Retail Sector

Ben Bradley Excerpts

Wednesday 6th June 2018 Commons Chamber

[Greg Clark]

The hon. Lady makes an excellent point, and this was one of the reasons we commissioned the Matthew Taylor report, to which the hon. Member for Salford and Eccles referred. Knowing that employment patterns are changing and that different types of businesses are entering the market, it is right to consider what regulatory requirements we need in this new world to maintain the high standards we have insisted on in this country. That is the type of preparation—the strategic anticipation of what is required—that we are engaged in.

I applaud the way in which, in this time of adjustment, to prepare for the future, the retail sector is coming together, with its players working jointly. It has always been a rather fragmented sector, but in recent months we have seen a real sense of purpose in its coming together to work jointly with the Government and with local councils, as my hon. Friend the Member for Torbay (Kevin Foster) said, to address the challenges it has faced.

[Ben Bradley (Mansfield) (Con)]

Does my right hon. Friend agree that, as well as working at a national level to recognise the changes needed in our high streets, it is important that local councils work with local businesses to put in place a plan and vision for what the town centre needs to look like in future?

[Greg Clark]

My hon. Friend is right about that. The hon. Member for Salford and Eccles referred to local industrial strategies. The reason they are part of the industrial strategy is that the vision we have set out, informed by local councils, local leaders and retailers, is that that local dimension and knowledge, as I mentioned to the hon. Member for Great Grimsby (Melanie Onn), is vital in ensuring we have prosperity. So the sector was a major contributor to the development of our industrial strategy.

One commitment we made was to establish the Retail Sector Council, so that firms, large and small, can work effectively with each other and policy makers, emulating the successful model that the Automotive Council UK and the Aerospace Growth Partnership have established, with which Members are familiar. The RSC is chaired jointly by the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton (Andrew Griffiths), and Richard Pennycook, who, as many Members will know, is the former chief executive of the Co-op and one of our most respected retailers.

The RSC is bringing the sector together to work with Government and local councils, making recommendations on the areas of challenge that have come up already in today’s debate. Those include business rates, where the Government have made a clear commitment to make sure that the system is up to date for a world in which people increasingly shop online. Of course, that builds on the commitment we have made to wider business rates reforms and on the relief that has been given following the recent revaluation. That stands in stark contrast with the record of the Labour party, which doubled the average business rates bill during its time in office. We are protecting the small businesses in this country from its increase.

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[Ben Bradley (Mansfield) (Con)]

It is a pleasure to follow the hon. Member for Blaydon (Liz Twist). As we are all sharing our retail experiences, I should declare my interest, as a former store assistant at Aldi—a fine and enjoyable job it was too.

I welcome the opportunity to discuss the retail sector and what the Government are doing to support business. Some interesting points have been raised in the debate. The discussion about the future of business rates when these activities are increasingly online is particularly important. I want to focus on town centres and high streets, as many Members have.

Like most towns across the country, Mansfield’s and Warsop’s marketplaces and high streets have suffered from retail closures. That is happening right across the country, with the structural change in how people are shopping and what our town centres look like. Many people are shopping online or visiting out-of-town retail parks rather than visiting their local town centres. Mansfield has some great shops on the high street, from big names to cafés, bakeries, barbers and hairdressers, clothes shops and a fantastic vinyl record store that drags people in from miles around, but there are many empty units too. On Church Street, where my office is based, and around the corner on to White Hart Street, there are more empty properties than occupied ones, and there is clearly work to be done to deal with that.

Locally, I have been looking at ways to encourage consumers back into the town centre. One example is my recent campaign for two hours’ free parking in the town centre. Last month I submitted a petition signed by more than 2,000 local residents to Mansfield District Council. When parking is both an expense and a hassle, it puts people off visiting their high street, particularly when they can visit nearby retail outlets such McArthurGlen or Meadowhall—they are very close by—where parking is free and things are more convenient. Having handed in the petition, I hope that the council will look at this closely. Whether it is about cost, accessibility, clearer signposting for parking or other aspects, this is an important factor.

It is unfair to criticise the Government for inaction or for not supporting the retail sector. In fact, if any party in this place is the champion of businesses and works hard to support small businesses, it is clearly the Conservative party. As the Secretary of State said, record numbers of new businesses are being created under this Government. We have all talked about the challenges for town centres, but we have talked less about the growth in retail more generally, including the jobs—my hon. Friend the Member for North East Derbyshire (Lee Rowley) pointed out that there are jobs in logistics—that are linked to online retail and to this sector.

