Retail and the High Street

Roberta Blackman-Woods Excerpts

Thursday 28th November 2013 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

It is always a pleasure to serve under your chairmanship, Mr Walker. I join others in congratulating my colleagues, the hon. Member for Stockport (Ann Coffey) and my hon. Friend the Member for North Swindon (Justin Tomlinson), on securing this timely debate.

We do not need surveys or focus groups to establish that high streets are popular with our constituents, whose natural instincts support a thriving high street. I suspect that is even more true in some of our smaller market towns. High streets in towns such as Barton-upon-Humber in my constituency, which has a good mix of independent shops, are certainly highly valued by local people. I am pleased to say that Cleethorpes itself has a thriving shopping area, in the appropriately named High street and down St Peter’s avenue, with a good mix of shops that is well valued by the local community.

As has already been suggested, the retail environment is changing dramatically. Too many attempts are made to preserve the high street scene and ignore the fact that shopping habits have changed due to the internet and what almost amounts in some cases to the migration of the town centre to a different location on the edge of town or urban retail parks. We have all witnessed what starts simply as an edge-of-town supermarket expand until a cluster of other retail units form around it; in a short space of time, we have a competing town centre or high street. Whether or not those changes are for the better, we cannot alter the fact that the customer has decided that they are here to stay.

The Portas review was established and, as I stated in previous debates, I see little in it that does anything more than apply a sticking plaster to a gaping wound. I do not blame the Government for using a celebrity to front the review. Sometimes celebrities can draw more attention to issues than any politician or businessman can. To be fair to Mary Portas, her report recognises that retailers need fewer shops and recognises the onward march of the supermarkets, which is of course the main reason why we need fewer retail units. She is half right when she states:

“We have sacrificed communities for convenience.”

I suggest that in most cases the communities are still there, but they shop elsewhere. I look back to my early childhood in Fuller street in Cleethorpes. It still exists and the same 80 or 90 houses are still occupied, but Mr Marrows, the grocer down the street, and Mr Nocton, the butcher round the corner, along with the baker, the hardware shop and many others, have long disappeared.

Like every town in the country, Cleethorpes simply has too many retail units. Nocton’s butchers stood on Grimsby road, which is the main road between Grimsby and the adjoining town of Cleethorpes. It is also the main entrance to the resort of Cleethorpes, and the many bricked-up, derelict properties do not enhance the reputation of what I am pleased to say is still a thriving resort. Property values and rents are low. Many sole traders are surviving without necessarily thriving. Whether the property owners are the traders themselves, a local landlord or indeed an absentee landlord, an incentive is needed to convert many of the now empty retail units to residential use. With the powers granted to local authorities by the Government’s localism agenda, councils have sufficient powers in their armouries to embark on regeneration schemes. The reality is that very little is happening. Parades of shops up and down the land scar the communities they once served. We must quickly embark on schemes that can revitalise such areas.

In the North East Lincolnshire council area, which is one of the councils that serves my constituency, schemes to renovate empty houses already exist, but they only scratch the surface. This Government and previous Governments have poured many millions into various initiatives that, as I said earlier, only apply an Elastoplast to a wound. We need initiatives that perhaps allow local authorities to spend that sort of money on compulsory purchase, rather than repave vast areas or patch up one little area. I have served on a local authority, so I know how difficult compulsory purchase is to achieve. It often takes two, three or more years to accomplish for a relatively small group of properties, and we need to make it easier. The resources spent on various initiatives would be better spent on buying up properties. Councils could then sell them at a knock-down price—perhaps even give them away—with a compulsory brief that whoever purchased them had to convert them or use them for a particular scheme.

[Roberta Blackman-Woods (City of Durham) (Lab)]

The hon. Gentleman is making a number of important points about the powers local authorities have to shape their areas. Does he accept that recent Government changes deregulating permitted development make it much more difficult for local authorities to influence what happens on the high street?

[Martin Vickers]

I am afraid that I do not agree with the hon. Lady. I am very much one for freeing up the ability of councils to put together plans, schemes and initiatives of the sort I mentioned, which, although they may need central funding to kick-start them, are bottom-up schemes. I cannot agree with her.

