Marks & Spencer

John McNally Excerpts

Thursday 24th May 2018 Commons Chamber

[Claire Perry]

Most assuredly. Working with high streets in my constituency, as I am sure many right hon. and hon. Members do, I know there is a huge power in having a vibrant high street sector with lots of shops and big anchor tenants, and perhaps also, as a way of driving footfall, shops where people pick up their online packages. Our high streets are part of our incredibly vibrant history. Many of us represent small market towns where the high street is a hugely important part of the local economy. Let us not forget that they employ hundreds of thousands of people right across the country.

[John Mc Nally (Falkirk) (SNP)]

All this is terrible news for our local retailers and for businesses on our local high streets. We have lost a staggering number of businesses over the past two or three years. It is terrible news for the employees and their families, and for our local economy. In my constituency, we will lose about 90 employees, which will have a devastating impact. Is it due to a combination of the Government’s austerity and the clicks versus bricks regarding VAT rates, which we have just spoken about? I know that the Government were planning a consultation on VAT. Will the Minister update us on where we are with that consultation? Is there any possibility, as I asked the Chancellor some time ago, of reducing VAT for our high streets to give local shops and high street retailers a fighting chance against online retailers?

[Claire Perry]

The hon. Gentleman anticipates the review I hope we can all support. I will ensure that my hon. Friends in the Treasury bring it forward as soon as possible. I do have to push back slightly. The hon. Gentleman is right and wrong. He is right that we are buying less stuff. In fact, there is the phrase “peak stuff”, which suggests that the younger folks among us no longer go shopping for pleasure, but prefer to do other things with their time—mostly involving their phones, as best I can tell from my own kids. There is the view that the acquisition of products and services is on the decline globally. I believe the vacancy rate for shops in great cities such as New York is now in double digit figures, which is very surprising and reflects a global trend.

We should welcome the fact that in this country real wages are now going up and increasing ahead of inflation. People are getting more money in their pockets. The Government’s actions in cutting taxes by over £1,000 for over 3 million people and in continuing to invest in high streets, allowing both money and choice, has meant that spending has held up reasonably well—in particular, since the Brexit referendum, which was supposed to deliver the death knell to shopping in this country. That has not happened. We are seeing a change in the way people spend, but it is vital we recognise the importance of this sector as part of our industrial strategy going forward. Industrial strategy, by the way, does not just mean smokestack industries. It means retail industries and creative industries—[Interruption.] The hon. Member for Sefton Central (Bill Esterson) should welcome the fact that we have a sector council up and running and should look closely at the steps it suggests the Government need to take.