Retail Sector

Justin Madders Excerpts

Wednesday 6th June 2018 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I will aim not to disappoint, Madam Deputy Speaker.

As the name of my constituency suggests, there are two main towns, Ellesmere Port and Neston, both of which have a retail offer that is dramatically less than it was five years ago. However, we still have over 6,000 people employed in the retail industry in the constituency. The reason for that is the very successful Cheshire Oaks centre within our bounds. It was an answer that the local authority came up with in response to the ravages of the 1980s, when we lost so much manufacturing industry and there was a real recognition that we needed to broaden our employment base. The leaders of the council, Fred Venables and Reg Chrimes, both saw this as an opportunity, and it has transformed our area to the extent that we get 9 million or 10 million visitors a year, many from overseas. It is an expanding area, and it would be remiss of me not to mention that that has created a lot of employment in the constituency.

At the same time, however, we have had real challenges in our towns of Ellesmere Port and Neston. They are different in many ways—they have different demographics, transport links and ownership issues—but both have suffered in recent years from the changes in the retail market that we have heard about today. Neston, in particular, has now lost all its banks. That has undoubtedly had an effect on the high street not just for customers, but for other businesses that use local banks. I must say that the banks that have shut down have paid only lip service to improving services. They have made some very bizarre suggestions about people going to banks in other towns to which there are no public transport connections, and they have since talked about shutting down those branches as well.

We have also had transport issues, with real cuts to public bus services in recent times, which makes it difficult for people to get into the town. One particular example is of a shop owner working in Neston who is really concerned about the future of his business because he will not be able to get there if the bus service running from Ellesmere Port to Neston is stopped.

There have been some positives. In the Brook Street area, virtually all the shops were empty, but an organisation called Brightlife, which is funded through the lottery, managed to get a number of charities and good causes into those shops and brought back a bit of life to the area, which has made a real difference. Particularly innovative was the idea of moving the Little Actors into the jobcentre, which was an impressive way of finding a new use for an old building. That is all temporary, however, because it is all based on lottery funding and is not a permanent solution.

In Ellesmere Port, we have a bigger challenge because it is a bigger area to deal with. A lot more retail units are in private ownership, and many of them are too large for what retailers are looking for now. A lot of the big names have gone, and they just have not been replaced. As the hon. Member for Mansfield (Ben Bradley) has said, we need to look at different ways to promote interest in town centre food and leisure and the night-time economy, but the question is: how do we do that? I am concerned that local authorities do not have the capacity they once had to meet those challenges. My local council is looking at the One Public Estate programme, which will bring together different parts of the public sector, which will hopefully consolidate some jobs in the town. However, in terms of ownership, capital and vision, we are some way behind on delivering a new town centre for the future, and the Government’s industrial strategy is lacking in that regard.

If we do not take much more seriously the regeneration of our town centres, the inequalities and imbalance between towns and cities over recent years will continue to accelerate, and the feeling that a lot of people in towns have of not being as important as other parts of the country will continue to solidify.

As has been said, online sales put pressure on the retail sector, and about 21,000 jobs have been lost in the sector already this year. I also think that automation plays a part in that. Personally, I will not use an automated checkout; I think that every time we do that, we push shop people’s jobs a little bit closer to the exit door. I have read that £3 billion a year is being lost to retailers through theft as a result of abuse of those machines, which makes me wonder about the incentive for companies to install them. They cost retailers money, result in job losses and frustrate a lot of consumers. On a number of occasions, I have seen people having to call an assistant to get the machines to work properly. Perhaps it is the fact that the machines cannot join trade unions that makes them so attractive to companies.

Of course, I accept that companies have to do something to streamline their costs, because it is not a level playing field, as we have heard. Online retailers seem to have considerable advantages, not just in the way in which they are able to treat their staff but in how the business rates system works. I agree with the Secretary of State that town centres are an essential part of our character and identity. It is really important that we recognise that and that retail is only a part of it.

Certainly I have shown my commitment to my town centre in Ellesmere Port by placing my office there. The building had not been used for many years, but we got a grant to regenerate it and it is a signal of intent. That also shows that we have to look beyond the traditional retail offer to get life back into our high street. It has been under threat for many years, for myriad reasons. Retailers need to be given a fighting chance, but we cannot ignore the direction of travel in which online sales are leading us. We certainly cannot place all our eggs in the retail basket, so we have to reimagine and revitalise the town centre by offering something different and new to encourage people into it, not just to buy things but to experience things and to get back that sense of community for which I think most people yearn. In order to do that, we need to give local authorities the capacity, resources and authority to deliver, because austerity has put the skids under what they can do.