Retail Sector

Helen Goodman Excerpts

Wednesday 6th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is right. We all want to celebrate the success of retail in Britain and we all want to do what we can to further advantage it. In fact, the number of people employed in retail in the UK has grown substantially over the past 20 years, from around 2.8 million in 1996 to 3.1 million in the last full year for which figures are available, an increase of nearly 300,000 jobs.

[Helen Goodman (Bishop Auckland) (Lab)]

When I went to talk to my local jobcentre, it complained about the way the supermarkets treat their workers. My local jobcentre says it is grossly unfair and unreasonable to give people short 12-hour or eight-hour contracts. Is the Secretary of State confident that the increase in the number of jobs is an increase in full-time equivalent jobs, or is it just chopping up jobs that would previously have had a reasonable number of hours?

[Greg Clark]

The hon. Lady raises an interesting question. She will be interested to know that the trend over the period is towards more full-time jobs taking the strain from part-time jobs. The hon. Member for Salford and Eccles mentioned that part-time employment is valued by many people in the retail sector, but a higher proportion of jobs in the retail sector are now full time than in 1996.

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[Helen Goodman (Bishop Auckland) (Lab)]

I am very pleased to be able to speak in this debate, because 4,000 of my constituents work in retail. There are now more shop workers in my constituency than there were miners 50 years ago, although I have some questions about the quality of some of those jobs: the short hours, the low pay, and the constantly changing shifts that are forced on people. I found it very ugly to hear that people were given short shifts to, as their managers said, keep them hungry for extra hours. The problem is that in my constituency people are going to food banks—they are literally being kept hungry.

We need to look at bank holidays. It would be really good if Boxing day was a bank holiday, alongside Christmas day. Christmas day is often ruined for many shop workers, because they have to get up so early on Boxing day to rush in and reorder stores in time for the sales. [Interruption.] It is not a statutory bank holiday for people who work in shops.

High streets are very important and they can have a very significant impact on people’s wellbeing. In my constituency, a large number of people are working in a new out-of-town development in Tindale Crescent. The truth is that Shildon, Bishop Auckland and Spennymoor are all seeing a fading away of their town centres. There are good butchers and good bakers, but the overall picture is one of decline. There were a lot of closures after the post-crash recession, but we thought that things would come back. They have not come back and they continue to decline. If I may say so, I thought the Secretary of State’s opening speech was verging on the complacent. The question is: why are these shops closing and what is to be done about it?

The first issue is the shift to online sales. The Government have failed completely to set a level playing field on tax. John Lewis raised this problem at least three years ago. There should be a turnover tax for Amazon, Google and other big online retailers. I agree with the hon. Member for St Ives (Derek Thomas) that we should move to that urgently.

The second problem is the very significant fall in wages across the British economy between 2007 and 2015—a 7% drop in real terms. We are not going to get back to pre-crash levels until 2024 and earnings are down £1,400 per person. That is bound to have an effect on what people can spend. In my constituency in County Durham, cuts to child benefit, tax credits, employment and support allowance, jobseeker’s allowance and disability allowances are all having a very serious impact on my constituents’ incomes. Obviously, they have less money in their pockets to spend. Moreover, the Government keep telling us that employment is rising. In my constituency, the increase in unemployment in the past 12 months has been 29%. We are not being compensated for all those wage cuts with extra jobs.

A third issue affecting the modern high street was raised by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry): the unequal roll-out of broadband and the lack of access to wi-fi. This is a problem for the shops themselves and it makes town centres particularly unattractive to young people who like to be able to communicate using social media when they go out and about. The Government’s ineptitude in rolling out broadband equally, without notspots, across the country is a real problem in Shildon, Spennymoor and Bishop Auckland.

The fourth problem is cuts to public services. My constituency has seen the loss of a driving test centre, a magistrates court and a tax office—all from Bishop Auckland town centre. The next thing to go is the registry where you can get married. The swimming pool in Shildon has gone. A sixth form is going in Spennymoor, which means young people after school will spend their time and money in Durham city instead. We need a conscious strategy for these towns. When public services are always centralised in cities, it denudes small towns of the life that then has a positive, second-round effect on shops and retail. When the footfall to other public services drops, fewer people are there to go shopping.

The private sector is no better. Many hon. Members have complained about bank closures. We had another depressing meeting yesterday with RBS. Barclays is closing a branch in Spennymoor. HSBC closed the last branch in Shildon. That is bad for shops and bad for small businesses. I would like Ministers to look at changing competition rules, so that banks can share branches in small towns. At the moment, the banks want to be able to run on their current branding. Ministers rely on competition. There is a market failure and we need to put the public interest first. I would like to see a change in the competition rules.

