Supporting High Streets

Debate between Gregory Stafford and Gagan Mohindra

Tuesday 4th November 2025 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

As many have said, our high streets are the heart of our communities. From small retail and hospitality ventures that allow people the opportunity to own their own business, to post offices and pharmacies where the more vulnerable can go to see a familiar face and get support, to our pubs, where people have gathered together for years, our high streets give us everything we need. We must support them, not restrict them.

I spend much of my time in South West Hertfordshire on local high streets, hearing at first hand from many business owners about the struggles that they face due to Labour’s increase in national insurance contributions, and their worries about the upcoming Employment Rights Bill.

[Gregory Stafford]

My hon. Friend talks eloquently about the problems facing high streets. One of my constituents, a publican, told me that things were worse than during covid, because at least there was financial support during covid. Now, pubs and other hospitality businesses are being hung out to dry.

[Mr Mohindra]

My hon. Friend makes an excellent point. The small businesses that I speak to say that they feel abandoned by this Government. They face high energy bills and rents, and poor footfall. They have been harmed by Labour’s decisions, and have ever-growing worries about the Budget later this month.

We already know that hospitality is struggling. One in five high street premises are empty, and 100,000 hospitality jobs have been lost since Labour’s Budget. Two thirds of those jobs lost were done by 18 to 24-year-olds. That is simply not sustainable. Business owners do not want that to happen, but they have no choice. A third of businesses are reducing their opening hours as they simply cannot afford to staff up. They include Kitchen Croxley in my constituency, which warned me that as a result of Labour’s policy changes, job losses are inevitable, if it is to keep its doors open.

Businesses of all sizes are affected. Hubs, a franchise owner in my constituency, made me aware that due to Labour’s national insurance contributions increases, his NICs amounted to £138,000 for April to September. He has been warned that his contributions could increase to over £275,000 for the business’s first full-year cycle. That franchise owner is creating 90 local jobs and filling a large high-street unit that sat unoccupied for over a year and a half. It simply seems unfair. Business owners are willing to contribute their fair share—they are investing significant amounts in our high streets—and they should not be penalised for trying to grow their business.

The spirits industry disproportionally faces the effects of these policies; it has contributed £676 million less in taxes than expected, despite the rise in alcohol duty. One business in Kings Langley, Fells, which employs over 70 people in the area and regularly supports charitable causes in the community, faces mounting costs and regulatory burdens. It urges a freeze in duty rates to mitigate the need for further price increases. We are talking about an industry that contributed over £75 billion to the UK economy in 2022, according to the Wine and Spirit Trade Association. Why are we stifling it?

This summer, I spent a week visiting pubs across South West Hertfordshire, to see how they are being affected by Labour’s decision making. I spoke with Nick, the manager of the Coach and Horses in Rickmansworth, who told me that the rises in the minimum wage and NICs have made staffing incredibly difficult. As I have said before, many businesses sympathise with the need to ensure job security and good working conditions. However, that comes at the cost of rising prices, which just pushes the issue on to customers. Rising prices lead to fewer people visiting pubs and putting their money back into the community.