High Street Retailers

Gregory Campbell Excerpts

Wednesday 5th February 2025 Westminster Hall

[Karl Turner (in the Chair)]

I will call Mr Gregory Campbell to move the motion and then the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention for a 30-minute debate.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I beg to move,

That this House has considered Government support for high street retailers.

This subject has concentrated minds for a number of years, and we are all affected by the problems associated with high street retailing. In fact, Mary Portas said that the future of the high street will involve

“less retail but better retail”—

that was about three years ago. I am afraid that those who say there are difficulties or problems in the high street are mistaken, because unless towns across the United Kingdom are different from the towns I experience in Northern Ireland, high street retailing is in more than just difficulty. Unless there is dramatic, innovative intervention, the high street in the United Kingdom as we know it will die.

[Jim Shannon (Strangford) (DUP)]

I commend my hon. Friend for securing the debate. He is right to say that about the high street, and retailers across this United Kingdom of Great Britain and Northern Ireland are saying the same. Does he agree that the only way for the high street to survive is for it to adapt and move along with the times? That takes technology, innovation and a support system to which Government are committed.

[Mr Gregory Campbell]

I fully agree with my hon. Friend. Innovation will be the key. In many towns—I am sure that this is applicable across the UK—there are enough coffee shops and charity shops, and both of those are admirable additions to our high streets. In fact, when I am on constituency work, I find coffee shops very convenient, especially if I do not have much time to get a bite to eat. They offer a facility, as do charity shops, but the high street has to be much more than that.

This is not about the higher-end retailing that exists in, for example, Regent Street or Oxford Street, and I say that not to minimise the high streets across our country. They may be doing well—by the looks of Christmas just past, they are doing well in central London—and much of that is down to money that comes in from outside the United Kingdom.

[Dawn Butler (Brent East) (Lab)]

In Brent, we have a lot of independent shops. Does the hon. Member agree that we should be more innovative in giving opportunities for more pop-up shops to start businesses?

[Mr Campbell]

I thank the hon. Member for raising that; I was just coming on to the business of independent shops.

In Northern Ireland, independent retailers have an effective representational body. They are manfully and womanfully struggling to present their case in the face of huge multinationals that exist, particularly on the edge of town and out of town, where there have been a number of out-of-town developments, which tend to swamp town centres. They take advantage of what is, by and large, free car parking, and town centres are choking in some respects because of commuters and people having to pay for charging.

We must be more innovative, particularly in the prime months—in the run-up to Christmas, for example—when we must try to convince various Government Ministers to introduce a charging structure that would benefit local independent retailers on the high street to ensure that some benefit is accrued to local people.

[Robin Swann (South Antrim) (UUP)]

I thank the hon. Gentleman for bringing forward this debate. Does he agree that we can also look at other initiatives to support independent retailers? For example, there is the “Living Over The Shops” scheme that Antrim and Newtownabbey borough council brought in, which just launched its second phase in Ballyclare and Randalstown close to the end of last month. There is also the work that the council was able to do with the levelling-up moneys; it was able to redevelop a space scheme in the middle of Antrim town, where it has opened office facilities just above my constituency office.

[Mr Campbell]

I thank the hon. Gentleman for that. Those two or three options are starting to develop. Those that are in vogue at the moment are reasonably successful, and they need to be built on.

[Matt Rodda (Reading Central) (Lab)]

Does the hon. Member agree that this is also about a series of relationships between local councils, small businesses and others to try to enhance town centres? For example, in my area, Reading borough council is working hard at getting improvements to paving and other visual improvements in the town centre to help to support small businesses. That is a valid initiative, which will hopefully help to attract more people into our town centre.

[Mr Campbell]

I concur with what the hon. Gentleman said. I notice that this is turning into an intervention debate with a speech, but, given that I intervene very regularly—

[Tulip Siddiq (Hampstead and Highgate) (Lab)]

On that point, will the hon. Gentleman give way?

[Mr Campbell]

I suppose I asked for that.

[Tulip Siddiq]

The hon. Member is being very generous with his time. He has brought a very important debate to the House. Others might disagree, but I think my constituency is the best in the world. We have one of the prettiest high streets in Hampstead, but the problem at the moment is that Hampstead post office is under threat of closure because of years of under-investment. I personally have been going there since I was a teenager. Elderly people and small businesses, which the hon. Gentleman referred to, rely on it. Does he agree that if we want our high streets to thrive, the post office has to stay open?

[Mr Campbell]

I was just coming to the issue of bank branch closures and post office closures, which unfortunately have exacerbated the problem in recent years. We had a debate this morning where some Members mentioned the development of banking hubs, which has helped to a small degree, but they will take some time to roll out. We must remember that more than 2.5 million people are employed in the retail sector across the United Kingdom, so this is not a niche sector that some people are annoyed about but which does not affect a large number of people: this is a huge part of our economy, and it has to be the subject of innovative change and dynamic alignment.

[Claire Hanna (Belfast South and Mid Down) (SDLP)]

The challenges we are experiencing on Saintfield Road and Sandy Row sound very much like what the hon. Gentleman will be dealing with in Coleraine and Dungiven. Retail provides vibrancy, shared space and a huge rates take. Lisburn Road in south Belfast puts around £6 million into the coffers of Belfast city council. Could we do more from Stormont in calibrating the rates and supporting some of those particularly vulnerable sectors, such as retail and hospitality?

[Mr Campbell]

The short answer to that is yes. I think some things are being done by devolved Government, but I was alluding to the rating of commercial premises in the run-up to Christmas. We need to reduce car parking charges and rates at that time because many businesses exist throughout the year only because of the turnover that they get between October and Christmas eve.

