High Street Businesses

Desmond Swayne Excerpts

Wednesday 26th February 2025 Westminster Hall

[Matt Vickers]

I could not agree more. Looking at the value of high streets, it is not just about businesses and jobs. They are places where people come together, and they can tackle isolation. There is also the feeling of pride in our town centres. Businesses only have so much money to give in tax, and it is going that bit too far now, to the point where we will lose businesses forever.

I will carry on my list of wonderful things that are going on in Stockton. In Yarm, levelling-up money from the last Government has meant that we are seeing nearby Preston Park improved and upgraded with new exhibition spaces. There are upgraded toilets, a café and more parking. We are sorting the disused aviary and creating a tribute to our railway heritage. This will drive visitor numbers to our area and complement the changes taking place in the high street, where we have seen the town’s skanky public toilets replaced. Streetscape interventions are planned to make the town centre more accessible, and we have gained a much-needed car park. The levelling-up money from the last Government has also helped the town council in Yarm to deliver on its ambition to renew our town hall, creating a visitor centre fit for the amazing high street that Yarm has.

In Stockton, £16 million of future high streets funding has allowed for the complete reconfiguration of our high street, also making way for our new £25 million diagnostic hospital. Securing the money for the diagnostic hospital remains my proudest contribution during my time as an MP, because I know the huge difference it will make to the people of Stockton. We ran a petition and gathered thousands of signatures to demonstrate public support. I was involved with the NHS trust and local authority officers drawing up the bid at its inception, and, when the bid was initially rejected due to a prolonged delivery timetable, I met the Secretary of State to hear his reasoning, and then, that same day, met directors from all the stakeholders to come back with a renewed timetable and a plan to unlock this investment.

In the very near future, the doors will open on that centre, which will provide 104,000 lifesaving tests, checks and scans to local people every year and, importantly, it will be yet another reason for would-be punters to come to our town centre and support local businesses.

Those interventions, funded by the last Government, are game-changing for my community and other communities across the country, repurposing our town centres to drive footfall and keep them as the vibrant hearts of our communities. But now the taps of governmental investment look to have been turned off: efforts to innovate and reconfigure town centres will be paused; our high street businesses are being battered by the Budget; and the consequences are there for all to see. Too many businesses are closing; too many jobs are being lost; and boarded-up high streets and town centres will eat away at the pride people can have in their communities and town centres.

I ask the Minister whether the Government really appreciate the challenges posed to high street businesses by the national insurance increase, and, similarly, the impact of slashing the business-rates relief for small leisure, hospitality and retail businesses. Will communities across the country ever again be able to benefit from the game-changing interventions brought about by the community ownership fund, the levelling-up funds, town deals, and other such funds, which allowed for those interventions to protect the future of our high streets?

As a former Woolworths worker, I could go on all day about the loss of iconic retailers, and about the impact of the Budget on post offices, on local pubs, and on opportunities for young people. And I will not even mention my Labour council’s ridiculous plans to introduce car parking charges in Yarm and Stockton high streets—I have probably said enough on that. I will leave it at that. Suffice it to say that I am a fan of the great British high street, and believe that securing its future should be a priority for any Government.

[Sir Desmond Swayne (in the Chair)]

We will start with an informal limit of five minutes.

--- Later in debate ---

[Gregor Poynton]

I completely agree. We need to be much more creative about how we use the units. Some of these businesses, frankly, are not coming back to our high streets so we should be honest about that and look at other options such as childcare, co-working spaces and housing in town centres to help rejuvenate those places and get them into action. That creative policymaking in planning is absolutely required.

The Scottish Government can take a number of steps. First, we need a level playing field between the small businesses based on our high streets and the global online retailers. Secondly, as has been discussed, more thought needs to go into the housing stock being built in our towns. With many buildings left empty, it is right to relax planning rules to make it easier to convert shop fronts into flats, while still ensuring quality housing for their residents. Thirdly, the way people work now has changed, and our town centres must reflect that, so we need to prioritise superfast broadband in our town centres. Local planning should also take childcare into account, ensuring the businesses can thrive in the places to be. Fourthly, councils should be encouraged to use the powers available to them to make ownership data on high street properties public, so that the community has the opportunity to step in and take over some units. Finally, as my hon. Friend the Member for Slough (Mr Dhesi) said, town centres will never thrive unless people feel safe in them, so a focus on safety is key.