Much is made of car parking charges. I agree that in an ideal world we would not have them—my hon. Friend the Member for Brigg and Goole (Andrew Percy) will refer to the successful schemes that North East Lincolnshire council has introduced—but getting rid of charges is not a panacea. I recall mentioning in a similar debate that I was the councillor on North East Lincolnshire council responsible for environmental services, including car parking. We discussed it time and time again and had various initiatives to help with Christmas shopping and the like, but the reality is that we got £1.25 million in income from car parking charges. If a council is providing services elsewhere, it simply cannot at a stroke say, “We’ll do away with that £1 million.” It is a problem.

Grimsby town centre, the main shopping centre that serves my constituency, has a successful and thriving shopping centre, Freshney Place, which charges. People go there in their thousands, often at the expense of going to other areas that do not charge. If the offer is right, people do not mind paying a modest amount for parking. I can see that I have just exceeded my eight minutes, so I will conclude there and hand over.

--- Later in debate ---

[Roberta Blackman-Woods (City of Durham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker. I thank my hon. Friend the Member for Stockport (Ann Coffey) and the hon. Member for North Swindon (Justin Tomlinson) for securing this debate and pay tribute to their work as joint chairs of the all-party retail group. I pay tribute to all hon. Members who have spoken passionately about their areas. I will return in a moment or two to some specific points that they raised.

The importance of high streets and retail cannot be better demonstrated than in Stockport, where, as my hon. Friend eloquently outlined, retail is a significant part of the economy and contributes a large proportion of jobs in the town. Stockport is benefiting from the reshaping of the town’s retail offer, and in a way it is forging a new identity. That is to be applauded.

I am pleased that my hon. Friend the Member for Tynemouth (Mr Campbell) mentioned the Union of Shop, Distributive and Allied Workers campaign to keep shop workers safe, because we do not talk enough about that in the House and we have to consider it when thinking about regenerating our high streets and town centres.

I am glad that most hon. Members mentioned small business Saturday on 7 December. I am sure that we are all getting behind it and supporting our small businesses. It is worth highlighting.

It is pertinent to discuss the state of our high streets. We have had a number of debates on the subject in the House recently and in the past few years. The issue will not go away, and the reason for that is clear: we are seeing a decline in the variety of businesses that make up our high streets. There are now more than twice as many betting shops in British high streets than all the cinemas, bingo halls, museums, bowling alleys and so on put together, but the situation is not inevitable. Positive interventions can be made, and we should not accept the automatic decline of our high street due to trends of online shopping and so on. We have to make the right interventions, and they must be supported by the Government, who must help the process of diversification that we know is needed.

The facts make concerning reading. At this moment, one in seven of Britain’s shops lie empty, and in some places it is one in three. Given that position, the Government should take action to support the high street, but recent data show us that, in a large number of areas, the high street revolution has failed to take off. Vacancy rates, although improving, are doing so only marginally, with a reduction from 14.2% to 14.1%.

The Government’s approach is fragmented. A number of initiatives have been mentioned. We have Portas pilots, town team partners, the future high streets forum, a high street innovation fund, the high street renewal award, a fund for business improvements districts, local enterprise partnerships, local authorities, neighbourhood plans and neighbourhood business plans. Most commentators are saying that we need a more co-ordinated approach, nationally and locally, to help our high streets.

The Government should consider more closely the advice in the Grimsey report, which in many ways echoes what was set out in the Portas review. As my hon. Friend said, that report seeks comprehensively to address the challenges facing the sector. Grimsey set an objective to repopulate high streets and town centres as community hubs, with more housing, education, arts, entertainment, business and office space, health and leisure provision and, of course, shops. He also suggested setting up a town centre commission for each town, with a defined skills base and structure, to build a 20-year vision for each town. He thought that the Government should, at least, pilot that approach. He also said that we should prepare for a wired town centre and that there should be particular support for our high streets, to enable them to embrace new technology, as my hon. Friend outlined. We are not seeing a specific enough initiative to deal with that issue.

