High Street Retailers

Melanie Ward Excerpts

Wednesday 5th February 2025 Westminster Hall

[Mr Campbell]

The short answer to that is yes. I think some things are being done by devolved Government, but I was alluding to the rating of commercial premises in the run-up to Christmas. We need to reduce car parking charges and rates at that time because many businesses exist throughout the year only because of the turnover that they get between October and Christmas eve.

Richard Walker, the managing director of Iceland—who I understand is a supporter of the Labour Government, so I hope this is not viewed as a criticism—said just this week:

“The Treasury is right to look at levelling the playing field on tax, but it has parked its tractor in the wrong place going after hard-working British farmers. Let’s stop messing around and make online sales tax reform the priority. High streets and farmers are the bedrock of this great country, we need to get behind them.”

I could not agree more. We need a fundamental reassessment of where our high streets will be not in 15 years’ time but in 15 months’ time.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

I thank the hon. Gentleman for giving way; he is being very generous with his time. It is already clear from this debate that decline in our high streets is a common problem across the UK, including in my constituency. We probably all agree that it will take innovation, creativity and, crucially, investment to redevelop our high streets. Will the hon. Gentleman join me in paying tribute to the work of local organisations such as Love Oor Lang Toun and the Adam Smith Global Foundation in my constituency, which are doing so much to develop the future of Kirkcaldy?

[Mr Campbell]

I do not know those organisations, but I presume, on the basis of the hon. Lady’s endorsement, that they are very worth while and worth defending.

This week—this is a very topical issue—the Government in the Irish Republic have indicated that they will look at VAT terms. Of course, Northern Ireland is in very close proximity to the Republic. Here in the UK, VAT is charged at 20%, and in the Irish Republic it is 13%. That puts our high street retailers, particularly those in the hospitality sector, at a bit of a disadvantage. The Government in the Republic have indicated that they will reduce their rate yet again from 13% down to 9%, which means that the disadvantage gap for Northern Ireland retailers and consumers will widen considerably.

The Minister will obviously not be able to respond immediately. If he does, I would be very surprised. I would welcome his response if he were able to say, “I’m going to go to the Treasury and get special dispensation for Northern Ireland hospitality on the high street, with a 5% introductory rate for the next four years of this Parliament”—I think that would be an excellent idea that would get support across the divide in Northern Ireland. But I hope he will have some discussion with his colleagues to see what can be done. We are at an acute disadvantage, and it is most heavily felt. In the past couple of days, hotel managers and hospitality retailers have been on local radio saying, “Our opportunity for business is diminishing even more as a result of this decision to reduce VAT in the adjoining businesses, just a few miles across the border, down from 13% to 9%. We are struggling with charging a 20% rate.” So a 5% rate would be very welcome.

In conclusion—