubtful. Then there are process and landlord obligations: local authorities can issue a final letting notice compelling a landlord to rent the property via auction, which is obviously a good move. The property must also be offered at a fair market rent, which is reasonable. Then there is an appeal mechanism, so there are more catches. One potential challenge is that the auction’s success depends on tenant demand. Who will define tenant demand? If we do not attempt an auction, how will we discover what tenant demand is? The appeal process provides a number of areas for challenge by the landowner.

Whether or not high street rental auctions are suitable for that particular Debenhams building, I am concerned about the number of exceptions from the powers. The guidance says:

“High Street Rental Auctions will not be suitable for all high street premises; for instance, large former department stores may be subject to long-term, complex redevelopment plans which may be negatively impacted by being subject to inclusion.”

Presumably, any owner of a former department store could say, “My department store is subject to complex, long-term redevelopment plans, which could be negatively impacted by a high street auction.” A whole class of town centre buildings—some of the biggest we have—therefore seem to be excluded from high street rental auctions, which is a real drawback and a real shame.

The guidance also says that auctions will not be appropriate

“should the local authority consider that there is not likely to be a sufficient tenant base and demand for the premises”.

As I said, how do we know what the demand for the premises is if we have not attempted to market them through high street auctions? I urge the Government to look at the guidance and the powers, and to see whether they could be applied to some of the biggest, most iconic buildings in our town centres, which are of course empty department stores.

Even in a healthy town centre such as Taunton’s, the presence of one large building that remains empty can be a real problem. Whether or not it is suitable for a high street auction, the building in question in Taunton really needs attention; it needs to be dealt with, because it has been empty since 2021. Planning permission was sought in 2020 to demolish it and build apartments. That application was withdrawn, but it could have been refused. The Twentieth Century Society praised the building’s architecture and made it subject to a listing application, although it did not quite make the grade. It has an important place in the hearts of people in Taunton. It has 7,000 square metres of floor space, so it is a big building. Many believe that it could be saved and reused. It occupies a fantastic location, with the River Tone on one side, one of the key town centre streets on the frontage, and our fantastic Taunton castle on a third side, which has been the historic seat of government in the county of Somerset for hundreds of years.

One reason why the building might be suitable for refurbishment is that demolishing it would bring a requirement to carry out archaeological investigations. During the previous application, Historic England produced one of the lengthiest representations I have ever seen, which suggested that investigations would be required. If the building is not demolished, that work would not be needed, which would potentially be a much cheaper operation for the owners.

We have tried to engage with the owners of the building, but it has been challenging. The town council and groups of architects have brought forward schemes for the building, but they have been unable to get floor plans or really engage with the owners. I reached out and wrote to the owners via recorded delivery, email and all the other methods I could think of, and I was pleased that Ropemaker Properties recently came back to me. I am grateful to the company for offering to meet me and Taunton town council to discuss how this important building can be brought back into use, and for putting that meeting in the diary.

Finally, I urge the Government to think about the extent of these powers and whether big department stores should be completely excluded from them.

14:48

[Steve Yemm (Mansfield) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank my hon. Friend the Member for Bournemouth West (Jessica Toale) for securing this important debate.

It was the honour of my life last summer to be elected as the local Member of Parliament in Mansfield, partly because some of my earliest memories are of my older cousins taking me into the thriving, beautiful town centre, which at that time hosted a bustling local business scene. My favourite was the Miss Candy sweet shop—it was not the American kind—which my cousins would take me to before we went to the Granada cinema in Mansfield town centre.

Sadly, over the years, our high streets have lost a great deal of the sparkle I remember as a child. They have become a shadow of their former selves, with one in seven high street shops closed across the country. Mansfield is no exception, with one in six closed, which is not very different from what we see in other parts of the country. Many of the big-name anchor retailers mentioned today—Beales, Woolworths and Debenhams—have all gone from Mansfield. Unfortunately, many of the small businesses that have been in the town for generations have also disappeared in recent years. Antisocial behaviour remains an issue, with vacant, boarded-up shops becoming an eyesore, often attracting those who want to loiter and sometimes cause trouble. Police cuts under the former Government also meant that local officers were less able to patrol and intervene.

It is not inevitable that our towns will continue this degree of decline and deterioration. In Mansfield, we of course want a thriving town centre with a mix of traders, facilities and community assets that attract people to the town. I therefore thank local organisations, such as Mansfield district council, which is working hard with organisations like the Mansfield BID—the business improvement district—to improve our town, including by converting the former Beales department store into a new community and civic hub. This once-in-a-lifetime opportunity for renewal will transform the former Beales into a hub hosting a range of organisations —including educational institutions—public services and opportunities for enterprise, health and wellbeing amenities.

I very much welcome that, but we need to do more. That is why I stood as an MP, making it one of my missions to revitalise our town centre as part of my deliverable local plan. I am therefore proud to support a Government who have already taken decisive action to support that effort, including by committing to a £20 million investment for Mansfield as part of the long-term plan for towns, permanently lowering business rates and providing more money to tackle retail crime.

The Government are also introducing—this is the topic we are discussing today—powers to establish high street rental auctions. As has been mentioned, that new and creative policy will help to regenerate our high streets. Having engaged with the Government, I am delighted that Mansfield has been chosen as one of the first areas to participate in this initiative. These trailblazing new powers will allow Mansfield district council to tackle persistently vacant properties by putting leases up for auction, preventing disengaged landlords from sitting on empty properties, and bringing vacant commercial properties back into use.

That will have a transformational impact on our town centre, making units available for all manner of organisations, from local entrepreneurs to community groups. It will help to re-energise our town centre in a way we have not seen for a generation or more. Although the project is in its early days, the Government recently made funding available to Mansfield district council, which is currently engaging to deliver on this new approach.

