Retail Strategy

Debate between Faisal Rashid and Liz Twist

Wednesday 10th July 2019 Westminster Hall

[Liz Twist]

I most certainly agree that we are seeing a radical transformation and that we need a vision for the future. Our strategy must do more than just deal with short-term problems; it must look at the longer term. That will the burden of my speech.

Since I became the Member of Parliament for Blaydon just over two years ago, it has been my sad lot to visit stores and talk to too many staff who face store closures, including at Toys R Us, Homebase and House of Fraser. Thankfully, some of those stores, such as the House of Fraser store in Metrocentre, have had a respite, but their future remains uncertain.

[Faisal Rashid (Warrington South) (Lab)]

I am happy my hon. Friend has secured this important debate, and I congratulate her on doing so; she is making an excellent case. Some 74,000 retail jobs were lost in 2018, and the town centre vacancy rate in April 2019 was 10.2%—the highest ever. Does she agree that the UK retail industry is in crisis and needs immediate, comprehensive and radical action?

[Liz Twist]

I most certainly agree that radical action is needed so that we can stop the situation teetering into crisis and think of a plan that will allow the sector to remain vibrant and become stronger. As my hon. Friend points out, there are some really challenging facts.

I have visited larger stores and talked to staff, but I know—because people tell me when I go on social media —that many other stores, which may be smaller or less high-profile, have had to give up the struggle, although I did not know about them until later, which is very sad. I am keen to do all I can to support the retail sector in my constituency.

--- Later in debate ---

[Liz Twist]

Indeed. One of the Housing, Communities and Local Government Committee’s findings was that local authorities have an important part to play in ensuring the future of our high streets. I very much welcome my hon. Friend’s engagement with his local authority to ensure that it takes measures to improve what will be a changing high street, but a lively one.

Returning to the industrial strategy, I do not believe that retail has been given enough focus. I am aware that the Retail Sector Council has been set up, with representatives from the industry liaising with the Government, and that a number of workstreams have been drawn up and are already producing work. However, I fear that what we are doing in those workstreams is looking at the detail of current problems, rather than doing what we need to do, which is to produce a longer term strategy and vision to build and strengthen the retail sector, addressing the challenges we know about and those that may yet come, which we need to scan the horizon for.

There have been some examinations recently of the situation faced by high streets in particular—of course, high streets are one part of the retail sector, but not the whole part. I have already referred to the report by the Housing, Communities and Local Government Committee, which is called “High streets and town centres in 2030”. As we have heard today, many such reports have identified the current business rates system as a real problem and noted the huge disparity in costs between online businesses and shops, including the rents that shops pay. Clearly, that is not the only issue, but when many of us heard about the online tax in the Chancellor’s last Budget statement, we thought it would be a means of addressing this problem of the disparity between online businesses and physically present businesses and shops.

[Faisal Rashid]

Will my hon. Friend join me in urging the Government to heed the call by the Union of Shop, Distributive and Allied Workers to take urgent action to save our shops by implementing a comprehensive and co-ordinated industrial strategy for the sector?

[Liz Twist]

I thank my hon. Friend for his intervention. He could have been reading my mind.