Roberta Blackman-Woods
Main Page: Roberta Blackman-Woods (Labour - City of Durham)(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Roberta Blackman-Woods (City of Durham) (Lab)
I beg to move,
That this House recognises that high streets and town and city centres are vital to local economies; acknowledges that many small businesses and retailers are struggling under the pressure of business rates rises; notes that since 2010 shop vacancy rates have remained at over 14 per cent but that there has been a 20 per cent increase in numbers of payday loan shops and a three per cent increase in numbers of betting shops in the last year; is concerned that recent changes to permitted development rights and use classes are likely to lead to an over-concentration of betting shops and payday loan companies in many areas, against the wishes of local people and businesses; and calls on the Government to give local communities a greater say over the shape of their own high streets and town and city centres, including control over use classes, to help encourage the more widespread use of neighbourhood planning and greater cooperation between local communities and businesses and to cut and then freeze business rates from 2015 to help small businesses on UK high streets and town and city centres.
When introducing the Portas pilots a few years ago, the right hon. Member for Welwyn Hatfield (Grant Shapps), with his customary understatement and modesty, said that
“these pilots can be the vanguard of a high street revolution, and others can look to their example to kick start a renaissance of our town centres.”
However, recent data show us that this high street revolution has yet to materialise. I think it is wrong to place the blame at the door of Mary Portas, because there was much in her original report that was helpful. I want to place the blame for such poor progress in reviving our high streets firmly where it belongs: with the Government.
The Government’s failed policies for the high street undoubtedly start with the sluggishness of our economic recovery, but I want to focus specifically on what is wrong with their approach to regenerating our high streets and town centres. The past five years have seen a significant squeeze on household and personal incomes, resulting in muted spending and an increase in retail failures. The high street has not only been hit by falling living standards but has had to contend with the rise in internet shopping. Yes, shopping habits are changing, but the high streets and town centres are still very important to the well-being of our communities, yet the Government’s policies are not rising to the challenge of revitalising and regenerating them.
Mr David Burrowes (Enfield, Southgate) (Con)
The hon. Lady starts her speech with a blame game. Would she attribute any blame to Labour’s Licensing Act 2003, which caused a culture of binge-drinking on the streets? Does she see that as in any way revitalising and adding a positive contribution to our high streets?
Roberta Blackman-Woods
The hon. Gentleman ought to look to see what his Government’s policies are doing in terms of the rising number of payday loan companies and betting shops on our high streets.
Mr Marcus Jones (Nuneaton) (Con)
The hon. Lady mentions the over-proliferation of betting shops. Surely the Labour Government’s Licensing Act made that worse with the changes they made to the number of machines that could be put in each shop. Because of her Government’s policy, the national chains are now putting several branches on the same high street.
Roberta Blackman-Woods
In fact, the reason for the increased number of payday loan companies is, first, what has been happening to the economy, and secondly, the change in use class orders, to which I will turn in a few moments.
Local shops and retailers are really feeling the squeeze on the high street, and these are still tough times for many areas.
Henry Smith (Crawley) (Con)
Will the hon. Lady join me in congratulating Crawley borough council and West Sussex county council, which are, as we speak, significantly regenerating Crawley high street?
Roberta Blackman-Woods
Of course we would welcome any regeneration that is happening on our high streets.
Business rates are rising by an average of nearly £2,000 during this Parliament, and more than one in 10 small businesses say that they spend the same or more on business rates as they do on rent. However, we must ask this question: is it all doom and gloom?
Alex Cunningham (Stockton North) (Lab)
Our historic high street in Stockton-on-Tees has suffered, like others, but our council has acted by developing what it calls the enterprise arcade, which gives fledgling businesses the opportunity to develop and then move into shop units. Yet we are seeing more betting shops and payday loan companies taking up space in our high street. Does my hon. Friend agree that those fledgling businesses should be given priority over betting shops and others so that they can provide the shops our high street needs?
Roberta Blackman-Woods
I absolutely agree. Indeed, we are arguing that local authorities should be given more powers over what happens in their high streets so that they are able to shape their direction in certain areas.
Christopher Pincher (Tamworth) (Con)
Is the hon. Lady aware that the number of betting shops has reduced slightly in the past 12 months, and that 9,000 betting shops on the high streets is 7,000 fewer than there were in the 1970s? Will she not accept that over the long term the number of betting shops has fallen?
Roberta Blackman-Woods
I draw the hon. Gentleman’s attention to the fact that regionally the number varies massively. There has certainly been a huge increase in the number of betting shops in several areas in the past 12 months.
Andrew Gwynne (Denton and Reddish) (Lab)
My hon. Friend is making a very compelling argument for giving local councils the power to determine how their high streets develop. One measure that we could introduce is umbrella provisions to enable local councils to stop the clustering of payday lenders or betting shops on the high street.
