Supporting High Streets Debate
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Andrew Griffith
Main Page: Andrew Griffith (Conservative - Arundel and South Downs)Department Debates - View all Andrew Griffith's debates with the Ministry of Housing, Communities and Local Government
(1 day, 13 hours ago)
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Andrew Griffith (Arundel and South Downs) (Con)
I beg to move,
That this House calls on the Government to support high streets by cutting public expenditure to facilitate the abolition of business rates for thousands of retail, hospitality and leisure premises on the high street; and further calls on the Government not to proceed with the Employment Rights Bill to avoid hiring freezes and job losses, to remove red tape for businesses, including by reviewing IR35, to cut energy bills for businesses and to tackle retail crime, thereby protecting key pillars of local communities including post offices, pubs and pharmacies.
I am pleased to move the motion in my name and that of the Leader of the Opposition. We celebrate and support our high streets—their independent shops, the warm refuge they provide from loneliness, and the way that they incubate new business. They bring us together as communities, provide markets for local farmers and food producers, offer venues for street festivals and often afford young people their first step on the career ladder, but across Britain’s high streets, the lights are dimming, the laughter in our pubs is falling silent, and shutters on shops are coming down for the last time. When high streets thrive, communities thrive. When our high streets retreat, so does civic society. We Conservatives profoundly value our high street enterprises, which is why one of our first actions in government will be to abolish business rates for thousands of retail, hospitality and leisure businesses.
In July, the Chancellor said that she will make the UK
“the best place to start and grow a business”.—[Official Report, 29 July 2024; Vol. 752, c. 1051.]
Well, goodness me, she has an odd way of showing it! In her very first Budget, the Chancellor slapped businesses with a £25 billion tax raid, and with a national insurance jobs tax, which hit high-street businesses the hardest, and meant that it cost business owners more simply to give someone a job.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Hospitality was hit particularly hard by that toxic concoction. A UKHospitality survey found that 76% of businesses put up their prices, one third restricted their hours and 63% had to cut their staffing as a result. Is that not the reason why we need this policy to try to improve our high streets?
Andrew Griffith
My hon. Friend makes exactly the right point: it was a devastating concoction of the Chancellor’s last year, and I believe that I am right in saying that UKHospitality calibrated the figures and estimated that 98,000 jobs have been lost across the hospitality sector. How proud this Government must be of costing mostly young and often vulnerable people their first chance!
Graham Stuart (Beverley and Holderness) (Con)
My hon. Friend is giving a powerful speech. Hospitality is fundamental to social mobility. I would have thought that Government Members would be ashamed of a policy that means that those furthest away from the labour market—young people—are put off from trying to get their first job. Hospitality is essential to enabling them to join the labour market, and the Government have put blocks in the way of people who want a better life.
Andrew Griffith
My right hon. Friend is exactly right. Let us be optimistic: we are here to celebrate our high streets, and perhaps all is not lost. The Chancellor could yet repent and reverse some of her most damaging policies, or adopt our policy of cutting business rates entirely for 250,000 high-street businesses.
John Glen (Salisbury) (Con)
When I visited Salisbury chamber of commerce on Friday, it gave me the example of a single mother doing 30 hours a week on the national living wage. As a result of the combination of the increase in the national living wage, the threshold changes and the rate changes on national insurance, that individual costs a business 11% more than they did last year. As a consequence, they cannot take on anyone else. What does my hon. Friend think about the impact that has on the economy?
Andrew Griffith
My right hon. Friend represents his constituents in Salisbury diligently, and makes exactly the same point. With respect, the Government have not understood business, and the Treasury did not pause to consider, or to conduct an impact assessment. In particular, the capricious change in thresholds from £9,100 down to £5,000, without any impact assessment from the Treasury, has done immense damage to high-street businesses. The Government should hang their head in shame.
