High Street Businesses: Government Support

Paul Kohler Excerpts

Thursday 4th June 2026 Westminster Hall

[Mr Paul Kohler (Wimbledon) (LD)]

It is an honour to serve under your chairship, Ms Lewell.

I congratulate my hon. Friend the Member for Didcot and Wantage (Olly Glover) on securing this debate. I declare an interest as the owner of CellarDoor, a bar and cabaret venue in Covent Garden, and as the chair of the all-party parliamentary group for the night time economy.

Small businesses, hospitality and the night-time economy are the backbone of our high streets. In London alone, they support nearly 1.5 million jobs and generate close to £50 billion a year. Yet the independent, locally-owned shops that once defined our high streets have been squeezed out and far too little has been done to nurture those that remain. That said, I welcome new investment in my constituency. Primark is coming to the Wimbledon Quarter—Primark’s first new London store in nearly a decade—and Aldi, Marks & Spencer and Barclays have all recently invested in Wimbledon town centre, but they are international chains with deep pockets and preferred borrowing arrangements. Their confidence must not mask the fact that there are fewer and fewer independent businesses in Wimbledon. Such businesses are worn down by costs that they can no longer absorb.

Like the coalition in 2010, this Government received a hospital pass from their predecessors, but that is no excuse for making matters worse. The rise in employer’s national insurance contributions—Labour’s tax on jobs—fell hardest on high street businesses, whose staff cannot be automated or offshored. That measure, along with record increases in the minimum wage and an expansion in the legal burden of workers’ rights, both of which have a disproportionate effect on small businesses, seemed almost designed to destroy growth and hold back our high streets.

Online shopping is a major contributing factor. By failing to enact sensible reform of the business rates system, successive Governments have failed to address the unfair advantage enjoyed by online retailers. Increasingly, high streets are filled with things that one cannot get online, but even here, Government policies are failing responsible employers. Take the hair and beauty sector as an example. The first Headmasters salon opened in Wimbledon village more than 40 years ago. Across the sector, the number of apprenticeships dropped from 16,000 to 6,000 between 2016 and 2023 because of a VAT regime that incentivised salons to use self-employed staff rather than to grow and develop their own talent.

However, my constituency is doing better than many parts of the country. Footfall in Wimbledon town centre is rising, and Wimbledon village was recently named the UK’s top neighbourhood high street. However, the same is not true of Morden town centre, most of which has been part of the Wimbledon constituency since the 1980s.

Morden town centre was once a go-to destination. I am a south Londoner, even though my parents were both cockneys, because my mother came to Morden from Hackney one day in the 1940s to attend a Sunday Pictorial film stars garden party—as a fan, not as a celebrity, I hasten to add—in nearby Morden Hall park. She was enraptured by the thriving art deco high street that she encountered and decided on that day that she wanted to live in south London.

Sadly, Morden town centre has been in decline for many decades, despite Merton’s Labour council promising, for at least the last 30 years, to rejuvenate it. The council’s latest plans have now been put on hold till the end of the decade. Sadly, nothing is happening. I thank the Minister’s colleague—the former Parliamentary Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Nottingham North and Kimberley (Alex Norris)—for meeting me to help to move things forward, although sadly Merton council declined to attend that meeting.

Nationally, the Liberal Democrats are offering concrete solutions. We would cut VAT for hospitality from 20% to 15%, which a study from the Night Time Industry Association shows would pay for itself by increasing sales and VAT revenue. We would reform business rates to reward occupancy and community value, while agreeing a youth mobility scheme with the EU to resume the flow of young, eager Europeans keen to work in hospitality in their gap years. We would also reform the apprenticeship levy so that our hair salons and other small businesses are incentivised to develop talent. Our high streets need urgent help. Too many shops have put the “closed” sign up for the last time. I look forward to hearing how the Minister is proposing to reverse that trend.