Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the impact of high street closures on town centre vitality and local employment, particularly in areas with limited alternative sources of work.

Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)

The high street provides a critical source of employment and skills in our economy, accounting for 4.4m jobs in 2018.

No specific data is held on the impact of closures on employment. However, the national rate of persistently vacant high street retail and leisure properties increased to 5.3% in 2023, up from 3.6% in 2018, reflecting factors including long term shifts in consumer behaviour, rising costs, and retail crime.

The Government is acting to reverse this decline with support for high street businesses, such as banning upwards only rent reviews in commercial leases and reforming licensing rules, strengthening powers to tackle retail crime and anti-social behaviour, and empowering councils to auction the lease of persistently vacant premises on our high streets.

Question to the Department for Business and Trade:

To ask His Majesty's Government what estimate they have made of the number of jobs lost in the retail sector as a result of high street store closures; and what proportion of those losses they attribute to recent increases in employer National Insurance contributions and the National Living Wage.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Department recognises the pressures facing high streets and the implications for employment in the retail sector. Our Plan for Small and Medium Sized Businesses places high streets at the centre of economic renewal, supporting SMEs through improved finance access, reduced regulatory burdens and enhanced business support through the Business Growth Service.

The Government has not undertaken any modelling to evaluate the relationship between retail job losses and recent adjustments to employer National Insurance contributions or increases in the National Living Wage.

Question to the Department for Business and Trade:

To ask His Majesty's Government whether they expect the rate of high street store closures and retail job losses to increase or decrease over the next two years; and on what evidence or modelling that assessment is based.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government has not undertaken any assessment or modelling on this subject.

Our Plan for Small and Medium Sized Businesses, published in July, places high streets at the centre of economic renewal, recognising them as vital centres of growth and employment. SMEs on the high street will also benefit from new tools to unlock access to finance, action on late payments and regulatory costs, greater digital adoption and easier pathways to business support through the Business Growth Service.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the cumulative impact of business rates, employer National Insurance contributions, and wage regulation on the competitiveness of bricks-and-mortar retailers compared with online-only retailers.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

Government works closely with the Retail Sector Council and industry bodies to help inform support for bricks and mortar businesses and ensuring a level playing field with online only retailers, including targeted reliefs and measures.

The government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £900 million per year, benefiting over 750,000 properties. To protect businesses from bill increases following the 2026 revaluation, a £4.3 billion support package is being implemented over three years.

Additionally, the retail sector will benefit from a rebalanced business rates system, with large distribution warehouses paying around £100 million more in 2026/27, with this funding directly lowering bills for in-person retail. The government has also launched a Small Business Plan aimed at removing barriers holding back businesses and breathing new life into high streets.

Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to support high street retailers facing rising cost pressures, including increases in employer National Insurance contributions and the National Living Wage; and what assessment they have made of the adequacy of existing support measures for preventing further store closures.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £900 million per year, benefiting over 750,000 properties. We are also implementing a £4.3 billion support package over three years to protect businesses from bill increases following the 2026 revaluation.

The Employment Allowance has more than doubled to £10,500, ensuring that over half of businesses with National Insurance liabilities will either gain or see no change this financial year. We also launched a Small Business Plan aimed at removing barriers holding back businesses and breathing new life into high streets.