Marks & Spencer

Debate between Andrew Jones and Claire Perry

Thursday 24th May 2018 Commons Chamber

[Claire Perry]

The hon. Gentleman anticipates the review I hope we can all support. I will ensure that my hon. Friends in the Treasury bring it forward as soon as possible. I do have to push back slightly. The hon. Gentleman is right and wrong. He is right that we are buying less stuff. In fact, there is the phrase “peak stuff”, which suggests that the younger folks among us no longer go shopping for pleasure, but prefer to do other things with their time—mostly involving their phones, as best I can tell from my own kids. There is the view that the acquisition of products and services is on the decline globally. I believe the vacancy rate for shops in great cities such as New York is now in double digit figures, which is very surprising and reflects a global trend.

We should welcome the fact that in this country real wages are now going up and increasing ahead of inflation. People are getting more money in their pockets. The Government’s actions in cutting taxes by over £1,000 for over 3 million people and in continuing to invest in high streets, allowing both money and choice, has meant that spending has held up reasonably well—in particular, since the Brexit referendum, which was supposed to deliver the death knell to shopping in this country. That has not happened. We are seeing a change in the way people spend, but it is vital we recognise the importance of this sector as part of our industrial strategy going forward. Industrial strategy, by the way, does not just mean smokestack industries. It means retail industries and creative industries—[Interruption.] The hon. Member for Sefton Central (Bill Esterson) should welcome the fact that we have a sector council up and running and should look closely at the steps it suggests the Government need to take.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I speak as a former Marks & Spencer supplier and current Marks & Spencer customer. The hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) highlighted the importance of an anchor store to a town’s retail offer and the social importance of the high street. I entirely agreed with her question. Will my right hon. Friend remain vigilant on, or at least sensitive to, the impact of business rates for physical retailers as compared to internet retailers? Will she monitor that carefully, because we want to ensure a level playing field for the social benefit we have been talking about?

[Claire Perry]

I agree entirely with my hon. Friend. We have tolerated that difference for too long. It is right to have a fair allocation of VAT between both channels.