Having spoken to officers involved in delivering the policy in Mansfield, I understand that they have concerns about how the scheme will be implemented—notably around the council’s flexibility in spending the money allocated to deliver the policy. In the council’s opinion, some minor changes could make a significant difference in supporting it to deliver this important policy. As such, I would be grateful if the Minister could meet me and officers from Mansfield district council to discuss those changes further in a constructive manner.

To conclude, I thank the Government for supporting Mansfield in this way, and I look forward to us working together so that we can support our town centre. That shows what a Labour Government, a Labour MP and a Labour council, working hand in hand, can deliver for people across the country, including in Mansfield.

14:55

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mr Vickers. I thank the hon. Member for Bournemouth West (Jessica Toale) for securing today’s debate. She has been extremely busy today: she asked a question at Prime Minister’s questions, and now she is leading this debate, so well done to her. I should just say that I have not had a PMQ in five years, so she has done really well—[Laughter.] Not that I am disappointed, by the way.

It is a pleasure to participate in the debate, because I am really keen on this scheme. When I saw the title for the debate, I said, “What exactly are they after?” We do not have the scheme in Northern Ireland, but I think I am going to present it to my Minister at the Northern Ireland Assembly and make my local council aware of it, because it could benefit my constituency of Strangford and other constituencies right across Northern Ireland. It shows a way forward; the hon. Lady referred to that, as did the hon. Member for Mansfield (Steve Yemm), and others will do the same.

I very much respect the steps the hon. Lady has taken to rejuvenate local high streets and town centres. Those places are the pillars of our communities, and we must ensure that they are protected. I am probably fortunate to have a fairly thriving town centre in Newtownards, although I have recently noticed an increased number of vacancies, which we have not had for a great many years. That tells me that there is a trend starting, and one that we need to be aware of. That is why I want to take this debate a wee bit further, and I will do so.

The Government’s high street rental auction initiative is a great way to improve high street footfall. In my constituency of Strangford, for example, many wonderful community groups and small businesses could really benefit from having a central space to undertake their work. I have some ideas on how we could bring that about through community initiatives, and perhaps with other groups that would be keen to do something in the town.

Of course, as others probably have, I have written to Chick-fil-A, to Popeyes and to some carry-out stores to introduce them to my constituency. They make plans three or four years ahead, so I am hoping that my letters from the last year will bring those names to Newtownards —they are something Northern Ireland has very little of—and that we can advance things. The HSRA scheme does not apply directly to Northern Ireland, or to the devolved nations, but we have a different way of selling our residential and commercial properties. I am therefore keen to hear how this scheme works.

One change I have seen, probably in the last three or four years, has been the increase in online sales. We have many family stores, and one—I will not mention the name of the owner or the store—is a modern clothes store for the modern shopper. It used to sell everything across the counter, but 40% of its business is now across the counter, while 60% is online. Is that one of the things that will be promoted—ensuring that the shops stay and can run their online business from where they are? Again, that is something that I am particularly glad to see.

The hon. Member for Taunton and Wellington (Gideon Amos) referred to banking hubs. Again, that is something I have been involved with as well. We have lost 11 banks in my constituency. We have lost every bank in Ballynahinch and in Comber—two of our major towns—but, along with the Government, we have been supporting the banking hub initiative. One of the new banking hubs has opened in the middle of Comber, which will bring people to the town centre again from elsewhere in the town and from the countryside. There is another hub planned for Ballynahinch. As I said in a debate this morning, my frustration with banking hubs is that it takes so darn long for them to happen. Banking hubs are a really important alternative to a bank, and we have done some work on that.

When I look back, the negative trend probably started with the covid-19 pandemic, which is terribly frustrating. I understand that Newtownards and Bangor, which are in Ards and North Down, have a 21% vacancy rate on commercial property. That is really worrying, and we have to address it. The vacancies are not all in the town centre—some of them are out of town—but they add to a scenario that is quite worrying.

I will follow up with my council and my Minister about introducing the scheme that the Government have put forward and how that could help, because I believe that the projects that other hon. Members have referred to are worthy of designated funding. I have a special request of the Minister, as I always do of Ministers: could she make contact with the Minister back home, who I am pretty sure would be Gordon Lyons at the Department for Communities, so that Westminster and the devolved Assembly can work together?

The high street rental auctions scheme has many benefits; I have heard about some of them today, and I will hear about more before the debate is over. I look to how we can work together. As I always say—and I say it with genuine sincerity—we might have different ideas in the regions we come from, but we have a united interest in this great United Kingdom of Great Britain and Northern Ireland, and we can share ideas. This is an opportunity to share ideas to help my constituents and help my major town of Newtownards, as well as Comber and Ballynahinch, to do better. If we can do that, this will have been a very good debate.

15:02

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

It is a pleasure to serve under your chairmanship, Mr Vickers. I congratulate my hon. Friend the Member for Bournemouth West (Jessica Toale) on securing this important debate on high street rental auctions and everything that that means for representatives of towns in particular around this country.

I was elected on a commitment to help to fix our town centres and get them back to being places where people want to spend time and enjoy spending time, bringing back a sense of community. These increased powers for local authorities are a fantastic opportunity to unlock the full potential of high streets across the nation, including the ones in my constituency of Great Grimsby and Cleethorpes. The Labour Government’s announcement on high street rental auctions is a welcome and much-needed intervention to give greater control of the state of our high streets back to local people, to empower them and their local authorities, and to give them the opportunity to play a part in revitalising our high streets.

