Retail Strategy
Debate between Justin Madders and Mike Amesbury(5 years, 4 months ago)
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Justin Madders (Ellesmere Port and Neston) (Lab)
It is a pleasure to serve under your chairmanship, Sir David. I, too, congratulate my hon. Friend the Member for Blaydon (Liz Twist) on securing this debate about a topic that is vital to the survival of our high streets, as evidenced again by the number of Members present. I say “again” because this is not the first time we have gathered to discuss the causes of town centre decline and what we should do about it. Indeed, I took part in a debate on urban regeneration shortly after being elected to this place four years ago.
Very little has changed since then. In fact, things have probably got worse. In 2018, nearly 85,000 retail jobs were lost in the UK as businesses continued to go bust. In the past 18 months alone, the following big chains have gone into administration: Greenwoods, HMV, Berketex, Crawshaw, Evans Cycles, American Golf, Orla Kiely, Poundworld, House of Fraser, Gaucho, Warren Evans, East, Carpetright, Toys R Us, Maplin, Mothercare, Homebase, and L. K. Bennett. Many household names; many long-standing companies. It is a crisis.
The British Retail Consortium’s monthly footfall tracker showed that store visits hit a six-year low in May this year, with declines experienced in every region and across high streets, retail parks and shopping centres. According to a new report, online shopping will account for more than 50% of retail sales within the next 10 years. The report states that that growth will be powered by three primary factors: the changing demographics of the UK adult population; the development of faster, cheaper home deliveries; and fewer physical stores.
Our high streets and small business owners will continue to be hit by those changes in shopping habits. The Centre For Towns showed that the decline of our high streets has picked up pace in the past 10 years as consumers shop online rather than visiting the high street. The Office for National Statistics reported that the number of retail businesses and the number of high street retail jobs fell in every region of England except London between 2012 and 2017.
Those trends are reflected in the two main towns in my constituency: Ellesmere Port and Neston. Both have a retail offer significantly smaller than it was five years ago, due to the dramatic changes we have heard about. The town centre in Neston has lost all its banks, which has had a negative impact on both customers and retail businesses. A lot of retail units are in private ownership, many of them too large for what retailers are looking for nowadays, and shops in Ellesmere Port are closing regularly, and are not being replaced. When banks close branches, they undergo what I consider to be a cursory consultation that changes nothing and does not require them to think about their wider responsibilities for the vitality of our town centres.
Mike Amesbury
Does my hon. Friend agree that it is rather confusing to look at the ownership of some of those banks? Of course, we stepped in some time ago—they were bailed out to the tune of billions of pounds—so there is ownership there, but where is the control? It is as though the referee has just walked off the pitch. Do we require Government intervention?
Justin Madders
My hon. Friend and neighbour makes an excellent point. Indeed, the power that central Government have through procurement and their control over many of those private enterprises should be used for the wider benefit of communities. As my right hon. Friend the Member for Delyn (David Hanson) mentioned, post offices are a great example of where we have lost control of an organisation. A number of the post offices on high streets in my constituency are closing, without any regard for the wider community impact. We really must begin to take back control, to coin a phrase.
Most of all, it is our town centres that are in need of a retail strategy. They are the heart of our communities, and their importance must not be underplayed. A new approach that regenerates our town centres is vital if we are to preserve their character, restore civic pride and give people a positive reason to visit their high streets. Local authorities have the knowledge and tools to tackle this, but they cannot do so without significant financial support. However, local authority funding has been cut like never before and the money needed for a true transformative approach to regenerate our town centres simply is not there.
As my hon. Friend Member for Batley and Spen (Tracy Brabin) said, we need to be much more joined up in how we approach these things. The move to electric vehicles is one such example. It is not entirely clear who is in charge of the charging infrastructure, but it would be great if there were joined-up thinking, with charging points located in town centres used to encourage people to use the town centre facilities while they charge up.
