The Future of the High Street

Debate between Baroness Laing of Elderslie and Kelly Tolhurst

Thursday 10th December 2020 Commons Chamber

[Kelly Tolhurst]

It has been an absolute pleasure to listen to the passion that Members from across the House displayed when talking about the needs of their high streets and their hopes for them to flourish at a local level. Our high streets have a solid future, which will be born from the ambition and innovation that is taken forward by the diversity and strength of our local retailers, local businesses, local authorities and elected Members, who will work together in order to see their areas flourish and their high streets survive. They will provide community hubs and places where consumers, shoppers, visitors and residents want to spend their time. I believe that our high streets have a very prosperous future.

There is no doubt that the covid-19 pandemic has had a crippling effect on our high streets, small businesses and many sectors of our economy. It is only right that the Government have supported many of those retailers and businesses—particularly those on our high streets—in their endeavour to survive the pandemic.

I want to highlight a few things that the hon. Members for Croydon North (Steve Reed) and for Bradford West (Naz Shah) addressed. There was a lot of bluster and criticism of what the Government have done throughout the pandemic. The hon. Member for Croydon North talks about the fundamental business rate review, but it is this Government who have issued the call for evidence to look at the business rate review. That was not done by the Labour Government. This is not a new issue. Business rates are a perennial issue, and this Government are taking action. We will review that and listen to business up and down the country.

The hon. Gentleman talked about grants and money for local authorities to support our high streets, but the grants to local authorities given by this Government, representing nearly £12 billion, have supported just under 1 million SMEs. He talked about our not supporting councils. He knows that I respect him, as I have mentioned before, but it is a shame he did not take that attitude towards his own council’s reckless borrowing of £1.5 billion, which has put it in such a mess. That cannot be blamed on covid.

I want to quickly reflect on many of the points that my hon. Friends and hon. Members across the House have made. Business support has been a lifeline for many businesses and SMEs on our high streets during the pandemic. The Government gave a 100% rate relief for 12 months. I know that the Chancellor and the Treasury will be looking at what happens after that over the coming months, but businesses were being given—and are being given—a £3,000 per month grant, with an extra £1,000 for pubs this Christmas.

The £1.1 billion of additional restrictions grants for local authorities was also mentioned. Where that money is required has been down to the discretion of local authorities. Where that support is necessary, it is being delivered, and that is exactly what we want. We want high streets in thriving communities that are driven by the people who use them, and that is what we are doing. This Government are giving that flexibility and discretion, supporting our local communities to drive their centres forward.

That brings me to the Government investment that we are making through the future high streets fund and the town deals: 101 of the high streets that applied have got through to the next stage of the future high streets fund. That would represent an investment of potentially £831 million that this Conservative Government will be delivering through that competition, driven—I make the point again—by local people, local plans, and their ideas and dreams for their local communities to survive. That is what I want as a Conservative Member of Parliament and a Minister: to support local communities to deliver exactly what they want on their doorsteps. Through the towns fund, this Government are again making a significant investment—more so than any Labour Government, and certainly more in my area since I have been involved in politics.

I want to highlight a few other things that have been mentioned. I absolutely understand Members’ concerns about parking charges. I look forward to coming to the Champs Élysées of the north in the future, in my role as high streets Minister. I am also happy to meet with my hon. Friend the Member for Stone (Sir William Cash), and other interested MPs, to discuss some of the issues that he has raised in today’s debate.

We are absolutely ready and prepared, and will continue to work with stakeholders, businesses and local representatives, to ensure that our high streets and our economy can bounce back as soon as we can move out of restrictions, which is something the Government are working very hard to deliver.

I want to pick up on a very important point that my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) made about the VAT retail export scheme. The Government recognise the contribution that VAT RES had made to international tourism retail in the UK. However, there was not a choice of maintaining the VAT RES as it is today. The choice was between extending the scheme to EU residents or removing them completely under World Trade Organisation rules. HMRC has estimated that refunds cost around £0.5 billion, for around 1.2 million non-EU visitors, which puts the issue into context, in that only one in 10 non-EU visitors is using the VAT RES system.



We will survive this pandemic, and our high streets will survive with the determination and dedication of all the men and women who are working in our businesses and shops. [Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Do you know, I have never heard that before, in all these years. It was a very good debate on all sides, and all the better for short speeches—to the point, and many of them.

Question put and agreed to.

Resolved,

That this House has considered the future of the high street.

Non-Domestic Rating (Lists) (No. 2) Bill

Debate between Baroness Laing of Elderslie and Kelly Tolhurst

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution & Ways and Means resolution: House of Commons
Wednesday 30th September 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Kelly Tolhurst)]

I thank all hon. Members for their contributions to this debate, but also for the ideas and the clear passion that Members across the House have on this issue.