Mark Pritchard (The Wrekin) (Con)
My hon. Friend will know that cafés, including small cafés, play an important part on the high street and bring people to it. Is he aware that under this Government, mushrooms are up, bacon is up, eggs are up, sausages are up, bread is up, tea is up and milk is up? Therein is a threat to the full English breakfast. This Government might be forgiven for many things, but taking away the full English breakfast from the high street is not one of them.
Andrew Griffith
I enjoy a full English as much as I suspect my colleague does. It is not just breakfast that is under threat; it is also lunch, supper, tea, dinner and the great British pub.
Jim Shannon (Strangford) (DUP)
I thank the shadow Secretary of State for bringing this debate forward, and I welcome it. I am always constructive and encouraging, so let me say that Ards and North Down borough council, my local council back home, has a scheme for a new, thriving high street. A council grant enables shop owners to repaint their premises, provide new signage and address the blight of vacant shops. Online shopping without investment means that the high street cannot survive. Does he agree that the Government should extend the initiative that we have back home in Northern Ireland, in my council area, to councils here, to help with jobs and rebuilding the high street?
Andrew Griffith
I agree with the hon. Gentleman. There is so much that we in this House and those in the Government—if they are minded to do so—can do to alleviate the burden on business. It is hard to run a business at the best of times, and it is even harder when the Government seek to be a headwind, rather than a tailwind.
Andrew Griffith
I have so many wonderful contributions to take from my colleagues. I am sure that the hon. Gentleman will have his chance later.
Dr Andrew Murrison (South West Wiltshire) (Con)
One thing that the Government might like to reflect on is the perverse situation that people facing VAT find themselves in. The £90,000 threshold is causing many small business people, such as barbers, to adjust their behaviour—classically, reducing their working week from five days to four or three. Does my hon. Friend agree that the Treasury needs to look at the increased tax take that it might receive if it changed VAT thresholds to allow those small businesses to work full time?
Andrew Griffith
My right hon. Friend makes another excellent point. I recently had the wonderful opportunity to meet Dr Arthur Laffer, whose pioneering economic research showed that reducing taxes increased not only the growth rate of the economy but, as a consequence, the tax take to the Treasury. That is a very important point about incentives and what we in this House can do.
Phil Brickell (Bolton West) (Lab)
The hon. Member is speaking about the tax rate. Is it not also important to talk about the tax gap? That gap is £46.8 billion, of which £6.4 billion is linked to tax evasion. We are seeing a lot of that on our high streets up and down the country. What does he think should be done across Government to tackle it?
Andrew Griffith
I am afraid that the hon. Gentleman must have overstayed oral questions to the Chancellor, because what we are doing in the Chamber now is celebrating, cherishing and supporting our high streets, not accusing businesses in our constituencies of tax evasion. However, I am sure he has impressed his Treasury colleagues, who are never shy about trying to transfer wealth from the private sector to the less productive public sector.
Sir Desmond Swayne (New Forest West) (Con)
Growth, increased turnover and increased profits for microbusinesses should be a cause for celebration, but the reality is that crossing the reduced VAT threshold can be a disaster. So many suppliers of small businesses are themselves small businesses; there is no VAT that they can reclaim, so it can be dreadful.
Andrew Griffith
Again, that is an excellent point. It is something that the Chancellor, who is spreading uncertainty and consternation again this morning, should think about in relation to the conduct of His Majesty’s Revenue and Customs. While businesses absolutely understand that part of their role is to contribute to society—to the communities in which they exist—it seems that HMRC so often goes out of the way to make it hard for our businesses. This is an organisation that literally sought to turn its telephone lines off for six months of the year, until the previous Government refused to allow it to do so.
Hospitality venues, which we have talked about, are really suffering. They are at the apex of those affected by the changes to employment law, taxes and business rates.
