High Streets

Neil O'Brien Excerpts

Tuesday 19th October 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a huge pleasure to serve under your chairmanship, Ms Nokes. I congratulate the hon. Member for Lewisham East (Janet Daby) on securing this debate on the future of our high streets. I thank her for speaking so passionately on behalf of our constituents. I strongly agree with her comments about the importance of our high streets in tackling loneliness and connecting communities.

Without a doubt, the covid pandemic has wrought some heavy blows on both our high streets and our wider economy. As the hon. Member for Midlothian (Owen Thompson) said, changes that were already taking place before the pandemic have been magnified. We have seen profound changes to the way we shop, live and work right across the UK. None the less, we know that our high streets are resilient and adaptable, and we are committed to helping them not just recover but thrive and flourish in the weeks and months ahead.

That is why we have committed unprecedented levels of support and funding for high-street businesses throughout the pandemic—£352 billion in total, to help those negatively impacted by covid-19. That package includes £60 billion of business rates relief, business grants, the coronavirus loan schemes and the coronavirus job retention scheme, which has supported more than 90,000 jobs in Lewisham East, as well as the deferral of income tax payments. Another £2 billion was made available to local authorities in additional restriction grants, with councils encouraged to focus that support on the sectors that remained closed the longest.

[Mr Sheerman]

Does the Minister think that the Government missed an opportunity when they introduced the plastic bags charge, which has produced millions? We were promised that the money would flow into communities and the regeneration of local towns, so why has most of that money flown into the back pockets of the supermarkets? Why can we not have that money to regenerate local businesses?

[Neil O'Brien]

I fear that the hon. Gentleman is going to take us on a diversion. The tax has been hugely successful. It has eliminated billions and billions of plastic bags from our planet. We can take some of the other points that he raises offline.

In Lewisham, the support that we have introduced has equated to about £40 million in business grants to small businesses as well as those in the retail, hospitality and leisure sectors. Lewisham council estimates that it will have awarded £55 million in business rate relief to local businesses between March 2019 and March 2022. A further £34 million has been provided to the council in local restriction support grants and Christmas support payments. I am sure that the hon. Member for Lewisham East agrees that that funding was invaluable for businesses during an incredibly difficult 18 months.

Earlier this year, we also announced the £56 million welcome back fund, building on the success of the reopening high streets safely fund, to give people reassurance that they can shop and socialise in a covid-secure way. The hon. Lady is, I am sure, aware that more than £250,000 was awarded to Lewisham council through the welcome back fund. I am delighted that the local authority and businesses themselves have been able to take advantage of that support. My hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) talked about the benefits it brought in her constituency, too.

That funding has been complemented by a commercial property eviction moratorium, which has now been extended to 25 March 2022, helping high street shops hit hard in recent months to stay afloat and weather the storm. To provide more certainty to tenants and landlords, the Government plan to legislate for a process of binding arbitration, following a call for evidence launched in April and engagement with business owners. The legislation will ringfence debt relief accrued from March 2020 for commercial tenants impacted by covid-19, and it will introduce a system of binding arbitration for landlords and tenants that cannot agree between themselves on agreeing, deferring or waiving rent arrears.

All that adds up to a concerted effort to protect businesses and livelihoods during and after the pandemic. As my hon. Friend the Member for Stockton South (Matt Vickers) said, the Treasury has indeed thrown the kitchen sink at backing our high streets over the past two years. Even before covid-19, however, it is important to stress that the Government had demonstrated their commitment to supporting our high streets to embrace change, to respond to the evolving patterns of consumer demand, to create a vibrant, mixed-use town and city centres, and to drive investment in parts of the country that historically have been underserved.

Our future high streets fund, for example, supports 72 places from Wolverhampton to Woolwich, just down the road from the constituency of the hon. Member for Lewisham East, with a share of more than £830 million. That funding is being used by councils to deliver ambitious plans to regenerate high streets while helping them to recover from the pandemic.

