Future of Town Centres and High Streets

Roberta Blackman-Woods Excerpts

Tuesday 17th January 2012 Commons Chamber

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

I begin by congratulating the hon. Member for Nuneaton (Mr Jones) and the Backbench Business Committee on securing the debate. I must say that I am in completely the opposite category to the hon. Member for Beckenham (Bob Stewart), because I am an avid shopper, which is why I am particularly interested in the debate. Unfortunately, I seem to have passed the shopping gene on to my daughter, who occasionally seems to think that she is personally responsible for keeping some of the retail sector in Durham afloat—something I am sure many parents recognise.

The huge number of hon. Members who took part in the debate—54 in total—shows that the topic is relevant to many constituencies. I will not be able to mention every contribution, as just listing the Members’ constituencies would probably use up most of my time, but I will comment on some of the points that were made. I think that all hon. Members who spoke, right across the Chamber, were tremendous advocates for their town centres and high streets, whether they were celebrating their successes, particularly in these difficult times, or arguing strongly that the challenges they face need to be addressed.

A few issues stood out in particular. Almost all Members who spoke mentioned parking and the need for a level playing field with out-of-town developments. That was sometimes coupled with a concern that out-of-town shopping centres had perhaps expanded too much in recent times, with an adverse effect on town centres, although I think that there was more debate about that. There was also some unanimity on the need to amend use class orders, particularly so that there is more flexibility on change of use. A number of hon. Members were keen to see more community involvement in shaping town centres and high streets, particularly in order to get greater diversity and to have an offer that goes beyond retail and includes leisure and social facilities. Many Members celebrated the advantages of markets, including indoor markets, and wanted them to increase in a number of towns and cities.

Several Members mentioned the need for more flexibility in rents and rent setting and business rates. In particular, they stressed the need to give local authorities more of a say in the level of business rate that should be applied and even to give a business rate holiday if that seems appropriate, as part of a package of measures, for regenerating particular areas. We know that changes to the business rate regime are coming, and the Minister might comment on that when he sums up.

There was a great deal of consensus about the fact that the Portas review is a very good thing and that the Government need to respond to it more quickly. I congratulate the Government on commissioning the Portas review and the Department for Business, Innovation and Skills report on understanding high street performance, carried out by Genecon, which went alongside it and provided us all with a lot of valuable information for our contributions to the debate.

There has been much consensus throughout the Chamber, but I am perhaps going to break it for a few moments, because, although I acknowledge that many of our high streets have struggled for several years, there is no doubt in my mind that the actions of this Government are making things much worse, particularly in disadvantaged areas. The downturn has hit our high streets hard, and, although thousands of jobs have already been lost in the retail sector, many more are at risk. We heard yesterday of yet more job losses in the sector throughout the country, and every day and every week more retailers seem to be going out of business.

Let us be clear about how serious the situation is. The latest shop vacancy report, compiled by the Local Data Company, found that town centre vacancy rates in Great Britain stand at 14.3%.

[Derek Twigg]

My constituent Liz Howard, of the Curiosity Bookshop in Runcorn, has raised several issues with me, not least those of unfair competition with supermarkets and of parking, but one issue in particular is derelict and unused buildings—some that have to be knocked down and others that are still unused. That is an area of real concern, so I hope that the Government will act upon it to improve the situation.

[Roberta Blackman-Woods]

My hon. Friend makes a good point, and I will turn to empty shops in a moment.

Void rates are another real issue, especially in secondary shopping areas, but the most recent wave of closures and the downsizing and retrenching of the retail sector are clearly causing a problem even in primary shopping areas.

There is a set of challenges for the high street, and that is not to mention the difficulties caused by the rise in internet shopping and by out-of-town centres.

[Rory Stewart]

Does the shadow Minister acknowledge, however, that internet shopping can be immensely beneficial to small, high-street shops? For example, in our constituency, the John Norris fishing supplies shop makes £12 million of sales over the internet but only £1 million through the door—and that allows it to keep going.

