Supporting High Streets

Caroline Nokes Excerpts

Tuesday 4th November 2025 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. Before I call the Liberal Democrat spokesperson, I make it clear that we will be on a six-minute time limit from the first Back Bencher. I call Sarah Olney.

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[Sarah Olney]

My hon. Friend’s local high street in Camberley is very close to my heart, because my first job was in WH Smith there some years ago now. He is absolutely right about business rates, and I repeat my question to the Government: please, what action are you going to be taking on business rates?

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Member should say, “What action are they going to take?” If she says, “What action are you going to take?” that means me, and I am not taking any.

[Sarah Olney]

I apologise, Madam Deputy Speaker: what action are they going to take?

While the last Government did so much damage to our high street businesses, the Labour Government’s national insurance jobs tax has only made things harder for them and for the workers. The Liberal Democrats have voted against the change to employer national insurance contributions at every opportunity, and I once again urge the Government to scrap these measures. The changes to employer national insurance contributions announced in the last autumn Budget are an unfair and deeply damaging tax measure that is hitting small businesses of all kinds—social care providers, GPs—and the lack of sector consultation and business foresight prior to the changes has been hugely damaging to business confidence.

The Government’s handling of the Employment Rights Bill seems to have only compounded that uncertainty. So much of the detail that was expected in the Bill has been left to secondary legislation or future consultation, making it impossible for businesses to plan ahead with certainty. The lack of clarity on probation periods risks piling undue worry on to business managers who are struggling to find the right skills in the first place, for which many of my colleagues have provided evidence.

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[Ms Billington]

I am grateful to the hon. Lady for giving way. I am interested in her acknowledgment that we have made specific progress in dealing with the botched Brexit deal left as part of the legacy of the previous Tory Government, which she may indeed welcome. For example, our sanitary and phytosanitary deal includes being able to boost exports by slashing red tape and bureaucracy specifically for our farmers and food producers, lower food prices at the checkout and co-operation on energy. [Interruption.] Opposition Members may chunter from a sedentary position, but it is actually really important when you look at how—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady will know that interventions need to be short, and not read off phones.

[Sarah Olney]

I am, of course, delighted that we are making some small progress towards a better relationship with Europe—I welcome that wholeheartedly. However, we could go a lot further. The Liberal Democrats have been pushing for a UK-EU customs union, which would unlock many, many more benefits, but the Labour Government are very reticent. I welcome some of the noises from both the Treasury Bench and many Labour Back Benchers. I find it astonishing the number of Labour MPs I have encountered over the past couple of weeks who are suddenly desperate to tell me how very pro-European they have always been. I am very pleased to hear that, but I would say that I have not always heard that from the Labour Benches. But all progress in this area is welcome.

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[Tom Tugendhat (Tonbridge) (Con)]

I was somewhat entertained by the lines about Labour being the new Trojans, which I suppose makes us the Greeks. It might be worth remembering that the Greeks won the war, and that the current Greek Government are generating employment while this Government are cutting it.

While we are telling stories, it might also be worth remembering that there are some really rather good books out there—none of them written by the Treasury team, it is true. A rather good one came out recently on prosperity for growth, written by Dr Laffer, whose name came up earlier in the speech of my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), and two Members of the other place, Lord Elliott of Mickle Fell and Lord Hintze—I declare an interest, as Lord Elliott’s daughter is my goddaughter. It is still a good book, despite the fact that there is a connection there. It sets out the principle that we all know—a principle that has been known for hundreds of years—that taxation deters investment, lack of investment deters growth, and lack of growth deters future opportunity to look after all of us, including, in particular, the poorest. What we are seeing on our high streets today is a reflection of that tax policy. We are seeing the increasing ratchet of control—control through regulation, through taxation and through any number of different tools that this Government have brought in.

In wonderful towns such as Tonbridge, Edenbridge and Borough Green—I am sure you could add a few of your own, Madam Deputy Speaker; it would be worth saying that Portsmouth itself—[Interruption.] I have got that completely wrong, haven’t I?

[Madam Deputy Speaker (Caroline Nokes)]

As a point of information, it might help the right hon. Gentleman to know that my constituency is Romsey and Southampton North.

[Tom Tugendhat]

This explains why I was never welcome in the Navy.

You will know, Madam Deputy Speaker, that there are many other high streets, such as those in Romsey and Southampton, that are doing well despite this Government’s policies. However, we are seeing a series of changes that are costing us all, and I think it is worth focusing on a few of them.

The first affects retail, hospitality and leisure properties, which are seeing their rate relief reduced to 40%, and only up to a cash limit of £110,000 per business. Why is that happening? Well, this is basically just another tax grab. It is just another attempt to ensure that those who are working hard to put food on their tables—and, by the way, to put food on the tables of everybody else in this country by generating that employment—

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. I am going to reduce the time limit to five minutes, starting after Jim McMahon.

