Oral Answers to Questions

Gareth Thomas Excerpts

Thursday 5th September 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

The decline of too many high street businesses was one powerful example of the failure of the last Government’s economic record and the cost of living crisis they caused. Working with business and others, we are determined to breathe new life into our high streets. In particular, we will stamp out late payments, tackle soaring levels of retail crime and create a fairer business rates system.

[Alistair Strathern]

High street businesses such as Rose’s café in Shefford and Jamie’s Shoe Repairs in Hitchin do so much to bring joy and life to their high streets and make the towns and villages in my constituency so special, but far too many high street businesses right across my constituency have been feeling the squeeze over recent years and just did not feel that the previous Government had their back. What will we be doing differently to make sure that we will always be on the side of the high street businesses that make our communities such fantastic places to live?

[Gareth Thomas]

First, let me take this opportunity to say how much of a pleasure it is to see my hon. Friend back in this House; I went up to his constituency during the by-election campaign, and his result was one of many on election night that brought us all great pleasure.

We set out a five-point plan when we were in opposition to support businesses on high streets. At the heart of that was a plan to introduce a fairer business rates system, which I know colleagues in the Treasury are working very hard on. We also want to tackle the high levels of retail crime that scar too many of our high streets, and we will be bringing forward proposals on that in due course too.

[Josh Babarinde (Eastbourne) (LD)]

To grow, high street businesses in Eastbourne are relying on Government investment through initiatives such as the towns fund, of which my town was selected to be a beneficiary. Our towns fund board is fired up and ready to go, but still awaiting further instructions from Government on how to proceed. Will the Secretary of State, working with his Ministry of Housing, Communities and Local Government colleagues, urgently update me on whether Eastbourne’s high street businesses can still expect to benefit from the £20 million towns fund investment that they need and deserve?

[Gareth Thomas]

As the hon. Gentleman may know, the towns fund is the responsibility of colleagues in MHCLG. I will happily draw his comments to the attention of the Minister who has responsibility for it. But we are determined to work across Government to breathe new life into our high streets, and I am sure that the Minister will be very interested to meet the hon. Gentleman and take forward his concerns.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Whether it is better buses, more policing or city centre living, support for our high streets ought to be a cross-Government approach, because of the many levers that are available. Can the Minister say a bit more about what conversations he is having with other Departments to ensure that support for high streets stretches across every facet of this new Labour Government?

[Gareth Thomas]

My hon. Friend is absolutely right to say that there are policies across the whole of Government that impact on small businesses and particularly on high street businesses. One of the most significant issues is the need to see a fairer business rates system that creates better incentives for businesses to invest in the high street, in comparison with the competition from online giants, so we are working with colleagues in the Treasury on that. We are working with colleagues in the Home Office to address retail crime—there has been a huge surge in shoplifting—which my hon. Friend knows has scarred too many high streets. We are also working with other colleagues, as I referenced in response to the previous question, to try to bring forward a stronger offer to small businesses.

[Sir Ashley Fox (Bridgwater) (Con)]

Small and medium-sized enterprises are the lifeblood of our high streets, and there are many such businesses in my constituency of Bridgwater. I understand, though, that SMEs now face paying thousands of pounds in fines if they do not uphold the Government’s new French-style employment reforms. Will the Minister consider exempting SMEs from any financial sanctions by the new fair work agency?

[Gareth Thomas]

I congratulate the hon. Gentleman on his election to this House. I gently say that he will have heard from my right hon. Friend the Secretary of State that we have already consulted widely with the business community about our plans to improve rights for employees. We did that when we were in opposition and we have continued to do it in government. I am struck by the support that our plans have from small businesses and high street businesses, but we will continue to work with small businesses on the details of those plans.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

For too long, our high streets have been hostages to an outdated and damaging business rates system. Empty shopfronts and shuttered windows should never become the norm in our town centres. Small businesses in desperate need of a helping hand will have been deeply concerned not to see any mention of business rates system reform in the King’s Speech. Can the Minister assure us that business rates system reform is coming soon and that, when it does, it will be a comprehensive replacement of that damaging system?

[Gareth Thomas]

As I have said in response to previous questions, we are looking at that with Treasury colleagues. In opposition, we made commitments to introduce a fairer business rates system. Work on that is being led by Treasury colleagues, who will bring forward proposals in due course.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

6. What steps his Department is taking to improve the UK’s trading relationship with the EU.

--- Later in debate ---

[Mike Amesbury (Runcorn and Helsby) (Lab)]

T4. I welcome the ministerial team to their places. Business rates are a broken system that has hollowed out many high streets up and down the country. We are rightly committed to radically reforming that. What recent discussions have Ministers had with the Treasury to make sure that we do that at pace? Will a Minister meet me so that I can establish a banking hub in my Runcorn and Helsby constituency?

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

I would be happy to meet my hon. Friend to discuss the question about a banking hub in his constituency. As he will have heard in answers that I gave earlier, reform of the business rates system to tackle some of the egregious disincentives in respect of the need to invest in our high streets and the competition from online giants is something we took seriously in opposition and continue to take seriously in government. Colleagues in the Treasury are working hard to bring forward proposals to reform the business rates system.

[Madam Deputy Speaker (Judith Cummins)]

I remind Members to speak through the Chair.