High Street Businesses

Al Pinkerton Excerpts

Wednesday 26th February 2025 Westminster Hall

[Dr Al Pinkerton (Surrey Heath) (LD)]

I would thank you for calling me, Sir Desmond, but you have given me a real challenge. Nevertheless, it is a pleasure to serve under your chairmanship. I thank the hon. Member for Stockton West (Matt Vickers) for securing this important debate.

We all know that for generations, high streets have been at the heart of our communities—providing spaces for our local businesses to thrive, for social connections to flourish and for economic growth to be driven from the grassroots, yet across the United Kingdom, high streets are in decline. Businesses are closing at an alarming rate, there is crime and antisocial behaviour, depressing footfall, and outdated business rate systems stifling local enterprise.

In my constituency of Surrey Heath, we have numerous high streets across market towns and villages, all of which are interconnected to a larger ecosystem. Camberley, our historic market town, has struggled to grow over the past five years. Despite being just 28 miles from central London, the town centre is suffering from increased vacancy rates, crime, antisocial behaviour and public infrastructure that persistently fails to meet the needs and expectations of local businesses and residents.

Our high streets should be hubs of activity, but they have been undermined by the long-term absence of Government support and mounting economic pressures. One of the greatest challenges that I hear about from local businesses is related to the broken business rates system. In 2025-26, for example, despite paying business rates in excess of £30 million, businesses in Surrey Heath will see just £900,000 of their contributions re-invested into their local community, which is just 3% of the business rates raised. The vast majority of revenue raised through business rates is spirited away from the place of generation and collection by central Government.

Of course, that is not in any way unique to Surrey Heath. It is a national problem that discourages investment in our high street while allowing online retailers and large multinationals to operate under a significantly lighter tax burden. The Lib Dems have long argued that the business rate system is outdated, unfair and penalises bricks and mortar businesses, which are vital to our communities,

[Sarah Dyke (Glastonbury and Somerton) (LD)]

My hon Friend is making a fantastic speech. He will know the importance of pubs to our high streets, particularly in rural areas, to drive footfall and support our rural economies. I spoke to a tenant of a pub in Castle Cary who is trying to develop a community space for social and cultural cohesion, at a time when the town is growing quite significantly. Does my hon. Friend agree that the Government’s proposed changes to business rates for properties with rateable values above £500,000 are potentially ruinous for many pubs on our high streets and in our rural villages?

[Dr Pinkerton]

I agree with that assessment. I have pubs in my patch that say exactly the same things to me. They are not in the same kind of more rurally sensitive communities that my hon. Friend refers to, but I fundamentally agree with her analysis. That is not a situation that is unique to Surrey Heath or to my hon Friend’s patch at all. I hope that the Government will commit to fundamental reform of that particular tax structure. Another issue that I am seeing in Surrey Heath is the growth of shoplifting and antisocial behaviour. It deters customers, it suppresses footfall and it makes it more difficult for businesses to operate and thrive.

In Camberley, our main market town, that is causing significant losses to businesses, and business owners tell me that they are tempted to move away from our community altogether because of the challenges they face. Police have issued dispersal orders across many market towns across this country, but I would like to ask the Secretary of State explicitly what assessment he has made as to the effectiveness of those particular measures. There should be far greater police visibility in our town centres to deter crime and to give businesses the encouragement and support that they need to thrive.

In conclusion, and because I only have a few seconds left, will the Minister say whether the Government have considered reforming business rates to ensure local communities retain more of the revenue generated by local high street businesses—as these communities expect to happen already? Also, what support is in place for high street businesses facing closure due to crime and antisocial behaviour?