British Retail

Paul Uppal Excerpts

Wednesday 6th March 2013 Westminster Hall

[Richard Harrington]

I do not think that point is relevant in this particular case. As far as retailing is concerned, a payday loan company, provided that it is legal and proper in all that it carries out—I accept that there is a different issue—employs people in much the same way as a shop with the same number of staff. That is not to take away from the hon. Lady’s point, but from a retail perspective, it is important to realise that like traditional retailers, all those companies employ a lot of people and in that respect contribute a lot to the local economy, which is the subject of the debate.

Rates are an important issue to which the Government must turn their thoughts. The planning side of things is also important. The national planning framework, which I thought was absolutely excellent, gives a lot of emphasis to town centres and their development, but there seems to be no compliance mechanism. It must be remembered that more than 80% of planning applications for retail currently being considered are for out of town rather than in town centres. Given that it is generally agreed that the regeneration of town centres is a good thing, it would be good to have some form of compliance for ensuring that local authorities emphasise it.

We must accept that because there are now fewer functions for retail premises, local parades do not have the “get out of jail free” card that they used to have when new industries and uses would by and large appear. However one looks at high street retailing, there is less demand because of the internet, which has also brought many benefits. The Government’s current policies on relaxing planning rules to allow some units to return to residential use are a good thing and an acceptance of reality. Although one would hope that it was not the case and that some units could be live/work—for residential use at the same time as retail—the fact is that there are a lot of places where, if there is a convenience store, it is very good. I commend the convenience store sector for how it has adapted, notwithstanding the point made by the hon. Member for Chesterfield (Toby Perkins) about the big supermarkets in all their guises, from hypermarkets to convenience stores, doing their best to dominate the market.

There is still a strong and good independent sector in this country, and long may it continue, but that sector will not fill up all the parades of shops and tertiary units, which were built with very good reason. In the case of many of our parents or grandparents—for some hon. Members, their great-grandparents—the husband would be at work and the wife would walk to the shops every day with the baby in the pram and the shopping trolley. The shops had to be nearby, because there was often no public transport and people certainly did not have a car. Most of us accept that has changed, and that planning laws have to change in respect of empty properties; we need both private and social accommodation and some of it could come from surplus retail space.

[Paul Uppal (Wolverhampton South West) (Con)]

I declare an interest. Like my hon. Friend, I worked in the sector for about 20 years, either as a landlord or a tenant, and I echo his sentiments. The vital issue with retail space, in particular in city centres, is utilising the upper parts: residential conversion is crucial. For far too long, we have been obsessed with the ground-floor unit, almost dismissing the upper part. In continental Europe or other areas, people utilise the upstairs, which provides an alternative use.

[Richard Harrington]

I wholly endorse what my hon. Friend said.

I finish with two suggestions that might be unpopular with the large commercial sector, the shopping centre providers and commercial landlords. I mentioned many good points about companies such as Westfield and the strong regeneration sector; retail happens to be their product, but they are really redeveloping important parts of our landscape. However, it is almost impossible for independent retailers to get into such units. I am not talking about community efforts, an area for a market with local craftsmen and that type of thing; I am talking about people who are running proper businesses, be they start-ups or just one unit. They cannot get into the shopping centres because of the commercial value of a rent paid by an individual operator to the shareholders, many of which, ultimately, are the pension funds that look after all our pensions; those capital values are very much dependent on having big names in the units. As part of planning, the Government should look at the possibility of allocating to independent retailers a small number of units paying market rent; I am not arguing for any form of subsidy, except the sort that people get to move in, such as fitting out or a rent holiday. A number of shops should be allocated to companies with only one or two stores. That is the only way. It could be part of a general planning permission. I am not specifying half the units, or a quarter, but somehow it has to be realised in the retail sector that small companies and start-ups with capital—properly capitalised, I am not talking about ones that cannot compete from a capital point of view—should be allowed into those main retail centres.

My second suggestion will probably make me extremely unpopular, in particular with my hon. Friend the Member for Wolverhampton South West (Paul Uppal). Although the Government cannot do much about the role of small commercial landlords, those landlords are absolutely deluded about their ability to get the rents they ask. Their mentality is to ask for yesterday’s rent; because a shop was rented out 10 years ago at £40,000, they will keep it empty for three, four or five years under the delusion that they will get the same rent, and notwithstanding the fact that they are paying empty property rates, which I point out to the Minister it is right for them to be doing. If the vast array of small commercial landlords are listening to the debate or reading Hansard tomorrow, which I accept is completely unlikely, I have a suggestion that might help, although it is not the panacea for everything. As MPs, local councillors and people involved in the community, we could persuade small operators to come into some of those empty shops, but landlords asking for a rent that they once got 10 years ago makes it almost impossible.

In summary, retail should be recognised as a modern, vibrant sector, something that this country is good at and which contributes a lot to our national economy. It has to be accepted by Government that retail is up there with manufacturing and all the other businesses that the Government are promoting to help the country, and not, as used to be thought, something that just sucks in imports and is part of the distribution sector.