Richard Walker, the managing director of Iceland—who I understand is a supporter of the Labour Government, so I hope this is not viewed as a criticism—said just this week:

“The Treasury is right to look at levelling the playing field on tax, but it has parked its tractor in the wrong place going after hard-working British farmers. Let’s stop messing around and make online sales tax reform the priority. High streets and farmers are the bedrock of this great country, we need to get behind them.”

I could not agree more. We need a fundamental reassessment of where our high streets will be not in 15 years’ time but in 15 months’ time.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

I thank the hon. Gentleman for giving way; he is being very generous with his time. It is already clear from this debate that decline in our high streets is a common problem across the UK, including in my constituency. We probably all agree that it will take innovation, creativity and, crucially, investment to redevelop our high streets. Will the hon. Gentleman join me in paying tribute to the work of local organisations such as Love Oor Lang Toun and the Adam Smith Global Foundation in my constituency, which are doing so much to develop the future of Kirkcaldy?

[Mr Campbell]

I do not know those organisations, but I presume, on the basis of the hon. Lady’s endorsement, that they are very worth while and worth defending.

This week—this is a very topical issue—the Government in the Irish Republic have indicated that they will look at VAT terms. Of course, Northern Ireland is in very close proximity to the Republic. Here in the UK, VAT is charged at 20%, and in the Irish Republic it is 13%. That puts our high street retailers, particularly those in the hospitality sector, at a bit of a disadvantage. The Government in the Republic have indicated that they will reduce their rate yet again from 13% down to 9%, which means that the disadvantage gap for Northern Ireland retailers and consumers will widen considerably.

The Minister will obviously not be able to respond immediately. If he does, I would be very surprised. I would welcome his response if he were able to say, “I’m going to go to the Treasury and get special dispensation for Northern Ireland hospitality on the high street, with a 5% introductory rate for the next four years of this Parliament”—I think that would be an excellent idea that would get support across the divide in Northern Ireland. But I hope he will have some discussion with his colleagues to see what can be done. We are at an acute disadvantage, and it is most heavily felt. In the past couple of days, hotel managers and hospitality retailers have been on local radio saying, “Our opportunity for business is diminishing even more as a result of this decision to reduce VAT in the adjoining businesses, just a few miles across the border, down from 13% to 9%. We are struggling with charging a 20% rate.” So a 5% rate would be very welcome.

In conclusion—

[Tom Hayes (Bournemouth East) (Lab)]

It is funny how saying “In conclusion” gets our attention. I thank the hon. Gentleman for giving way. If he wants independent stores, fantastic cafés or great restaurants, I can heartily recommend the high streets in Boscombe, Pokesdown, Southport and Tuckton. I could go on, but I will not. I particularly recommend the fantastic vintage store In Off the Far Post in Boscombe. Would the hon. Member agree that we need the Government to support our high streets so that we have more independent shops and fewer candy shops and vape shops, which are often so brightly lit that we can almost see them from space?

[Mr Gregory Campbell]

I agree with what the hon. Member said in his brief tour of his constituency, which I am sure is very enticing to those who have not been. We need support, but we need more than just more of the same. We need to have a structured look at what the high street will look like.

[Gideon Amos (Taunton and Wellington) (LD)]

Would the hon. Gentleman agree that the Government “high street rental auctions” approach, in which councils can auction the retail rights of an empty shop, is valuable, but that the guidance needs to be changed? Will he invite the Minister to change the guidance so that it can apply to department stores as well as other places?

[Mr Campbell]

I look forward to hearing the Minister respond to that, as it sounds like a concept worth pursuing. I thank the Minister for being in his place Hopefully, he will be able to respond positively, to give us an indication of what the Government intend to do and to take a really radical look at our high streets in the next few years.

[Karl Turner (in the Chair)]

I call Imogen Walker to make a brief speech.

--- Later in debate ---

[Gareth Thomas]

I thank the hon. Gentleman for that intervention. My right hon. Friend the Chancellor of the Exchequer opened the 100th banking hub very recently, and I know from figures that Cash Access UK and LINK have published that 200 locations for banking hubs have been identified; that is part of the commitment to roll out 350 banking hubs.

But we want to do more. The Post Office plays a key role in offering banking services, particularly as banks themselves have exited the high street, and we are beginning work with the Post Office to strengthen its banking offer on the high street. I heard very clearly the intervention from my hon. Friend the Member for Hampstead and Highgate (Tulip Siddiq) about the directly managed branch in her constituency. I recognise the importance of post offices to all our high streets. She will know that no decision has been made on Hampstead—or, indeed, on any other directly managed branch—but I know she will continue to campaign on this issue.

To support businesses, the Budget honoured the manifesto commitment not to raise corporation tax. It set out the tax road map for this Parliament, in which we will not change corporation tax, which means we have the lowest rate in the G7. All that will support businesses, including retailers, to invest.

As the hon. Member for East Londonderry is aware, retail is a devolved matter. I welcome measures such as the Back in Business rate support scheme, which has been created to incentivise business rate payers to consider occupying empty retail premises. Vacancy is a blight on too many of our high streets and town centres across the country and it can fuel a spiral of decline. That is why Government in all forms need to work together with local communities and businesses to strengthen the offer.

[Mr Campbell]

The Minister rightly points out the devolved nature of much of retail. Does he agree that the chronic level of VAT, which is not devolved—it is a matter for the Treasury—compared with our neighbour in the Irish republic is having a detrimental effect on retailers?

[Gareth Thomas]

The hon. Member may want me to go straight from this debate to the Treasury to get an immediate concession.

[Mr Campbell]

Tomorrow!

[Gareth Thomas]

That is generous of him. I will take that question away and look at it. I know that that is an issue particular to Northern Ireland. He will understand that it is not immediately the responsibility of the Department for Business and Trade, but I will none the less take a look at it.