Roberta Blackman-Woods
Indeed. My hon. Friend makes an excellent point and I will expand on it later.
Bill Esterson (Sefton Central) (Lab)
To return to the question of whether there has been an increase in the number of betting shops, I am concerned about the high number of gambling adverts during TV programmes. I watched the football last night and there were three of those adverts during one commercial break alone. Does my hon. Friend agree that such encouragement of gambling must be linked to the impact on the high street?
Roberta Blackman-Woods
That is undoubtedly one reason why the number of gambling operations on our high street is increasing, but I do not think it is the only reason.
Roberta Blackman-Woods
I hope the hon. Gentleman will not mind if I make some progress. I will let him intervene later.
We know from information recently produced by the Local Data Company that there has been an improvement in occupancy rates. That is a good thing, but before Government Members get too excited I must point out that the vacancy rate has fallen from 14.2% to 14.1%, so one in seven shops are still standing empty, which is hardly a cause for celebration. That average figure also hides some large regional disparities. For example, Blackburn has a huge vacancy rate of 26.9%, with one in four shops lying empty.
The report also shows that in some areas vacancy rates remain stubbornly high. Since August 2010, the national average for empty shops has been above 14%, with a significant number being long-term sick with little or no prospect of being reoccupied as shops. Areas of improvement undoubtedly exist, but overall the recovery on our high streets leaves much to be desired.
The Government have responded to this major problem in their usual way: they have taken a piecemeal approach, fragmented the response and, when all else has failed, blamed the planning system. We now have a plethora of initiatives intent on improving the high street: Portas pilots, town team partners, the future high streets forum, a high street innovation fund, the high street renewal award and a fund for business improvement districts.
Mark Pawsey
On vacancy rates and betting shops, given the choice would the hon. Lady rather see a unit occupied by a betting shop or left vacant as a hole in the high street?
Roberta Blackman-Woods
The hon. Gentleman needs to consider the fact that too many shops of a particular type crowd out other shops that might be more desirable.
Steve Rotheram (Liverpool, Walton) (Lab)
Does my hon. Friend agree that a distinct contrast can be drawn between Kings road in Chelsea and County road in Liverpool, Walton, which has experienced a proliferation of betting shops, payday loan companies, fast-food takeaways and pawnbrokers? The Government cannot wash their hands of this—the rise has been exponential and that has partly been down to their policies.
Roberta Blackman-Woods
My hon. Friend is absolutely right. We must highlight where the Government’s policies on the high street have failed.
There is a long list of initiatives, but the fragmented approach masks the lack of an overall strategic approach that would bring together local authorities, key stakeholders and communities to plan for and deliver real change in their town centres.
Richard Fuller (Bedford) (Con)
Before the hon. Lady moves on to her socialist selection of which stores it is right for people to purchase from, will she admit that the Government’s employment allowance, which will be introduced in 2015 and will reduce the cost of hiring people to work in shops, is a very welcome step in getting started the sorts of shops that people want to purchase from?
Roberta Blackman-Woods
It is very important to have a localist approach that encourages local people to get involved in shaping their high street. I would have thought that the hon. Gentleman supported such an approach before all the changes that have been made over the past couple of years.
We want key stakeholders and communities to be brought together to plan and deliver change in their town centres. It is a pity that the Minister was not at the Local Data Company summit this morning, because he would have heard people saying that that was exactly what they wanted.
In his recent report, Bill Grimsey gave the Government some much-needed helpful advice. I will briefly highlight a few of his recommendations. He said that the Government should:
“Set an objective to repopulate high streets and town centres as community hubs encompassing: more housing, education, arts, entertainment, business/office space, health and leisure—and some shops”,
and
“Establish a Town Centre Commission for each town with a defined skill base and structure to build a 20-year vision for each town”.
He went on to say that they should establish five pilots to trial that immediately and called on the Government to
“Prepare for a ‘wired town’ vision or ‘networked high streets’”,
to review business rates and to require the owners of empty properties to seek a change of use class to bring properties back into occupation.
Mr Marcus Jones
The hon. Lady is setting great store by the Grimsey report. She has spoken about making it easier to change use classes and to convert commercial property into residential property. However, her motion argues against that. How does she square that circle?
Roberta Blackman-Woods
If the hon. Gentleman had read the motion more carefully, he would have seen that we are arguing that local authorities, in consultation with their communities, should be able to shape use classes in their area. We do not think that use classes should be got rid of altogether, which is what his Government are seeking to do.
Simon Hughes (Bermondsey and Old Southwark) (LD)
I must express concern about a motion that calls on the Government to
“give communities a greater say over the shape of their”
communities when, unless I have misunderstood something, this Parliament recently passed the Localism Act 2011, which was initiated by this Government, as a result of which business improvement districts are being created and neighbourhood plans formulated all over my constituency. The hon. Lady clearly was not here for those debates and has not noticed what is happening in communities across England.
