Future of Town Centres and High Streets

Debate between Jim Dowd and Sarah Wollaston

Tuesday 17th January 2012 Commons Chamber

[Jim Dowd]

I shall come to that in a moment. Perhaps I have not made myself clear. I do not think that the threat comes from new developments, the construction of which seems largely to have abated, as the hon. Member for South West Devon pointed out. The fear is that we have already created too many of them, and that they will still have an effect on the traditional town centres and high streets.

[Dr Sarah Wollaston (Totnes) (Con)]

Does the hon. Gentleman agree that our high streets have a wider role in supporting local supply chains and increasing local resilience? In some areas, there is still a threat not only from out-of-town developments but from large distribution depots, which are merely displacing jobs rather than creating new ones.

[Jim Dowd]

That is indeed true.

I was involved in producing a report a few years ago, and we discovered that, in the large retail sector, it takes £150,000 worth of turnover to support one job, whereas the comparable figure for small and independent retailers is £100,000. So, small and independent retailers are much more likely than large ones to produce employment. They are also much more likely to be used by people locally, and the value stays within the local community rather than being exported to a national centre elsewhere. They are also of much greater value to the community in terms of social cohesion as well as retailing.

Some 10 years ago, I was approached by the Independent Retailers Confederation at an event here in the House, and we had further discussions. I then tabled an early-day motion relating to retail crime and under-age purchasing, which highlighted the fact that although those issues apply to all retailers, they present a bigger challenge and have a greater effect on small retailers than they do on the large multiples. I know that some Members take a proprietorial—almost parental—interest in their early-day motions, e-mailing and writing to everyone to ask them to sign them. I take a much more hands-off approach, however; I table them and send them off to find their own place in the world. So, I submitted the EDM with only my name on it, but within a week, it had attracted about 88 signatures.

I spoke to some of the Members who had supported my motion, and it became clear that although there had been an all-party parliamentary retail group for many years, there was a strong feeling that its work did not reflect the interests of small and independent retailers. I am not criticising its work at all; I think that it is a valuable adjunct to the work of the House and the interests of its Members. It is fronted by the British Retail Consortium, which is an estimable organisation that does a good job of representing its interests. However, the consortium effectively represents large retail traders and multiples. That is perfectly legitimate, but the idea that it represents small and independent businesses is just plain wrong. We need only to look at its membership lists to discover that fact. It includes some online businesses that have no trading premises, but, apart from those, its idea of a small trader with only one outlet is Harrod’s or Fortnum and Mason. They are not small retailers, by anyone’s definition.

We then formed the all-party parliamentary small shops group. I am particularly indebted to the hon. Members for Colchester (Sir Bob Russell) and for Kettering (Mr Hollobone), and to the hon. Member for Ribble Valley (Mr Evans), now the First Deputy Chairman of Ways and Means, as well as to the right hon. Member for Inverness, Nairn, Badenoch and Strathspey (Danny Alexander), now the Chief Secretary to the Treasury, and to my hon. Friend the Member for Llanelli (Nia Griffith). We undertook to establish an inquiry, along the lines of that of a Select Committee, into the future of the high street. It was the first report of its kind, and it attracted a lot of attention. We made a number of recommendations, most of which were ignored. Some, however, were enacted, and some were partly enacted. There is, however, a wealth of information, material and advice on the future of the high street, of which Mary Portas’s report is just the latest. There is also the all-party small shops group’s report from seven years ago and reports from the Evening Standard and various community groups and academic organisations. I hope that the Government will take long-overdue action and relentlessly pursue a policy in the interests of retailers of all sizes and the communities that they serve.