High Street Regeneration and Unlawful Storefronts

John Hayes Excerpts

Tuesday 30th June 2026 Westminster Hall

[Bradley Thomas]

I will make a tad of progress, if I can.

The Office for National Statistics has reported that in 2025 there were 530,000 shoplifting offences, an increase of 20% on the previous year. That is the highest figure on record, and it does not take into account crimes that are not reported because there is a general malaise or a suspicion that they will not be investigated. I read a similar stat from public authorities that only 50% of shopkeepers report crime, while a staggering 55% of reported cases are closed without a suspect ever having been identified. That is despite retailers having spent £300 million on measures such as security, CCTV and facial recognition to mitigate the effects of shoplifting.

It is believed that up to one half of vape shops and a large proportion of American candy stores have ties to organised crime. The scale of the problem is unquestionable; we all recognise it. Over the past 12 months, 3,600 shops have had illegal goods seized, and it is estimated by the National Crime Agency that £1 billion of criminal cash is laundered through high street retail. The scale of the problem is undeniable, which brings me to the question of what we can do about it.

[Sir John Hayes (South Holland and The Deepings) (Con)]

rose—

[Bradley Thomas]

I am genuinely interested in hearing what fellow Members have to say, so before I continue I will give way to my right hon. Friend.

[Sir John Hayes]

I am grateful to my hon. Friend for bringing this debate to Westminster Hall and for his interest in what I am about to say. The Government took powers under the Tobacco and Vapes Act 2026 to license these kinds of premises, but there is real uncertainty—I have had correspondence with the previous Home Secretary, the right hon. Member for Pontefract, Castleford and Knottingley (Yvette Cooper)—about the Government’s application of the new powers. I am sure that my hon. Friend will join me in calling for the Government to get their act together and clamp down on these shops.

[Bradley Thomas]

My right hon. Friend is absolutely correct. Much greater focus on tackling these issues is needed from all arms of the state, national and local, including arm’s length bodies, law enforcement and investigation. For far too long, a fragmented approach has allowed the problem to grow: it has swelled, not declined, in recent years.

The reason this matters is that society has to get the basics right. I am a big believer in the idea that the fundamentals in society slip when we do not collectively enforce the basics. That often starts with pride. As we have seen our high streets hollowed out, we have seen a decline in civic pride across the country. In all our areas, the councils do some things very well, but it is unquestionable that investment in the public realm has declined over the past decade. There are lots of reasons for that, and hon. Members may speak about some of them, but we have to get back to enforcing the basics. I am passionate about the importance of good design, including design codes and good-quality signage and a good-quality aesthetic in the public realm. A lot flows from the degradation that we have seen in recent years.

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[Sir John Hayes (South Holland and The Deepings) (Con)]

It is a pleasure to serve under you, Ms Vaz, and to follow my hon. Friend the Member for Bromsgrove (Bradley Thomas), who introduced the debate and said much of what I would have said in his place.

Let me set out the context for a moment or two. We must make a decision about the character of places. People’s sense of place nurtures and nourishes their sense of worth. When we see diminished places, people are diminished alongside them. We have to understand that the decline of high streets is about much more than retail habits; it is about how we comprise community. Community matters because it allows us to deal with the inevitable vicissitudes of human experience. The real issue is what Government can do to nourish and support those communities.

I have some requests for the Minister. The first is to change planning law to limit out-of-town and edge-of-town development. When the life and the livelihoods are sucked out of the centre of places, that inevitably drives people to the extremities of settlements rather than drawing them into the heart of them; consequently, the hearts of our communities are being ripped out.

Secondly, the Government need to crack down on the illegal shops that now pervade much of our kingdom, including South Holland and The Deepings, and to reinforce the powers of local councils to close such shops when they are trading illegally, as many certainly are.

Thirdly, we can re-dignify our town centres. In my time representing my constituency, much of the footprint of government has been removed. Let us reopen closed magistrates courts and local tax offices. Let us see the footprint of government informing and dignifying so much of our country. Things like that, where the Government can take proactive steps to change the character of areas, would make a huge difference to regenerating communities and giving health again to high streets.

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[Paul Holmes (Hamble Valley) (Con)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I welcome the new Minister to her place; I know that she has a background in these issues, and I look forward to working with her in the weeks, months or years ahead. I also thank my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this debate. He is a great champion for his community. This issue is close to his heart, and given his previous career in local government he is very knowledgeable about it.

I welcome the opportunity to contribute to this debate. My hon. Friend mentioned a range of topics, which shows how much he is involved in his constituency and community, ranging from flaws in the banking hub criteria to the aesthetics of our high streets. I know that that comes from his time as leader of a local authority. I am also his Whip; after this morning, he can be guaranteed a good mention in dispatches later.