Andrew Griffith
I will make some progress. Last week, I had the opportunity to visit the Queen’s Head in the constituency of my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds), which brought home to me the challenges that that business is facing. Of course, all hon. Members in this Chamber represent constituencies, and traders on high streets in places like Arundel, Midhurst, Petworth, Pulborough, Storrington and Henfield have worked tirelessly throughout history to make our high streets and our communities what they are today, but—from the unacceptable time it has taken to fix the fire-damaged Angel Inn in Midhurst to the imposition of higher parking charges by Liberal Democrat councillors—government is too often a headwind, rather than a tailwind.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
The hon. Member is talking about the importance of high streets. In Hastings town centre, £150,000 of levelling-up money was provided to renovate the old Debenhams building and open a family fun factory. Sadly, that closed after a couple of weeks, the staff were not paid, and the building was boarded up. That taxpayer money was given to one of the biggest Conservative donors, Lubov Chernukhin. She has left with the money, and has not replied to my letter asking for it to be given back to the people of Hastings. Will the hon. Member, or perhaps the right hon. Member for Witham (Priti Patel)—who received £70,000 from that donor last year—help me to get a response about where our money is?
Andrew Griffith
I am sure that the hon. Lady will wish to take that matter up with Ministers through the appropriate channels, but there will not be many fun factories on our high streets when they feel the burden of Labour’s further changes.
Running a business—something that Conservative Members understand—is not easy at the best of times, but thanks to this Chancellor and this Government, these are far from the best of times. For the average pub, business rates have soared from £4,000 per year to over £9,000, and this morning, we have learned that the Chancellor is coming back for more. A year ago, she promised that she was done—that her tax raid on business was the end of it. She is leading us down the garden path. Spending is out of control, and she expects taxpayers, including businesses, to clean up her mess.
Wendy Morton (Aldridge-Brownhills) (Con)
Does my hon. Friend agree that we have a Government who simply do not understand business? They seem to think that they can just squeeze and squeeze small businesses because they make unlimited profits. If they do that, there will be no businesses left on our high streets.
Andrew Griffith
My right hon. Friend is absolutely right. One only has to look at the wording of the motion we are debating and that of the Government amendment. We Conservatives talk about lifting burdens, removing business rates, cutting red tape, and taking more action to address crime on our high streets. The Labour party talks about compulsory purchase, more grants and more subsidies—it is not interested in lifting the burden on business.
Bradley Thomas (Bromsgrove) (Con)
Does my hon. Friend agree that the Government present an illusion of choice? I will give him a very brief example. Two weeks ago, I met the owners of a business in my constituency—a young couple who own a hospitality business. They have two young children; one is three weeks old. They are buying a new house, and have said to me that because of the pressures bearing down on them as a result of choices made by this Government, they fear for the future of their business, which may have to close next year. Is it not the case that the Government are giving people an illusion of a choice, when in reality they are stifling the economy?
Andrew Griffith
My hon. Friend is absolutely right, and the choices that businesses face are enormously difficult. Every single day, they have to ask themselves whether they should put up prices to try to claw back some of the damage—some of that £25 billion cost—thereby increasing inflation and keeping interest rates higher for longer, pushing up the cost of living. Do they reduce the number of employees or the hours per employee, or do they simply fold in the face of disincentives, a lack of support and headwinds rather than tailwinds? Do they shut up shop before the Chancellor’s next intervention heaps on more and more burdens?
Carla Lockhart (Upper Bann) (DUP)
The hon. Member is making a very powerful speech. High streets across my constituency are struggling, and one additional burden that they carry is a parcels border in the Irish sea caused by the Windsor framework and the protocol. It cost a children’s clothes retailer over £200 to get a delivery from GB. Does the hon. Member agree that this is an extra burden that retailers should not have to carry, and that the Government need to do something about it quickly before businesses go out of business?
Andrew Griffith
Rather than giving away our fishing for 12 years and getting nothing in return because of a dogma, or spending time on international affairs—giving away the British Indian Ocean Territory and paying for the privilege—the Government should be prioritising the needs of business and focusing on the specific barriers mentioned by the hon. Member. Doing so would make a huge difference to businesses in her constituency.
