Supporting High Streets

Lizzi Collinge Excerpts

Tuesday 4th November 2025 Commons Chamber

[Kevin Bonavia]

I thank the right hon. Gentleman for that intervention. The point is that we, as politicians, have a duty to explain facts and base our arguments on evidence, which was not done in this case. I put it to all politicians and would-be politicians to base their arguments on facts.

This motion is a Trojan horse. It dresses up deregulation as a gift to our constituents while gutting the very foundations of our high streets—fairness and community power. If we accept the premise of this Tory motion, we are no better than a modern-day Troy.

Labour is rebuilding what the Conservatives hollowed out of our communities: safety, fairness, opportunity and, dare I say it, pride. We are putting power back in the hands of local people, bobbies back on the beat and dignity back in the workplace. Our high streets do not need hollow gestures; they need real change. Only this Labour Government are delivering it.

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

What my hon. Friend is saying really resonates with me. Does he agree that the fact that pride in place is a 10-year fund allows us to be really strategic about the regeneration of our high streets? Instead of them receiving bits and bats of money for six months with really tight frameworks, local people will be empowered by the fund to regenerate their own area.

[Kevin Bonavia]

My hon. Friend is spot on. Pride of place is about actually getting our local communities involved. They know their high streets best, and we should work with them to use that money for long-term strategic decisions.

I oppose this motion. It is illiterate and has no answers for our future, it does not add up economically, and it ignores the good work that this Government are already doing for our high streets.

--- Later in debate ---

[Tom Tugendhat]

This explains why I was never welcome in the Navy.

You will know, Madam Deputy Speaker, that there are many other high streets, such as those in Romsey and Southampton, that are doing well despite this Government’s policies. However, we are seeing a series of changes that are costing us all, and I think it is worth focusing on a few of them.

The first affects retail, hospitality and leisure properties, which are seeing their rate relief reduced to 40%, and only up to a cash limit of £110,000 per business. Why is that happening? Well, this is basically just another tax grab. It is just another attempt to ensure that those who are working hard to put food on their tables—and, by the way, to put food on the tables of everybody else in this country by generating that employment—

[Lizzi Collinge]

Will the right hon. Gentleman give way?

[Tom Tugendhat]

I will just finish the point, if I may.

While they are working hard to do that, this Government are trying to squeeze them. I understand why they are doing that, because they have got themselves into a level of debt that is genuinely extraordinary. They are piling it on even more quickly than anybody—

[Lizzi Collinge]

Will the right hon. Gentleman give way?

[Tom Tugendhat]

If I may, I will just finish my point.

They are piling on the debt even more quickly than any other Administration for a long time, with the exception of during covid, when, as Members will agree, Labour wanted to spend even more. That squeeze is hurting businesses more and more.

I know of independent retailers in Tonbridge and Edenbridge that have seen 300% increases in business rates as a result. It is simply not sustainable. We are talking about taking money off businesses before they are able to pay those who are working there 24/7—those who own the business. That charge, that squeeze and that pain are being put on individuals who are getting up early and trying their damnedest to keep their business going. It is completely absurd.

The £110,000 valuation is artificial, because business rates are set by the Valuation Office Agency, and local businesses have no input. There is no way for decisions to be challenged and no real accountability. We are seeing a Government agency setting a valuation that allows taxation to rise with no possibility of appeal. This is simply no way to run an economy. We are seeing ever-increasing centralisation.

The correct thing to do would be to allow businesses to keep some of the money that they are making in order to reinvest in themselves and in staff, and to actually allow councils to have some say. If we believe in democracy and in individuals having the ability to shape their future, surely we must extend them the right to control how towns, villages and communities across our country tax themselves. Sadly, that is not what we are seeing. We are seeing what we used to describe as a nation of shopkeepers—that nation that defeated tyranny in Europe not once but many times—becoming a nation of bookkeepers, all taxed by the state.

[Lizzi Collinge]

I am glad that the right hon. Gentleman got to his point, kind of. He mentioned hospitality workers. I was a hospitality worker for many years, so I know how hard work it is. I also know about the people who will benefit on the shop floor from the Government’s Employment Rights Bill. Could the right hon. Gentleman say more about how regulation is supposedly harming workers, because as a former hospitality worker I see the benefits of the Employment Rights Bill for all my former colleagues.

[Tom Tugendhat]

I would be delighted to, because direct comparison can be drawn with other countries that have extended these same rules. They protect the workers who are in the job—that is absolutely true—but they dissuade anybody else from joining and starting as a new hire. Then those countries see exactly what we are seeing in the UK today: growing youth unemployment. When there is a burden on a business that makes it harder to change its employment structure, it simply delays employment. That is all that happens.

[Lizzi Collinge]

I thank the right hon. Member for his generosity in giving way, because I am finding this debate very interesting. In the rural areas of my constituency, businesses are struggling to hire workers not because of the cost but because local workers cannot afford to live in those areas because there is no affordable housing. Does the right hon. Member agree that it is very welcome that the Government are focusing on the practicalities that ordinary workers need in order to be employed, which will help rural businesses like those in my area that are struggling to recruit?

[Tom Tugendhat]

Forgive me, but I do not agree. I can see that transport connections and the £2 bus link—which has now gone up by 50% under this Government—was crucial to helping small businesses survive in rural areas, but businesses that were taking in younger people as new starters are not hiring them because of cost. The cost of any change that may be needed in the business, which may evolve or shape itself differently, means that effectively it is not worth the risk. We see this again and again.

The tragedy is that I am not telling this House anything new. This speech could have been given anytime in the past 50 years. The reality is that we have tried all these experiments, and we know how they work: they end up with rising unemployment, rising debt burdens and fewer public services. We know where this goes.