All those ideas can perhaps contribute to making our towns better places to live; none would constitute a revolution, but they would be revolutionary for millions of people because, for too long, main streets in towns and villages such as Fauldhouse, Broxburn, West Calder, Uphall and others in my constituency have been neglected by the SNP Government. This can change: we can refresh and rejuvenate our high streets, but it will require fresh and rejuvenated leadership.

[Sir Desmond Swayne (in the Chair)]

Order. We have done our sums; Members have three minutes each.

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[Wendy Morton]

My hon. Friend reminds me of a visit to Scotland, many years ago, when I tried a deep-fried Mars bar; I think it was in Blairgowrie. I must admit that I have never had deep-fried haggis—I am not sure about that one—but I have certainly tried the Mars bar.

Despite their hard work and determination, many businesses are struggling. I am in regular contact with local businesses, and they tell me quite candidly about the financial pressures they face. One issue that comes up time and again is the crushing burden of employer national insurance contributions. Quite simply, they are a tax on jobs. They actively punish the very businesses we should be supporting. Businesses are being squeezed into cutting staff hours and freezing recruitment. In some cases, as we have heard, they are shutting their doors altogether. Household names that we have heard today—WHSmith, New Look and HSBC—are among those affected. When they are gone, they are gone forever.

Let us be clear: this is not just an economic issue; it is a community issue. When a high street business closes, that affects us all. It means fewer jobs, less investment in our local economy and empty shop fronts, which drain the vibrancy of our centres. The Government cannot claim to support small businesses while quietly taxing them out of existence.

In Brownhills, one of the most pressing concerns is the derelict Ravenscourt shopping precinct. Once a thriving hub, it has now become an eyesore and for far too long has attracted antisocial behaviour. Local business owners and residents are rightly frustrated by the slow progress. I am, too. My local council and our councillors are working incredibly hard to deliver on this, with plans for redevelopment including the prospect of a new supermarket, but delays, the need for a complex compulsory purchase order, and drawn-out negotiations over remaining units are stalling much-needed investment.

Such stagnation is not unique to Brownhills. Across the country, high streets are being held back by vacant buildings that discourage footfall and undermine local economies, and the increase in employer national insurance contributions only adds to the difficulties. If this Government are serious about revitalising our high streets, there are two things they could do to make a big difference to all our high streets: look again at both employer national insurance contributions and business rates.

[Sir Desmond Swayne (in the Chair)]

Josh Fenton-Glynn, you have two minutes.

--- Later in debate ---

[Euan Stainbank]

Absolutely. This is a point that many hospitality businesses have made. It was a narrower scope for business rates relief that was passed in yesterday’s Scottish Budget Bill than was the case in the Labour Budget, which I welcomed. The Scottish Government should revisit that decision.

I pay tribute to the fantastic work that the Falkirk business improvement district does in our town. It knows how to deliver on local priorities; not only is it on the ground with its finger on the pulse of the challenges facing Falkirk High Street, but it is accountable to the town centre businesses in Falkirk that pay the BID levy. I thank Linton Smith, who is stepping back from the Falkirk Delivers board after an exceptional 30 years of service to our town. Elaine Grant and all her team at Falkirk BID are an asset to our high street.

Although the impact of energy shocks around the globe and the behaviour of energy giants have left consumers’ bills spiralling over the last few years, the impacts on high street businesses have also been clear. I have heard stories from Falkirk High Street of bills quadrupling over the winter, compared with where they were before the pandemic, and staff wearing two jumpers while working indoors. We must get serious across this House about building cheap, clean, British energy as soon as possible, so that both our constituents at home and those who open businesses on the high street can benefit.

Increasing criminal behaviour on our high street is another concern. In my teens and early 20s, I worked pulling pints and serving tables, and when walking back to my car or jumping on a bus I noticed an incrementally more hostile atmosphere. Unite Hospitality has led the way in relation to that trend, and I reiterate my endorsement of its Get Me Home Safely campaign, which I and, at the time, council colleagues passed at a meeting of Falkirk council in 2022. Hospitality workers have endured unacceptable threats and physical and sexual violence, and we must do more to work with employers to make our high streets safer.

My constituents Carolyn and Gordon are the long-term proprietors of Gordon’s Newsagents in Camelon. Recently, they were subjected to two incidents of theft, violence and vandalism when they refused to sell alcohol to those who had failed to provide identification. Crime impacts margins and increases the likelihood of shop closure.

I will finish on this point. Businesses comply with licensing conditions to protect young people and prevent crime and disorder. Their story signals that they often fail to receive the same protection in return. We need more police on our streets.

[Sir Desmond Swayne (in the Chair)]

We will now hear from Jas Athwal, after whom we will hear from Steve Darling. May I ask you, Mr Athwal, to be very brief?