It is not just the Chancellor. The Business Secretary seems to be doing his bit too, creating more small businesses by shrinking existing large ones. His 330-page unemployment Bill, which is due to come back before the House tomorrow, will make life a nightmare for every employer on our high streets. It will make flexible and seasonal working impossible, and will prevent employers from taking a risk on young people and work returners—some of the most vulnerable people in society—for fear of joining the backlog of 490,000 claims to employment tribunals.
Andrew Griffith
If the hon. Lady wants to talk about what the Government are doing to help employment, I would love to hear her intervention.
Amanda Martin
The flexible labour market under the Tories meant that people were employed but did not know when they were working, how long they were working for and how much they were getting paid.
Andrew Griffith
You do not improve workers’ rights by making them unemployed, creating a generation of jobless young people who cannot find their way into gainful employment. And do you know what? It is not just the Conservatives who are saying that. Even that finishing school for socialists, the Resolution Foundation, opposes Labour’s Bill because of the unemployment that it will yield.
What this shows us is that the Government are simply not serious about business. We Conservatives get it. Many of us have worked in business ourselves, and we understand that businesses take risks, create wealth and employ millions. That is why we introduced business rates relief before this Labour Government cut it, and it is why we will introduce a 100% relief for retail, hospitality and leisure businesses, taking 250,000 high street premises out of business rates entirely.
Dave Doogan (Angus and Perthshire Glens) (SNP)
The shadow Minister will, of course, be delighted to know that the Scottish National party was the first party anywhere in the United Kingdom to introduce business rates relief for small businesses. As for the Labour Government’s business literacy, which the hon. Gentleman critiques quite accurately, does it concern him that it manifests itself in deeply disingenuous moves, like taking a penny off the price of a pint, while the same pub—the Taybank in Dunkeld, perhaps, or the Stag in Forfar—is seeing its national insurance contributions put up and its energy bills going through the roof? This Government cannot join the dots. Is the hon. Gentleman concerned that this is only going to get worse?
Andrew Griffith
I am enormously concerned. I was concerned when I woke up this morning, and I am even more concerned after hearing the intervention from our Chancellor: no certainty, confidence plummeting, and the promise of more taxes to follow.
Vikki Slade (Mid Dorset and North Poole) (LD)
I hope that the shadow Minister will explain something to me. I totally agree that business rates need reform, but I am deeply concerned about the hole in local government finance that it will cause. My local council, Bournemouth, Christchurch and Poole, has calculated that it retains £66 million from business rates. Can he please tell me where that will come from?
Andrew Griffith
To coin a phrase, we are not going to balance the books of local government on the back of entrepreneurial businesses that are keeping our high streets alive, providing services for the community and allowing our economy to grow.
Adam Thompson (Erewash) (Lab)
When the shadow Minister’s party came into government in 2010, I was working in the Animal store in Queens Arcade in Cardiff, which was an anchor institution there: it brought people in, and ensured that retail was thriving in the community. When his party left government 14 years later, the Animal store was closed, as were the majority of the other units in the arcade. Can he comment on why that happened on his party’s watch?
Andrew Griffith
I am not sure that we were in charge in the particular area that the hon. Gentleman has mentioned, but I am pleased to know that, like so many of us, he had his first experience of work—his first leg-up, his first work opportunity—in the retail and hospitality sector. It is hugely important, and gives people great opportunities in life.
I have talked about our promises—[Interruption.] I do not want to get too deflected by stories about the Animal store, of which the hon. Gentleman clearly has enormously fond recollections, and where he spent many a happy hour.
Dr Hudson
May I move the conversation on from animals, much as I would love to talk about animals today?
In Epping Forest we have fantastic pubs, restaurants and cafés—including the Queen Vic, Il Bacio, Gosht, Alecco, Papillon and Poppy’s—but they are all struggling under this Labour Government. Does my hon. Friend agree that the Government should listen to our sensible proposals to cut business rates and help them to get their energy bills and food costs down?