As we have heard, unfortunately the Government’s plan to address the crisis is to pit towns against one another in a competitive bidding process known as the future high streets fund. Only a lucky few get a slice of the pie. I learned this week that despite putting in an excellent bid for Ellesmere Port, my local authority was not successful in the process. What does that say to the people of Ellesmere Port about the importance of their town, compared with others? What will the Government do to support Ellesmere Port town centre? Will there be a second round of funding? Will there be other initiatives, or will we have a rerun of the 1980s policy of managed decline for parts of the north?
My local council is doing what it can, but the multifaceted challenges we have heard about in the era of austerity cannot fall entirely on its shoulders. The trends are there for all of us to see. The evidence is clear that the capacity to meet such challenges has been hollowed out after a decade of cuts. It will take sustained, focused and locally driven but nationally supported investment. It will take imagination, requiring a change from the old way of doing things. It will take central Government to realise that one of the reasons why so many people feel disengaged and disenfranchised is that when they go to their town centre and see empty shops—
Transport: Cheshire
Debate between Justin Madders and Mike Amesbury(5 years, 5 months ago)
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Justin Madders (Ellesmere Port and Neston) (Lab)
I beg to move,
That this House has considered transport in Cheshire.
It is a pleasure to serve under your chairmanship, Mr Betts. I am glad to see you here, and I thank the other hon. Members present for attending.
The debate is about transport issues in Cheshire, but we could not possibly deal with all the issues in the time available, so I will talk about two issues with a common element that has been causing much anger, frustration and consternation in my constituency and beyond. I refer to the River Mersey and the tolls my constituents face to cross it, be it by the Mersey tunnels or the Mersey Gateway. There is now no way they can cross the river for work, for family reasons or for medical treatment without paying a fee. Of course, there have always been fees for the Mersey tunnels, but not ones that discriminate against people because of where they live.
Let me start with the principle of the tolls. The fact that the Mersey tunnels have always had tolls does not make the tolls’ existence any more defendable. Indeed, it is difficult to understand why they are still in place, given that we have heard repeatedly from Ministers how the removal of tolls can improve an area’s economic performance—an argument that seemingly won in south Wales, where the Severn crossings had their tolls abolished; in Scotland, where the new Forth crossing is not tolled; and in the true blue Tory shires of England, where plans for the A14 upgrade to be tolled around Huntingdon and Cambridge were scrapped.
Mike Amesbury (Weaver Vale) (Lab)
Would there not be a considerable outcry if just one of the 36 bridges over the River Thames in London were tolled? Is this unfairness not a case of a real north-south divide?
Justin Madders
I agree, and London seems to do better than the rest of the country in terms of per-head transport investment, too.
None of the crossings in Northern Ireland is tolled, none in Scotland is tolled and, as we have heard, London is equally blessed. In fact, more than 90% of tidal crossings in this country are toll free. The argument that tolls harm economic growth seems to be accepted everywhere, except on the River Mersey.
As I said, the tolls on the Mersey tunnels have always been with us. They are not popular, but they have always been part of life. However, an unconscionable decision earlier this year by the Liverpool city region metro Mayor has made them far less acceptable. Regular tunnel users can apply for a fast tag, which gives a discount on the normal fees. From 1 April this year, the fee for those who live in the Merseyside area was reduced from £1.20 to £1, but the fee for those outside the Merseyside area was increased by a whopping 50%, from £1.20 to £1.80. That decision was made with little notice, no consultation and complete disregard for the economic impact on those living outside Merseyside.
Although my constituency is in Cheshire, we are very much in the hinterland of Merseyside—the number of Liverpool shirts I saw over the weekend is testament to that. We are less than 10 miles from Liverpool city centre, and our economic, cultural and family connections mean that people travel there daily. When my constituents ask me whether it is right that they have to pay nearly twice as much as someone who lives just down the road from them to go to work or visit their elderly mother, I tell them, “No, it isn’t.” It is discrimination by postcode, and it is not something I believe anyone who wants fairness in this country can support.
