The Future of the High Street

Naz Shah Excerpts

Thursday 10th December 2020 Commons Chamber

[Naz Shah (Bradford West) (Lab)]

As we have heard, this debate is not just about the economics of business. Our high streets are about more than just pounds and pence and GDP. As we have heard from many hon. Members across the House, including my hon. Friends the Members for Stockport (Navendu Mishra), for Coventry North West (Taiwo Owatemi), for Coventry South (Zarah Sultana) and for York Central (Rachael Maskell), this debate is about the importance of the idea of place—identity—to communities up and down this country. Our high streets are not just the locations that employ our workers, build our economy and provide goods and services; they are embedded in the very culture and heritage of this nation. As my hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) eloquently pointed out, high streets are not just about transactional value but social value. They are part and parcel of all our lives. Whether we live in South Shields or Bradford West, growing up and visiting the high street is part of our way of life.

Of course, much of this debate has been about the economic health of our high street, as hon. Members across the Chamber have discussed. The coronavirus crisis has had a unique impact on many aspects of life globally by speeding things up that were happening already, and the high street is no different. Covid’s chilling effect on physical retail has dealt a further blow to a sector that was already under threat, and, in turn, has accelerated decline on high streets that were already struggling because of the neglect by consecutive Conservative Governments. As Members have said, since 2012, footfall on the high street has been down by 10%, and one in 10 high street shops were standing empty even before the pandemic. My hon. Friend the Member for Croydon North (Steve Reed) pointed out that since 2010 the Government have presided over the closure of 773 libraries, 750 youth centres, 1,300 children’s centres, and 835 public toilets.

[Sara Britcliffe (Hyndburn) (Con)]

Will the hon. Lady give way?

[Naz Shah]

Due to time limits I will not give way—I will make progress.

Some 5,500 pubs and bars have closed in the past 10 years, since this Government have been in office. Because of the Government’s neglect, our high streets were already standing on the edge of a cliff, so why are they surprised that a crisis like the covid-19 pandemic pushed them over? As we have seen in the past few weeks, high street stalwarts like Debenhams and brands like Topshop, Burton and Dorothy Perkins have gone into administration or liquidation, putting more than 14,000 jobs at risk. Since March, up to 20,000 shops have closed and 200,000 people have been put out of work, but despite all this, the Government are refusing the levels of support they gave in March. As has been highlighted, 99% of beauty salons, 95% of cafes, 92% of gyms and 77% of pubs and restaurants are receiving less than they were in March.

My hon. Friend the Member for Croydon North pointed to the challenges that small businesses are facing from the threat posed by online retail and the Government’s total failure to level the playing field through addressing business rates. As my hon. Friend the Member for Coventry South pointed out repeatedly, this is about levelling the playing field. The Government talk a lot about levelling up, so perhaps the Minister will reflect on the fact that the business rates burden is hitting the north and the midlands hardest, as a report by WPI Strategy, written by former Treasury economists, found in October. The report told us that 77% of constituencies in the top 10% with the highest business rates burden are in the north and the midlands, compared with just 18% in London and the south. That is because the tax rate does not mirror economic performance, so for areas facing economic challenges, the burden is much higher.

Back in March, the Government promised to compensate councils fully for getting through the pandemic. They broke that promise, and the Institute for Fiscal Studies now estimates that the covid funding gap is £1.1 billion this year and £4.4 billion next year. That means more job losses, more cuts, and in turn less spending and less support for businesses. We know that there is light at the end of the tunnel with the arrival of the first new vaccine, but the reality is that businesses face a long and bleak winter unless the Government provide the support that they need now. That could mean that there are fewer high streets for people to visit, vaccine or no.

It is important that the Government learn the lessons from the past. Rather than neglect the sectors that need support, they must act now. The lessons from 2010 will be forgotten if the Government’s austerity drive chokes off business recovery. Since 2010, we have seen not only a physical decimation of the high street but significantly lower levels of growth. The Government are in danger of repeating the mistakes of the past. Just this week, Laurence Boone, the chief economist at the OECD, said:

“We made the mistake in 2010; we need to learn from the mistake. We need to keep up the support for the people and those in and out of jobs. We must make sure income is supported…When you’re in a battle and you know the cavalry is coming, you don’t stop fighting. In fact you keep fighting until the cavalry is around. In fact you keep fighting while the cavalry is there.”

The country is fighting. Retailers on our high streets are fighting. The pubs on the corner, the restaurants in the highest tiers that have closed, the small, family-run businesses that have been part and parcel of our local towns and are struggling to keep their doors open—they are all fighting. They are all waiting for the cavalry to arrive, but the Government are leaving them to fight alone on the battlefield.