Earlier this year, the Government launched the first industry-led retail sector council, which will meet regularly to discuss the challenges facing this sector. It will review how retailers might adapt to changing consumer behaviour, and look at how we might embrace technology to improve customer service and productivity. Town teams are a great initiative, and as a local MP I am looking at how we might replicate and organise ourselves in such a way to boost our town centre.

In April, the Government switched business rates from RPI to CPI, a change which is worth £2.3 billion over the next five years in reduced business rates, including of course for many retailers. They have also committed to supporting business improvement districts. Locally, the Mansfield BID is working hard to support retail by bringing retailers together and discussing how the town should look, and to encourage people into the town centre. Mansfield BID is ably led by the fantastic Mr John Sankey and his fantastic team.

There are things that local MPs can do. I have already mentioned the free parking campaign and the locally organised town centre team, which includes local business. I am also working with Lloyds to support small and medium-sized businesses and charities by giving them digital skills to help with online marketing and boosting the customer base of high street shops. SMEs are at the heart of Mansfield’s local economy. Data from the last census shows that over 9,000 people in Mansfield work in wholesale and retail, making it a huge source of employment. It is the largest industrial sector both locally and across the country.

Although there are lots of scare stories about automation and technological change, it is important that we acknowledge the changing face of retail. We need to embrace this technology and look to the future in relation to how it can improve productivity and lead to upskilling jobs. The fourth industrial revolution, as it is often called, can be harnessed as a positive thing for retail. Technology can improve payment systems and provide support for businesses behind the scenes, such as in accountancy and payroll, thereby reducing the costs that are causing some of the challenges. Internet selling and online marketing can of course boost retailers and ensure that they can reach markets right across the UK and even further afield. Post-Brexit, the ability to do so in new and emerging markets around the world will be a real opportunity not just for high streets, but for the retail sector more generally.

As high streets and town centres evolve, it is important that the planning system develops to support the changing face of retail. This needs local councils to step up with a clear vision and plan for their high streets, and to use the tools at their disposal to deliver on it, while bringing retail and business into the discussion in order to drive footfall through our town centre. In the modern age, having a dentist or a solicitor’s office on the high street, along with cafes and restaurants, is as valuable as pure retail in that it drives footfall, fills empty shops and makes our towns into places to which people want to come. Those are businesses whose output cannot be put online—people must always physically visit them—but when we go to the dentist in the town centre, we might stop and have lunch or peruse the shops, boosting the town more generally.

I encourage the Government to consider the ways in which they can further help local councils with such plans to improve town centres. Regeneration is an important factor for the retail sector as a whole, and there are changes that could help, such as a local vision for delivering a change of use for properties. My most regular question in conversations with Mansfield District Council is: “What is your vision for the town centre? Where are we going to be in 10, 15 or 20 years?” I am not sure that we are yet clear about what exactly its plan is. On delivering such a vision, I have some idea of what I want it to look like. One of the challenges we face is adapting the physical space of town centres to fit this new market. We cannot rely on retail to fill every space in the way we once could; we need the flexibility to change things. Along with a local vision and local leadership, such flexibility needs some support.

One particular avenue that might be helpful—I hope this is a useful suggestion—is to consider the ways in which we could support local councils in relation to the compulsory purchase of buildings in town centres, where a positive plan has local approval. In Mansfield, a number of retail units on the edge of town are empty or dilapidated. I mentioned my office on Church Street, which is on the very edge of the town centre, and most of that area is made up of empty shops. The property values of these retail buildings have fallen, so many owners will not sell them or invest in them. They sit empty for years and years, but these sites are often ideal for development. They could be brought into use as new commercial or residential spaces, providing the small and more affordable properties that we need for local residents anyway. This would also move people into the town centre and boost footfall for other shops.

If the council was able to purchase such buildings and change their use, it would regenerate the edges of the town and help to fill units in the town centre. It would also bring properties that are often going to rack and ruin back into use, making the whole place more attractive and vibrant, and making it more of a place where people might be likely to come to and spend time. More and more, town centres should be a destination that we want to visit, as well as places for shopping.

For the many reasons I have laid out, I think the Government are working hard to support business generally and the retail sector, and it is important to note in all our comments that the retail sector is growing. The Conservative party is and always will be the champion for business, which drives our economy and creates jobs for my constituents. I hope Ministers will continue to be innovative and look across the board, including at my suggestion about compulsory purchase, at the ways in which we can continue to support local authorities and our small businesses in order to encourage the regeneration of our town centres.

[Several hon. Members rose—]