We have had levelling-up funds, towns funds, future high streets funds and many more—too many for me to remember. They were fragmented and piecemeal initiatives offered by previous Governments, generally characterised by competitive funding pots that pitted towns against one another. Ultimately, they have failed to deliver the changes that were promised, and they have left communities like ours—I am guessing from the supportive groans behind me that Members agree—frustrated at the many promises but little or delayed delivery.

This proposal is a substantial change that will give power back to local areas, putting them in charge of their own destinies and how they want to meaningfully revive their high streets. As a case in point, the redevelopment of the shopping centre in Grimsby is very controversial, with £25 million spent by the local authority on purchasing Freshney Place, which has long had significant leaks in its roof. It is causing concern for local residents—is it a white elephant? That is only one of the changes that has been taken on in an attempt to repurpose Grimsby town centre for 21st-century habits, while recognising the increase in online shopping.

The redevelopment has laudable aims, but seven years after signing a purported £67 million town deal and a further four years after local growth funding, the most that anybody visiting the town centre could say is that the Conservative council has managed to repave the old bus station area again. As you know, Mr Vickers, that is a source of contention locally, with some seating and landscaping, but also shingle that unfortunately spreads itself all over—that has created another mess and another problem. Even that work was over time and over budget. People look at those headline figures and wonder where on earth all the money has gone because they cannot see any evidence of it in the delivery.

We can contrast that effort, which has taken a very long time, with the redevelopment of St James House, a long neglected and derelict building opposite our historic minster in the heart of the town centre. A local business support organisation called E-Factor has taken that building on and, after intense work, is due to open its doors of brand-new business suites, completely revitalising the building and turning what was a bit of a monstrosity into a place that people want to work out of. The empty building drew antisocial behaviour to it—undesirables gravitated to the old car parking spaces that were neglected and left—but now people are pleased and proud to be part of the new development. That is an indication of what can come from expanding the powers of local authorities.

On Grimsby’s commercial vacancy rate at the end of 2023, I see Bournemouth’s 15% vacancy rate and raise it to Grimsby’s 27%, which is over double the national average. My hon. Friend the Member for Bournemouth West used the word “staggering”, which I echo, because it really is. Even in the attractive and bustling St Peter’s Avenue in Cleethorpes, the vacant shop fronts seem to be staying vacant for much longer.

Such properties leave high streets with lengthy stretches of nothingness at risk of vandalism and, frankly, are a bit depressing to walk down when going to the shops. The fact that they are vacant for long periods does not seem to incentivise landlords in any way to reduce their rental asking prices. It seems that they would rather leave them vacant until the right client comes along, although I am not sure who those right clients are. Supporting our high streets also means championing the fantastic businesses that we already have.

In north-east Lincolnshire, the dedicated 2025 Group is committed to seeing our town flourish, and I am sure it will welcome the legislation. We have brilliant independent businesses in the constituency doing their best and playing their part. They are the backbone of our local economy and they will all benefit from the new powers, as they will no longer be sandwiched between derelict or empty premises.

I urge my local authority, North East Lincolnshire council, to take full advantage of the high street rental auctions when they are fully rolled out to maximise the ongoing work, complement it and aid its sustainability. They are a fantastic opportunity to tackle those empty shops and support local businesses, entrepreneurs, youth creatives and budding new organisations that have been crying out for affordable and central spaces to support their ideas and businesses, and they will help to restore pride in our community. By bringing those spaces back into use, we can create more jobs, attract more visitors and make our town centres the thriving spaces they deserve to be.

15:09

[Dave Robertson (Lichfield) (Lab)]

It is a pleasure to serve with you in the Chair, Mr Vickers. I thank my hon. Friend the Member for Bournemouth West (Jessica Toale) for securing this debate. It is an important debate, because when we talk to people in towns such as Burntwood in my constituency, they see their town centre—their high street—as a physical representation of how well the economy is doing. For obvious reasons, much of the conversation in politics at the moment is about growth, which the Government have placed at the heart of what they want to do, but the line about growth being felt everywhere needs to be demonstrated through a revival of our high streets and town centres.

I look around at hon. Members present in this debate, and we are town MPs by and large. It is town centres that have really struggled over a number of years of Government inaction, as well as the bluff and buster about levelling up that failed to do anything. When I talk to my constituents about what levelling up means, it is very difficult to tie down, but if growth is to be felt everywhere in the country, it needs to come back to those high streets and town centres.

I am pleased that the new Government are giving councils the powers to act on the issue and revitalise our high streets, such as the power to take an empty shop and get a business in there, so that somebody can visit and buy something, or they can spend their time and invest themselves in their town. Within that, I am particularly pleased that Lichfield district council is an early adopter and will be acting quickly to use those new powers to ensure that landlords are leasing those properties in Lichfield city centre and Burntwood.

Lichfield is lucky to have a thriving city centre, and we are fortunate to have great cafés and a wonderful set of pubs and restaurants, including the only Michelin star ever awarded in Staffordshire. Although my constituents are happy to have that café culture, they would also like to go into town and buy more than a vape. They are happy to support charity shops, but they would also like something that did not have the word “charity” before “shop”. Hopefully, the introduction of this new policy, as well as the district council following it through, will change the economics to support those traditional retailers, such as clothes retailers, to come back to our cities so that people can patronise those shops.

Up the road in Burntwood, it is a different story. Burntwood is a town of around 35,000 people. It developed from a number of villages growing into each other during the last century, but it has been starved of investment for decades. The town centre in Burntwood, which is almost ready to go, is great and there are wonderful businesses at Sankey’s Corner, but it has not had the investment to make that really kick on. This new Government policy is a wonderful opportunity to ensure that, where there are great shops, the gaps in the middle are filled.

