Local Markets

Baroness Royall of Blaisdon Excerpts

Wednesday 23rd July 2014 Grand Committee

[Baroness Royall of Blaisdon (Lab)]

My Lords, I echo the thanks of other noble Lords to my noble friend Lord Harrison, whom I will now think of as a magpie in slippers. This has been a very good debate. I pay special tribute to my noble friend Lord Graham of Edmonton, who has had a lifetime of supporting markets and market traders.

There are many examples across the country of local markets thriving and contributing enormously to communities. Like many noble Lords, I enjoy shopping in local markets, whether in food markets such as Borough Market here in London, covered markets such as the one in Oxford, or farmers’ markets, such as the one in Tavistock in Devon. Some are situated in market towns with a long-standing history of trading, while others are new additions to local communities. However, for the shopper or browsing tourist the experience is always quite unique. The sights, sounds and smells in markets are certainly a treat for all the senses. In Lydney, in the Forest of Dean, we have the Taurus Crafts market, which is a standing market, but every month a food market there sells delicious food and drink from the Forest of Dean, which is a matter for great celebration.

Markets are a testament to the vitality and determination of market traders, who promote local produce, encourage enterprise and support the local economy. However, the nationwide picture tells a rather different story. Markets up and down the country are struggling, which means that the impact that this industry has on the nation’s economy is much smaller than it could be. Hundreds of markets are just waiting for support and investment opportunities which, if provided, could transform not just the lives of market traders themselves but the communities in which their businesses trade.

The National Market Traders Federation—NMTF—is a terrific organisation that was established over a century ago to champion the case for markets. It reported recently that its membership had fallen from 34,537 to 25,576 in the last five years. That means that the industry has shrunk by a quite dramatic 25%. In the last 18 months alone, membership of the NMTF has fallen by 3,500 members, which suggests that over 5,000 market traders have stopped trading since December 2012.

The noble Lord, Lord Lee of Trafford, said that most market shoppers are older; clearly we have to encourage younger people to go to markets. However, I must say that my own children are very frequent shoppers at markets. Market traders, like thousands in the retail industry, are struggling with the pressures of the growth of online shopping and the expansion of large supermarkets. They are also feeling the strain because of the decline in the number of shoppers, and because the costs of running a business—affected by gas and electricity hikes—affect market traders as well as people who have shops. As the National Association of British Market Authorities has reported, public sector cuts have also contributed significantly to the underperformance of market service in the last few years.

Many noble Lords mentioned Mary Portas, who talks of markets as an untapped resource. It is increasingly clear that we have to view successful markets not merely as an end in themselves but as part of a vibrant local economy—an important part of the jigsaw of a local community. Does the Minister agree that we need to wake up to the real potential of local markets and start to view them as part of a vital component of the local economy? Their contribution, if truly unlocked, could help in numerous ways.

As food prices rise, and real wages fall, finding good deals on fresh produce is important. Farmers’ markets come into their own here, because they not only supply brilliant local produce but sell it at a cheaper rate than many local supermarkets, as my noble friend Lady Dean said. We also know that price is an extremely important factor in people’s decision to eat in a healthier way, so it is a win-win situation. Beyond promoting healthier diets, the Joseph Rowntree Foundation found that local markets are also an important site of social interaction for local communities, as has been said.

As well as the social and health benefits, the economic impact of local markets is potentially huge. This year, the Federation of Small Businesses reported that for every £1 spent locally, around 50p to 70p recirculates into the economy. If the same £1 is spent out of town or online, only 5p trickles back to the local economy. Chesterfield is a fine example of success. The market hall has almost full occupancy and is helping the town to buck the trend and drive trade back into its centre. Chesterfield has one of the highest levels of shop occupancy of any town in the east Midlands, and tourist numbers are up year on year, thanks to the thriving atmosphere in the town centre, which is in part due to the thriving local market.

As the NMTF says, as a tool for increasing footfall, stimulating consumption and adding vibrancy and diversity to a street or square, nothing beats a buzzing market. Does the Minister agree that with low costs and a direct relationship with customers, market trading is one of the best entry points to the world of business? As noble Lords have said, it is a great place to start trading.

There are clear economic, social and health benefits to establishing successful markets, but we need to promote their development and persuade local people of their benefits. Many noble Lords have mentioned the “Love Your Local Market” campaign, which is good and welcome, but is too small and does not have enough money. We know that some actions taken by local councils can encourage the development of markets, as noble Lords have said: free parking, wi-fi access and regular cleaning and maintenance. However, while retail spaces are able to offer these services with relative ease, market traders and producers find it more difficult.

Local authorities consistently report that they have little capacity for the strategic development of markets. However, one way of promoting greater autonomy in local areas is to ensure that local people with local knowledge and local investments have the power they need to bring about change. It is crucial that we give local councils the freedom and power to control the decisions which will enable investment in local projects. Developing a network of regional banks and working with business improvement districts would do just that.

Last weekend my right honourable friend Ed Miliband reaffirmed my party’s commitment to devolving power to local communities. That would help local economies and ensure that they serve the needs of the whole of society by creating an economy where power is taken away from Whitehall and Westminster and given to people in the communities in which they live. We want to equip councils with the power that they need. As noble Lords have said, the number one concern for many traders and businesses are small business rates—which, like food, gas and electricity prices, have risen under this Government. Labour will cut them and freeze rates for small businesses to help traders—the lifeblood of communities—achieve their ambitions.

Gwen Sangster, the operations manager of Darwen market, which has 130 stalls and is a crucial part of the area’s small business offer, believes that this policy could be the difference between survival and closure for businesses. For those doing well, it could persuade them to take the plunge to expand and create one or two jobs. If replicated throughout the country, this could make a big difference to the economy.

As our European partners recognise, to invest in a market is to invest in a community. It is to invest in the talents of local entrepreneurs and in the long histories and traditions of towns and villages, for the benefit not just of the market traders and communities but of the national economy.