High Street Retailers

Lord Watts Excerpts

Wednesday 25th April 2018 Lords Chamber

[Lord Henley]

My Lords, I was not aware that it was my noble friend’s 12th Question, but it appears that the House was. I appreciate that the rates review affects quite a number of businesses, but our estimation is that some 70% of businesses will see either no change or a reduction. Obviously, it affects different areas differently; in London it has affected businesses more severely, whereas in the north-west, where I come from, there have been some considerable gainers.

As for the unfair competition my noble friend talked about, particularly in relation to the wider question of taxing the digital economy, as he is aware, my right honourable friend the Chancellor is looking at that issue to make sure that things are fair between different types of retailer, whether they are digital or store-based.

On his final point, about parking, I note what he says and hope that other local authorities note what he says. From my personal experience, I have noticed that some local authorities reduce their parking charges, which has a beneficial effect on retail in that area. I have similarly noticed that in other areas the effect of parking charges can be to the detriment of the high street.

[Lord Watts (Lab)]

My Lords, I know that the Government like reviews, but may I suggest that this problem has been with us for some time now and it is action we want, not reviews? Secondly, would the Government consider helping local authorities to downsize some of their town centres, because empty shops just make the situation even worse?

[Lord Henley]

I agree that empty shops make the situation worse. It is up to local authorities to look at what can be done, but we are in a changing environment. Some 10 years ago, 4.5% of retail was online; it is now 17%. That is what the consumer wants and, in the end, the consumer has to be king in a sector such as retail. It is up to the sector itself—that is why the Government want to talk to the sector—to look at the changing nature of what is happening and adapt to that change.