People in Burntwood are sick and tired of being told to wait their turn. For too long, under the previous Government, that was the policy for such places: “Wait your turn. Keep bidding for these £20 million pots, and one will come to you eventually, but we can’t tell you when. It might come down the line”—but it never came. People in the town do not want to wait for a handout. They do not want someone to ride in on a white charger and say, “I am bestowing upon you your £20 million. It will solve everything for you!” That is not how our economy works. We do not have a planned economy in the UK—it is not Soviet Russia.

We want to support genuine, real local businesses to start up and deliver services for our residents. I looked forward to coming to this debate to discuss this issue and say how important this policy is for councils to make sure that people have venues to access.

[Chris Bloore (Redditch) (Lab)]

I congratulate my hon. Friend the Member for Bournemouth West (Jessica Toale) on securing this excellent debate. The good people of Lichfield and Redditch share a lot of common themes, particularly the pride in our town centres and high streets. My businesses, like those of my hon. Friend the Member for Lichfield (Dave Robertson), have spent so much money on doing up their shops, and they have worked with the Redditch business improvement district and the council to do all they can to bring people in. They have been let down because we do not have the powers to support them by closing those vacant shops and getting more people in. I strongly welcome these powers, but does he agree that we can make the difference that our high streets and towns deserve if the Government work together with our excellent councils—such as the newly Labour-elected Redditch borough council, which is about to reopen the outdoor market for the first time in five years under the leadership of Councillor Joe Baker—instead of pitting town against town?

[Dave Robertson]

I thank my hon. Friend from the end of the railway line for his intervention—it is a long railway line and the busiest outside London. He is right that towns should never be pitted against each other. Far too often, even in my constituency, which has two towns of around 35,000 people, it is sometimes felt that one of them gets the cheese and one of them does not. That is unfortunate for the town that is considered to have got the cheese, because everyone deserves the support, but it is really unfair for the town that feels like it does not have it. Every single town deserves that kind of town centre; every single high street deserves that vibrancy. They deserve to thrive, and the people who live there deserve to have that centre—a place they can invest themselves in in their local area.

On that basis, I am very happy to support the policy that the Government are introducing. However, that absolutely cannot be the end of this. I will keep fighting for Burntwood town centre. I will keep fighting for high streets, and not just in towns—I could get on to village high streets, but somebody will punch me in a minute. I will continue to fight for more for Burntwood and continue talking to developers, working with the council and working with any stakeholder that I can to drive investment into our town centres. This is a great start from my Government, but there is always more to do.

15:16

[Jo White (Bassetlaw) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank my hon. Friend the Member for Bournemouth West (Jessica Toale) for securing this welcome debate. Our high streets were once the beating heart of our communities, but the years of decline have hit towns such as Worksop, Harworth and Retford in my constituency hard. The immense sadness and frustration that I feel as I walk through my towns is shared by many of my constituents. In my view, the death knell started with the shift to out-of-town shopping centres in the ’80s and ’90s, but since then, the ease and habit of online shopping has caused the closing down and boarding up of shops on a massive scale. The pandemic put that on steroids, and for many, the habit of using the town centres to shop in is now long forgotten.

The value of community and pride in where we live is recognised and valued by everyone, and the commitment to revitalising our town centres rides above the politics in this place and elsewhere. I therefore welcome the new powers for local authorities to require landlords to rent out persistently vacant commercial properties to new tenants, such as local businesses or community groups.

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

My hon. Friend is right to point out that these powers exist to tackle persistently vacant shop units, but does she share my concern about the scandalous practices undertaken by some landlords, including in my constituency? Those landlords register empty shop units as occupied in an effort to avoid paying business rates, thereby placing them outside the scope of this policy, because in policy terms they are registered as occupied. That, in turn, leaves shop units that are vital to our civic pride to rack and ruin. Will she join me in asking the Minister to look at those practices with a view to tackling them?

[Jo White]

I thank my hon. Friend so much for his intervention. Like him, I can identify properties on my high streets that do exactly that—they have furniture and equipment inside, but never open their doors and are clearly empty—in order to avoid paying business rates. That definitely needs to be tackled, and I hope that the Minister has heard his concerns.

I welcome the fact that my local authority, Bassetlaw district council, has been proactive about this challenge and has applied to be an early adopter of the scheme. The town centres of Harworth, Worksop and Retford would all be beneficiaries of that proposal as defined designated areas for this intervention. The local authority is a trailblazer for the programme, but as with all new projects and proposals—this is similar to the issues that my hon. Friends raised regarding Bournemouth, Christchurch and Poole council and Mansfield district council—they hit up against issues that could be ironed out to make the roll-out easier and smoother for other towns that are biting at the bit to begin this process.

The past 14 years have left local authorities significantly cash-strapped, and the project needs to include funding to cover the cost of officer time to set up and administer this relatively complex scheme. That will inevitably put a strain on our existing resources, compromising the delivery of other projects, and may stop other councils coming forward.

The designation of areas is not necessarily straightforward. My local authority has had to manage constitutional matters to institute the designated areas, which has caused delays in getting the project under way. There is no funding for the essential survey costs that must be undertaken before going to auction. The guidance states that those costs can be passed on to the end occupier should there be a successful bidder, and that this should be made clear in the auction marketing materials. There is a risk, however, as passing on the costs is likely to dampen demand.

The application guidance states that refurbishment funding has been set between £40,000 and £79,000, based on the property footprint, but it is anticipated that it will be approximately £50,000 per property, which is insufficient for some properties and end users. In Worksop, for example, we have a shortage of food and drink establishments. The £40,000 to £79,000 can be used only for refurbishment, and not for a fit-out. The high cost of fitting out a catering venue will be a potential deterrent to business investment.

