British Retail

Debate between Marcus Jones and Toby Perkins

Wednesday 6th March 2013 Westminster Hall

[Mr Marcus Jones (Nuneaton) (Con)]

Thank you, Sir Alan, for calling me to speak in this extremely important and pertinent debate. I congratulate my hon. Friend the Member for Watford (Richard Harrington) on securing it. It is a pleasure to follow the hon. Member for Stockport (Ann Coffey), who has immense knowledge of the subject, and has made a good pitch for what she thinks should be the future of our town centres.

There is no doubt that our retail sector is undergoing a fundamental and lasting structural change, and that the full force of the internet is being felt. In the past few months, HMV, Jessops and Blockbuster, to name a few companies that once had a successful business model, have succumbed quickly as their business model, overtaken by the pace of change in technology, has become obsolete. Traditional retailing is being eroded and is likely to give way to e-retailing.

Destination retailing is joining e-retailing as the focus for many of our multiple chains. It is said in retail that the customer is king, and it is impossible to stem the tide of what is happening. I am chairman of the all-party town centres group, and I think it is important to manage that fundamental change in our town centres and high streets. That is what I want to speak about today. We must look carefully in many areas at how we manage the change because many things need to be done. I want to focus on three issues.

The first issue is business taxation. Rents are falling in many small and medium town centres, but business rates, which are one of the greatest costs for retail businesses, are not following that pattern. I understand why the Government may not want a business rate revaluation at the moment, but the Minister and my right hon. and hon. Friends in the Treasury should consider freezing business rates in the forthcoming Budget, to give a fighting chance to small businesses in our town centres that might not benefit from small business rate relief.

[Toby Perkins]

I commend the hon. Gentleman for his comments about business rates. There is no question but that the issue is significant. He seems to be calling for the Government to forgo expected income to invest in the future, which is the Labour party’s economic strategy, so is the hon. Gentleman coming on board?

[Mr Jones]

I thank the hon. Gentleman for his comments. If my right hon. Friend the Chancellor sought to freeze business rates, I would expect him to do so in a way that balances the books. It is certainly not the Conservative-led Government’s policy to do things that impact further on the deficit. The hon. Gentleman and the Labour party are advocating an increase in the deficit instead of reducing it as the Government are doing.

Welfare Benefits Up-rating Bill

Debate between Marcus Jones and Toby Perkins

Monday 21st January 2013 Commons Chamber

[Toby Perkins]

Let me make more progress before I let hon. Members intervene again.

One issue I have raised previously in the context of the Bill is housing benefit changes. Last week, I met Chesterfield borough council officials to discuss the impact of the bedroom tax, which will hit people across Chesterfield in April. The council knows it faces a time bomb as people who cannot afford to pay their rents are told that there is a shortage of smaller properties for them to move to. Many of those people are at the back end of their working careers, and are either not working or in part-time employment. The council is budgeting for a situation in which around a third of them will fall into arrears—their housing-related benefits will be reduced and they will no longer have enough to pay their rents—and the Government are increasing the discretionary payment to allow councils to meet the costs of some who fall into that situation, which is a totally illogical policy. People who have been council house tenants for many years will fall behind, and the Government will give money to councils to bail them out. At the same time, the Government will hit them on housing and council tax benefit, and on tax credits. They are saying, “Those payments have already been cut, but they will now be increased by less than the rate of inflation.”

[Mr Marcus Jones]

A thread running through the hon. Gentleman’s speech is how we help the lowest paid. Does he agree that the coalition Government are helping the lowest paid in his constituency, because in April 3,880 of his constituents will be lifted out of income tax altogether, like 3,168 people in my constituency?

[Toby Perkins]

I welcome any measure that makes people better off, but the hon. Gentleman is entirely wrong if he thinks those being lifted out of tax are the lowest paid—they are not. Many who are earning less than them will get no benefit from the increase in the tax threshold. The people being lifted out of tax are not the lowest paid, although I recognise that they are on modest incomes.