The High Street

Justin Tomlinson Excerpts

Tuesday 21st May 2013 Westminster Hall

[Simon Danczuk]

My hon. Friend makes a very good point. It is one that the Leader of the Opposition, the leader of the Labour party, addressed just before the county council elections in terms of planning abilities for local authorities so that they can shape their town centres and high streets more effectively.

[Justin Tomlinson (North Swindon) (Con)]

Surely customers currently dictate that, because market forces will determine which shops are viable.

[Simon Danczuk]

My response to the hon. Gentleman’s point is that the high street is too important to communities simply to be left to the free market. There is a requirement for intervention both nationally and locally.

It has been widely reported that many of the first and second-wave Portas pilots have spent hardly any money and some have spent nothing at all. Did Ministers not award the pilots to towns that already had ready-to-go plans to transform their high streets? At a time when urgent action was needed, everyone anticipated that the pilots would hit the ground running. Instead, most of them have withdrawn into a shell and are in a state of paralysis. It now looks as though some of the plans had been drawn up on the back of an envelope and were nowhere near viable. Can the Minister explain how long those pilots are supposed to last? Will they carry on struggling to put plans together indefinitely?

--- Later in debate ---

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Rochdale (Simon Danczuk) on raising this important subject. It is one about which I am passionate, because my parents ran shops, so after school I often played behind the shop counter. We had wool shops—so I wore ill-fitting jumpers well past the time when it was socially acceptable—and a series of hairdresser’s shops, which were ultimately wasted on me. I am also the vice-chair of the all-party groups on town centres and on retail. I am unashamedly a big fan of Mary Portas and her work. In my constituency, I have organised retail forums and I regularly attend the inSwindon business improvement district company board meetings, working with retailers.

Town centre regeneration on the high street is a major issue in Swindon. We were on the cusp of major regeneration when the 2008 economy crashed, and the developers, as they did across the country, went out of business. However, thankfully, the diggers are now in place. We have a brand new cinema, restaurants and all sorts of regeneration, and it is a huge relief to the town—a town with 300,000 people within 20 minutes of its town centre and 3 million within an hour. It is no coincidence that a £65 million rebuild has just been confirmed for our Oasis leisure centre, because it is so easy to get to Swindon.

We have a McArthurGlen outlet village, which is a model of the retail world. It has been hugely successful and continues to expand at an incredible rate. That is the basis of some of the points I want to make: what works so well for the McArthurGlen outlet village is that it is one centre and one point of contact, so a retailer needs to talk to only one person—not the local authority, or so-and-so the landlord. There is one point of contact, with one set of marketing, employing all the staff and ensuring that customer service is good. If any of the retailers fail to conform, they are out. That improves the customer experience. We have the potential, with the proposals for super-BIDs, to give an organisation such as a BID all the powers in a town centre, treating it a bit like one big shopping centre, making it easier for retailers, and consolidating marketing and promotion.

Several hon. Members have rightly highlighted the importance of parking. Probably the biggest disaster under the previous Government was the obsession with green travel plans, under which councils built on car parks, hiked up parking charges and forced shoppers to use buses. Buses have their place but that decimated town centres. Thankfully my local authority recognised that, and after a 22% fall in footfall in five years, car parking charges were cut. There was praise for that in the Mary Portas review. The charge is now £2 for 4 hours, and, unsurprisingly, there has been an 11% increase in footfall. Crucially, the dwell time has also increased. Over time, reversing that policy has meant collecting more income. Flexibility is vital. From a planning perspective, town centres need to change, so local authorities must accept—this will be music to the Minister’s ears—that they need to be absolutely flexible. In Swindon, whenever developers came along and said, “Look, we want to flip the town centre on a 5° axis,” the local authority said, “No problem at all.” That is why we will get major town centre regeneration.

Several hon. Members have highlighted the problem with business rates. I do not want to repeat arguments, but I know that the British Retail Consortium has done fantastic research on that, and it is true that something is terribly wrong when business rates are higher than rent. Landlords are being flexible and lowering costs. In my constituency I think the cost has gone from £180 to £140 per square foot; but business rates are rigid. I know that in theory local authorities can be flexible, but they do not necessarily have the funding for that. I propose that either we need a system linked to the rent being paid, so that if a landlord is flexible, the business rates would be flexible, or—and this will upset my hon. Friend the Member for Brigg and Goole (Andrew Percy)—we need to deal with Amazon. It is destroying the high street that is its shop window. There should be some form of internet consumer tax, with the revenue ring-fenced to subsidise the traditional high street business rate case. It will not be popular with Amazon. I met its chief executive and he did not share my view, but that suggests it is probably the right thing to do.

We need the next generation of independent consumers, so that we do not have identikit town centres. I have been doing a huge amount of work to encourage opportunity for young entrepreneurs. Some local authorities have not been quick enough about spending the money that the Government have provided for the high street. There should be opportunities, to give young entrepreneurs a go. I have set up several schemes, which have proved very successful. Mary Portas made a relevant point, which was that retailers got lazy and need to sort their game out. Customer service is crucial. That is why John Lewis has been doing so well. In previous debates I have highlighted businesses in my constituency, such as Bloomfields and the Forum. They have set themselves apart and bucked the trend, and are expanding.

I urge the Minister to remain flexible, promote best practice and work with the all-party groups on town centres and on retail and the British Retail Consortium. Let us be proud that we are a nation of shopkeepers.