High Streets: Autumn Budget 2024

Richard Foord Excerpts

Thursday 23rd January 2025 Commons Chamber

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

It is an honour to secure this debate on the autumn Budget’s impact on high streets as my first Adjournment debate, not just because it is such a vital topic but because it is a topic dear to my heart. In my maiden speech, I shared the story of helping my mum on the shop floor, and it seems only fitting that my first Adjournment debate is on our high streets.

Every night after school, and most weekends, I helped out in my mum’s gift shop. I remember chatting away to the staff, the customers and our neighbouring businesses. I remember late nights sorting out items to donate to the local charity, and the summer when I offered to run the shop myself.

I also remember what happened when the economy turned, having to pack away stock and move to smaller premises because it was that or closure. I remember helping my parents with the mortgage as a teenager, gleefully buying broken biscuits as a family and only now, later in life, realising how much work my parents put in to keep a roof over our heads and food on the table.

After many successful years, during which several premises were opened, the cost of retail and business rates, the competition from online giants and the decline in consumer spending was too much. My mum could not beat them, so she joined them and took her business online. In many ways, it was a relief for the family. It was a simpler way of continuing the business, but it was hard to see the store close 30 years after she first set up shop.

[Richard Foord (Honiton and Sidmouth) (LD)]

My hon. Friend is right about how sad it is to see high street shops close, such as the one in which she used to help. We have seen local councils invest in Cullompton’s high street, but this is sadly offset by the shop closures. Will my hon. Friend make some recommendations on what the Government could do to prevent some of these shop closures?

[Victoria Collins]

The heart of this debate is about making sure we look after those businesses and the many more that could open.

My story shows why this debate is so important to me. I know that the story of our high streets is the story of our local communities.

--- Later in debate ---

[Emma Reynolds]

I am here in my ministerial capacity, of course, but I also represent High Wycombe in the south-east, so I understand her point, and promise to take it back to the Department, and to the Exchequer Secretary to the Treasury.

Levelling the playing field for the high street is just the start, and we are committed to transforming the whole system in the longer term. As we set out in the “Transforming Business Rates” policy paper that we published alongside the Budget, the Government will create a fairer business rates system that protects the high street, supports investment and is fit for the 21st century. It is important that we work in partnership with high-street businesses to get the reforms right. I thank the hon. Member for Harpenden and Berkhamsted for bringing the voice of small businesses in her constituency to our proceedings.

Government officials have undertaken a series of roundtable events to understand from businesses across all sectors and sizes how they think reform of the system can best be delivered. Over 200 businesses have already given their feedback at those roundtables. The Exchequer Secretary to the Treasury is leading that work and engaging with a broad range of high-street businesses, as are officials in my Department.

[Richard Foord]

I appreciate that it is perhaps the Exchequer Secretary who would know this, but will the Government make sure that the reform of business rates that they are proposing is not negative for those small businesses with a very small rateable value that do not currently pay business rates at all?

[Emma Reynolds]

Indeed. The point of the reforms is to better protect small businesses. As the hon. Gentleman says, there are already small businesses that are protected, but we want to ensure that those small businesses that are above the current thresholds are also protected, and do not pay the rates that they pay at the moment. We want to make sure that small businesses on the high street are better supported—that is the whole point of the reforms—so I can reassure him that it will not get worse for small businesses. It may be the Exchequer Secretary’s area, but I know that much, so I thank the hon. Gentleman for the opportunity to respond to that question. We look forward to further engagement with businesses over the coming months on delivering a business rates system fit for the future.

I congratulate the hon. Member for Harpenden and Berkhamsted again on her first Adjournment debate in the House—it is also the first Adjournment debate that I have responded to as a Minister—and thank her for raising this important issue. This Government have delivered the economic stability that high-street businesses need to thrive, and we are committed to delivering the business rates reforms that will support high streets up and down the country.

Question put and agreed to.