We have heard some entertaining and knowledgeable speeches from my colleagues. My hon. Friends the Members for Bromley and Biggin Hill (Peter Fortune), for South Shropshire (Stuart Anderson), for Chester South and Eddisbury (Aphra Brandreth) and for Keighley and Ilkley (Robbie Moore) and my right hon. Friends the Members for Aldridge-Brownhills (Wendy Morton) and for South Holland and The Deepings (Sir John Hayes) have shown their in-depth knowledge of the challenges in their constituencies.

Traditionally, high streets have been seen as indicators of the health of our economy, with the British Retail Consortium calculating that retail generates nearly £500 billion in annual sales and nearly 3 million jobs. According to the Office for National Statistics, around 4.4 million people work in businesses located on British high streets, which represents roughly 14% of all employment in the UK.

The contribution of the sector to the UK economy is vital to any Government seeking economic growth, especially regionally driven growth, which I have reason to believe the incoming Prime Minister, the right hon. Member for Makerfield (Andy Burnham), is enthusiastic about. This growth will be much better able to sustain communities and help them thrive. It will empower local people, business owners and decision makers to improve the areas they know and love better than any centrally planned project ever could.

As I have said in previous debates, however, the high street is more than a place where cash, services and goods change hands. It is at the heart of our communities—a place where people can come together to catch up over a coffee or a beer, have a natter in the nail bar or have a quiet read in the local bookshop. The value of our high streets cannot be quantified by simple sums of money, or by the business rates or council tax that they generate for the Treasury and local government. They are so much more than that.

As has been outlined this morning, however, there is a sad story of decline on our high streets. Many factors explain that, and colleagues from across the House have touched on many of those, including the rise of online shopping, cost of living pressures, economic stagnation, high taxes on businesses, planning issues, poor local transport links and stretched public services. There are many causes of the problem, and many people lose out from dying high streets.

Perhaps the greatest tragedy is the impact on young people. Retail has always been one of the UK’s great entry-level employers. It has given generations of young people their first job, taught customer services skills, teamwork and responsibility, and provided a pathway into management and business ownership. As Members will be aware following the publication of Alan Milburn’s report, youth unemployment stands at a staggering 16.2%—an increase of almost two percentage points on last year; at the same time, youth employment has fallen. More than 3 million 16 to 24-year-olds across the country are unemployed and economically inactive.

We should ask ourselves a simple question: how many of those young people have been pushed out of work, or denied work in the first place, by the continuing decline of our high streets? Increases to the minimum wage, the surging cost of employer national insurance contributions and council tax hikes are just a few of the burdens heaped on to businesses, which have been pushed to the wire. In 2024 alone, more than 13,000 high street stores closed, and over the last two years the retail sector has lost almost 250,000 jobs. Every shop that closes represents not just another empty unit but another lost opportunity for someone hoping to take their first step into employment. If we genuinely care about tackling economic inactivity, we cannot ignore what is happening in our town centres and high streets.

The picture is no better for Britain’s pubs. At this point, I had better declare an interest: I like being in pubs quite a lot. Changes to employer national insurance contributions have added around £7,200 a year to the wage bill of the average pub, which employs eight people. Layer on top of that business rate reforms, which were presented as a lifeline but for many businesses have proved to be anything but, and it becomes easy to understand why so many publicans are questioning whether they can continue. The consequences are stark: across Britain, two pubs close every day.

At the 2024 autumn Budget, the Chancellor promised to “permanently lower” business rates for retail, hospitality and leisure businesses, telling Parliament that this would help to level the playing field for our high streets. That ambition was welcome, but when the detail emerged many businesses concluded that the reforms would do the opposite. Rather than providing certainty, the changes have raised serious concerns that many larger retailers and hospitality businesses—the so-called anchor tenants that attract shoppers to our town centres—could face significantly higher costs. Those businesses generate footfall for everyone else. When a department store, a supermarket, a major retailer or a large hospitality venue closes, it is not just the business itself that suffers; small independent retailers, cafés and local shops lose passing trade.

[Sir John Hayes]

The Government need to know when to step back and when to step forward. They need to step back by reducing the costs that my hon. Friend has set out, and they need to step forward by restricting where businesses can be located. The Government should be obliging businesses to reinvest in the high street.

[Paul Holmes]

I agree entirely with my right hon. Friend. That is something that this Labour Government have never got to grips with.

Businesses already operating on tight margins face £40 billion of tax rises, including substantial increases in national insurance contributions, which will place further strain on them. I am delighted that colleagues on the Opposition Benches mentioned the Leader of the Opposition’s pledge to abolish business rates for most high street businesses.