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[Suella Braverman (Fareham and Waterlooville) (Con)]

The hon. Member makes a good point about bank closures. Does he agree that the innovation of banking hubs, which we have seen since 2022, is welcome? As of April this year, there were 150 around the country, and they can be a lifeline for many communities. Does he agree that the criteria applied by Cash Access UK for granting a banking hub can be quite narrow? I ask this for the Minister’s benefit. Would the hon. Member join me in urging the Government to reconsider and review some of the narrow criteria? In Portchester, we are campaigning for a banking hub—

[Madam Deputy Speaker (Caroline Nokes)]

Order. Jim McMahon to continue.

[Jim McMahon]

I will. I have heard the right hon. and learned Lady raise that point a few times, and I think it is legitimate. If the criteria do not work for the town she mentions, or for my town, or Royton or Chadderton, then the criteria are the problem, not the towns and communities that need banks. We can agree on that.

In Oldham, there is progress. Sometimes we rush to a deficit model of talking down our places a bit too quickly. The old town hall, built in 1841, was left derelict for decades but has been reborn as a cinema. The grand Egyptian Room has been restored to life. It was once a banking hall where people paid their council tax, but I guarantee that it is a lot more popular today than it was when it was used for that purpose. The old library, built in 1883, was long empty; it is now home to the new council chambers and the inspiring Oldham theatre workshop. Every single week, 600 young people go through those doors to celebrate the arts and culture. The Spindles shopping centre has been transformed with the new indoor Tommyfield market, an events space and the local studies archive. That shows how the community can benefit when we invest in our towns. Of course, as has been mentioned, we should use derelict brownfield sites to build housing for local people. In Oldham, that will mean up to 2,000 new homes in the town centre—decent, safe and affordable places to live—and footfall in the town.

Much though we talk about the household names that have been lost, let us not forget that many of our towns are built on the work of independent traders—local people who give something of themselves, and sometimes their life savings, to invest in our towns. They should be celebrated.

Things are not easy. Online retail now accounts for 25% of retail sales. Business rates changes will shift the balance in favour of the on-street, local, independent traders, and convenience stores. There is also the changing dynamic between out-of-town retail and city centres. We have the benefit of being on Manchester’s doorstep, but it means that it is easy for Oldham’s people to travel to Manchester. In large towns, we have seen the hyper-local becoming more popular. District centres like Royton, where people want to create somewhere to go, are thriving, and our cities are thriving, but the towns, somewhere in the middle, are struggling. We need a strategy for our towns, as well as wider investment.

The same goes for the planning system. Honestly, I am sick to death of seeing low-quality, substandard accommodation being built in my town. Under the previous Government’s free-for-all, office accommodation could be converted in a blink, and there was also conversion to houses in multiple occupation. The concentration of social pressures in town centres and district centres is having a real impact on community safety and the local housing market.

There is a different way. Through Community Britain, we can rebuild our towns, civic pride and confidence. Through co-operation, we can give power to people in the places where they live and that they care about. We can end the top-down model of command and control, in which we tell people what they need for their area. We should give money to communities, so that they can decide matters for themselves and collectively co-produce solutions for their places.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. After the next speaker, I will reduce the time limit to four minutes. However, it might be helpful if I draw every Member’s attention to page 5 of “Rules of behaviour and courtesies in the House of Commons”, specifically as it pertains to interventions. It is rude to come into the Chamber and intervene when you have not been here for the majority of the debate.

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[Damian Hinds]

The hon. Gentleman makes a very good point. I might return the favour by mentioning the Robert Bolt theatre, which I think is in his constituency. Colleagues will know of “A Man for All Seasons”, and the hon. Gentleman is something of a man for all seasons himself.

As well as bringing more people into the town centre, I think the No. 1 imperative right now is to address the cost of doing business and employing people. There are good arguments against every tax—anyone who has ever worked at the Treasury will know that—and that is why we end up having a blend of lots of different taxes. Business rates are an especially bad tax, because it is a fixed cost being to imposed on businesses. That makes it harder to turn a profit, and crucially it deters new people from coming into business.

In the case of retail and hospitality, we must remember that as well as their roles as businesses, they are volume employers—two of the three biggest volume employers. As well as being the home of workers, they are a big source of customers who will use other businesses.

There was a bit of talk about the national living wage and so on. Of course, it is good that the national living wage goes up. The point is that when that is done at the same time as other things that impose further costs on business, making it harder to employ people, we will see an effect. We are already seeing damage, not in mass lay-offs but in marginal hiring decisions, with employers not taking on some Saturday help and not offering some extra hours. In fact, we see some pubs closing earlier than they would do ordinarily. I am afraid that will all become worse with the Employment Rights Bill, and the biggest impact will be on those furthest from or newest to the labour market. I encourage the Government to think again.

[Madam Deputy Speaker (Caroline Nokes)]

Order. There will be an immediate three-minute time limit.