[Jas Athwal (Ilford South) (Lab)]

Thank you for calling me, Sir Desmond. I thank the hon. Member for Stockton West (Matt Vickers) for securing this important debate.

If we want to revive our high streets, we need innovative solutions that bring customers back, as well as the basics of law and order, as has been mentioned. People must feel safe and it must be a pleasant experience. In my constituency of Ilford South, parking charges were preventing shoppers from visiting the high streets. Shops could not compete with the large supermarkets that offered free parking. As leader of the council, I listened to their local concerns and we intervened. Despite facing relentless cuts across the council, we introduced one hour of free parking. Of course, that one simple decision ensured that footfall came back to our high streets: one simple change made a huge difference.

Ilford is certainly home to growing businesses, but one of the biggest issues for businesses is the lack of footfall from outside the area. That is why accessible local transport is so vital. I welcome the Superloop introduced by the Mayor of London, as well as the Elizabeth line, which has turned Ilford into somewhere people flock to from miles around.

Before the election, a major barrier to budding entrepreneurs was the challenge of securing affordable premises. Last year, the Government launched the high street rental auction scheme, empowering local leaders to auction leases on premises that have stood empty for over a year. With one in seven properties on our high streets sitting vacant, the initiative is a crucial step towards reversing that trend. Despite the decline, our high streets can be revived and businesses can flourish once again through increased incentives for customers, lower burdens for businesses, a pleasant experience for shoppers and a level playing field for all.

[Sir Desmond Swayne (in the Chair)]

I call Steve Darling. Five minutes, please.

--- Later in debate ---

[Mr Alexander]

Along with every Member who has spoken in this debate, the Government want to support strong, thriving, mixed-use high streets that generate high footfall and high degrees of social capital in their local communities. That is why we are focused on a five-point plan to breathe life back into local high streets—high streets that, if we are candid, have faced challenges from changing retail patterns for some decades now. The plan includes addressing antisocial behaviour and retail crime—an issue raised by a number of people around the Chamber—as well as reforming the business rates system, working with the banking industry to roll out banking hubs, stamping out the vexed issue of late payments and empowering communities to make the most of vacant properties, which was also raised frequently this evening.

In our first seven months in office, we have made good progress with our plan. As the hon. Member for Mid Buckinghamshire knows, just yesterday we introduced the Crime and Policing Bill, which will scrap the effective immunity for low-value shoplifting and do more to protect retail workers from assault; I hope it can find consensus in all parts of the House. We are providing additional funding to crack down on the organised gangs who target retailers and have done so with worrying frequency over recent years. Only this morning, we announced the expansion of the sector-based work academy programme—SWAPs—to create 100,000 more places over the next financial year. That will provide opportunities for participants in England and Scotland receiving certain benefits to train towards a job in hospitality and other high street sectors. We followed through on our promise to reform business rates and level the playing field for high streets across the country with lower tax rates for retail, hospitality and leisure properties, and we want to build on that momentum with our upcoming small business strategy, which will set out how we intend to support our small businesses on the high street and beyond.

Our strategy comes with a clear recognition that the way we work and live is changing in a fast-evolving landscape. We must therefore ensure that our approach reflects the continually changing reality of our high streets. We have to make sure that we are supporting services that are fit for modern life, recognising that—for all the eloquence with which people have spoken this evening—no two high streets are in fact the same.

Let me now turn to some of the specific issues that hon. Members addressed, including, critically, crime and antisocial behaviour. Business rates reform and our approach to national insurance contributions are some of the economic levers taken by the Treasury to support the high street; but to create thriving high street environments takes a whole-of-Government approach. The Department for Business and Trade is working closely with other Departments, particularly the Ministry of Housing, Communities and Local Government and the Home Office, to co-ordinate activity that supports high streets and their businesses.

A vital element of creating the thriving high streets of which so many Members have spoken is ensuring that they are a safe and comfortable environment both for business leaders and for shoppers. I have mentioned this week’s introduction of the Crime and Policing Bill, a central part of the Government’s plan for change and indeed our safer streets mission. The Bill will ensure that the police and courts have the necessary powers to help to tackle assaults against retail workers and shop theft. It will create a stand-alone offence for assaulting a retail worker, in order to protect staff, measure the scale of the problem and drive down retail crime. It is simply unacceptable that shop theft, and violence and abuse towards retail workers, continue to rise. We ask retailers to perform a significant act of public service—

[Sir Desmond Swayne (in the Chair)]

Order.