Alongside the economic challenges facing our high streets, we must also confront an uncomfortable truth, which many Members have mentioned: our constituents are increasingly concerned that some high street premises are being used not as genuine businesses but as vehicles for tax evasion, money laundering and organised crime. Those concerns are frequently raised in relation to certain cash-intensive businesses, including some barber shops, nail salons, mini-marts and vape shops. The overwhelming majority of those businesses are of course honest, hard-working enterprises that serve their communities and deserve our support, but the ones that are not undermine legitimate traders, distort competition and damage public confidence in our town centres.

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[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Nesil Caliskan)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I thank the shadow Minister, the hon. Member for Hamble Valley (Paul Holmes), for his warm words welcoming me to my place. I am grateful to the hon. Member for Bromsgrove (Bradley Thomas) for securing this important debate, and I thank all Members for their passionate contributions, reflecting their commitment to their local high streets and to the people they represent.

High streets are integral to our communities. They are where people work, shop and spend time together. At their best, they are vibrant and welcoming places, supporting local communities and building pride in place. However, as Members have articulated, too many high streets face real challenges, from changing consumer habits to vacant units and declining footfall. In some areas, those challenges are compounded by the rise of businesses used as fronts for criminal activity. The Government are determined to address both sides of the challenge: to support regeneration and renewal, while tackling the unlawful activity that undermines all our high streets.

Thriving high streets do not just happen by accident. They require investment over a long period, planning, and a clear vision for the future—backed, crucially, by local leaders with powers to protect their towns and high streets. I understand that well; having served as a council leader, I know how passionate debates about high streets can become. Later this year, the Government will publish a cross-Government high street strategy, because saving our high streets needs a cross-Government approach. The strategy will be backed by £300 million to support the retail, leisure and hospitality sectors— I was pleased to meet with representatives of the hospitality sector last week—and to help them to reimagine the role of the high street in modern Britain.

[Sir John Hayes]

To do that, we must reimagine the role of Government. The Government need to stop their preoccupation with driving people online. How wonderful it would be if the Government suddenly said, “You can no longer do this online. You must do it face to face.” Those personal interactions, with all their civilities and courtesies, make up the tapestry of civilised life.

[Nesil Caliskan]

I do not disagree with the right hon. Member. We have seen the impact of online retail, and I think it would be misleading to say that we are about to see its disappearance. Instead, we have an obligation to think about what our high streets might look like in the future. Local communities want to be able to shape their high streets. The partnership between a local authority, businesses and residents can shape future high streets, not least through the commitment to densification—an important point made by a number of Members today.

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[Nesil Caliskan]

I thank the hon. Member for that important point. I recognise how passionate people are about that. The NPPF does set out some of that, but the truth is that beauty is in the eye of the beholder. Having been a council leader, I know how challenging that can be. It is important that the public realm is shaped by local people. The best examples are where there is co-production and co-operation between local partners, residents and businesses.

[Sir John Hayes]

Beauty is not in the eye of the beholder. As Keats said, beauty is truth, truth beauty. That truth is about recognising that the aesthetic of a place informs people’s association with it. All my hon. Friend the Member for Bromsgrove (Bradley Thomas) is asking is for design codes to have statutory force and not simply be guidance, which is not enough.

[Nesil Caliskan]

I acknowledge that call, and I believe the NPPF goes some way towards doing it. I understand there may be gaps; Government will always be willing to look at that and work with the Local Government Association, for example, which supplies some of that guidance. Whether a statutory response is appropriate is yet to be debated. I am confident that the NPPF provides what is necessary. I do accept the point that the public realm is a key part of regenerating our high streets and town centres.

On the points about organised crime and illegal activity, I assure hon. Members that the Government recognise that we will not see high street regeneration or thriving town centres without tackling that head-on. Regardless of how many functions we devolve and high streets we regenerate, they simply will not thrive if illegal businesses are left to take hold. I recognise the concerns raised by the shadow Minister, the hon. Member for Hamble Valley, that too many high street premises are being used as fronts for organised crime, facilitating money laundering, tax evasion, illegal working and the sale of illicit goods.

Although opinions may differ on what looks nice in relation to design codes, nobody wants to see illegal activity on our high streets and in our town centres. The Government have announced £30 million of investment over three years to target those businesses and crack down on the corrupt networks operating on our high streets. A sum of £20 million to strengthen national co-ordination and local enforcement will make a difference, which we are seeing already, with hundreds of so-called businesses conducting illegal activity targeted, visits to thousands of premises, hundreds of arrests and the seizure of millions of criminal proceeds.

We are strengthening the role of trading standards, which has been left for too long without the required resources, with £6 million to boost its capacity in priority areas. I recognise trading standards is still under pressure, and local government representatives frequently raise the subject with me. Alongside enforcement, we are strengthening powers to act quickly and effectively. I hear too often that local authorities want to take power but feel restricted. We are extending and reviewing closure powers, including consulting on increasing the maximum duration of closure orders to 12 months.