Local Government Finance

Debate between Kevin Hollinrake and Jo Churchill

Wednesday 22nd February 2017 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is an honour to follow my hon. Friend the Member for St Austell and Newquay (Steve Double). I shall keep my comments very brief, because I have been told to do so by the Whips and by Mr Deputy Speaker when he was in the Chair earlier. My comments are simple ones. I understand that the Secretary of State has a lot on his plate at the moment, but he is sitting on a golden opportunity—a once-in-a-parliamentary-generation opportunity, perhaps—to fix two fundamental problems in the system. The first relates to fairness in the rating system. The second involves fairer funding for local authorities. In relation to rates, I must refer Members to my declaration in the Register of Members’ Financial Interests, in that we have quite a lot of shops around the UK that are subject to the rating system. I believe that a fairer system would be a sales tax. It would disadvantage my network, but it would nevertheless be much fairer.

My principal comments relate to fairer funding for local authorities. I have heard many comments from Members across the House about how this issue affects rural areas in comparison with metropolitan areas. The shadow Minister, the hon. Member for Harrow West (Mr Thomas), knows what I am going to say about this. The biggest iniquity by far is the way in which London is treated in comparison with the rest of the country. That is the reality. I am grateful to Leicestershire County Council for producing a report, which I urge Members to download, in which it has collapsed all district and county councils into one, pooled their resources and divided the sum by the number of people in those areas to give the spending power per local authority. The reality is that nine of the 10 local authorities with the highest spending power are in London, yet nine of the 10 authorities with the lowest council tax are also in London. That is simply unfair. It would be perfectly appropriate as long as the need drivers were taken into account. Let us take Harrow as an example plucked out of thin air. Harrow has £80 a year more spending power than North Yorkshire, yet it has a richer and younger population. How can that be right? [Interruption.] That cannot be the explanation, surely.

[Jo Churchill]

Will my hon. Friend give way?

[Kevin Hollinrake]

I have been told not to take any interventions, but I will give way to my hon. Friend very briefly.

[Jo Churchill]

Would my hon. Friend concur, having looked through those figures, that rural areas also have poorer education funding, poorer police funding and poorer health spending, and that we therefore get hit on all sides?

[Kevin Hollinrake]

That is the central point of my remarks.

In 2016-17, 13 London boroughs either froze or lowered their council tax. That is not possible in areas such as North Yorkshire. To show that I am not just plugging rural areas, let us look at the lowest spending local authorities. We have York with £615 per head, Trafford with £639, Kirklees with £673 and Leeds with £696, and yet we have Westminster with £1,100 a head and Kensington and Chelsea with £1,168 a head. This simply cannot be right.

This is happening, as my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) said, because the system is based on what happened before. Einstein once said:

“We cannot solve our problems with the same thinking we used when we created them.”

We created the problems and we need new thinking. The simple solution must be to use cost drivers. Cost drivers can be only two things: need and the cost of delivery. It is as simple as that. The simpler the formula that we use and the more understandable it is, the more we will all buy into the system.

The fair funding review commissioned by the Secretary of State is critical. I support that method, but we need a blank canvas and a new approach to the problem. The clear opportunity is that more money is going into the system. Whatever the Opposition may say, between £11 billion and £13 billion will be going into the system by 2020 because of the retention of business rates, and there must be a quid pro quo for that. Ultimately, more money is going into the system, and it is said that a rising tide will lift all boats. It is difficult to rebalance a system when no new money is going in, but more money is going in. Spending rounds are clearly tight, and the Secretary of State will have to be careful about where that money goes to ensure that he gets bang for his buck, but this is an opportunity. However long it takes—be it five or 10 years—if we set off on the right path, we can turn a system that is fundamentally unfair into one that is fair and equitable, and that delivers fair resources to my local authorities and to those in the rest of the country, including London.

Parking Places (Variation of Charges) Bill

Debate between Kevin Hollinrake and Jo Churchill

3rd reading: House of Commons & Report stage: House of Commons
Friday 3rd February 2017 Commons Chamber

[Kevin Hollinrake]

I congratulate my hon. Friend the Member for Bosworth (David Tredinnick) on introducing this important Bill. For as long as I represent the constituents of Thirsk and Malton, I will be a champion of small independent businesses. Everything we do in terms of regulation, taxation and infrastructure should consider the needs of small businesses, and in particular try to create the level playing field with large business that we absolutely need to encourage the success of the local small independent retailer and business. Small independent businesses account for about 60% of our private sector-employed workforce and about 50% of our private sector turnover, so they are hugely important.