Roberta Blackman-Woods
It is the right hon. Gentleman who has not noticed what is happening, particularly with regard to use class orders. The power for local communities to shape their high streets is being taken away.
A steer from Government is required to enable local authorities, stakeholders and communities to get together and pool their resources to shape their high streets. One huge stumbling block to the Grimsey approach remains. While many of us have been arguing for greater powers to assist local communities in shaping their areas, the Government have been busy giving away the powers that do exist to provide for that. In May, the Government legislated to allow changes to use classes so that virtually any class of commercial premises on the high street can become any kind of shop, fast food restaurant or shop in the euphemistically named “financial and professional services sector”, which alongside banks and estate agents includes payday lenders or legal loan sharks and betting shops.
I hope the Minister can tell us what was going through the Government’s mind when they decided that what struggling high streets needed was for it to be made easier for more bookies and payday loan companies to be sprawled across them. I would like to hear the rationale for that decision, because my previous attempts to elicit a response from the Government have failed. Nationally, there are 20% more payday loan shops and 3% more betting shops than there were a year ago.
Mr David Lammy (Tottenham) (Lab)
I hesitate to interrupt my hon. Friend, but does she agree it was extraordinary that the coalition Government opposed my amendment to the Localism Bill, which would have made betting shops a sui generis class under our planning laws, and brought an end to the travesty that is taking place across our high streets?
Roberta Blackman-Woods
I absolutely agree with my right hon. Friend, and it is a shame the Government did not accept his amendment. We must keep pressing them to change direction, particularly from where they are attempting to go at the moment, which is complete deregulation.
There are 20% more payday loan shops and 3% more betting shops than a year ago, and I do not think there is huge clamour out there in our communities for any more. Indeed, people want the opposite; they want fewer of those shops because they are taking the place of independent retailers, clothes shops and health food shops.
Andrew Gwynne
Is the real point that the growth in payday lenders, bookmakers and takeaways is reducing the vitality and vibrancy of the high street, meaning that fewer shoppers want to go and shop in the retail outlets that remain?
Roberta Blackman-Woods
My hon. Friend is right. We know that once there is a proliferation of payday loan companies and the like on our high streets, other retailers are put off coming to the area.
Heidi Alexander (Lewisham East) (Lab)
My hon. Friend said there is no clamour out there in the country for more betting shops, fast food takeaways and payday loan companies, but there is a clamour for communities and planning authorities to have more control over these changes. Does she agree that the recent changes make a complete mockery of the rhetoric coming from the Government about giving more power to communities? It is simply not true.
Roberta Blackman-Woods
Indeed. I agree with my hon. Friend, and what we are currently seeing from the Government is very anti-localist; it is the opposite of what they say they are doing.
Roberta Blackman-Woods
I will make some progress. There are now more than twice as many betting shops on British high streets as all the cinemas, bingo halls, museums, bowling alleys, arcades, galleries and snooker halls combined. I am sure the owners of payday loan companies were jumping for joy when they learned that this year they could accelerate the growth of their businesses without even having to ask for a change of use for the buildings they intend to occupy. The policy is so disastrous that I am not sure who the Government think it will help. It will certainly not help independent start-ups, which are still hampered—as we know—by the lack of available credit.
As if the changes announced in May were not bad enough, the Government have just completed consultation on another round of relaxations to permitted development and change of use classes that would see banks become flats, post offices become residences, and any small shop turned into a house without the local authority or community having a say in whether those changes are appropriate or of sufficient quality.
London local councils recently produced a report that stated:
“The removal of boroughs’ ability to require planning permission for these types of use change is likely to have a detrimental rather than positive impact on local economic growth. And whilst there is a recognition that some previously commercial areas in and around high streets are no longer viable for business, the ability for these to become residential should be left to the discretion of the local planning authority and not national policy.”
We entirely agree. We are not against the principle of changes from office to residential; we are for the principle of local communities deciding what is best for their area, not Ministers in Whitehall.
Kerry McCarthy (Bristol East) (Lab)
I have been contacted by the owners of the Exchange, a music venue in Bristol—it is in the constituency of the Under-Secretary of State for Communities and Local Government, the hon. Member for Bristol West (Stephen Williams). They took out new premises in a commercial area of Bristol, but have found out that there are plans to convert neighbouring properties into residential properties. They will therefore get noise complaints. They are concerned that, having invested in the new venture, they could be put out of business. Is that an example of what my hon. Friend describes?
Roberta Blackman-Woods
I thank my hon. Friend for giving us that example, which clearly demonstrates what is wrong with the Government’s approach. I hope the Minister has heard it.
