Retail Strategy

Bill Grant Excerpts

Wednesday 10th July 2019 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to serve under your chairmanship this afternoon, Sir David. I thank the hon. Member for Blaydon (Liz Twist) for securing this very important debate.

Any retail strategy for the future must focus on re-energising our town centres. I accept that the retail footprint will inevitably reduce with changing shopping trends and a changing retail landscape, but the challenge is to manage that change. Empty premises sadly prevail in towns throughout the UK. Online competition—in 2018, almost a fifth of all retail sales were online—crushing business rates and taxes, traffic management systems and parking charges, or a combination of the above, have influenced or played a part in the decline of high street retail.

Many accept, as I do, that there is a place for online shopping, and that is evidenced by the steady increase in internet transactions year on year. Online shopping can assist those with disabilities or who are housebound; others may simply be seeking to exercise their freedom of choice. In the not-too-distant future, our communities might be buzzing not with retail activity, but with drone deliveries of internet shopping. However, online shopping must co-exist with high street retail, and not be a replacement for it. The demise of high street shops could lead to further isolation for the elderly, not all of whom—I might include myself in this—are internet-comfortable when it comes to financial transactions, although I suspect going forward the situation will resolve itself.

On a positive note, eateries in Ayr, Carrick and Cumnock are a great success. It is an element of retail that is really successful. In our area and many areas throughout the UK, that sector uses locally produced goods. It is interesting to note that the towns and villages where shops appear to thrive are those where a variety of small, quality, niche retail businesses are intertwined, as has been mentioned, with the residences and professional offices that are integral to the retail provision, and where traffic management systems are minimal and parking charges are zero or at least reasonable. Sometimes there might be a smaller version of one of the larger well-known food retailers, acting as an anchor store and preventing the drift of custom. However, as residents and as a society, we need to stop and ask ourselves whether we could support high street retail, because we the citizens have a part to play.

Shopping should and can be a pleasurable and social experience; as my wife will remind me, we need a bit of retail therapy from time to time. That applies equally to those providing the service and those receiving it.

[Mike Amesbury]

I agree on the point about quality. There should be a race to the top. Sometimes quality costs, so quality might mean better pay. Paddy Lillis, the general secretary of the Union of Shop, Distributive and Allied Workers, is my constituent; I recently had a conversation with him, and there is a campaign to raise the living wage to £10 an hour. Does the hon. Gentleman agree with that?

[Bill Grant]

As someone whose mother worked in the pit canteen and made beds at Butlin’s on a Saturday, I fully agree that those who provide such services deserve better pay. We need to recognise those in hospitality and eateries, and the value of those who prepare and serve the food. As a nation, for decades and generations we have undervalued those people, so I totally agree with the hon. Gentleman, and the price has to be passed on to the consumer.

Employees—dare I say the next line? The hon. Gentleman must have been looking over my shoulder—should receive fair pay for work undertaken, and should have security of tenure in their job. Customers should feel involved in the purchase, and should engage with the sales assistant. It should not be a beat-the-clock exercise, in which people have to hurry to return to their vehicle before they receive a fine for overstaying their welcome. Nor should there be an additional cost burden on retailers if their staff wish to park in the vicinity of their place of work; in certain cities, retailers are being asked for £500 or thereabouts per annum per member of staff who wishes to do that.

Recently it has been announced that in Glasgow city centre, parking restrictions and charges will now apply on the Sabbath—on Sundays. Business representatives have already taken to the media to express their concern that the move will lead to shoppers deserting the city centre on a Sunday in favour of large out-of-town shopping centres, which, as we are all aware, generally have free parking. As a business person once said, “When you can’t change the direction of the wind, adjust your sail”. We should manage the change. We need to encourage a steady footfall for the future, and stop what appears to be a stampeding exodus of high street shoppers to out-of-town retail centres or online facilities. In Scotland, that may mean the Scottish Government and councils working together, and reconsidering their planning and roads legislation, and policies that affect town centres.

Certainly, in my constituency the main towns are, for want of a better word, hurting. They have not hurt as much in their whole existence, and in many cases they have lost their dignity, which they richly deserve to have returned to them. However, the centre of Cumnock is an exception, as a small town that has recently been sympathetically revitalised by the introduction of a small new build retail facility that blends into the streetscape. The principal occupier, a prominent food retailer, appears to complement the existing, varied retailers—so well done to East Ayrshire Council. Local chambers of commerce and industry, such as the Ayrshire chamber of commerce, are to be commended for their encouragement of local enterprise and excellence.

Inevitably some businesses in the UK will, regrettably, fail, for one or more of the reasons I have indicated. The Government need to consider taking appropriate measures to ensure that the auditing of retail businesses is robust; that any asset stripping, particularly by big businesses, will be better regulated in the future, for the protection of employees and shareholders; and that a review—and, if it is deemed appropriate, reform—is carried out with respect to company voluntary arrangements. There is also a need to look at business rates and taxes.