In his foreword to his report, Grimsey said:

“We’ve seen reviews, pilots, future high street forums and more. But none of these initiatives are making much impact and there is a frustrating sense of policy being conducted in the margins. The need to grasp the nettle is bigger than ever.”

He acutely identifies the most serious challenges facing the industry, saying:

“The bigger area of concern, though, is the plight of smaller retailers. Many remain horribly stressed financially with an average rating that hovers perilously above the Company Watch warning area. The same pattern applies in the supply chain. For independent shops, a sector that the Business Secretary has previously acknowledged to be an essential part of a healthy high street, the future looks very uncertain. The fact that our analysis shows 46.6 per cent of all retailers in the UK are in the warning area, and by definition at serious risk of failure, should be a loud wakeup call to ministers”—

and to all of us. He states:

“As a check up on the health of the high street, the prognosis is not good. Over 20,000 businesses are at risk and we can expect more and more business failures”

unless action is taken.

“There are around 40,000 empty shops in the UK, and this has remained”

pretty

“constant over…three years.”

The question must be, what are local government and central Government going to do about that?

Part of the answer, undoubtedly, is to enable change of use for premises. What the Government are doing on change of use, however, is making things worse, not better. We know that the consequence of the Government’s changes, particularly those since May, has been to allow more bookies and payday lenders to set up shop on our high streets. The Government are taking away from local authorities the ability to shape what is happening on their high street and to respond to community demand, yet we know that communities want their local authorities to have more control of high street improvement.

A recent survey by Deloitte shows that 73% of people want customers to have a strong role in shaping the high street, and 47% want local authorities to be able to do that. Only 13% want landlords to be able to shape what happens on the high street, yet that is exactly what we have ended up with under this Government. Because planning permission is no longer required for many changes of use on our high street, our local authorities and communities have no ability to shape what is happening. That is the exact opposite of the approach that the hon. Member for Cleethorpes (Martin Vickers) suggests, which is that local authorities should have powers to shape what happens on the high street, such as by having more rights to purchase properties compulsorily.

The hon. Member for Congleton (Fiona Bruce) made an excellent point on local authorities using social value clauses to help, for example, local people set up start-up units—there would be more pop-up shops. That is exactly the set of uses that local authorities might want on their high street, but if it is simply left to the market to say how empty properties will be used or changed, we are not likely to get the sorts of premises that local people want.

What is likely to happen, as I witnessed when I visited Woolwich high street last week, is that in a row of 16 shops, nine will be payday loan companies or bookies. Local people told me that they are very unhappy with the situation. They said that, in the past couple of years, the council had indeed spent money on the town square but that it was being thoroughly undermined by the number of fast food outlets and so on in the area.

The last time I raised that point with the Minister, he went out and said to the media, “This is about Labour trying to say to you that you shouldn’t be able to buy a McDonald’s.” I make it clear that that is not what we are saying; we are saying that people do not want an over-saturation of a particular type of shop on their high street. As the hon. Member for Brentford and Isleworth (Mary Macleod) said, what we need is diversification on our high street. People are telling us clearly that they want independent retailers and community uses; they do not want to see one type of premises taking over the high street.

I hope the Minister will help us to understand how the Government’s approach will assist with that diversification, because I cannot see that approach operating in practice. In fact, we know from across the country that the opposite is happening. The Government could do more. The Government must urgently address change of use and the relaxation of permitted development, and they must give local authorities and communities real powers to shape their high street. That is urgent, but the Government need to do other things. They must consider the wider economy, too.

A recent report by the Centre for Cities claims that the biggest factor affecting the success or failure of our high street is the overall strength of the town or city centre’s economy, and the slow economic recovery over the past three years has really affected the high street. The Government should be doing more to address business rates, increasing rents and higher energy costs, all of which are particularly affecting small business. Again, small businesses themselves are asking the Government to address those issues urgently.

[Mr Charles Walker (in the Chair)]

I thank the shadow Minister for her perfectly timed speech.