[Roberta Blackman-Woods]

I do accept that point, which my hon. Friend the Member for Stockport (Ann Coffey) made very well earlier. Nevertheless, the internet is, I think, an additional challenge for high streets and town centres.

I say all that not to talk down our high streets, however, because, as several hon. Members have said, the town centre or high street in their constituency is weathering the economic storm. I say it to demonstrate the extent of the problem, because not all town centres are thriving and we have to be clear about the action that needs to be taken.

In government, we had a strong “town centre first” policy, but even with that policy there was recognition that more needed to be done to revitalise high streets, so there is a particular challenge for this Government. They need to do more to bolster consumer confidence, as their austerity programme—cutting too far and too fast—coupled with their VAT hike last January has squeezed incomes, reduced consumer confidence and led to further job losses on the high street. In a YouGov poll last year, four fifths of retailers said that the VAT increase would undermine sales.

The Government have so far also ignored the recommendations for a stronger “town centre first” policy, and they need to think about amending the draft national planning policy framework to reintroduce the sequential tests for town centres, because we really need that to encourage more town centre development.

[Henry Smith (Crawley) (Con)]

Would the hon. Lady not acknowledge that the recently passed Localism Act 2011 gives real power to local communities and councils, such as Crawley borough council, to make town centre policies a priority where they think it is important?

[Roberta Blackman-Woods]

That is not the case if offices are taken out. Of course we all want more localism, but the Government also have to attend to their economic policies, which are damaging our high streets and town centres.

There are other issues that the Government need to address, such as business rates, the need for local flexibility to tackle unemployment, the lack of credit for small businesses and whether property values are artificially inflated in some areas. The big challenge is to respond positively and quickly to the Portas review. We welcome the review, not least because it champions high streets and town centres as community hubs where social, leisure and retail activities can take place. People are passionate about their town centres and want them to thrive.

I hope that we hear from the Minister how he will strengthen the “town centre first” policy. He will know that a number of large retailers, including the John Lewis Partnership, have said that the sequential test as it stands simply is not strong enough.

I am pleased that the Portas review touched on use class orders, which have been raised by many Members. I pay tribute to my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) for campaigning on this issue, in particular for a separate category for betting shops. I wish my right hon. Friend the Member for Lewisham, Deptford (Dame Joan Ruddock) well with her private Member’s Bill, which is trying to put a change in use class orders into legislation as quickly as possible. We must be careful to ensure that if use class orders are changed, they are accompanied by safeguards, so that there is not abuse and misuse of the new guidance. For example, local communities do not want a change in use class orders that makes it easier for fast food outlets to be set up.

Empty shops are a particular issue. We urge the Government to follow through with the recommendations of the Portas review, many of which reflect the policies that Labour championed and carried out in government. We introduced the empty shops initiative, which enabled councils to pursue innovative uses for empty shops and reinvigorate high streets. For example, vacant units could be used for cultural, community or learning services, rather than be left empty. We hope that the Government will introduce such a policy as soon as possible.

It is important that we spend a bit of time thinking about how we redevelop high streets. We need to give councils more tools to do that. We want a more proactive use of compulsory purchase orders. That is mentioned specifically in the Portas review and it needs serious consideration. We also think that her suggestion of an empty shop management order could be pursued.

We are keen to see the town teams that Mary Portas recommends. We hope that they are active and vibrant local partnerships that work closely with business improvement districts. They should also work closely with the local community to make neighbourhood planning a reality. It is important that neighbourhood plans cover town centres and that every effort is made to involve local people in drawing them up. A number of hon. Members have made the point that if life is to be put back into town centres, particularly those that are failing, the involvement of the local community in shaping them is really important.

I finish by saying that in addition to following through with the Portas recommendations, we want the Government to pay some attention to our four-point plan to save our high streets—cutting VAT, giving local people the power to put the heart back into the high street, repeating Labour’s empty shops initiative and promoting a fair playing field for our high streets.