The High Street

Debate between Graham Stringer and Simon Danczuk

Tuesday 21st May 2013 Westminster Hall

[Simon Danczuk (Rochdale) (Lab)]

I am pleased to serve under your chairmanship, Mr Davies, and delighted to have the opportunity to introduce this debate on the future of our high streets. Let me start by saying that, as it is a widely recognised barometer for the performance of our economy, it is especially worrying to have seen more retail chains go into insolvency in the past 12 months than ever before. Yesterday’s British Retail Consortium report, showing that the number of empty shops has reached a new high, adds to a growing sense that our high streets are experiencing a short and painful decline, which the Government, I will argue, are not doing enough to address. First, however, I want to put into context the value of our high streets in terms of retail, as a focal point for communities and as a generator of social capital and civic pride.

As retail is the traditional home of Britain’s biggest private sector employer, it is worth noting that the latest figures from the House of Commons Library show that the retail sector employs 4.2 million people—more than 15% of our work force. It accounts for 34% of all turnover in the UK and, according to the British Retail Consortium, employs 40% of all those aged under 20. UK retail sector sales were worth more than £311 billion in 2012. It is a massive sector and an important rung on the employment ladder for young people.

However, high streets are more than just a place of commerce. They are dynamic hubs of social activity where enduring social bonds are formed that help to create strong and vibrant communities. Local high streets are also a strong source of civic pride; they can help shape a keen sense of local identity, common heritage and local values.

If we take all that into account, it is hard to imagine a future in Britain without the high street playing a substantive role in community life, but as we all know, high streets currently face enormous challenges and many local high streets are fighting for their lives. Faced with that threat to such an important economic and social driver, it is incumbent on Government to act. In the early days of the coalition, Ministers at least gave the impression that they recognised that. The Minister responsible for high streets—the Minister for Housing—said in November 2010:

“My colleagues and I are committed to tackling these challenges head on. After all, our high streets need to be centres for economic growth as we move towards the recovery.”

Two and a half years later, those words have a distinctly hollow ring. Instead of commitment to tackling the problems, Ministers have shown indifference. Indeed, their actions have made things worse. They have not only failed even to give a full response to Mary Portas’s 2011 review, but, year after year, they continue to ignore calls from business groups for some respite on business rates. Every year, the Chancellor of the Exchequer keeps piling millions of pounds on to the bills of retailers, which is causing insolvencies everywhere. And whereas Mary Portas, the Government’s high street tsar, said in her report that the high street had reached “crisis point”, the Secretary of State for Business, Innovation and Skills blithely claims that there is no crisis on the high street. Those are not the actions of a Government committed to tackling a serious problem. They are the actions of Ministers with their heads in the sand.

[Graham Stringer (Blackley and Broughton) (Lab)]

My hon. Friend is making powerful points. Does he agree that the biggest boost that the high street could get would be to be on a level playing field with Amazon, which is not paying taxes in this country at the moment?

[Simon Danczuk]

My hon. Friend makes a very good point. I will come to the point about Amazon, and not just in relation to business rates; corporation tax is also an issue.

Let me examine the flagship Government policy to tackle the problems facing our high streets—the much talked about Portas pilots. I was an initial supporter of the Portas review and I thought that the pilots were a good idea, but that was before the previous Minister responsible for high streets, who is now the Minister without Portfolio, turned what should have been a serious policy exercise into a farcical circus. Further help was on hand from Optomen Television, which managed to hijack a Government policy and turn it into a reality TV series.

I should like at this point to praise the current Minister responsible for high streets for distancing himself from the antics of his predecessor. He has had the good sense to change the ridiculously titled Future High Street X-Fund to something that is more appropriate to public policy, instead of trying to ape Peter Kay’s last spoof reality TV show. The High Street Renewal Fund sounds much more dignified, but the damage has been done.

It is a year this Sunday since the first wave of Portas pilots was announced. The retail grade magazine, The Grocer, reports that an “emerging findings” report was supposed to be published this April, but has now been shelved. People close to the situation are quoted as saying that there have been

“teething problems including concerns over corporate governance.”

They go on to say that

“having a formal audit-style report may not have been worth the paper it was written on.”

When will the Government’s “emerging findings” report be published, and when will the Government respond to Mary Portas’s recommendations?

Ministers called the Portas pilots the

“vanguard of a high street revolution”.

However, they have been not so much a revolution as a revelation—the revelation that we need substance, not just public relations, to deliver real change.