Business Rates: High Streets

Lord Naseby Excerpts

Monday 23rd February 2015 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government, in addition to business rates reform, what steps they are taking to support high streets in the United Kingdom.

[Lord Naseby (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest in that a member of my family works in the retail trade.

[Baroness Williams of Trafford (Con)]

My Lords, since 2010 the Government have helped to create over 360 town teams and given over £18 million to towns, funding successful initiatives such as the Love Your Local Market and the Great British High Street portal and awards. In addition to over £1.4 billion in business rates support, we have eased restrictions on planning and are strengthening the role of business improvement districts and tackling aggressive parking enforcement.

[Lord Naseby]

It is very welcome to be reminded of all that the Government have done so far. Indeed, it is fair to say that this Government have done as much as any Government to help business in general. Nevertheless, are Her Majesty's Government aware that there is a real crisis in the high street? In particular, the high street is facing increasing competition from online, where businesses pay no business rates, as well as from out-of-town stores, where there is free parking and lower business rates? Against that situation, is it not bizarre that a 2% business rate is to be imposed, when the CPI is 0.5%? Against that, will my noble friend ensure that the review will bear those points in mind?

[Baroness Williams of Trafford]

My Lords, I thank my noble friend for pointing out what this Government have done to help the high street and businesses in general with business rates, relief corporation tax, help with national insurance contributions and easing up on some of the parking enforcement issues that are holding trade back.

My noble friend asked about online trade putting further pressures on the high street. In fact, online trade has in some ways benefited the high street through the massive increase in click and collect. I do not know about my noble friend, but every time I click and collect I click and collect some more while I am there. He also talked about out-of-town shopping centres and parking. What he says is true but, as I have said, we are clamping down on harsh enforcement. He also asked about the review of business rates. That is forthcoming, and there will be details on that shortly.