Closure of High Street Services: Rural Areas

Manuela Perteghella Excerpts

Wednesday 5th February 2025 Westminster Hall

[Jamie Stone]

I thank the hon. Gentleman.

Although the challenges are significant, they are not insurmountable. We must be positive about this. To address the problem, we must adopt a multifaceted approach, which hon. Members are hinting at, involving Government intervention, community action and ownership, and private sector collaboration. We need innovation; we cannot just say, “Oh well. We’ll carry on doing things in the way they have been done in the past.” We cannot; we have to do things differently in the future.

The Government must support local councils and prioritise investment in high streets through grants or subsidies for small businesses. An overhaul of the business rate system or rent caps could make it more feasible for entrepreneurs to operate in rural areas. For example, establishing a commercial landowner levy and taxing only the land value of commercial sites, not productive investment, would remove physical capital from taxation. That would, in turn, boost business investment, increase productivity and—of attraction to us all—boost wages.

By championing community action, essential services such as post offices or supermarkets could be preserved through encouraging community ownership models. By pooling resources and sharing risks, residents can feel more supported and in control of what is happening in their local area—something they do not feel at the moment.

[Manuela Perteghella (Stratford-on-Avon) (LD)]

On that point, does my hon. and gallant Friend agree that it is disappointing that the Government closed the community ownership fund?

[Jamie Stone]

That is a wise point, and in calling me “gallant”, my hon. Friend refers to my service in the Territorial Army, but that is a different matter from the one before us today.

At the heart of the debate, surely, has been the need for private sector businesses to take responsibility for the public duty that historically these corporations held. There could be an awful lot more done on that front. Let us see what we can encourage them to do. Simply upping and leaving rural communities because they place more value on footfall found in urban centres is not acceptable. We have to say that the smaller communities are worth it, and encourage these businesses to be there just as much as they might head off to Glasgow, Edinburgh or Aberdeen in my own case, which is not satisfactory.

To conclude, if the private sector collaborated with the Government, and looked at ways to support the high street, real and proper progress could be made in keeping physical stores, bank branches and vital town centre businesses thriving and open in our rural communities. That is a great prize that would mean an enormous amount to our electorates in whatever part of the United Kingdom.

--- Later in debate ---

[Manuela Perteghella (Stratford-on-Avon) (LD)]

It is a pleasure to serve under your chairship, Ms Furniss. I thank my hon. and gallant Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate.

Across rural areas, including in my constituency of Stratford-on-Avon, we are seeing too many high streets lined with empty shops, despite strong demand from small businesses eager to establish themselves. We have sadly seen announcements of Lloyds Bank closing branches in Alcester and Shipston-on-Stour We have been promised a banking hub for Alcester, and now we need to ensure that banking services are kept in Shipston.

Our small businesses are the backbones of the rural economy, and they are struggling. That is not just an issue of declining footfall, but of landlords who are holding out for unrealistic rents, and the current business rates regime.

[Carla Lockhart (Upper Bann) (DUP)]

The hon. Member will know that many shops have been resilient to increased costs over recent years, but does she agree that the hike in national insurance contributions and increase in wage in the recent Budget have created a cliff edge for businesses? We will see the hospitality sector fall over, and there needs to be a bespoke support package in place for those businesses.

[Manuela Perteghella]

I completely agree. Many hospitality businesses have written to me about the damage from the hike in national insurance contributions.

Prime retail spaces have been left unused while our rural economy struggles. The old BHS building in Stratford-upon-Avon, which is located at one of the town’s principal gateways, has been left empty and derelict for almost 10 years. Local authorities must be given powers to step in and act. Strengthening compulsory purchase powers is a step in the right direction, allowing communities to take back control of neglected properties and revitalise their high streets. High street rental auctions will make a difference on empty properties up and down the country, and I hope to see them rolled out in my constituency soon. With the right support, our rural towns and villages can become thriving hubs of local enterprise, boosting the economy, social inclusion and community spirit.

[Cameron Thomas]

I am very fond of my hon. Friend’s constituency. I recall a visit to Stratford-upon-Avon for a stag do, when my friends and I embarked on one of its many ghost tours—I have to say that my Geiger meter was unmoved. There is so much about her constituency and mine that adds to the character of the UK, and I am sure she will agree that it is worth investing in.

[Manuela Perteghella]

I thank my hon. and gallant Friend for promoting our fantastic town walks in Stratford-upon-Avon and I fully agree with him. The Government must ensure that local authorities and community groups have the tools they need to make this change happen.