I must draw the House’s attention to my entry in the Register of Members’ Financial Interests. Our estate agent business has about 190 small, independent outlets around the UK in various high streets and market towns. We do not particularly rely any more on footfall, so that is not a big issue for us in terms of car parking and people coming to town or city centres, but it is a big issue for the general health of our towns, villages and cities in helping to ensure that we have a vibrant and healthy sector in our high streets and town centres.

We started our business in 1992, and it grew and we became the market leader in our town of York, which is where our first business started. We thought, “This is going quite well. We’re doing okay here. Our business is starting to prosper.” Three or four years later, however, another very good independent started up in York city centre, and started to take market share off us. We had to look very carefully at the business we were operating and what we were doing, and we started to work harder again. It made us focus on what had made us successful in the first place.

That is a small illustration of the importance of small independent businesses. It is not just about the fact that they are at the heart of communities and about the fact that they provide better service, as my hon. Friend the Member for Bury St Edmunds (Jo Churchill) said; it is also about their dynamics and the commercial realities of business. Small businesses hold big business to account. Wherever we have a big business monopoly—big businesses tend to monopolise the big out-of-town shopping centres—quality is often not as good. An extreme example of that is BT, which is a private sector monopoly, and we all get letters and complaints from constituents about the lack of quality from private sector monopolies, so we need a balance. This nation quite rightly has many good big businesses—my business aspires to be a big business—but we must ensure that the small independent business sector is vibrant. That is why this Bill is so important.

I have experience of some really bad local government car parking policies, and I referred earlier to the policy in York, where we started our first business. York is not in my constituency, but it is just down the road and many of my constituents work in York or have businesses there—our head office is still in York. The city council had a policy of selling off important city-centre car parks, which created revenue for the council and generated section 106 contributions from the developers of those car parks, but that led to more demand for and pressure on the remaining car parks and the charges were increased. It costs £2 an hour to park in the centre of York—a ridiculous figure that deters people from going into the centre. At the same time, the council granted planning consent for out-of-town shopping centres with free parking, and there are four such centres around York—a town of 200,000 residents. Local businesses were not consulted about that. In the conversations that did happen, there was panic from some independent retailers in the centre of York, but the council pushed ahead anyway, much to the detriment of those city-centre retailers.

There are some more positive examples in my constituency. Hambleton District Council has an innovative policy in some of its towns, such as Thirsk, where the council allows people to park for an hour in the market square. People get a ticket from the machine and stick it in the window, but they do not have to pay anything for an hour’s free parking, or they can pay 60p and park for two hours. That has created shopper turnover in the town centre, which is exactly what businesses want. They want people to come in and shop in that short shopping cycle. It is easy for people to go for lunch or just shop for a short period without having to go home and get their money to put in the machine—unless they want to pay to park for longer.

[Jo Churchill]

The situation is similar in my constituency, which is also near to a larger town—Cambridge in my case. The circumstances in the larger towns are different from those in small, rural environments around small market towns. We want to generate throughput so that traders can survive and so local people, who may be unable to shop without getting in their car, have the same choice as those who live near a town.

[Kevin Hollinrake]

My hon. Friend makes a good point and I could not agree more. We are looking for a symbiotic relationship between the local authority and businesses. There already is a close relationship. The local authority benefits from the success of businesses—retail or otherwise—in its town, but that conversation is sometimes not as comprehensive as it needs to be. The relationship sometimes lacks understanding. The provisions of this Bill about consultation when there is a change to car parking charges and the ability to lower car parking charges without going through a detailed process are why it is so important that we take the Bill through.

My town of Malton is another good example. Unusually, most of the shops, houses and car parks in the centre are owned by a family estate, the Fitzwilliam estate. It is in the estate’s interest for the centre to be a vibrant commercial environment, so, as well as investing heavily in the town and in improving the shops, it gave two hours of free parking in the town centre car parks. That has developed the fantastically vibrant commercial activity we see in Malton.

Malton has been tremendously successful and very clever. A guy called Tom Naylor-Leyland set out to develop a brand around Malton, which he calls Yorkshire’s food capital. The Malton food festival is a fantastic weekend, and hon. Members must consider coming—it is a wonderful weekend to attend. It is vibrant, with music and a beer festival. There is some of Yorkshire’s finest food, and Yorkshire is the finest place for food, as Members can tell. The food festival has been a wonderful success story, and the town has regenerated on the back of it. It has to be seen to be believed. There is a symbiotic relationship between the car park owners, the town centre owners and the businesses, with a deep understanding between the three.