More broadly, our towns fund is supporting 101 places to bring forward schemes to spur growth and to breathe new life into communities, while creating thousands of jobs. We can already see some brilliant examples of how that fund is helping to transform those towns across the country. Southport has turned its old theatre into a convention centre, a state-of-the-art venue, in an attempt to bring in more than 1 million new visitors every year.

[Mr Sheerman]

Will the Minister come to Huddersfield to—

[Neil O'Brien]

I am afraid I will take no further interventions—[Interruption.]

[Caroline Nokes (in the Chair)]

Order. The Minister has made it clear that he is not taking interventions.

[Neil O'Brien]

Despite being a Huddersfield boy, I cannot take further interventions, because we are pushed for time.

In Worcester, support from our future high streets fund is being used to renovate several iconic and beautiful buildings, including the local corn exchange, driving footfall and preserving the community’s heritage. My hon. Friend the Member for Hyndburn and Haslingden (Sara Britcliffe) also talked about the good that such schemes are doing in her constituency. Those are the kind of transformative projects that hold the key to restoring local pride and laying the foundations for our long-term economic recovery. That is exactly what underpins our levelling-up fund, which will be available to local areas across the UK.

[Stephanie Peacock]

Will the Minister give way?

[Neil O'Brien]

I am afraid I cannot take further interventions as I am a bit pressed for time. I am so sorry.

We will invest £4.8 billion in the levelling-up fund to build the next generation of roads, bridges, railway stations and 5G networks to connect communities and businesses faster than ever before. However, significant though such interventions and all that spending are, I think we all agree that, no matter the scale of Government investment, money alone cannot solve all the problems that businesses on our high streets face.

That is one reason why my Department has recently published the “Build Back Better High Streets” strategy, which has a bold and imaginative vision for the future of our high streets—a future in which businesses and communities have the freedoms and flexibilities to innovate and adapt to a new post-covid world. The strategy forms a key part of the Prime Minister’s plan to level up. It will deliver visible changes to local areas and communities across England, transforming derelict buildings, supporting businesses, cleaning up our streets, improving the public realm and supporting a renewed sense of community pride for future and current generations.

To enable places to adapt and to reinvent their high streets, the strategy builds on some of the earlier planning changes that we have already made. We introduced the temporary permitted development right for moveable structures so that pubs and restaurants could move the indoors outdoors using marquees and canopies. I am sure hon. Members across the UK will have seen the effects of that. We have acted to make it easier to host market stalls, car boot sales and fairs for longer, without needing a planning application. We are consulting on making those changes in relation to marquees and markets permanent.

In 2020, we made a use classes order creating a new class E, which gives businesses the freedom to adapt and reinvent themselves. An office can easily become a café, a shop, health surgery or nursery without requiring planning permission. To support high streets to become places where people shop and spend their leisure time but also live, we have created a new permitted development right that allows the creation of much needed new homes in the hearts of our towns and cities. This right helps to repurpose vacant buildings, avoiding premises being left empty for long periods. Our further permitted development rights allow buildings to be extended upwards to create new homes and the demolition of vacant and redundant shops and offices so that they can be replaced with quality homes right in the hearts of our towns and cities.

I again thank the hon. Member for Lewisham East for her excellent speech and all the other Members who contributed to this excellent debate. The Government remain steadfast in our commitment to help our high streets adapt and thrive as they recover from the pandemic so that they can play their part in levelling up communities across the country. Indeed, my Department, the Department for Levelling Up, Housing and Communities, has a fundamental role to play in delivering this agenda. I know that I speak not just for myself but for the whole of our ministerial team in saying that we are committed to working with Members from across the House to create the stronger, fairer, more united kingdom we all want to see as we emerge from the pandemic. We also want to work hand-in-hand with local authorities and businesses to make that vision a reality.

I have not had time to pick up on every point that hon. Members have made or all the excellent projects that they promoted during the debate, but I will be happy to do so offline afterwards. I hope that, together, we can ensure that our high streets remain the beating heart of our communities for generations to come.