Although the council is exploring the use of UK shared prosperity funding to enable fit-out works to take place, those funds end in March 2026, so that is not a sustainable solution. The council remains very keen to be a flagbearer for this significant proposal, which has the potential to transform our town centres, but it is also keen to be part of the problem-solving process as the roll-out begins. Will the Minister meet me and my local authority to discuss these matters further?

15:22

[Lloyd Hatton (South Dorset) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I am grateful to my hon. Friend the Member for Bournemouth West (Jessica Toale), a fellow Dorset Member of Parliament, for securing this important debate, and I welcome the Government’s decision to introduce high street rental auctions.

My constituency is no exception to the trend of closing high street businesses and vacant properties that we have sadly seen up and down the country. My first job growing up was serving fish and chips at the Marlboro, a popular fish and chip shop by the harbour in Weymouth. Since that time, and following the pandemic and the rise of online shopping, it has been depressing to see town centres such as Weymouth struggle to maintain their vibrant culture and footfall. Many businesses are understandably concerned about what the falling footfall means for their viability. They are calling for innovative solutions to breathe new life into our town centres, and that is exactly what high street rental auctions will help to deliver. They will revitalise our town centres and put the community at the centre of the revitalisation.

The local business improvement district in Weymouth and Portland and the chamber of commerce have been working tirelessly to rejuvenate Weymouth town centre. They have had a great deal of success so far, but they are clear that we must go further. High street rental auctions are just one tool in our box, but they cannot be the only way to empower local businesses and business groups, such as the BID and the chamber of commerce, to revitalise the town centre.

I am really pleased that the Government have given local councils direct powers to rent out vacant properties. That will enable local people and businesses to shape the future of the high street, and to make sure that it serves local needs and preserves and champions existing businesses. In particular, I am pleased that this measure could deliver targeted support for community ownership. That means that, with Government guidance, councils can identify assets that are most likely to deliver social, economic and cultural benefits locally with a community ownership model. That is a really welcome move, and I hope to see that in my South Dorset constituency and town centres right across the country.

This Labour Government are acting now to revitalise our town centres, placing local communities at the centre of that change and making sure that high streets like mine in Weymouth continue to be the beating heart of our communities.

15:25

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

It is a pleasure to serve under your chairmanship, Mr Vickers. I congratulate my neighbour, the hon. Member for Bournemouth West (Jessica Toale), on securing this important debate. It is great to see four new Members from Dorset here this afternoon, which shows what a fantastic place it is to visit. I agree with the hon. Member for South Dorset (Lloyd Hatton) that high streets are, of course, the beating heart and the identity of a place, but they also hold—as the hon. Member for Lichfield (Dave Robertson) mentioned—the communal memory of the people who live in, work in and visit a place.

I remember the high street of my youth, in a little town in Edenbridge, Kent. I used to visit the independent chemist, which doubled as a gift shop, to buy presents for my mum—I am sure she never liked them—and I would go to the big town for summer holiday shopping with stores like C&A and Chelsea Girl, and department stores like Allders and Debenhams. But those high streets were symptoms of their time, and I am sure that our grandparents would have been shocked by the identikit towns that we have had over so many years. It might be right and proper that some of those brands have succumbed to what is going on now—there is the negativity around online buying but also the trend toward second-hand and vintage shopping, which is actually quite a positive move.

Almost 13,000 retailers shut their shops last year, and according to a recent report, retail institutes warned that a “perfect storm” of higher costs and red tape means that one in 10 shop-floor jobs are expected to disappear by 2028. We need to make these moves with that as a background. But many places are bucking the trend and I hate to be negative about places, so even Bournemouth—which has had so much negativity—has had increase in footfall of 12.5% year on year. We need to congratulate those amazing businesses that are making the difference.

We must also think about what the high street means for us now: a combination of shopping, entertainment, living, working, playing, studying and, as my hon. Friend the Member for Taunton and Wellington (Gideon Amos) says, post offices. We Lib Dems welcome all the ideas to shape and support our high streets and town centres. Of course, local and national governments have a vital role to play, but the issue is not rent; it is business rates. Landlords say that rates are now higher than the rents that they can command in many cases, so a scheme that addressed that would be the most welcome. I am sure that the Minister will tell us about the new lower rate for retail, hospitality and leisure, but we need something substantially different from the current model.

I entered politics a long time ago on a local level to reform business rates, so it is great that I have finally made it to this position, and can hopefully make an impact. Lib Dems want to see business rates replaced with a commercial landowner levy to create a more level playing field, shifting the responsibility from tenant to landlord, and also ensuring that high streets can compete against businesses that do not have the same overheads. In abolishing the broken business rates system, we would look to tax the land value of commercial sites, not productive investment, because that is the problem—at the moment, we tax business investment, which impacts productivity and wages. The biggest impact would be on small businesses in deprived areas. They would then be a part of the regeneration of a space through wider community development, which can work alongside rental auctions. We welcome the current discussion paper on business rates reform. Can the Minister update us on when we can expect that to move forward?

On the rental auction initiative, the Lib Dems are concerned about the potential costs of the scheme for local authorities. Although the programme has funding allocated to it, it is not clear whether local authorities would be able to use this to take on leases to help them to enable business growth and start-ups to take off. There is no doubt about the financial burden on councils at the moment, and I am deeply concerned about whether there is the capacity and desire in some places to deliver something on the scale that is needed.

The industry also has doubts about the new auction system and whether it will have the desired effect. I agree with the hon. Member for Bassetlaw (Jo White) about hospitality fit-outs. Someone can spend £30,000 just like that on a small independent café, and that money is not going to come from just anywhere, particularly in the limited amount of time that these auction leases will be arranged for.

