The Future of the High Street

Rachael Maskell Excerpts

Thursday 10th December 2020 Commons Chamber

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

Our identity is drawn from the places where we live and our high streets are very much part of that, so the eerie emptiness of our high streets at this time must present a new opportunity to re-imagine our high streets.

York has the worst-hit high street in the country, so we are really feeling the pain. Some 65% of York is made up of independent businesses, and Indie York is calling on the Government to do more to support them —not least because of the high rateable value in our city. I say to everyone in my community: please shop local this Christmas and visit our virtual high street.

In a nutshell, this is where the problem sits: where property is owned by private landlords, many are more interested in their investment portfolios than the location and in maintaining high property values and a high investment return for themselves. That really damages our high streets because the high rents only top up their balances, in turn pushing up the value of high streets through rents, rateable values and business rates. This false economy must be challenged if we are to build back better.

One frustration is that the covid grants and loans have slipped through the hands of businesses to landlords—and often straight into their offshore bank accounts, as they are overseas investors. This has neither helped our communities nor brought value to the taxpayer. How much taxpayers’ money is now sitting in tax havens as a result of these payments? There are no obligations to help local shops and businesses through this difficult time—not least when overseas investors are twice as likely to have vacant premises on our high streets. The Government should not only review this scandal but legislate to address it.

So many colleagues have mentioned business rates today, and I have held debates on how we can reform business rates. The fairest way is to move to a turnover tax or a profit-related tax that would include all businesses.

Let me turn to the issue of how we should move our high streets from business improvement districts to community improvement districts. Bishopthorpe Road in York has had the secret of growth and has created a really vibrant high street because it has been about community first. That model is being replicated elsewhere across York.

We also need to look at the opportunity to put into our city more places for families, such as Explore York, our library, where people are not allowed to whisper but can certainly enjoy the Lego table, the craft table and knitting in the corner—and even reading a book. As we see in York, our entrepreneurs and business owners are really keeping our high streets alive.