Marks & Spencer

Lisa Cameron Excerpts

Thursday 24th May 2018 Commons Chamber

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the implications of the decision of Marks & Spencer to close 14 branches across the United Kingdom.

[The Minister for Energy and Clean Growth (Claire Perry)]

I welcome the chance to address the House on this matter. I pay tribute to the hon. Lady for her chairmanship of the all-party group on textile and fashion, and I commiserate with her on the fact that one of the stores that will be closing is in her constituency.

Who among us is not touched by the hand of M&S? I counted up this morning, and I am in fact wearing three items of M&S clothing—I will not declare what they are. Indeed, my breakfast this morning entirely comprised items bought at the Gatwick M&S after a late-night flight. By the way, I defy anyone in the House not to say that they have at least one item of clothing in their wardrobe from that fine retailer. This is, however, a worrying time.

As the hon. Lady said, Marks & Spencer made an announcement on Tuesday about 14 of its UK stores. This is part of a well-advertised plan to reshape its estates and, essentially, to reshape its stores to compete, given the very big challenges of many online retailers in the country. Five of the stores will close this year or early next year, and all colleagues at those locations will be offered redeployment to other stores. Nine other stores have been proposed for closure, and Marks & Spencer has entered a period of consultation on the redeployment of staff in those stores. All of us will of course recognise that this is a worrying time for the over 600 staff members currently going through that process. I know that there will be concern among Members on both sides of the House about this issue. The Government—the Department for Work and Pensions and Jobcentre Plus—will of course stand by, should support be required, to work with the company.

There have been a number of announcements in the retail sector recently—negative and also positive in terms of job creation. We should all recognise the incredible contribution of this sector to the UK economy—it was almost £95 billion in 2016—and this Government’s ongoing support for the sector. We have announced measures worth more than £2 billion over the next five years to cut business rates, with a positive change to the indexation of business rates.

Only this March, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton (Andrew Griffiths), set up the Retail Sector Council, which is determined to drive up this sector’s productivity and ensure that it is fit to face future challenges. Sitting on the sector council are retailers—large and small; online and offline; in town and out of town—and the unions are of course very much a part of that process. The object of the council is for the Government and industry to work together to drive up productivity, and also to secure our fantastic retail sector’s future health and direction. We are working together on the requirements to make sure that productivity and economic growth in this sector can continue for many years to come.

[Mr Speaker]

I must just say—I probably do not have to, but I will do so anyway—that I share the Minister’s enthusiasm for Marks & Spencer, which is a most admirable institution. What she said about almost every Member having an item or more from Marks is incontrovertible.

[Dr Cameron]

I thank the Minister for her response.

Over the past few years, there has been a cascade of commercial announcements from well-known companies saying that iconic retail high street stores need to close if they are to cut costs: British Home Stores, Mothercare, Toys R Us, the Royal Bank of Scotland and now Marks & Spencer. As chair of the all-party group on textile and fashion, I know that the market is changing, but retail companies need to strike a balance between remaining competitive and understanding the wider implications of closing landmark stores. Marks & Spencer’s proposed store closures—14 imminently, and more than 100 in the next few years—will not only result in thousands of potential job losses, but could devastate our local town centres. It is well known that when anchor stores close, the surrounding subsidiary stores feel the impact of reduced footfall, meaning that many close as well.

Are our high streets to become ghost towns? My constituency has already felt the effects of BHS closures, and we expect to lose 67 jobs if the Marks & Spencer closes. Has the Department made any assessment of the impact of the proposed closures on local economies in Scotland and across the UK? What is the impact on disabled people who find it difficult to travel to outskirt retail parks to shop? Since the report by Mary Portas on saving the high street that the Government commissioned in 2011, how many of its recommendations have been implemented? Finally, will the Minister agree to meet jointly with the all-party group, MPs affected and representatives from Marks & Spencer to facilitate further consultation on these proposals, and to consider desperately needed plans to save our high streets?

[Claire Perry]

The hon. Lady raises some valid points—there is an M&S food shop in my Devizes constituency—and is right that attractive stores bring in footfall from which subsidiary stores benefit. Of course, the Government have taken forward many plans to support the high street, which is part of the reason for the rate changes. Local councils, which might be responsible for setting parking policy, rely on parking receipts to fund other transport services, but if those rates are remitted straight back to Westminster, their desire to create a more attractive parking and retail culture might be diminished, which is why it is important that our rate localisation policy proceeds. I hope that the Scottish National party will support it.

The hon. Lady asked whether an assessment had been made. There are ongoing assessments. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton, who sends his apologies for not being present, would be the person to take that meeting. I would not like to speak on behalf of his diary, but I shall make sure that the hon. Lady’s representations are put to him. He is working tirelessly on this issue across Government even while our retail sector continues to thrive and grow. As she will know from her work on the all-party group, there have been several important announcements in the last few weeks: Amazon has announced the creation of 400 jobs; Lidl has announced the creation of 40 new stores; and ASOS, an amazing online store employing thousands of people in call centre and support capacities, has seen its sales grow by 30% this year—it is becoming a truly global brand.

There is definitely a rotation in the way in which we all shop. I am sure that we all now buy many more of our unmentionable items online—sometimes we even buy them in stores—but the hon. Lady makes some valid points. We should all think hard about what we can do as individuals, particularly to support our local authorities, which are often responsible for planning, decision making, rates setting and parking decisions, all of which can have a material impact on the high street experience.

I will take away the hon. Lady’s request and make sure that my hon. Friend the Under-Secretary responds to her. I assure her that the reason for setting up the Retail Sector Council—it includes all sorts of retailers, from farm shops to large online companies, and of course the vital Union of Shop, Distributive and Allied Workers, which is providing so much support to workers in the industry—is to make sure that these conversations can be had on a cross-Government basis, and that policy making can be joined-up.