The funding available to create vacancy lists is welcome. Economic development teams have an amazing opportunity to drive the vision for their area forward; I am concerned that landlords may not understand the other innovative uses for their buildings, whereas a local authority has the ability to go out and scout for other businesses that might want to come into an area. There is an opportunity through the scheme if the funding can be used in a more flexible way. I am interested to know how councils can use the funding if they do not have property that they can put forward and auction now, but want to get ahead of the game. Any building sitting empty for more than 12 months is a long time, and the rot will already be setting in, so getting ahead of the game would be really useful.

A local council also shared that the high street rental auction is a big stick with which to beat up landlords who are not willing to engage. I read in The Business Times of a business lawyer who said:

“The question however remains: are we genuinely operating within a market of idle landlords who require this intervention? If the regulations only offer a solution for the minority and do not tackle the root cause of a greater economic issue around demand and affordability…these detailed provisions may not be the ‘breath of new life’ the government envisages.”

I am also concerned that the power will not do very much in small towns. It is understandable that the big towns such as Mansfield and Bournemouth might well see some benefit from this, but smaller places such as Broadstone or Wareham, or even Swanage and Wellington, might actually be invisible to the big councils as they look to the areas with a significant problem. One or two long-standing empty buildings in those smaller towns can have just as much of an impact, but they are unlikely to be worthwhile with the moneys coming to councils to make the scheme work.

My final point is on the reasons a property might be empty—there may be very good reasons. If councils are to use this power effectively, we must help landlords to bring properties into use if they simply cannot afford to do so otherwise. The high street rental auction requires landlords to bring properties up to the minimum energy efficiency standards—if they do not, they potentially face criminal prosecution. That could cripple landlords financially. What plans are there to support landlords who may wish to improve their stock but for whom doing so is not commercially viable?

Across my Mid Dorset and North Poole constituency, businesses have cited the huge costs associated with operating, which are affecting confidence and putting them off investing in physical property. Soaring energy costs, the increase in national insurance contributions, worries about the impacts of some measures in the Employment Rights Bill and international insecurity mean that taking on a high street premises is probably more difficult right now than it has been for a long time. What considerations are the Government offering to businesses that want to invest but are worried about then having an immediate revaluation of their rates—as in the case of Hall and Woodhouse, which I raised last month?

Without sustainable financial support for councils to eliminate the other issues around town centres, from rough sleeping to public transport initiatives and funding for police to deal with antisocial behaviour, I fear that the scheme may have a minimal effect and be counterproductive. It is a good start: I give credit to the previous Government for starting it, and I hope this Government will finish it, but I would like to know how it will be made more interesting and effective for a broader range of towns.

15:34

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

It is a pleasure to serve with you in the Chair once again, Mr Vickers, and to have been present for this wide-ranging debate. I am sure the hon. Member for Bournemouth West (Jessica Toale) will be pleased: anyone watching this debate, and seeing so many of our colleagues over in the main Chamber debating issues around family businesses, will welcome the focus that this debate brings to our high streets, that large and important part of our economy.

We are debating these issues at a time when, based on the figures across the country, growth is down, jobs, vacancies and hiring are down, investment by businesses in the UK is down and inflation is up. While there is always a political debate to be had about the causes behind those factors, it is clear that last October’s Budget had a significant impact. It is important to consider how measures such as the one at the anchor of this debate, high street rental auctions, can be used to address those challenges by local and regional authorities and by the new mayors that the Government are proposing to bring in across the country.

Our high streets have faced many interrelated pressures in recent years. Members have referred to the impact of online shopping on consumer habits and the impact of the covid-19 pandemic. When our high streets and retail were to some extent closed, or significantly restricted, it drove a rapid change in consumer behaviour that we see reflected in patterns of business investment across the country. All those issues have created a challenge for our local businesses in making sure both that their prices remain competitive and that they can draw in both the staff and the customers they require.

Members have also referred to the impact of out-of-town shopping centres. Although many of our high streets and local business communities have been able to change and adapt, others have found it an ongoing challenge. At the tail end of the last century, I worked in a local bank on the village high street in Pinner in my constituency. That bank is no longer there—only the Nationwide remains as a financial provider on that high street—but there are no vacant units today because other forms of business have opened up, principally in hospitality. That has been a significant change in the way that high street operates. It is a great pleasure to represent a constituency with seven local high streets; I regularly host surgeries in those hospitality businesses as an opportunity to find out what is going on, and I know that many other Members do the same.

The pressures that Members have described in this debate can be seen quite starkly in the figures. In the period between March 2020 and March 2022, we saw a loss of a net total of 9,300 retail units across the country. Some were converted into residential accommodation. Government policy, over many years and from all parties, has recognised the demand for housing and the changing nature of the high street, and that has enabled the conversion of those properties, where appropriate, to provide much-needed homes. Often, because of the nature of those conversions, they have provided additional customers for the remaining premises on the high streets. However, at the same time we have seen the loss of many cherished local businesses such as those Members have spoken of, and others, particularly independent retailers, continue to struggle.

The high street rental auction policy was introduced under the previous Government in the Levelling-up and Regeneration Act 2023. It was one of several measures taken by that Government, and it granted local authorities for the first time a power through a new initiative designed to bring new life to persistently vacant properties. When retail units are persistently empty, sometimes there are problems with absentee landlords and it can be enormously difficult to force the issue and bring the units back into use. Rental auctions are a significant new idea, alongside the investments through the future high streets fund and other schemes designed to ensure that high streets across the country remain sustainable.

There will be much debate about the impact that that policy has had, especially given the changing habits of our constituents. However, when we look at the feedback from independent organisations in particular, there is a great deal of concern that, even set alongside the benefits that this policy could bring, the overall business environment is having a significant negative impact both on the viability of high street businesses and business in general, and on retail in particular.