A lot of coach parties come to see the wonders of Helmsley, a fantastic market town. Richard III, the last king of the house of York, had a connection with Helmsley castle, as well as with Richmond castle. As the Minister said earlier, Helmsley was successful in the British high street awards, winning best market town on the back of the fantastic efforts of the town’s traders and local authority. Coach parking charges were introduced in one of its car parks, which deterred coaches carrying 50 tourists from coming to the town. Local people went to the council and campaigned on that issue, and they got the parking charges removed, which brought the coach parties back to the town. That is a good example of how businesses and local authorities, working together, can have a positive effect and foster a deep understanding of some of the challenges of running small independent businesses.

Those are positive examples, but we have heard others. According to the Royal Automobile Club, £756 million was spent on charges and penalties for parking in car parks across the UK in 2016, which is up 9% on 2015 and up 34% on 2010. That can be a tax on shoppers, and it can also be a tax on businesses. Businesses are paying rates and want service from their council yet, as we have heard, they are seen as sitting ducks or golden geese, or as both at the same time. We should make sure that we look after those golden geese and not treat them as sitting ducks because, ultimately, shoppers and businesses will vote with their feet.

--- Later in debate ---

[Jo Churchill]

It is my pleasure also to congratulate my hon. Friend the Member for Bosworth (David Tredinnick) on bringing forward what is—unusually in this place—a simple Bill with a simple aim that affects a great number of people.

I welcome the fact that it is easier for local councils to sort out their car parking, but I want to speak a little bit about enabling them to have a sense of place. That is a really important factor, to which my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) alluded, as did my hon. Friend the Member for Halesowen and Rowley Regis (James Morris), who said that we should not be looking for a one-size-fits-all solution. A sense of place is about local authorities understanding their locality, including businesses, residents and the people who visit the town. Our towns are changing, which is why local authorities need flexibility.

In the town of Bury St Edmunds, residents live near businesses and tourist attractions, and a vast number of tourists visit. As I mentioned earlier, we have getting towards 2 million short-stay parking slots each year in a town of some 42,000. That shows the popularity of the town, but it also shows that we need to have local flexibility and accountability. A very different situation exists down the A14 in Stowmarket, which is also in my constituency. Stowmarket has a less vibrant town centre, so the local authority will need to apply different measures to accommodate its businesses and stimulate a vibrant economy that is right for the town. As my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) said, the provision is about building communities. It is about people having the time to go into town centres and actually enjoy where they live.

[Kevin Hollinrake]

My hon. Friend makes a good point about the different types of town in her constituency. Is not the point of the Bill to require local authorities to work alongside businesses in order to develop the right strategies—for parking or other things—so that those businesses can make the best of their opportunities, no matter which conurbation they are in?

[Jo Churchill]

Absolutely—I could not agree more.

Bury St Edmunds has a 6% retail occupancy rate, which, as my hon. Friend will know, is very low—in fact, it is 50% of the national average. Bury St Edmunds won the award for the best Christmas fair anywhere in the country this year. It has a plethora of things we can enjoy. It has its own cathedral. Tonight, I hope to attend a performance of “Northanger Abbey” at the Theatre Royal, which is one of the only regency theatres in the country. All of that is fantastic, but there are also great things in Stowmarket and Needham Market. However, these places are different, and we need to understand how the Bill can address that.

There is one thing I would like to ask the Minister, and perhaps he can write to me if today is not the time to tease it out. In my area, I have a county council, a borough council, a district council and three town councils. Very often, it is only the fact that those councils work well together that facilitates solutions, despite the complexity involved in different authorities owning different car parks. For example, when Stowmarket Town Council wished to have a cheaper parking rate of £1 for two hours, that was facilitated through collaboration with the district council. Sometimes in these multiple tiers, we have a complexity that even a simple instrument such as this Bill may not address. There might be a little more work to do to deal with areas where things are not as simple as in a unitary authority or a metropolitan authority so that those areas can have conversations that facilitate changes to their local environment—to their car parking—more quickly than is possible at the moment.

That is particularly pertinent in places such as Bury, where we have the contra-problem to a lot of towns: we often do not have enough car parking spaces. It would be really good if these places could drive issues such as the funding of multi-storey car parks, which would allow us to have more parking so that our town centres are not sclerotic. When our town centres are blocked—hopefully, that is what the Bill will address—it is my residents who suffer. When people park somewhere in the town without thinking, residents cannot access their houses. Permits are good, but they stop people parking for business, and that is what I mean about this issue being about the whole environment.