Our future is created by what we do while we are living for today, so I hope that as a result of the contributions to the debate, the Minister will be encouraged to reflect on the Government’s planning for tomorrow. We need more practical measures like the future high streets fund, which was introduced in the 2018 Budget. It is an excellent boost to high streets, despite the failures mentioned earlier. Hopefully those who reapply will be successful next time. I ask the Minister to bring forward further measures to secure our local retail trade and help to re-energise high streets throughout the UK, while remembering that high streets are no longer a cash cow to be financially milked by an outdated business rating system that needs grassroots reform.

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[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Blaydon (Liz Twist) on securing this important debate on a matter that is not raised often enough in this place. As a former retailer, I have seen many of these issues over the years, and I am delighted that she has been able to bring the debate to Westminster Hall. As we will get into online retail, I bring the attention of hon. Members to my entry in the Register of Members’ Financial Interests.

The hon. Lady talked about the effects on people, communities and indeed companies. She brought up the spectre of the BHS closures, which was deeply hurtful to many people involved. She also talked about the work of local authorities and the possibility of them getting involved, and correctly called for a longer-term strategy and vision from the UK Government.

The hon. Lady talked about the business rate system in England, which is a key issue. I will come on to the Scottish context. She also mentioned the requirement for proper pay for people working in retail. She will be glad to know that in Scotland the real living wage—not the pretendy one—is being promoted by the Scottish Government, which indeed is a real living wage employer. Almost just at this moment, the 1,500th private real living wage employer in Scotland has been unveiled: Johnstons of Elgin, the menswear retailer. It was congratulated by the fair work Minister, Jamie Hepburn MSP. Congratulations to Johnstons; it is a really good example.

The hon. Member for Henley (John Howell) talked about changes to banking and rural communities. I disagree about everyone being able to go on to online banking. Many people with disabilities and people in rural areas need banking facilities in the heart of their communities. In particular, those who are vulnerable need access to cash in a way that cannot be done online. The hon. Gentleman did, however, make an interesting point about town planning, which people should consider carefully.

The right hon. Member for Delyn (David Hanson) discussed retail’s important contribution to the UK economy and employment. Indeed, in Scotland, retail is the largest private sector employer, accounting for 250,300 jobs. Retailers are kind-hearted, having donated £10 million to good causes in Scotland, and retail accounted for 13% of all new businesses formed in Scotland in 2016. It also accounts for a fifth of all business rates in Scotland.

The right hon. Gentleman talked about out-of-town versus city centre. There is much debate about how we marry the two so that everyone can benefit, because they are realities. That is one for greater consideration. He also mentioned the loss of UK Government offices, which I have seen in the highlands, with the tax offices, Department for Work and Pensions offices, local passport offices and Driver and Vehicle Licensing Agency offices all coming out of communities and affecting people and local businesses, particularly retail.

The right hon. Gentleman brought up another subject close to my heart: support for post offices. These people desperately need a better deal so they can secure a living wage. As the Minister will acknowledge, there are people in post offices struggling to make a living. The right hon. Gentleman also made many suggestions to the Minister in a very good speech.

The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) talked about regenerating town centres, accepting the online issue. I still get a bit of a shiver when thinking about this future of deliveries by drones, with all these drones whizzing about. The temptation to bat them out of the way might be too strong, but we should be aware that that may come in the future. He talked, quite rightly, about the danger of isolation for the elderly and those who are not internet-savvy—I think he included himself—with different ways to shop. He said that people deserved better, and he talked about the real living wage, so I am sure he will join me in congratulating Johnstons of Elgin.

The hon. Gentleman quite rightly said that local authorities and the Scottish Government should work together. He will be glad to welcome the work that the Scottish Government are doing with the Convention of Scottish Local Authorities on town centres. As well as providing the best business rates in the UK, the SNP Scottish Government have put together a business rates relief package worth more than £75 million. Ninety per cent. of businesses in Scotland will pay a lower poundage than they would anywhere else in the UK. The Scottish Government have launched a £50 million town centres fund in partnership with COSLA, with local authorities allocating the funds. That goes a long way in promoting the work between Government and the local authorities.

[Bill Grant]

To put that in context, when I look at my inbox I see a number of businesses have experienced a significant rates hike. Rural businesses in particular are hurting terribly, so a system had to be introduced to compensate for that. There are anomalies.

[Drew Hendry]

Unfortunately, the hon. Gentleman is trying to punt a line that is not the fact. Through the small business bonus, 100,000 businesses in Scotland pay no rates at all, and those are mainly businesses in rural areas that do not come up to the level for being taxed.

The hon. Member for Batley and Spen (Tracy Brabin) correctly talked about public transport and its impact on retail. She gave the example of the fall in revenue for one of her constituents due to a change in bus routes. That brings us back to town planning. People must plan for the unintended outcomes as well as those they want in the future. She also mentioned banks and building societies, the importance of business rates and the need to tax big online retailers.

The hon. Member for Strangford (Jim Shannon), as ever, did a great job of promoting his own constituency. He talked about the chamber of trade and, importantly, the need for a shopping experience. Green areas, coffee culture and all those things need to be thought out in planning for the future. He talked about the mix of online and physical, which is what we used to call—