Many hon. Members have spoken about the problem of business rates. Beales in my constituency closed for precisely this reason. Hon. Members have spoken about the importance of compulsory purchase. I agree completely. We could have had a much speedier redevelopment in Spennymoor had the council been able to compulsorily purchase the private Festival Walk in Spennymoor town centre.

I do not want to leave hon. Members with the idea that good things are not going on in the towns in my constituency. Auckland Castle in Bishop will be a fantastic tourist opportunity and the 1825 celebrations in Shildon of the Stockton to Darlington line will enable us to make the most of the heritage action zone. There are pluses as well as minuses.

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[Rachel Maclean (Redditch) (Con)]

It is a great privilege to follow all the other Members who have spoken.

May I take you, Madam Deputy Speaker, on a journey to Redditch? I do not know whether you have ever been there—

[Helen Goodman]

Of course she has. It is a marginal. [Laughter.]

[Rachel Maclean]

I am sure that you went there back in 2010, Madam Deputy Speaker. Those were happy days, with former colleagues. You will have seen the wonderful traffic-free roads that lead to Redditch. It is a new town, which was built in a moment of hope to accommodate people who were moving out of Birmingham and from elsewhere in the country. They wanted to come to Redditch to build a home. You will drive smoothly to the town centre, because there is no traffic holding you up: you can go straight past the islands. When you reach the town centre, you will park your car at the Kingfisher shopping centre. You will walk through that wonderful shopping centre, which is privately owned and very well run, and is doing a lot of work to attract new retailers. It is an example of excellence in our town centre.

Unfortunately, however, when you leave the Kingfisher shopping centre, Madam Deputy Speaker, you will go out into the old part of the town, where you will observe a scene almost identical to the one described by the hon. Member for Great Grimsby (Melanie Onn). You will see boarded-up shops and graffiti—not the trendy kind for which people pay good money, but the kind that we really do not want. You will see underpasses leading nowhere, the sort that you do not want to go through. That is a great shame, and it affects people’s impression of the town. They are passionate about Redditch, they love it with all their heart, but they want it to compete on a level playing field with other shopping centres that are only 10 or 15 minutes’ drive away, in Solihull and Birmingham.

At present our town centre is struggling, partly because, unfortunately, the leaders of Redditch Borough Council—sadly run by Labour, until the local elections last month—have not grasped the many opportunities that are at their fingertips to improve things for local residents. The Conservative-run county council went to Redditch and asked its council, “What is your vision for your town?” A number of successful, thriving towns in the rest of Worcestershire are using Government funds to make improvements. One example is Hereford, with its university of technology, its specialist area. Another is Kidderminster, with its incredibly successful ReWyre partnership which is driving investment in the town. Before that, it was haemorrhaging people because no carpets are made there any more.

Redditch used to be a centre of needle manufacturing, but what did the local Labour leadership come up with? I am sorry to say that the best it could come up with was the £800,000 that it spent on paving a yellow brick road on the high street. What good does that do in the face of all the challenges so eloquently outlined by Members in all parts of the House? What does it do to drive investment into our town centre? What does it say to the new business investors, the entrepreneurs who are putting their life savings at risk? There is, for example, Rees Café, which serves the most amazing vegan brownies. There is Heaphys Menswear, one of the oldest independent retailers in Redditch. There is Sew Fab, which purveys wonderful sewing kits—not that I have time to sew. What does that say to them? It does not give them a vision of hope for a town centre. It is just blocks on a road. It is absolutely useless.

That is the tragedy of the Labour council, but now we are turning over a new leaf. People really want to see Redditch thriving. Our whole message to the people of Redditch is that we need to—and can—unlock Redditch. It will take time—we appreciate that, but we need to work together. We need to create an environment where local leadership is welcoming people into the town and encouraging entrepreneurs to thrive. That is what we need in Redditch, and not this approach from Labour with a lack of imagination and no vision for our town.

This has been a great opportunity to have this debate and to make points to the Minister. On business rates, in common with others, I really welcome the work that he has done, which I believe will see £2.3 billion of business rates being saved by our local businesses, but please can we keep that work up? Businesses up and down the country are going to welcome that.

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[Bill Esterson]

That is a very good point, and it has also been made by other Members today. Where is the strategy, not only for retail but for our towns, and for our high streets in particular?

[Helen Goodman]

There isn’t one!