High Streets (Designation, Review and Improvement Plan) Bill

Baroness Taylor of Stevenage Excerpts

2nd reading
Friday 17th May 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I draw attention to my registered interests: I am one of the proud members of the growing number of vice-presidents of the LGA; I am also a serving county councillor on Hertfordshire County Council.

It has been an interesting debate and very helpful to hear from members of the Built Environment Committee —I am grateful for their input. I say from the outset that we will not oppose the Bill, on the basis that doing something, even something that represents a drop in the ocean, is usually better than doing nothing. However, I have much sympathy with the view of the Local Government Association, which characterises the Bill as unnecessary and a distraction from what councils really need to protect and enhance the future of their high streets. It recognises that what is really needed is a stable policy environment for high streets and planning, with sufficient resources and long-term growth and regeneration funding.

Much of my last eight years has been spent engaged with partners on the £1 billion regeneration programme for Stevenage town centre. I say to the noble Lord, Lord Horam, that it is not quite the Champs-Élysées, but our town centre in its early days was very influential in the development of Rotterdam.

We were very fortunate to have excellent advice from the noble Lord, Lord Heseltine, in the early days, and the support of the noble Lord, Lord Porter, when there were unnecessary and unhelpful roadblocks put in our way, and we have ongoing support from the High Streets Task Force. We are now well under way with our project, to the extent that the noble Lord, Lord Harrington, in his excellent review of foreign direct investment last November, used us as a positive case study, saying:

“This approach is reflected in the collaborative work between Reef and UBS (developer and funder), and Stevenage Borough Council as both Local Planning Authority and landowner, to secure a new £65 million headquarters for Autolus Therapeutics. This development is the first of its kind globally and there is no other Town Centre advanced manufacturing cell and gene therapy facility across multiple floors”.


That was a really big plus for us.

I will talk more about purposefully driving footfall in this way in a moment, but I have mentioned this because I fear that there is an element in the Bill of pointing the finger of blame at local councils, many of which are currently trying to scale some of the obstacles that we too faced. As the tumbleweed of this Government’s 14 years of economic failure rolls through our town centres, both in actual and symbolic terms, it leaves communities feeling bereft, neglected and forgotten. Just this morning, we heard that the dreadful milestone of the 6,000th high street bank to close had been reached. Too many post offices that sat at the heart of neighbourhood high streets have been closed, presumably by the same dreadful decision-makers who imposed such misery on their own sub-postmasters.

The Government seem to stand by paralysed as the rise of overseas online retailers, such as Temu, almost literally steals the clothes from our retailers’ backs, with loss leaders that are surely paid for in less than ideal terms and conditions for workers. The uncertainty of the economic climate holds back investment in our high streets, and those brave enough to try, as the noble Earl, Lord Shrewsbury, pointed out, find themselves penalised by an antiquated and inflexible business rates system and soaring energy costs. The catastrophic funding crisis facing local government, mentioned by my noble friend Lord Hanworth, the noble Baroness, Lady Bennett of Manor Castle, and the noble Lord, Lord Razzall, leaves too many councils too paralysed by pressures on adult social care, children’s services and temporary and emergency accommodation to give the necessary focus to economic development and place-making.

A combination of the impact of the cost of living crisis on our communities and a perception that public spaces feel unsafe drives people further towards online retail. I also point out that our attempts to amend the Levelling Up and Regeneration Bill to further level the playing field between online and high street retail fell on deaf ears, sadly. We cannot turn the clock back on internet shopping, but we can surely ensure that it does not continue to enjoy the very significant financial advantage it currently has over high streets.

As well as these national issues, councils will face all the issues we did over complex ownership. There are more than 60 owners of property in my town centre to be worked through, as so ably articulated by my noble friend Lord Hanworth. Then there is the challenge of how we preserve heritage and history, and the constant challenge of successive funding pots, all with different demands and constraints and draining scarce council resources to put bids together, not to mention the issue of permitted development riding roughshod over our local plans, as mentioned by the noble Lord, Lord Mair, and the noble Baroness, Lady Bennett.

We have a positive story to tell in Stevenage, but this was achieved in spite of the barriers and obstacles we encountered. Following the wise principles set out by Bill Grimsey, we started with master-planning, engaging our community, developing strong cross-sector partnerships and attracting key private sector partners, concentrating on driving footfall, with new homes, workplaces and flexible workspaces in the town centre to support existing retail and offer new hospitality opportunities. Our public sector hub, planned with colleagues from both councils, the NHS, the police and others, will soon be in the development phase and we have developed a whole culture and leisure strategy to reinvigorate our town centre, with event space, new leisure and sport facilities and green spaces. We have capitalised on our strategic transport location with a station gateway project, including the development of a new bus station and linking our 45 kilometres of cycleway to the town centre network. We are focusing on the skills of the future by bringing a new science and technology training facility into the heart of our town centre, and after several years of absence, we are delighted that Marks & Spencer is now back.

If it is the intention of the Bill to follow up the plans it implores local councils to make with funding, planning changes and powers that will enable them to happen, it will not be a bad thing. I would be grateful if the Minister could shed any further light on the mechanism for incorporating these high street improvement plans into local plans.