Andrew Griffith
I absolutely agree. We are all here individually today representing our fantastic constituencies, our wonderful high streets and our entrepreneurial businesses—those residents and constituents who seek to be employed and contribute to a growing part of our economy. That is why we in the Opposition are here to talk about our plan to save the high street, not to make the sort of partisan points that we are hearing from Labour Members.
Harriet Cross (Gordon and Buchan) (Con)
Family businesses are crucial to our high streets, including mine in Inverurie, Ellon, Turriff and Huntly. Indeed, they are the backbone of our high streets, yet this Government’s national insurance contributions changes and Employment Rights Bill, and their slashing of business property relief, will have a huge impact on them and employment in them. What does the shadow Minister think of that, and what can we do to help our high streets and, in particular, family businesses in them?
Andrew Griffith
So many family businesses will be devastated by the family business death tax introduced by the Labour party. We often hear about the plight of farmers and food producers, but family businesses are even more numerous. If you have survived Labour’s job tax, if you have survived Labour’s more than doubling of business rates, if you have survived the red tape— so much more of it—that Labour is imposing, all that awaits you when you seek to pass your business or your family farm on to the next generation is Labour’s family business death tax. That is why, as part of our plan for the high street, we will repeal those damaging measures.
Andrew Griffith
I hope that the hon. Lady is rising to commit herself to repealing them too.
Catherine Fookes
No; I want to remind the shadow Minister that we on this side of the House talk up our high streets, while all I can hear from the opposite Benches is people talking them down. As for red tape, the family businesses in my constituency were desperate to get rid of the red tape that the Conservatives created during their botched Brexit deals. Does the hon. Gentleman agree that by giving £5 billion to the Pride in Place scheme, this Government are doing a great deal more to support our high streets than his Government ever did?
Andrew Griffith
That was a valiant attempt to return to past history, but on this side of the House we are looking forward. Our plan for the high street would remedy the damage that has been done not over past years but over past months, and even again this morning—the collapse in confidence caused by our Chancellor.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
Will my hon. Friend reflect on the fact that many of those sitting on the opposite Benches have clearly been dragooned into coming here to support the Government—as often happens in government, God help us. Does he think that they walk down their high streets telling the shopkeepers, “It is great to have national insurance charges so high that you cannot employ anyone, it is great to have an employment Bill that means you will not be able to employ anyone again, and with the rates that are out there, you may all be out of business—suck it up”?
Andrew Griffith
My right hon. Friend has made exactly the right point. It is genuinely bewildering—and we will see this again tomorrow—that when every single major business group in the country urges the Government not to proceed with their damaging unemployment Bill, when Labour think-tanks urge them not to proceed with that Bill, and when not a single business in favour of that Bill can be named by a Labour Minister—other than the Co-op and one that is overseas—they still seek to proceed with it.
Several hon. Members rose—
Andrew Griffith
I will make some progress.
We have talked about the damage being done by the Chancellor, and we have talked about business rates and our plan to reform them and give the high street a chance, but there is more. Our cheap power plan will cut energy bills by 20%, with the average restaurant saving a very real £5,000 and the average pub saving £1,100. Perhaps Labour Members would like to emulate that energy plan. We will save the high street from the scourge of crime and shoplifting, and early release of prisoners, by hiring a further 10,000 police officers, tripling the use of stop and search and reversing Labour’s release of criminals to make our high streets safer. We will repeal those most damaging elements of the Employment Rights Bill, and rather than paying lip service to cutting red tape, we will take a chainsaw to bureaucracy and blockages to business, from planning to licensing to IR35, and so much more.
We stand with the makers, not the takers: the people who put their time, energy and money on the line to make our communities a better place. We know that one cannot build prosperity by punishing those who create it, that one cannot revive our high streets by taxing them into submission, and that one cannot protect a worker by bankrupting their employer. Our message to the Government today is simple: give businesses the confidence they need; remove the threat of taxes hanging over their head; listen to the voice of business; and support our plans to support our brilliant high streets.