To be fair to the metro Mayor, he would like to be able to get rid of tolls altogether. I am happy to work with him and anyone else who wants to join me on that campaign, but that is a longer-term aim. In the short term, he has defended his decision robustly. He rightly points out that the Liverpool city region has experienced the largest Government funding cuts anywhere in the country, and that the people he represents cannot be expected to shoulder the burden of austerity. His conclusion is that he cannot have non-city region residents’ travel being subsidised. I understand what he says, but he is simply wrong about subsidy.
The Mersey tunnels, for which I understand the tolls are the third highest of their type in the whole country, are operated under the Mersey Tunnels Act 2004, which permits any operating surplus to be used by the transport authority to achieve public transport policies in its local transport plan. In 2017-18, the surplus from operating the tunnels was £16.7 million, so my constituents, far from asking for a subsidy, clearly subsidise the rest of the Merseytravel operation—indeed, all tunnel users do. Given that level of surplus, the decision to increase the costs for my constituents by 50% cannot be said to be critical to Merseytravel’s operations. There is no room for doubt about that. It feels much more like racketeering.
One might argue that the surplus is used to provide good public transport services across Merseyside and beyond, which of course benefits my constituents, albeit to a lesser degree than Merseyside residents. However, a closer look at rail fares suggests that when my constituents use cross-border Merseyrail services, they are again subject to indefensible price differences. For example, a day return from Eastham Rake on the Merseyrail line—the first stop in Merseyside when travelling from Cheshire—to Liverpool is £1.50 cheaper than a day return from Little Sutton. That is 25% extra for just two stops down the line. Although Capenhurst station is not in my constituency, it is used by many of my constituents and it is also just two stops down from Eastham Rake, but a day return to Liverpool from Capenhurst costs more than £3 extra.
It feels like the residents of Cheshire are seen as a soft touch—a cash cow. Sadly, I feel there is a bit of reverse snobbery here, the implication being that people who live in Cheshire are a bit better off, so they can afford to pay more. That just is not the case for the majority of people. My constituency has some pockets of wealth, but it also has some of the most deprived wards in the country. Some of the examples constituents have given me of the hardship they have suffered demonstrate that they are not people with loads of spare cash floating about, waiting to be squeezed until the pips squeak.
Loan Charge
Debate between Justin Madders and Mike Amesbury
Justin Madders (Ellesmere Port and Neston) (Lab)
I hope that I can complete my speech before rain stops play—I think it is probably some kind of symbol of how many people view Parliament as broken, but let us return to the matter at hand.
I congratulate the hon. Member for Aberdeen South (Ross Thomson) on securing the debate. Clearly this issue has caused much distress, and brutally so at times. Of course, if tax is due, it should be collected. Without the ability to raise funds from taxation, our public services will obviously grind to a halt, but my concern, and that of many other hon. Members, is about how the loan charge and the recovery of it has been handled to date. It raises many questions about how HMRC can say in all honesty that each individual case is being looked at properly before the menacing letters are sent out. Let me make it clear that if, following due process, it is determined that money is owed, it should be recovered in a fair, consistent and reasonable manner. However, what I have heard raises questions about HMRC’s capacity to deal with these issues properly.
I previously raised the issue of my constituent Mr Crook when we debated the matter in Westminster Hall back in November. I recounted the six times that he had contacted HMRC about his potential liability without any response. I explained the immense anxiety that he was feeling, because he was not getting any answers and feared bankruptcy. Since my involvement, there have been responses from HMRC. I am sure that it was entirely coincidental that they came the week after the Westminster Hall debate.
I wish that I could say that we had somehow managed to reach a happy ending, but we have had tales about spam boxes and deleted emails and about how, in that wonderful phrase, my constituent’s request will be “progressed within the normal timescales”. Yet here we are, 360 days after my constituent registered his interest with HMRC, and still no agreement has been reached. My constituent is not the only one in this position, so I repeat the question that I raised back in November: does the Department consider that it has sufficient resources to deal with this issue?