We all know that our citizens want to see thriving community hubs in their town centres. If my party is given the opportunity to serve in government after the next general election, our six pledges announced yesterday will make an immediate start on supporting councils to do what they need to do. We will create the necessary economic stability by modernising the business rates system so that it works equally for sole traders and small businesses as it does for huge corporates.

We will crack down on anti-social behaviour with real action on shoplifting and town centre patrols, so that people and shopworkers feel safe and are safe. We will have a blitz on planning powers, working with local government to ensure that planning helps the builders not the blockers.

There will also be new powers for mayors so they can get on with the job of regenerating our communities after 14 years of not just stagnation but going backwards. But that is for the future, whether July, September, October or whenever the Government let the country decide. In the meantime, let us hope that the Bill will help our high streets a little while we wait for the change our residents want to see.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Swinburne) (Con)]

My Lords, I start by thanking my noble friend Lord Whitby for his sponsorship of the Bill through the House, as well as the words of support from others in the Chamber—albeit some of them fairly caveated. I also take this opportunity to thank the honourable Jack Brereton MP for his leadership in the other place on this important issue.

Our high streets are evolving. In the face of challenges—such as the rise of online retail and the impact of the Covid-19 pandemic—high streets have had to adapt. However, it is clear that some have been able to adapt more quickly than others. That is why the Government are working with local communities to help them navigate the change. We have introduced measures, such as the long-term plan for towns, which will invest £1.5 billion across 75 towns to drive regeneration, as well as the £830 million future high streets fund, which has already helped more than 72 high streets across the country to recover from the pandemic. It is why we are supporting the Bill, which will ensure that local authorities are prioritising high streets in their area, as well as fully utilising the powers already at their disposal.

On the specifics of the Bill, it will make the designation of high streets and the creation of high street improvement plans a statutory requirement. Each local authority will need to designate at least one street or network of streets in their area as a high street. Local authorities will be able to designate as many high streets as they want. However, the Government have committed to funding the costs of up to three high street designations, and any designations beyond this number will need to be funded by local authorities themselves. Local authorities will then have to create plans for improving the vitality of the designated high streets, which should be reviewed at least once every five years.

Partnerships are vital for the success of high street regeneration, which is why local residents, businesses and others will have a real say on the improvement plans. Local authorities will have a requirement to consult both on the high streets they designate and on the related improvement plans. The Bill will also mean that local authorities will have to take into account high street improvement plans when exercising their planning functions, supporting already strong protections for mixed-use high streets.

Taken together, these measures will ensure that local authorities not only prioritise the health of their high streets but use their existing powers to drive forward improvements—such as Section 215 powers to require land to be cleaned up when it is detracting from the surroundings. The Government appreciate the action that many local authorities have already taken to improve their high streets, which these new requirements will complement.

Following Royal Assent to the Bill, we will be issuing guidance for local authorities on what an improvement plan should look like. We know that local authorities are best placed to judge what high street improvement plans should cover, which is why officials in my department have already begun engaging with local authorities on this matter and will continue to do so as they further develop the guidance.

It is crucial that these plans are not just a tick-box exercise but remain relevant and assist local authorities in regenerating their local area. This is why the Bill requires local authorities to update their plans at least every five years, although it can be earlier, as the noble Baroness, Lady Bennett, suggested. We believe it will provide a balance between giving the plans enough time to have an effect and ensuring that they remain useful documents.

The Government fully recognise the pressure that local authorities are currently under, which is why, as my noble friend Lord Whitby said in his introductory remarks, extra funding will be provided, so that local authorities are able effectively to deliver the measures in the Bill. Alongside this funding, my department will be working closely with local authorities to ensure that they input into the development of guidance for the Bill, ensuring that it gives local authorities the agency and discretion to determine what is best for their area.

In response to the various noble Lords who have raised it, local authorities can already use Article 4 directions to suspend permitted development rights in designated areas which allow them to protect shopping areas. We agree—

[Baroness Taylor of Stevenage (Lab)]

Can the Minister then tell us how many Article 4 directions were allowed by the department?

[Baroness Swinburne (Con)]

I will revert to the noble Baroness with a response to that when my department gives me the numbers.

I agree that it is important that we consider the effect of all these things on the high streets, which is why we can include this in the guidance to local authorities. We will certainly consider how we can build this in to assist local authorities, to make sure that they can determine what is best for their area and use all the powers that they have.

The Bill is one part of a broader strategy to create thriving high streets and town centres, building on the wider work this Government are doing to regenerate the high streets. This work includes the high street rental auctions and high street accelerators, which also work alongside the long-term plans for towns, which is backed by £1.5 billion overall to drive ambitious plans to regenerate 75 towns across the UK over the next decade. The broader levelling-up fund of £4.8 billion is already being put to work.

The Bill also complements the work of the towns fund and the future high streets fund, where we have now already allocated over £2.35 billion-worth of town deals and over £830 million of future high streets funding across 170 high streets. We hope that local communities in England will regenerate in order to help create jobs and build more resilient local economies and communities.

To conclude, the Government fully recognise the serious challenges faced by high streets up and down the country and are committed to helping them turn things around. I appreciate, as I am sure all noble Lords do here, just how crucial the health of our high streets is for local communities. For many, places that they should be proud of are currently a shadow of their former selves. The Bill, alongside wider government measures, will help to regenerate our high streets and help to create places that people are proud of.