Retail Sector

Debate between Martin Vickers and Lord Mackinlay of Richborough

Wednesday 6th June 2018 Commons Chamber

[Craig Mackinlay]

I thank the hon. Lady. Today’s debate is about the retail sector and wages. I was going to say that 41.4% over eight years is 5% a year, which is greater than any measure of inflation, no matter which one people care to mention, so there has been a real cash increase to all those working. We have the lowest unemployment since the 1970s and more people in work today than we have ever had in the history of this nation. I am afraid that we must stop listening to the misinformation from the Opposition. Their statements are simply not true. Real wages are rising.

In the retail sector, as we have heard, we have had business rates relief and changes from RPI to CPI, which will mean a reduction of over £2 billion to those who have retail stores. During this Parliament over 600,000 businesses will pay no business rates whatsoever, and in the first half of 2017, more retail units were opened than closed. There are 300,000 more in employment in the retail sector than in 2016.

That does not mean that everything is rosy on the high street, but when we consider what the Government did in 2008, when they took this country into probably the worst recession that it has ever known, in the third quarter of 2008 alone, there was a 4.2% decrease compared with the year before. That happened in just one quarter under Labour; that is what they condemned this country to.

The real debate here is the changing face of retail, and the internet is the reason for that. With spending now at £1.2 billion per week, 17% of all spending is now on internet purchases, and that is a 12% year-on-year increase. That is not unique to Britain, but is happening across the entire world.

That is the reality of life, and we are all guilty of fuelling it. If I want a shirt like the one I am wearing but in blue with a 34 inch arm and a 15½ inch collar and I want it delivered tomorrow, ordering that will take me three minutes, and it will be delivered. We are all purchasing in that way now; unfortunately, we are all fuelling the changes to the high street.

We have had debates about banking in the House, and I have taken part. Our banking landscape is changing, sadly, because we are all being encouraged on to mobile apps and mobile banking. Also, when did anyone in this House last book their flights in a high street travel agent?

[Martin Vickers (Cleethorpes) (Con)]

I used a travel agent in the centre of Grimsby in April.

[Craig Mackinlay]

Well done to my hon. Friend; I am afraid I am not as reliable in buying my travel tickets on the high street as he obviously is.

When did Members last browse property prices on the internet? We do not do that so much in a high street shop any longer; it is likely to be on the internet now. The reality is that in current retail there is a far higher spend per staff member on new internet retailing such as Amazon than on the high street. It is also likely that there are higher costs on high street stores per square foot than on warehouse-style retailing.

Things are changing. We have a 20th-century tax system that looks at bricks and mortar and taxing things. Part of the formula for addressing this issue must be that we tax more appropriately the abstract activities of internet retailers and warehousing. When I go on the high street in Ramsgate the retailers say they do not feel that the big online retailers are paying their fair share.