In recent comments, the British Retail Consortium comments said that the Government’s measure to increase the rate of employer national insurance contributions—that single policy alone—is likely to lead to a net loss of 160,000 jobs over the next two years, in particular because of its impact on those large numbers of people who are in lower-paid, but flexible and part-time work. Most of us will have heard from businesses in our constituencies that they remain extremely concerned about that bigger issue. There is also concern in respect of the changes being introduced to non-domestic rates—business rates—an assessment that has been shared by a very wide group of professionals.

The Altus Group, a real estate company, released some research recently estimating that the big reduction in business rates discounts for retail, hospitality and leisure firms, which go from 75% to 40% in the next financial year, will result in a 140% increase in business rates bills at individual business level for around a quarter of a million high street premises in England. To put that into real money, an average shop currently paying £3,589 in business rates will see that bill rise to £8,613 from next April. Pubs, which many Members have cited in debates here and elsewhere, would see a typical bill rising from £3,938 to £9,451 a year. All these things represent significant increases in costs imposed on local businesses.

We recognise in particular the shift under way in how larger high street premises will be treated. I know some of those changes in business rates have been described as an Amazon tax, but it is clear that they will have a particular impact on places such as larger supermarkets in town centre locations, which often provide the parking and the anchor store that brings people into our towns. The Conservatives therefore remain extremely concerned at the impact that that has.

I am sure the Government will challenge us and say, “Well, what is your policy?” Clearly, we are in Opposition these days, and we did not have the opportunity to set out in Government a Budget to address this wider range of issues, but we know that preserving that strong growth and that steady and high rate of employment—the 4 million more people in work when we left office, and the halving of youth unemployment—was down to our sustained focus on the economy to sustain the buoyant high streets and local employment, the growth and the living standards that we all expect.

In conclusion, while this policy is important, we need to continue to see it as part of a package of vital measures that are there to sustain not just our high streets, but the commercial life of our nation. It is usually the voice of very big business that is heard in Parliament—a very large commercial concern with a public affairs team will find it very easy to make Parliamentarians pay attention to what it says—but around 70% of people employed in this country work in an enterprise with less than five staff in total.

The vast majority of our constituents, the vast majority of people who work in our country, are in shops and small enterprises. We need to make sure that, while their collective voice can be difficult to translate, their interests are at the heart of our thinking and the role that those small businesses play is visible. Our neighbourhood is vital to our quality of life. There is a reason why post-war planners, setting out to build large new areas of social housing, chose to make sure that there were retail units and shop fronts on those sites, so that people had ready access to the sense of community that they support.

We need to make sure that that is sustained, but sustained in the context of a world that is changing. As part of a Government and as politicians, we cannot second-guess or indeed directly change consumer behaviour through intervention, but we can support a wide range of businesses to ensure that we serve the widest possible interests of our community. For example, the shift to supermarket retail has helped to ensure that the UK has the second most affordable food, compared with household budgets, in the world. The shifting nature of our high streets means that, while there is less retail, there is more affordable hospitality and more of the good-quality, flexible and well-paid jobs that go with it.

Demographic change is also significant. As the ageing population of our country looks for more hospitality close to home, it creates an opportunity for those businesses. We have seen retail units implementing schemes such as soft play, as larger numbers of children in local communities drive the changing face of local businesses and create new opportunities, benefiting those children socially and benefiting local employment.

But I finish where I started. We are about to embark on a massive process of top-down local government reorganisation. We need to make sure that throughout all that turmoil, with policies such as high street rental auctions, what has been done for the high streets fund and the changes in business rates, we do not lose sight of how important our high streets and small businesses are. The consequences of the Government’s Budget can already be seen not just in business confidence and sentiment, but in the reducing numbers of jobs and vacancies, in falling investment and in rising inflation.

The Government have an opportunity to listen not only to the Opposition, but to professionals and business owners, who are politically neutral but have the interests of businesses in these communities at heart. The Government have the chance to make changes in the wider interests of our nation.

15:45

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

It is a pleasure to serve under your chairmanship, Mr Vickers. I congratulate my hon. Friend the Member for Bournemouth West (Jessica Toale) on securing this important debate. I believe it is her first Westminster Hall debate, so it is great to be responding to it. I know that she is a passionate advocate for her local high streets, including in her campaigning against post office closures.

High streets have been the subject of several debates recently, and there will be another later today focused on support for high street businesses. We have heard quite a bit already about that. This is a multifaceted subject, and the Government are pleased to have the chance to discuss the specific and important dimensions of our plans. The Government share hon. Members’ passion to support the growth and evolution of our town centres and the revival of our high streets. We all recognise that high streets were once the lifeblood of our towns and cities, sustaining jobs, businesses and communities. I know from my own constituency, although it is in inner London, that there are challenges when major stores close and so on.

The Government are committed to ensuring that high streets become successful again, despite the challenges that they face in adapting to consumer behaviour and the demographic change of the 21st century. Before I get into the specifics of what the Government are doing, I will gently point out to the Opposition spokespeople the context in which we are operating. In the 14 years before the general election, we saw austerity during the coalition Government, the economy being crashed under one of the Prime Ministers, and record under-investment. We have seen the spectre of high street shops facing shoplifting and much else.

We are trying to fix a set of challenges, and we are using the powers that were introduced under the previous Government pragmatically, making sure that they are deployed appropriately in the wider context while revitalising our high streets. I genuinely hope that we can work together to ensure that revitalisation, because while each of our constituencies has challenges, we have heard wonderful examples of vibrant high streets in the past. We need to be pragmatic and work together to fix them, and I hope that colleagues from Opposition parties will work in that spirit.