I want to pick up on just a few points, because I know time is short. While I have great respect for the hon. Member for Blackburn (Kate Hollern) from our previous dealings, this country has been facing one of the most significant pandemics, and the response from this Government in support of business has been significant. Over the next five years alone, there will be over £23 billion in support for businesses. We have taken steps quickly and in an agile way, and we have been able to protect those jobs, as our constituents quite rightly look to us to do.

I would like to touch on retail, which has been mentioned a lot today. Quite rightly, when people think of rates and when people think of our communities, they look at our town centres and our high streets. Of course, in my previous role, where retail was very much a focus, this issue was not lost on me. One of the things we need to recognise is that, during the pandemic, we were able to double the amount of retail relief. The Chancellor expanded this to 100%, enabling more retail, hospitality and leisure businesses to make use of those discounts.

We also need to recognise, as hon. Members have highlighted, the changing nature of our high streets. Of course, my Department has launched the £1 billion future high streets fund, particularly to work with local authorities to make sure we can take our high streets to the next phase. We are working with local authorities and communities to develop the thriving high streets that we sorely need.

The Bill may be narrow and technical in scope, but in practice it does deliver on an important Government tax commitment by setting in law the date of the next business rate revaluation on 1 April 2023. Business rates are a local tax, rather than a national tax, which is why this small Bill is necessary. However, for many businesses, this Bill is as important as a national tax measure. We hear from rate payers that the accuracy of rateable values is important to the fairness of the business rate system. Frequent valuations ensure that business rates bills are up to date, and accurately reflect rental values and relative changes in rents. That is why we remain committed to frequent revaluations and why we had previously decided to have the next revaluation in 2021. That revaluation would have been based on the rental market at 1 April 2019, before coronavirus. I trust hon. Members understand the exceptional circumstances in which we decided to no longer proceed with the 2021 revaluation, and I very much welcome the support that has been expressed from across the House.

I would like to pick up on a point made by the hon. Member for Westmorland and Lonsdale (Tim Farron). We recognise the issue he raises relating to holiday lets. We have consulted on possible changes to the criteria which could enable more holiday lets to be registered for business rates. We will set out a Government response once we have considered that in more detail.

I also want to pick up on a point expressed by many hon. Members today about the fundamental review of rates. The Treasury has set out the scope and launched a call for evidence. It has been great to hear from hon. Members in this debate, including my hon. Friends the Members for Thirsk and Malton (Kevin Hollinrake), for Keighley (Robbie Moore) and for Ruislip, Northwood and Pinner (David Simmonds), the hon. Member for Richmond Park (Sarah Olney) and my hon. Friend the Member for Dudley North (Marco Longhi). I very much hope they participate fully in the call for evidence and feed in their ideas, so that the Treasury can evaluate them. The scope of the fundamental review includes reducing the overall burden, improving the current system, and considering more fundamental changes in the medium and long term. Hon. Members have rightly called for that. We do hear in our constituencies that the burden of that single bill is large for so many of our businesses.

These measures are particularly important for local authorities. My Department has held discussions with representatives from local government, including the Local Government Association. For local authorities, we intend to make any adjustments to the rates retention scheme that are necessary to ensure that locally retained income is, as far as practicable, unaffected by the revaluation. That will give local authorities the assurance they need regarding locally retained income and revaluations. We will also ensure that local authorities have what they need to issue the new bills in a timely manner.

The Bill sets the next revaluation in 2023, but ratepayers do not have to wait until then to benefit from the reforms we have made to the rating systems. They are benefiting now from the small business rates scheme, which has removed 700,000 small businesses from the rating, and from a £10 billion package targeted on the businesses most affected by the pandemic, which means that more than half of all ratepayers in England will pay no rates at all this year.

I thank colleagues for their contributions to the debate and look forward to the House supporting the Bill.

Question put and agreed to.

Bill accordingly read a Second time.

Non-Domestic Rating (Lists) (No. 2) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Non-Domestic Rating (Lists) (No. 2) Bill:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee, on Consideration and up to and including Third Reading

(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.

(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.

Other proceedings

(5) Any other proceedings on the Bill may be programmed.—(Eddie Hughes.)

Question agreed to.

Non-Domestic Rating (Lists) (No. 2) Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Non-Domestic Rating (Lists) (No. 2) Bill, it is expedient to authorise provision for, or in connection with, changing the dates on which non-domestic rating lists must be compiled.—(Eddie Hughes.)

Question agreed to.

[Madam Deputy Speaker (Dame Eleanor Laing)]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I shall now suspend the House for three minutes.