(11 years, 1 month ago)
Commons ChamberIn fact, the reason for the increased number of payday loan companies is, first, what has been happening to the economy, and secondly, the change in use class orders, to which I will turn in a few moments.
Local shops and retailers are really feeling the squeeze on the high street, and these are still tough times for many areas.
Will the hon. Lady join me in congratulating Crawley borough council and West Sussex county council, which are, as we speak, significantly regenerating Crawley high street?
Of course we would welcome any regeneration that is happening on our high streets.
Business rates are rising by an average of nearly £2,000 during this Parliament, and more than one in 10 small businesses say that they spend the same or more on business rates as they do on rent. However, we must ask this question: is it all doom and gloom?
(12 years, 10 months ago)
Commons ChamberI do accept that point, which my hon. Friend the Member for Stockport (Ann Coffey) made very well earlier. Nevertheless, the internet is, I think, an additional challenge for high streets and town centres.
I say all that not to talk down our high streets, however, because, as several hon. Members have said, the town centre or high street in their constituency is weathering the economic storm. I say it to demonstrate the extent of the problem, because not all town centres are thriving and we have to be clear about the action that needs to be taken.
In government, we had a strong “town centre first” policy, but even with that policy there was recognition that more needed to be done to revitalise high streets, so there is a particular challenge for this Government. They need to do more to bolster consumer confidence, as their austerity programme—cutting too far and too fast—coupled with their VAT hike last January has squeezed incomes, reduced consumer confidence and led to further job losses on the high street. In a YouGov poll last year, four fifths of retailers said that the VAT increase would undermine sales.
The Government have so far also ignored the recommendations for a stronger “town centre first” policy, and they need to think about amending the draft national planning policy framework to reintroduce the sequential tests for town centres, because we really need that to encourage more town centre development.
Would the hon. Lady not acknowledge that the recently passed Localism Act 2011 gives real power to local communities and councils, such as Crawley borough council, to make town centre policies a priority where they think it is important?
That is not the case if offices are taken out. Of course we all want more localism, but the Government also have to attend to their economic policies, which are damaging our high streets and town centres.
There are other issues that the Government need to address, such as business rates, the need for local flexibility to tackle unemployment, the lack of credit for small businesses and whether property values are artificially inflated in some areas. The big challenge is to respond positively and quickly to the Portas review. We welcome the review, not least because it champions high streets and town centres as community hubs where social, leisure and retail activities can take place. People are passionate about their town centres and want them to thrive.
I hope that we hear from the Minister how he will strengthen the “town centre first” policy. He will know that a number of large retailers, including the John Lewis Partnership, have said that the sequential test as it stands simply is not strong enough.
I am pleased that the Portas review touched on use class orders, which have been raised by many Members. I pay tribute to my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) for campaigning on this issue, in particular for a separate category for betting shops. I wish my right hon. Friend the Member for Lewisham, Deptford (Dame Joan Ruddock) well with her private Member’s Bill, which is trying to put a change in use class orders into legislation as quickly as possible. We must be careful to ensure that if use class orders are changed, they are accompanied by safeguards, so that there is not abuse and misuse of the new guidance. For example, local communities do not want a change in use class orders that makes it easier for fast food outlets to be set up.
Empty shops are a particular issue. We urge the Government to follow through with the recommendations of the Portas review, many of which reflect the policies that Labour championed and carried out in government. We introduced the empty shops initiative, which enabled councils to pursue innovative uses for empty shops and reinvigorate high streets. For example, vacant units could be used for cultural, community or learning services, rather than be left empty. We hope that the Government will introduce such a policy as soon as possible.
It is important that we spend a bit of time thinking about how we redevelop high streets. We need to give councils more tools to do that. We want a more proactive use of compulsory purchase orders. That is mentioned specifically in the Portas review and it needs serious consideration. We also think that her suggestion of an empty shop management order could be pursued.
We are keen to see the town teams that Mary Portas recommends. We hope that they are active and vibrant local partnerships that work closely with business improvement districts. They should also work closely with the local community to make neighbourhood planning a reality. It is important that neighbourhood plans cover town centres and that every effort is made to involve local people in drawing them up. A number of hon. Members have made the point that if life is to be put back into town centres, particularly those that are failing, the involvement of the local community in shaping them is really important.
I finish by saying that in addition to following through with the Portas recommendations, we want the Government to pay some attention to our four-point plan to save our high streets—cutting VAT, giving local people the power to put the heart back into the high street, repeating Labour’s empty shops initiative and promoting a fair playing field for our high streets.