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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Nesil Caliskan)
Thank you, Sir John. As I look around the Chamber, I see that some of the Members who were here earlier are still here. I thought I might get away with repeating much of what I said this morning—but then I saw that you were chairing the debate, so I will have to say some other things, but in absolutely the same spirit with which I spoke this morning.
This is such an important topic. I thank the hon. Member for East Londonderry (Mr Campbell) for securing this debate: high streets matter to every Member of Parliament because they matter to everybody up and down the country and across the devolved nations. They symbolise the places where people live, the communities that they are part of and the places that they identify with. They are more than just bricks and mortar; they are also the spirit of where individuals live and the communities that they are part of.
Like every Member here, when considering this debate I thought about the high street in my own constituency. I thought about the brilliant businesses in Barking that I have had the pleasure of coming across since being elected; they include businesses from the beauty industry, which I hosted in Parliament last year, and other businesses too. I thought about the fact that high streets have so fundamentally changed in recent years. The hon. Member for East Londonderry is absolutely right that the challenges we face exist in every corner of the country, but every high street and town centre should be different because they are about the character of that place. We must help different businesses to thrive and give local communities the power to shape their high streets for the better.
The Government are taking action on that, whether through the £300 million of funding to support those efforts or the £10 million used to expand high street rental auctions, which Members have already referenced. That has been successful at tackling the issue of empty shops. We are launching a £61 million fund as part of Pride in Place, and the community right to buy fund is also making a difference.
Ben Maguire (North Cornwall) (LD)
Unfortunately, Cornwall was unsuccessful in the latest Pride in Place funding round. Does the Minister agree that Cornwall desperately needs a proper devolution settlement so that Cornwall council can fill the many empty shops in Bodmin, in Launceston, elsewhere in my constituency and across Cornwall? The council does not currently have the power to easily put shops back in community use or put them to other excellent uses.
Nesil Caliskan
I thank the hon. Member for raising Cornwall; he and his fellow Cornish Members of Parliament make excellent representations. He eloquently set out the case for giving power back to local areas. I know he is disappointed that Cornwall has not secured Pride in Place funding, but he will forgive me for recognising that lots of other places have. They are celebrating that as they should, because Pride in Place funding provides an opportunity for areas to regenerate their high streets. Perhaps even more importantly, Pride in Place provides a different way of doing things, because the boards allow communities to shape what the money is spent on over a longer period of time.
Funding is important, but it is not the complete answer. We need indeed a radical rethink of how high streets work. Although retail remains important, high streets cannot rely on it solely; online shopping will remain, so we need to be more creative, as the hon. Member for East Londonderry recognised. High streets must become more diverse. They need to include hospitality, leisure, public services, and art and culture.
Melanie Onn
The Minister is making a really important point. Grimsby town centre has diversified what the town centre offers; there will be a new cinema and more activities for families. That all ties into a youth offer with the brand new Youth Zone, a community hub for people in crisis, and town centre housing, which was desperately needed. It is absolutely essential to take a holistic view of how we rebuild our town centres.
Nesil Caliskan
My hon. Friend is absolutely right. Diversification is very important in town centres. It drives footfall, which is what keeps high streets alive. Footfall, coupled with having money to spend, will mean that businesses can thrive. The Government are committed to publishing our high streets strategy, which looks at all the elements referred to already in the debate. We have announced funding for innovation partnerships to support local communities to reimagine and revive struggling high streets and make them purposeful and fit for the future.
Naushabah Khan
The Minister is making a powerful point about community partnerships and how we work together. Does she agree that involving the community in decisions about the future of the high street, as we are doing in Gillingham, is really important? It will secure the future of high streets.
Nesil Caliskan
I know my hon. Friend’s area well, and she does good work not only to champion it but to campaign for improvement. She is absolutely right: if local communities have a real say, and that is coupled with backing from central Government, we can see real progress in our high streets and towns. That is important not only for local communities to feel ownership and pride; it is also crucial for employment. High streets are often where young people go for their first jobs. Small and medium-sized businesses are the backbone of the local economy for many towns, so being able to support high streets, including through the high streets strategy, is a crucial part of the Government’s agenda.
The hon. Member for East Londonderry was absolutely right to talk about the opportunity to relocate public services to high streets, which could improve the accessibility of those public services, as well as drive footfall and boost vibrancy. Many places are already doing that effectively.
Sarah Dyke
The Minister is talking about driving footfall, but driving footfall in rural areas is sometimes quite difficult because of the sparsity. Rural high streets face significant challenges—if car parking charges are forced on our local authorities, for example. Will the Minister outline what specific support she is putting in place to help our rural high streets to thrive?
Nesil Caliskan
On car parks in particular, a review is under way; I am happy to write to the hon. Member to set out timelines for when we will have the responses.
The point about rural communities is important, which is exactly why the Government are committing to making sure that while we do what we can from central Government, we really allow communities to shape their own services locally. The density point is important, particularly for rural communities. Banking hubs, for example, have been a real lifeline for communities that have had no banks in their area. As a Government, we have committed to almost 300 hubs; more than 230 have already opened. It is important that we commit to more initiatives like that, so that high streets get the support that they need.
As I say, there are good examples of public services locations. Barnsley, for instance, has opened a community diagnostic centre in its Glass Works shopping centre; that has led to more screenings and fewer missed appointments, and has brought a £3 million boost to the local economy. I could list many examples from across the country that really make the point that the relationship between the relocation of public services and our high streets can be a powerful tool in regenerating our high streets. The Ministry of Housing, Communities and Local Government has been working closely with other Government Departments, including the Department of Health and Social Care, to encourage them to roll out like health centres in other locations.
I recognise that we have to go further. With local community leaders, we have to think about how central Government can be more strategic and purposeful and how we can support those leaders to deliver locally. We have to work with local government and mayoral strategic authorities so that devolution and reorganisation can lead to tangible improvements on high streets.
Local capacity is an issue for local authorities, which is why MHCLG is committed to supporting local councils to shape high streets in a way that works for local residents. We are bringing vacant shops back into use and tackling the perverse incentive that makes shops remain empty. As I said, high street rental auctions have already proved successful—we have been oversubscribed, which is why we are expanding the programme. We are supporting local authorities by upskilling local authority officers so that they can use compulsory purchase order powers to bring landlords to the table, enabling more transformational change for areas that have a particular problem with empty shops. The national planning policy framework is playing a role in some of that work, too.
Finally, I will address business rates. Many retail, hospitality and leisure businesses are grappling with rising costs. We are committed to supporting high street businesses so that they can compete with online and out-of-town alternatives. Most of that is about appropriate place making, but we are also reducing the burden of business rates on independent high street businesses and introducing permanently lower business rate multipliers for retail, hospitality and leisure properties, giving greater certainty and long-term support. The new multipliers are worth £1 billion per year, will benefit more than 750,000 properties and will give long-term certainty and support to high streets.
I thank Members for their contributions. I recognise that high streets are a topic that people feel passionate about, and rightly so. They are intrinsic to constituents’ identity and local place. I thank the hon. Member for East Londonderry again for securing the debate.
Question put and agreed to.