Local High Streets

Debate between Gareth Thomas and Lord Stunell

Tuesday 21st December 2010 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)]

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for Kingswood (Chris Skidmore), who gave a clear picture of both the good and the not-so-good aspects of the situation that he and Kingswood face. I thank other Members and hon. Friends, who have contributed thoughtfully to the debate, with considered contributions and positive ideas about how things can be put right while accepting, as the hon. Member for Birmingham, Erdington (Jack Dromey) just said, that the country has many thriving local centres and high streets. We must not talk them down completely.

Town centres and local high streets are certainly extremely important. They are seen as being at the heart of the community. My hon. Friend the Member for Birmingham, Yardley (John Hemming) made the point that they are civic as well as retail spaces: places where people can meet and greet, set up charity stalls or have their petitions signed. That is clearly distinct from the rather regulated world of shopping malls and retail centres. It is vital that we create the right environment for local businesses to thrive and support economic growth and regeneration in our high streets.

The Government are taking a new approach to local growth, recognising that it must be driven locally. The hon. Member for Kingswood made the point clearly that we should seek local solutions to local problems. That is exactly the approach that this Government are taking through localism—putting residents, local businesses and civic leaders in the driving seat and providing them with new rights, powers, tools and incentives to drive local regeneration and growth. It is important to create a fairer and more balanced sustainable economy. Without it, UK businesses cannot succeed, including small retail businesses.

[Mr Thomas]

Will the Minister join me in urging Lloyds bank, which has had huge taxpayer support, to recognise even as it withdraws from north Harrow in my constituency that it has a responsibility to the people there, who have invested in their bank over years, to help in the regeneration of north Harrow? Lloyds has a continuing responsibility to work with the local council, perhaps by providing financial resources, to support the regeneration initiatives planned for that part of my constituency.

[Andrew Stunell]

I congratulate the hon. Gentleman on his speech earlier, which he described as unashamedly parochial and which set out the issues that he and the community of north Harrow face. At several points during the debate, I felt a strong temptation to give my own constituency-based speech about local centres and high streets, but I guess that I am not permitted to do so. However, I will tell him that I too have been trying to ensure that banks withdrawing from high streets and local centres in my constituency accept their corporate responsibility. I hope he understands that I stand with him on that issue. Large chains, whether banks or retailers, should show some responsibility by investing in local communities. In this case, they are disinvesting in local communities. Their role is important and should not be overlooked.

I will concentrate specifically on the Government’s role and that of public policy. Hopefully, we can discuss what large private sector organisations might best do in another forum. As the hon. Member for Kingswood said, we launched the “Healthy High Street?” guide in November, and we are working with the Development Trusts Association to promote the temporary use of empty shops for the benefit of the community.

I want to pick up on one of the points made by the hon. Member for Banbury (Tony Baldry) in his contribution, which was characteristically diagonal to the general line of the debate, but helpful none the less. He noted that the retail environment changes constantly, decade by decade, and that it is not a question of returning to some golden age, but of accepting the existing retail environment and working with it. There is no doubt that one of the problems we face is the fact that the capital asset value of a property underpins the financing that the developer or ultimate owner relies on, and that value is calculated brutally as a multiple of the rental available from the property, which means that if the owners give a discount, often their capital value is written down. In these difficult times, and even in less difficult times, that means that they can find their financers on their backs seeking to renegotiate loans. That is why we have worked with the Development Trusts Association on “meanwhile leases” for the temporary occupation of shops, which can prevent that counter-productive write-down and at the same time give some life and vibrancy to high streets.

The hon. Member for Banbury also suggested that there was a role for a switch to housing. I want to make it clear that a key aim of the Localism Bill is to change our planning system so that such decisions will be in the hands of neighbourhoods, local communities and local councils, which can draw up district, neighbourhood or—as in the case of Banbury, which I guess has a town council—town council plans, based on their communities’ needs and requirements, and signed off through a local referendum. That will give local communities much better control and a much better chance to find the kinds of solution that they believe are needed. If that includes a switch to housing, or particular planning controls, that is for them to decide.

I must enter a note of caution about planning controls. When I started my career in local government some 30 years ago, a key concern was to prevent banks and building societies from dominating the high street. Three decades later, we are fighting to retain them, which is a measure of the change there has been. We are now fighting to stop take-away food stores opening, but I expect that in a few years’ time we will be fighting to save them. That is one of the paradoxes of a rapidly changing business environment.

The Government are not only giving new rights and powers to local councils and communities; they are also looking at the future of the town centres first document—planning policy statement 4. We shall be announcing shortly how we intend to take that forward as part of the national planning policy framework.

The key is to shift powers right down to the level where they matter. Each place is unique and has the potential to progress, and localities themselves are best placed to understand both the barriers and drivers to local growth. I will keep my fingers out of the machinery and not talk about parking policy, but that is a classic case where the solution in one town or shopping centre might be quite different from the solution needed in another local or district centre just a couple of miles away. The idea that there should be a national prescription for the solution—even a council-wide prescription—is surely mistaken.

Members have drawn attention to the provisions of the Localism Bill, to the coalition Government’s announcement on small business rate relief and to the new homes bonus. All those moves have wider policy implications, but they can all benefit the local high street. We want to create at national level a framework—an environment—where local decision making can flourish and there are real, workable incentives for investment, growth and development.

A couple of the points made in the debate should be emphasised. Farmers’ markets and street markets were mentioned, but we must not forget traditional real markets, which act as important magnets to bring people into many of our towns and communities. One of my Department’s roles is to raise the profile of such markets, which are an important element in the retail mix that can attract consumers and increase the vibrancy of town centres and high streets. I recognise that a well-run and successful market is a valuable local asset. In an interesting development, which is being replicated in many village and town high streets across the country, street traders in Marple, in my constituency, have worked effectively with the council to introduce an intermittent food fair and market. It has brought life and traffic to a shopping centre and started a vibrant culture of participation in that community.

The hon. Member for Harrow West (Mr Thomas) noted that Lloyds bank business could be transacted in post offices, and the hon. Member for Pendle (Andrew Stephenson) said that he had recently opened a post office in his constituency. Those are signs of the importance of post offices as part of the mix of retail business in our high streets. I draw the attention of Members to the steps that the coalition Government have taken to secure the future of our retail sub-post office network, which is an important component of our high streets that should be retained for the future.

[Mr Thomas]

Will the Minister take this opportunity to encourage Lloyds bank to show even more imagination in its use of post offices by allowing business customers to use them? That would be a huge help to businesses in north Harrow in my constituency.

[Andrew Stunell]

I can unambiguously say yes to that. It is important that we encourage not only public services to make better use of post offices and make them a focal point in our communities, but also organisations such as Lloyds. If it is disinvesting in an area, it clearly has an obligation to provide suitable facilities not just to its customers but also to the community.

The Government are committed to a strong, sustainable post office network. We have put in £1.34 billion of funding over the spending review period to support the maintenance and modernisation of the network, and will be making a statement on plans for the future of the Post Office shortly.

We have had an interesting and thoughtful debate. I have been unable to respond to all the ideas produced, but I will certainly take them away for careful consideration.