I should tell the Minister that the Opposition are not against change to use classes, but the Government are entirely misguided in seeking to introduce a national permitted development right that will bypass local decision making and give communities no say in what ends up on their high streets.
Andrew Griffiths (Burton) (Con)
On the Channel 4 “Dispatches” programme in August last year, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), said that the Gambling Act 2005 was a “mistake”, that the consequences
“are ruining the high street and people’s lives”
and that “we were wrong”. Do you agree?
Roberta Blackman-Woods
The hon. Gentleman should pay more attention to what is happening to changes in use class resulting in more gambling outlets on his high street.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Obviously, I did not agree either.
Roberta Blackman-Woods
Thank you, Mr Deputy Speaker.
The Government’s approach is entirely the wrong one and profoundly anti-localist. It is therefore strange that they seek to badge the changes as indicating that they are absolutely committed to enabling individuals and community groups to have a greater say over every aspect of their area, including their high streets. I can only conclude that that is some sort of Orwellian misspeak.
What would Labour do? First, it would allow local authorities to put some types of businesses into a separate use class or use classes to prevent over-saturation of a particular use type in a given area—betting shops, for example. We know that some in the Government agree. At the Liberal Democrat conference this year, the Comptroller of Her Majesty’s Household, the then Under-Secretary of State, Department for Communities and Local Government, moved a motion saying that local councillors should be
“empowered to decide whether or not to give approval to additional gambling venues in their community”,
and he called on Liberal Democrats in the Government to push for betting shops to be put in a new separate planning use class
“allowing local authority planning committees to control them”.
The motion was passed, so no wonder he was reshuffled. The Government have done exactly the opposite.
Local councils also agree with the Opposition. A recent report from all 32 London boroughs said that town centres and high streets were at risk of not meeting the needs of local residents because planning regulations restrict the powers of local councils to encourage balanced local economies, including a lack of control on the spread of shops such as pawnbrokers and bookmakers. The councils recommended that such shops should be removed from use class A2 to a sui generis class of their own. The House should note that local authorities did not ask for further deregulation of that use class, which the Government propose to give them.
Secondly, Labour would give local authorities powers to determine permitted development locally in keeping with local needs and aspirations. Thirdly, Labour would strengthen neighbourhood planning and consider retail diversity schemes to allow communities to shape their high street. Fourthly, as announced at conference by the Labour leader, a Labour Government would cut business rates for small businesses if elected in 2015 and freeze them the year after, helping 1.5 million small businesses, many of which are on our high streets.
Mr Jamie Reed (Copeland) (Lab)
Does my hon. Friend share my view that in areas of market failure, particularly across the north of England, the situation is acute, and that, in the face of swingeing cuts to council grants to the point where they are in some cases unsustainable, we must do all we can to grow indigenous businesses to keep communities afloat?
Roberta Blackman-Woods
Absolutely. The small business sector is essential to the health of our communities, including our high streets.
John Pugh (Southport) (LD)
Does the hon. Lady favour exercising specific discretion for business rates for retail property, as opposed to small businesses in general?
Mr Deputy Speaker
Order. The debate has been going for nearly 30 minutes and I am concerned about the number of speakers.
Roberta Blackman-Woods
I will move on as quickly as I can, Mr Deputy Speaker.
In response to the hon. Member for Southport (John Pugh), the announcement was to cut business rates if elected in 2015 and freeze them for the year after that. In the context of that announcement, the Government’s plans to fiddle with red tape and postpone the business rate re-evaluation just do not cut it. We will start discussions with local authorities to see which of the Grimsey proposals can be taken forward to begin to deliver real change on the high street.
Finally, we want to put local communities at the centre of decision making with regard to what happens in their high street, so they can determine a vision for it and deliver to local needs and aspirations.
Roberta Blackman-Woods
I need to carry on, as we are running out of time.
Above all, we must remain hopeful that our high streets can be vibrant community hubs, and this is entirely possible if local communities are given the right freedoms. Local people are best placed to decide the kind of high street they want for them and their families to live, socialise and shop in. Writing in The Observer last week, Lauren Laverne reminded us that our high streets provide places of real escape, and as long as they do they remain more than a metonym and are places definitely worth saving. I doubt if the Minister reads her weekly column, but he should. He should listen to her and he should listen to us, too.
Simon Hughes
The Government have taken loads of really good initiatives, and the Minister is right to put them before the House today. It is also clear that some of Labour’s criticisms about gaming issues are completely misconceived, given that it was the Labour Government’s legislation that caused the problem. I supported the motion on reviewing use orders that was passed at our conference, and I hope that the Government will look seriously at the question of use orders in relation to betting establishments—
Simon Hughes
It is not what the motion is all about; it is one of the points in the motion. I am asking the Government to look into the question.