Before the general election, the Labour party set out its five-point plan to breathe life back into Britain’s high streets. It includes addressing antisocial behaviour and retail crime, reforming the business rates system, working with the banking industry to roll out banking hubs, stamping out late payments and empowering communities to make the most of vacant properties. We are focused on ensuring that we provide the appropriate support to local authorities that are interested in using the high street rental auction power. Sadly, during 2024, up to one in seven shops on our high streets sat empty and boarded up, often for long periods. As hon. Members have highlighted, property that is left empty for long periods, as well as being an eyesore, can fall victim to disrepair or vandalism and be harder to bring back into use.

High street rental auctions are an important tool against persistent vacancy in our towns and cities, and in December we commenced legislation to enable their use. The new powers allow local authorities to require landlords to rent out persistently vacant commercial units, helping to bring businesses back to the high street and drive growth across the country. In introducing them, the Government are seeking to increase co-operation between landlords and local authorities, and to make town centre tenancies more accessible and affordable for tenants.

Through this initiative, we are putting power into the hands of local leaders. They are now empowered to auction off leases on premises that have been vacant for more than a year, and to grant local businesses and community groups the right to rent empty commercial lots at market prices. That gives power to those trying to shape and improve their high streets, and demands that landlords take sufficient steps to rent out empty properties.

To support delivery, we have made £1 million available to all local authorities. The fund has been open for applications since 15 January. In addition, a new burdens payment of up to £5,223 is available to help councils with initial implementation costs, such as those borne through legal advice and the auction process. The Department has made available guidance on how to use the powers, as well as a funding prospectus, to assist local authorities, and it will continue to engage with local authorities across England to promote the powers and spur implementation.

There are a number of early adopters, including councils in the areas of colleagues who have spoken today: Bassetlaw, Darlington and Mansfield are already working with us, and others have been placed in the second group—we will announce those shortly. We are working with the early adopters and a wider group to ensure that there is good learning, that good practice is spread and that there is good partnership working—not competition, but collaboration. That will ensure that local areas can learn from one another and that the provision is implemented appropriately.

Hon. Members have raised a number of issues, and a number of colleagues have sought meetings with officials, as well as with the lead Minister on this issue, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris), who will want to continue the dialogue. We will of course take away those requests and ensure that officials work closely with the relevant councils and Members of Parliament. I am conscious of the strong interest in this agenda and, if it is to work effectively in communities, we want to ensure that that partnership and close working relationship is in place.

I am extremely pleased that a number of councils have a strong interest in using the high street rental auction power, which is not the only action that the Government are taking to revive our high streets. We are introducing a new community right to buy to empower communities to address decline and protect valuable community spaces. The vision for empowered local decision making in the English devolution White Paper, to which some colleagues have referred, is also critical. If a high street or town centre is to flourish, local people, businesses and councils must work together to develop a unique offer for the high street that resonates with the local community.

Local authorities and mayors have the ability to bring people and organisations together to develop a vision for their areas. I welcome examples of local authorities taking the initiative to improve their high streets, and we have heard some extremely positive examples today. As was pointed out, in Bournemouth, Bobby’s is established in what was once a Debenhams store, and the Ivy has recently opened. Having made a number of visits to Bournemouth, I have certainly seen the great examples, but I recognise the challenges that my hon. Friend the Member for Bournemouth West mentioned, too.

We are determined to make sure that we provide the appropriate backing through the high street rental auction power, as well as the Government’s wider agenda to support local government and devolution. We have increased local government funding in real terms, and we are ensuring that local authorities have the appropriate support and capacity. The problems we have inherited over the last 14 years cannot be resolved in one go in one Budget, but we have begun our plan for change and for action.

In another area that my Department covers, homelessness, we have invested £1 billion, including additional funding, to tackle what is another dimension of the societal challenges that we face. We need to support local authorities and local areas to support those who are sleeping rough and facing housing challenges. More broadly, we continue to invest in regeneration. The long-term plan for towns will provide 75 places across the UK with up to £20 million for funding and support over the next decade, giving communities the space and resources to build their vision for renewal.

Hon. Members raised a number of points in relation to undesirable types of organisations. Local authorities have powers to prohibit uses of particular types of operations and businesses, and we very much look to them to use those powers appropriately. On department stores, while the point about complexity has been recognised, local authorities can use compulsory purchase orders to address the issue and redevelop former stores. We keep the guidance under review, but we are happy to continue the dialogue; it is very important to make sure that we have a continuous process of learning and improvement.

I am conscious that we are running of time. My officials and I can write to hon. Members on specific questions that I have not been able to respond to. I thank my hon. Friend the Member for Bournemouth West again for securing the debate, and I thank all hon. Members for participating in it and highlighting the wonderful examples in their constituencies, alongside the challenges. We look forward to working with hon. Members across the parties to help revitalise our town centres and ensure that they continue to make a strong positive contribution to our economy and to communities.

15:58

[Jessica Toale]

This is an important moment for our high streets and our local communities. The debate has been a real tour de force of our great towns, and I have been blown away by the passionate stories I have heard. We have heard nostalgia about towns as they once were, but also passion for the future and for what our towns can be. I share a lot of the pain that Members have expressed about our towns, but I know that there is potential in this policy, and the other measures that the Government are bringing in, to think about how we can make town centres work again, and how we can support and promote our local businesses and community spaces. I thank everybody for taking part.

I thank the Minister for addressing Members’ questions, as well as outlining the wider context of the situation that we are in and the Government’s wider range of reforms to support our small businesses: community right to buy, policing reforms, direct support to businesses —it all adds up and makes a difference. I thank her for her offer to continue to work with local authorities to make this scheme work. Many of us are eager to see it implemented, and I know that many of us are eager for our residents to see the real transformation that a Labour Government can bring about for our town centres.

Question put and agreed to.

Resolved,

That this House has considered Government policy on high street rental auctions.