Sustainable Communities

Gregory Campbell Excerpts

Wednesday 13th June 2012 Westminster Hall

[Andrew George]

I thank the Minister for that intervention. We certainly look forward to his response and to his fleshing out more precisely how the issues will be addressed in the regulations.

As the Minister knows, because I have given him a note in advance, I would also like to probe just how far we can take the matter. I am very ambitious to push localism as hard and fast as we possibly can, within reason. As someone who must declare an interest as chairman of the Grocery Market Action Group, there is one initiative that I have always been very keen to advance. The group is comprised of NGOs, including the National Farmers Union, Friends of the Earth, ActionAid and others, who have been submitting evidence to the Competition Commission’s inquiry into both the practices and role of supermarkets in planning and how they behave within the grocery supply chain. I have taken a great interest in that issue.

The Minister will be aware of one matter that I have always been greatly concerned about. Even after we have effectively addressed the issues of town centre first, needs test or other methods, how can we at least ensure that where communities believe an out-of-town supermarket might have a detrimental impact on a town centre, the planning process can properly scrutinise that and reflect on it? When supermarkets are built and developed, how do we ensure that they do not simply exert an unfair squeeze—a bit like a python—on that town centre? One way that is done, almost with the collusion of Government, is through the business rating system, which never properly reflects the massive advantage for out-of-town supermarkets of free car parking spaces, which enable them to inflict unfair competition—certainly a very uneven playing field—on town centres. I therefore support the case for a supplementary business rate that could be hypothecated to benefit town centres, because the rating system does not properly reflect the impact of such unfair competition.

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

In recent days in Northern Ireland, the Finance Minister introduced a small business rate relief that is designed to take a similar line to the one advocated by the hon. Gentleman. Does he agree that the measure is needed right across the United Kingdom so that small, indigenous city centre traders can see that there is some prospect of the level playing field to which he just alluded? Trade has been going to the edge of town and out of town almost relentlessly over the past 20 years.

[Andrew George]

I am grateful to the hon. Gentleman for that intervention. I congratulate Northern Ireland on a welcome initiative that addresses the problem that I have described. The coalition Government are providing business rate relief to in-town shops and stores. That is clearly welcome, particularly when it benefits smaller, independent stores.

I have a lot of evidence to show that the business rating system does not properly reflect the commercial value of the availability of free parking in out-of-town retail sites. It is right that local communities are encouraged to introduce proposals with the support of their local authorities. Such income—for example, by providing free first-hour or discounted parking for loyal town centre shoppers—would relieve some pressure. In many town centres, certainly in my part of the world, parking charges, which local authorities say they levy to meet the costs of running car parks, have increased significantly.

Secondary, if not primary, legislation will be required. None the less, dialogue between local communities, their supporting local authorities, the selector and the Secretary of State should be encouraged, and a cap lifted on initiatives that local communities should be encouraged to advance. Under a previous round, Exeter made a proposal that was rejected on the grounds that it was beyond the remit of the scheme. However, I urge the Government to encourage that type of initiative.