High Streets and Town Centres in 2030

Rachael Maskell Excerpts

Thursday 13th June 2019 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I, too, welcome the Select Committee’s report. I thought it was outstanding, particularly in the light of the challenges that my city experiences on a day-to-day basis, on which I have advocated action in this place. Those who are familiar with our debates on these issues will know that I have made many contributions, particularly about business rates—an issue that the hon. Member for Harrow East (Bob Blackman) articulated so well and that I will return to shortly.

York provides an incredible high street experience for people visiting our city, but we also need to make the city work for local residents, who increasingly do not visit the city centre. We should reflect more on the experience of residents and on how communities engage with these issues, because communities can really make a high street. Although our city has 7 million visitors a year, we must give the residents—those who are there day in, day out—the opportunity to have both a real shopping experience and a wider experience. That is why I welcome the report’s suggestion that we should look at not just a retail opportunity but a whole community opportunity.

Bishy Road in York was, frankly, a dying high street. The post office had moved out and the street was struggling. However, it has been rejuvenated, to the point of winning a Great British High Street award, because it built its whole centre on the wider community. Traders’ engagement with the community means that it is now the go-to place in our city for a retail experience; there are lots of different types of outlets on the street.

However, the picture across the city is not universal. York has many exciting places for people to engage in, which very much attract the external community—I am thinking of Jorvik and the museums in our city centre—but local residents really struggle to be able to afford to benefit from them. Like so many places, York has seen a real hollowing-out of shopping centres, particularly on Coney Street, where shops are struggling, not least because of the huge pressure on business rates.

Before I move on to business rates, let me mention the great opportunities for innovation across our city. The report did not particularly reflect on markets, but they are a great place for businesses to develop and grow. We should look at the role of markets on our high streets, and at how they interact with the wider retail experience. Spark:York, a new development built in shipping containers, has enabled many businesses to start up. It has a real vibe about it and it provides great opportunities. Those kinds of initiatives will help to bring some regeneration. For example, Spark gives good, ethical businesses the opportunity to start up and then move out to benefit from opportunities on the wider high street.

I take slight issue with what the report says about transportation into urban centres. It focuses on car parking. In an age when many of our urban centres are so polluted and congested, we need to ensure that there is really good public transport infrastructure to bring people in. York has one of the best park and ride facilities in the country. Opening up opportunities for living streets, for active travel and for park and ride on public transport is a way of regenerating our urban centres. Of course, if people walk and cycle rather than just going to their cars, there is more engagement; it has been shown that businesses benefit more if people use public transport and active travel. I hope that the Minister will take that on board.

We also need to ensure that there are real community spaces in the heart of our cities. I am thinking about libraries—people used to go to city centres to visit libraries, but they have disappeared—swimming pools and green spaces. We must ensure that people can access community hubs. Because of the lack of facilities and space, and the cost, community hubs are often pushed out to the periphery of the city. If there were go-to places at the heart of the city for residents to congregate and attend events, residents would be drawn into the city again. We need to square that circle to ensure that we have good community spaces in the heart of our city centres.

Business rates have been a particular problem in York. The analysis of what has happened was worked through with Make It York and the York Retail Forum. Across the country, 29% of the high street is owned by international businesses. We might, at one level, argue that that is inward investment, but at the same time it leads to a detached relationship between landlords and local centres. Investors who own property in the city centre often have wider interests, including maintaining their share price and increasing the value of their assets. When an investor charges high rent on a property, that hurts the shop owner, but there is a wider, more important benefit to the investor. Higher rent increases the property’s valuation, which pushes up business rates, so people are hit by higher rents and higher business rates.

The false economy, or bubble, that that creates is forcing many of the independents in York, and many other shops, off the high street. We have to address the relationship between property owners and the city or town centre. Social clauses should be built into contracts to force that relationship back to a sensible place. If a property owner does not make the right decisions for the wider area then, frankly, they should not own space on the high street.

We must also look at new developments. In York, we are on the cusp of the exciting York Central development, which has been through many iterations in planning. It was going to be a full retail piece built into the city centre. That is no longer the case, but the plan is still to have retail outlets as part of the 400,000 square metres site. However, if the planning goes ahead, which sees the development in isolation from the rest of the city, there could be a serious detrimental impact on the city itself.

