Retail Sector

Liz Twist Excerpts

Wednesday 6th June 2018 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

I am really pleased to have the opportunity to speak in this debate on the retail sector because it is hugely important to my constituency, where 23%—nearly a quarter—of jobs are in retail. That is 8,000 jobs and the highest percentage of retail jobs in any constituency across Great Britain. It is vital for my constituency and many others that we have a thriving retail sector, from the small high street traders such as Les Thompson, who sells loose fresh fruit and vegetables—not wrapped in plastic, I note—on the main road in my hometown of Ryton, to major retail centres such as the intu Metrocentre, which is still the largest retail shopping centre and houses national chains as well as smaller retailers.

Blaydon is made up of many small towns such as Birtley in the east, through to Whickham, Winlaton, Dunston Hill, Crawcrook, Chopwell, Rowlands Gill, Ryton and of course the town of Blaydon itself, where the shopping centre has recently been reinvigorated. All those centres provide valuable jobs and facilities and help to make our local communities vibrant places where people want to live and can access the essentials, and sometimes the extras, of life. The challenges that they face vary. Les and many other small shopkeepers like him face the problem of our small towns emptying during the day, as people commute to work and shop elsewhere. They need support to ensure that our small towns retain a vibrant high street and local facilities, especially since many of our banks have closed local branches and there is a reduced footfall. The large retail centres like the Metrocentre, where many of the retail sector jobs are located, face different challenges.

I want to support our retailers right across Blaydon. I am doing what I can locally, working with them and Gateshead Council, but we need a bigger plan and a strategy for supporting the retail sector across the UK. Retail is our largest industrial sector, but the Government’s industrial strategy hardly touches on how we can develop and support that sector in what is currently a very challenging environment for most of them.

Let me turn to those challenges. Many retailers tell me that the business rates system, which has been mentioned, is a massive challenge. All but the smallest, like Les, who are below the small business threshold, are facing big increases in business rates. The revised valuations for many mean a big increase at the same time as they face challenges from online retailers, which do not have the same shop fronts and so face much lower business rates. Of course, the huge growth in internet shopping is one of the other challenges, with many of us even looking at goods in store but then shopping online to find the best price. I am as guilty of that as anyone else, but we need to think about the implications.

Like many other industrial sectors, the uncertainty and fears about Brexit and the impact on trading and bringing in overseas retailers to our towns and shopping centres are having a huge impact on the retail sector. My hon. Friend the Member for Stretford and Urmston (Kate Green) referred to evidence from research conducted on behalf of intu on that very issue.

We know that there have already been many job losses in the retail sector. In April, the Press Association revealed that 21,413 retail staff had already been made redundant or had their role threatened, the bulk of them at established high street chains, in just the first three months of 2018. Many of those retailers are present in my constituency. Last month I visited staff at Toys R Us at the Metro retail park. I met some staff who had been working there for more than 20 years. They felt that they had been left adrift without information about what would happen to them and their entitlements and what they should do as their shop and the business closed down. Their shop was performing well, but as in so many cases, big finance issues and management decisions far away—literally—from the shop floor led to them losing their jobs. I am pleased to say that the local retail community pulled together, and many of them were able to find new jobs, but it did not do away with that sense of uncertainty and neglect.

In the House, we often rightly highlight high-profile manufacturing job losses, but it is just as important for us to note the loss of jobs in the retail sector and to remember that these too are people and our constituents who need our support and help. We need to pay our retail sector much more attention than it currently receives, as it is a vital sector for our economy.

[Lee Rowley (North East Derbyshire) (Con)]

I appreciate and understand the point that the hon. Lady is making, but does she also acknowledge that there has been significant job growth in the last few years, particularly in areas such as logistics, handling and shipping, which should be celebrated?

[Liz Twist]

I recognise what the hon. Gentleman says. There are jobs in different areas, but that does not take away from the fact that we need these jobs as well as all those others in the sector.

As I said, the Government’s industrial strategy barely mentions the retail sector, with only three mentions in 256 pages of our largest industrial sector, which provides 15% of our jobs nationally and 23% of jobs in my constituency. The Government need to pay much more attention to this issue. They need to bring forward a sector deal for retail to ensure that it is given the emphasis it needs, and they must look again at the business rates system.

In raising these issues, I do not excuse the parts of the retail sector that have failed to manage their own affairs and businesses well. It is vital that the sector looks to act responsibly and manage its finances in a way that allows businesses to meet the challenges and to avoid more situations such as the recent collapse of BHS, Toys R Us and others, where financial issues seem more important than selling goods well. The sector has a responsibility to its staff and to our constituents who work hard in these stores but pay the price in job losses.

I cannot end this speech without mentioning the staff who work in our shops across the retail sector. Many of the 8,000 retail workers in my constituency face low pay and zero or uncertain hours, and many of them are women. If we want to strengthen productivity in the retail sector, we must address the question of low pay. Frankly, it is no good Ministers patting themselves on the back for jobs created when those jobs still leave people needing support from benefits, especially given all the problems with the universal credit roll-out in my constituency. That is a real problem. Any look at this sector must include a plan to put this situation right and to recognise the work that these people do and their need to live with decent wages and in decent conditions.

Since we are all making disclosures about our involvement in retail, I will put mine forward. My mum worked much of her working life in local shops, and my first involvement in representing people was in referring her and her colleagues’ case to the Wages Council, as it was then, because they were being underpaid. I am glad to say that we reached a satisfactory conclusion. That is my history in retail. Retail deserves our support and needs it now, so I urge the Government to take action immediately to strengthen the retail sector.