Mike Amesbury (Weaver Vale) (Lab)
I have a constituent called Jeff, who has lived by the rules and played by the rules, and who submitted tax returns year in, year out, yet he is also suffering this retrospective injustice.
Justin Madders
My hon. Friend is absolutely right. It is the retrospectivity of this that is really difficult for people to reconcile with what they consider to be a fair and transparent process.
I have had constituents raise concerns that if they manage to reach agreement with HMRC, they will be required to sign a settlement document that stops them reclaiming money from HMRC if they are later judged against in a judicial review. The retrospectivity of this sits uncomfortably with me, but the idea that the Government will not be bound by future court decisions goes very much against the rule of law that we are used to in this country.
That is the wholly unsatisfactory situation that we face, but I want to return to where we all started on this. My constituent tells me that, having submitted his tax returns each year when he was working, they have never been queried—[Interruption.]
Vauxhall Factory, Ellesmere Port
Debate between Justin Madders and Mike Amesbury(6 years, 8 months ago)
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Justin Madders
My hon. Friend is absolutely right. Initiatives such as the Automotive Council have seen the UK car industry go from strength to strength. As we know, however, every time a model comes up for renewal, it gets a little harder, the demands are greater and the workforce have to sacrifice a little more. It is a challenge we have always been equal to in the past, but the convergence of factors undoubtedly makes securing the next model our biggest challenge yet.
The latest edition of the Astra became European car of the year in 2016. It enjoyed great success, particularly in the sports tourer model, which led to 80% of the vehicles built in Ellesmere Port being exported to Europe. Despite that, in recent months, tastes have changed and there has been a dramatic slowdown in sales for that type of vehicle.
Mike Amesbury (Weaver Vale) (Lab)
Does my hon. Friend agree that our Vauxhall plants, including Ellesmere Port, are among the most productive in the PSA Group family?
Justin Madders
Yes, I would like to say that they are, but we are now being judged by a new benchmark. I will go into some detail about how things are being counted against the workforce’s excellent productivity.
The cuts in sales have led to cuts in the workforce, with 400 jobs going in October and another 250 earlier this year. In the past, a downturn has led to agreements between the unions and management about reduced hours to protect jobs, but the new owner, the PSA Group, has shown a different approach. That must act as a warning that we cannot expect any sentimentality from it, and that, as it has said consistently from the day it took over, plants will be judged on their efficiency.
History tells us that the local unions and management are well capable of meeting that challenge, but numerous factors are at play that will impede their ability to do that. It is our job—not just the job of the Opposition, but of the Government—to help them to overcome those obstacles in a highly competitive market.
Let us start with the big challenge: Brexit. Uncertainty across a sector can have a real impact on investment decisions. As we know, investment decisions in the automotive sector are traditionally made three to five years in advance, so decisions about investment in the post-Brexit world will begin to be made shortly.
In that respect, the timing could not be worse, as the current model in production in Ellesmere Port is due to be discontinued around the same time, in 2021. The chief executive of the PSA Group recently said:
“We cannot invest in a world of uncertainty.”
Some might say that is an excuse. Some might call it a distraction. I do not mind what it is called, as long as we do not ignore it.
After the Prime Minister’s Mansion House speech, the PSA Group and other manufacturers in the sector made similar points about the lack of the clarity, so I asked her to provide certainty by confirming that the trading arrangements in the automotive sector will be no less favourable than they are now. I am sorry to say that her answer did not give any clarity and there was certainly no unequivocal guarantee.
Oral Answers to Questions
Debate between Justin Madders and Mike Amesbury(6 years, 9 months ago)
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Mike Amesbury (Weaver Vale) (Lab)
Justin Madders (Ellesmere Port and Neston) (Lab)