When we look at developing new sites, we need to take into account the broader impact. Sadly, that is not the case for the York Central development, where no appraisal was undertaken to see what its impact could be on the wider city. The plan is on the Secretary of State’s desk. There has been a request for a call-in, which we hope will be honoured to allow the plans to be revisited, not least because of the plan’s housing and limited wider economic opportunities.

I welcome the Government’s future high streets fund, which is a good start. Like many, I believe that it needs to grow and be dedicated to sharing good practice. York has an interest in benefiting from the fund to ensure that our city works for residents as well as visitors in future. It is also important for those people up and down our country who are working hard to try to make their high street businesses work for everyone’s benefit.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

Absolutely, Mr Stringer. I am Heather Wheeler, just in case anyone had not worked that out. The other Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the hon. Member for Rossendale and Darwen (Jake Berry), should have been responding, but sadly he is at a funeral today. It is therefore my pleasure to respond to the debate. Clearly, my 16-minute speech is going to go nowhere, as I am leaving time for the Committee’s Chair to reply. As always, Mr Stringer, it is a pleasure to serve under your chairmanship.

I thank all members of the Housing, Communities and Local Government Committee who are present for their cross-party report into high streets and town centres for working with the Government to support the sustainable transformation of our high streets. We are pleased that the report broadly recognises the Government’s measures to instigate structural change, and we agree with the diagnosis that local places are best placed to know what their local solutions are—with appropriate support from central Government. It is a helpful report and, as has been said, we have broadly accepted its recommendations. Although I cannot cover everything in the short time available, I hope that hon. Members present will see how the Government are pursuing a holistic package of measures to transform our high streets and town centres for the long term.

Last year was particularly challenging for UK retailers, bringing into question traditional success models for towns and high streets. Quick to respond, in July 2018 the Government commissioned an expert panel, bringing together a wealth of expertise from the retail, property and design sectors. Chaired by Sir John Timpson, it explored the question that brings us here today: how do we catalyse change and ensure that town centres across the country adapt and thrive for future generations?

Our package includes a £675 million future high streets fund to support local areas in England to invest in town centre infrastructure, to make a real difference to the underlying structure of the high street. This demonstrates our commitment to taking long-term action to help high streets and town centres evolve through investment to improve town centres. We thank the Committee for commending our work in this area and echo its sentiments. We are currently considering more than 300 expressions of interest, and we have placed significant weighting on local leadership, vision and strategic ambition when assessing the bids. The places progressing to the second stage of the fund and receiving revenue funding to support the development of their plans will be announced later this summer.

As the hon. Member for Sheffield South East (Mr Betts) said, business rates are a bone of contention. Since the 2016 Budget, we have introduced a range of business rates measures in England worth more than £13 billion over the next five years. This includes the announcement in the 2018 Budget to take a third off eligible retailers’ bills for two years from April 2019, which is worth an estimated £1 billion alone. We have also doubled small business rate relief from 50% to 100% for eligible businesses, resulting in more than 655,000 small businesses —one third of occupiers—paying no business rates at all.

Alongside that we have committed to a £435 million package to support ratepayers facing the steepest increases following the 2017 revaluation. Finally, we switched the annual indexation of business rates from the retail prices index to the consumer prices index, representing a cut in business rates every year for all ratepayers. That alone will save all businesses almost £6 billion over the next five years.

[Rachael Maskell]

Will the Minister give way?

[Mrs Wheeler]

It will have to be very quick.

[Rachael Maskell]

I will be brief. Will the Minister commit to going back and scoping out the possibility of a turnover tax?

[Mrs Wheeler]

The hon. Lady is obviously prescient. When the Government concluded the last fundamental review of business rates, we decided to keep business rates as a property tax, following stakeholder responses. Respondents agreed that business rates are easy to collect, difficult to avoid, relatively stable and clearly linked with local authority spending. Some respondents suggested alternative tax bases. However, Select Committee members and others may wish to know that there was no consensus on an alternative base, and that even those respondents who put forward alternatives were clear that they were not without issues. To finish on business rates, the Government are committed to listening to views and will keep all taxes under review.