High Streets

Caroline Nokes Excerpts

Tuesday 19th October 2021 Westminster Hall

[Caroline Nokes (in the Chair)]

Before we begin, I encourage Members to wear masks when they are not speaking, in line with current Government and House of Commons Commission guidance. Please also give one another and members of staff space when seated and when entering and leaving the room. You will all have seen that it is a very heavily subscribed debate, so I will impose a time limit. Janet Daby will move the motion.

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I congratulate the hon. Lady on securing today’s debate. Over the past few years, as the hon. Lady has said, we have seen an increase in businesses moving away from physical retail space to an online model. The move has benefited retailers at the top levels of their companies, as it comes with associated savings in areas such as business rates or, for us Scots, non-domestic rates. Such moves, however, have a heavy impact on local communities: fewer jobs, for example, or a lack of accessibility.

[Caroline Nokes (in the Chair)]

Order. I remind hon. Members to keep interventions brief.

[Margaret Ferrier]

Yes, Ms Nokes. Would the hon. Member agree that the Government should incentivise retailers to maintain a physical presence?

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[Janet Daby]

I was in primary school at the time that my hon. Friend Gentleman mentions, but I thank him for the intervention. We need a fair tax system, and I will address that in my speech.

I see the effects of the system of business taxation play out in my constituency of Lewisham East. Taxation is simply too high for small and medium-sized enterprises, especially after an insurmountable fall in revenue since March 2020. The current system of business taxation is outdated and unfair. It punishes small businesses aspiring to serve local communities and allows online empires to grow only stronger. In 2019, it was estimated that the eight largest tech companies operating in the UK avoided a combined total of £1.5 billion in tax.

A House of Commons public survey found concerns for our high street and ideas for improvement. Clair said that

“it’s sad to see so many town centres looking deserted, as many shops have been forced to close due to rents and rates.”

Kate said:

“There are empty units which make the town look dead”.

Nobody wants a dead town. Jags was concerned about antisocial behaviour rising on high streets when shops are boarded up. When asked what the Government could do to turn around prospects for high street businesses, Jane simply said:

“Slash taxes for small businesses. Make it worth our while to work the hours we do.”

I agree and Labour agrees.

We need a Government who demonstrate that they are pro-workers and pro-business. A review of all tax breaks needs to happen. The Government need to be serious about investing in a sustainable way that allows home-grown businesses to flourish and ensures the best value for the taxpayer. The local high street is for leisure, but for some it is a lifeline. Almost half of the people living in London use their local area daily. My constituents rely on local shops. They do not want to have to do a laborious journey on public transport or drive through busy London to run their errands. This applies especially to those living with disabilities or pushing prams, or to elderly people struggling with walkers. Why should their lives become more difficult when people wish to shop local and local people wish to work local?

It is not just a problem in cities. High streets that are a centre point for towns across the country are being neglected. A thriving high street can be a source of great pride and a declining one can be shameful. When an area is in decline, property prices fall, the young professionals move out of the area and the local environment begins to decay. We see poverty intensifying and becoming more visible.

The recent trend of high-street bank closures is especially concerning. According to the House of Commons Library, in the past nine years almost 40% of high-street bank branches have closed their doors. In the year between March 2020 and March 2021, 700 branches have closed. That is staggeringly high. I can see the effects in my constituency. The Catford HSBC branch always has queues going out the door, yet it is due to close, which is absurd. The branch is needed because not everyone can adapt easily to online banking. Not everyone has broadband or the support to make the transition to online. It excludes a huge swathe of vulnerable people. All of those customers now need to go into the centre of Lewisham, adding pressure to that branch. A branch of Barclays in the area has already closed. I wonder why the Minister thinks this trend is developing and whether he agrees with it. Will he support my call for HSBC to reconsider this closure?

We should not expect the general public to be comfortable with doing everything online. Local places closing means familiar and trusted people and services are disappearing. It also deprives people of those small moments of human contact, which may seem like nothing to one person, but to another are the tipping point into social isolation. It is essential to people’s wellbeing that in-person services continue. I would be grateful to hear from the Minister what can be done.

While I want to focus today on the burden that the Government’s tax rates place on our struggling businesses, we cannot ignore the impact of the shortage of HGV drivers on our high streets. This is a Brexit-induced crisis that was completely foreseeable. Coupled with the lack of workers to tend to our crops and farm animals, shops have experienced dire product levels on their shelves. High-street cash and carries are struggling to serve their customers. We are also hearing reports of pressure building towards Christmas. When it comes to Christmas, we know it is serious. Most British households want a turkey—I want a turkey—but not every family that wants one will get one, and that is the headline. This comes at the same time as the shocking news of a labour shortage, meaning that pigs are being slaughtered and their meat is unsellable. We all need supply chains freed up and workers trained up so that the embarrassing lack of stocks can be resolved and a Christmas dinner crisis averted.

The Mayor of London has put vision into action to inject new life into our high streets. He is creating vibrant shopfronts for vacant properties, supporting start-ups and keeping the streets clean and appealing. However, there is only so much that local leaders can do. We need a Government to show up and show that they back businesses, workers and communities.

[Caroline Nokes (in the Chair)]

There are not as many Members as I first feared, so an informal guidance for about five minutes would be very helpful.

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[Neil O'Brien]

I am afraid I will take no further interventions—[Interruption.]

[Caroline Nokes (in the Chair)]

Order. The Minister has made it clear that he is not taking interventions.

[Neil O'Brien]

Despite being a Huddersfield boy, I cannot take further interventions, because we are pushed for time.

In Worcester, support from our future high streets fund is being used to renovate several iconic and beautiful buildings, including the local corn exchange, driving footfall and preserving the community’s heritage. My hon. Friend the Member for Hyndburn and Haslingden (Sara Britcliffe) also talked about the good that such schemes are doing in her constituency. Those are the kind of transformative projects that hold the key to restoring local pride and laying the foundations for our long-term economic recovery. That is exactly what underpins our levelling-up fund, which will be available to local areas across the UK.