Marks & Spencer

Debate between Bill Esterson and Claire Perry

Thursday 24th May 2018 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

My suit is from an independent retailer in my constituency, not from M&S.

The Press Association reported last month that 21,000 retail jobs were at risk in the first three months of the year, with administrations at Maplin and Toys R Us, and store closures at New Look, House of Fraser and Carpetright. We now learn that M&S is to close 14 branches this year, and 100 stores by 2022. As we express our fond memories of M&S, may we remember that 872 members of staff will lose their jobs? We need some sobriety in the proceedings here.

High street retailers struggle to compete against out-of-town and online shopping, given their lower cost base, and that is not helped by the long-term squeeze on incomes under this Government. The Government have their much-trumpeted industrial strategy, but where is the retail sector deal? How do they propose to help the affected communities and high streets? The Government must go much further on business rates because the changes simply have not cut through to make the difference needed by high street retailers. What conversations have the Minister and her colleagues had this year with trade unions that represent retail workers?

Unless the Government are prepared to step in to secure a level playing field between our high streets, and online and out-of-town retailers, more shops will close, more high streets will lose key big-name brands, more communities will lose out, and more workers will lose their jobs. The Marks & Spencer closures show that leaving market forces to their own devices is simply not working, and the Government must ensure that there is a fair market in retail for the good of businesses, workers, communities and our high streets.

[Claire Perry]

The hon. Gentleman and I are in violent agreement. That is why the establishment of the Retail Sector Council, which absolutely involves store worker representatives, is vital. A series of financial measures has been taken forward. The Government have given almost £20 million to towns funding initiatives such as the Great British High Street. We have established the Future High Streets Forum, which is chaired by the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend Member for Rossendale and Darwen (Jake Berry), and that also involves retailers. More than £2 billion of measures were introduced in the autumn Budget to cut business rates, including the 100% small business rate relief that is so vital to independent retailers.

[Bill Esterson]

It is not working.

[Claire Perry]

The hon. Gentleman says that, but he bought his suit from an independent retailer, which will no doubt have benefited from that—[Interruption.] He should have bought more suits there, Mr Speaker.

One point that has not been raised is that there is an unfairness in the current structure of online and offline retailing because of the way in which retailers pay VAT. That is an issue for us all, and it is why online prices can be much lower. We are therefore bringing forward a review into the wider taxation of the digital economy to ensure that international corporation tax rules are fair, and that sellers that operate across online and offline marketplaces pay an appropriate amount of value added tax.