Future of Town Centres and High Streets

Julian Huppert Excerpts

Tuesday 17th January 2012 Commons Chamber

[Mr Jones]

My hon. Friend makes an extremely sensible point. For far too long, we have not thought about the people who want to drive into our town centres and we have not considered the quality and availability of car parking. We have certainly not considered its cost, which I shall come to later. It is extremely prohibitive and is one reason why there is not a level playing field for our town centres in relation to their out-of-town competitors.

In my constituency, Nuneaton town centre has fared reasonably well, and better than many. There is a property vacancy rate of about 6% while the national average is 11.1%, although the factors I have mentioned account for a vacancy creep that is happening at different rates across the country. Many of the factors in my analysis of the reasons for decline may be a little simplistic, but what we do to arrest that terminal decline is far from simple.

[Dr Julian Huppert (Cambridge) (LD)]

I congratulate the hon. Gentleman on securing this important debate. Is he aware of a study by Transport for London showing that the average retail spend per month is £373 for people who walk to their high street but only £226 for those who take their car? Similar studies show that those who cycle or take the bus or train spend more than those who drive.

[Mr Jones]

My hon. Friend makes a reasonable suggestion, but there is a difference between travel in the London area and the situation in other regions of the UK. I can certainly say that far more people who shop in my local town centre in Nuneaton drive there than use local transport, so we have to be pragmatic.

--- Later in debate ---

[Dr Julian Huppert (Cambridge) (LD)]

Liberal Democrats believe that community politics should be at the heart of what we do. Decisions that affect individuals should be made at the lowest practicable level and, when it comes to our high streets and town centres, local communities should be given as much power as possible. That is why I welcome the Government’s commitment to protecting our high streets.

The independent Portas review, although not perfect, is a significant step towards undoing the centralising powers that were introduced by the previous Government. Key measures such as business rate reforms, town teams, the general power of competence and neighbourhood plans will enable local people, through their council, to make decisions about their own areas and that affect their own lives. There is much more that can and should be done. As the Portas review identified, the more powers local people have to control their own lives, the more likely they are to create a thriving community, and a thriving community is the bedrock of a successful economy.

In Cambridge, I am fortunate to have an extremely successful city council, headed by Councillor Sian Reid, who is fighting hard to protect our town centre, our local market and our local high streets. We have been doing this for years, so we are more than ready to identify where Government reforms are working and where they will not deliver as expected. However, the story is not all good. This year, Tesco is due to open its 13th store in Cambridge. Despite the best efforts of Sian Reid as council leader, Catherine Smart as deputy leader and myself as the local MP, we have simply not been able to find any legal means by which we can prevent supermarkets from opening ever more new stores on our high streets, even when there is significant opposition from local people. That means that supermarkets in general, and in our case Tesco in particular, will have a very large market share in one place.

The problem is not Tesco itself. It and other supermarkets play an important role and people do choose to shop in them. The problem is supermarket dominance. There are a number of problems. First, there is a stranglehold on competition. A successful economy, both locally and nationally, is based on diversity and people’s ability to innovate, adapt and provide the services that people want. What can be done about the supermarket monopolies? The answer is not very much. It is perfectly legitimate under existing rules for a supermarket to have a reasonable market share across the country but a complete monopoly in some towns and high streets. The result is lack of choice for consumers, which is bad for the community and the economy. Breaking these monopolies up is not anti-free market; it is fundamentally pro-fair market and pro-community.

Secondly, local areas retain more money when it is spent in independent and locally owned stores. Local owners are more likely to serve their communities because they live there too. My right hon. Friend the Deputy Prime Minister spoke yesterday about the need for the Government to support worker-owned enterprises. In the same vein, local planning powers should enable locally owned stores. When shops are opened by consent, with the support of local people and under the ownership of local residents, the economic and community benefits are huge and we should support that.

Many of these trends are likely to get worse. We have a housing problem in our country and need to build more housing, but as these new neighbourhoods are formed, we must ensure that developers, when they lease or sell their outlets, take into account independent retailers. I have been told that some developers will sell units only to companies that are prepared to buy 10 or more outlets, which squeezes independents out of new neighbourhoods entirely. For these reasons, I have been working closely with city councillors to see how we can better represent the interests of our constituents by supporting local stores. Local government must be able to influence whether new stores are chains or independents and whether they are small or large outlets, because that is want people want it to do.

One approach we tried was to see whether planning applications could take account of the diversity of shops in a town centre. The push by Cambridge city council became known as the “Cambridge amendment” to the Localism Bill in the House of Lords, and I spoke in favour of it in this place. The Government, however, did not accept that case, but they did suggest using local “use classes” to enable local people to control their high streets, which seems a perfectly reasonable proposal. It would mean that local people could determine that supermarkets are in a different category from small shops and that when shops merge, that would change the class. It would empower local councils, but we have not yet heard from the Government how those proposals would work and the details, despite letters from myself and the leader of the council. I ask the Minister to respond as soon as possible. It is not just about opposing supermarkets for the sake of it. We need to ensure that we have variety and diversity.

We also need to ensure that there is transport. I have been fascinated by the comments made about the need for more cars. There is lots of evidence that improving the walking environment increases retail footfall by 30%, as a study in Exeter has found. People who walk in shopping areas and cycle there or take the bus and train spend more money because they have access. We have to promote sustainable travel. I call on Ministers to look at how we can empower our local communities and give them the powers they need to ensure that we have vibrant centres.