Independent Retailers

Simon Danczuk Excerpts

Wednesday 24th November 2010 Westminster Hall

[Mr Cox]

My hon. Friend’s experience is, I think, replicated in dozens of constituencies around the country, and I fully understand her concern. What I am asking for is a co-ordinated approach. The Departments for Communities and Local Government and for Business, Innovation and Skills, and the Treasury, need to get together and think about the high street as a separate issue. That would include looking at planning decisions and guidance, and considering what we could do about charity shops, for example.

[Simon Danczuk (Rochdale) (Lab)]

I, too, congratulate the hon. and learned Gentleman on securing this very important debate. I also congratulate the Government on producing their document about a health check in town centres and on the high street. It is a valuable document, and of good use.

On charity shops, I had a look at the hon. and learned Gentleman’s website before I came here today. It rightly says that charity shops are better than empty shops, and I agree, but the proliferation of charity shops in my constituency of Rochdale has reached the point at which they become a problem. So in respect of planning regulations, I urge the Minister and the Government to consider giving local authorities the power to determine the number and location of charity shops in their areas.

[Mr Cox]

I agree with the hon. Gentleman, to a large extent. The main issue that I have heard is that charity shops are selling new goods. More and more charity shops are setting up on the high street, and instead of selling the donated goods of many hundreds and thousands of well-wishers, they are selling a whole range of brand-new goods—often sports goods and clothing.

It is not hard to understand the chagrin, confusion, dismay and disappointment of a shopkeeper, selling the same product lines, on hearing that the charity shop next door has been given not only the mandatory 80% relief, but the other 20% that the local authority can give. The charity shop might, therefore, be paying no rates at all. Its waste is treated as commercial, but the private shopkeeper is unable to have their waste treated thus, and it would seem to the struggling shopkeeper—who, after all, will be here in many years and is supplying a vital service for the community, bringing about a sense of well-being and contributing to the local economy—that the playing field is not even.

I do not suggest, as the hon. Member for Rochdale (Simon Danczuk) noted, that we should be anti-charity-shop, but I do propose to the Minister that we need to look at a protocol for local authorities, which would allow them to consult local shopkeepers about the product lines that might be sold in a charity shop. Such consultation would help, but equally we need to look at whether charity shops that are selling brand-new goods should receive the rate relief that they currently do.

--- Later in debate ---

[Lorely Burt (Solihull) (LD)]

I shall be brief because another hon. Member wishes to speak before the start of the winding-up speeches. I congratulate the hon. and learned Member for Torridge and West Devon (Mr Cox), who spoke with passion, knowledge and humour and is a true crusader for his cause. I particularly agree with him on rates. The Liberal Democrats would like eventually to move to a system of site value rating, but I totally agree that raising the threshold at which rates are paid would be a good start to help retailers. I believe that the Minister will confirm that automatic rate relief is in the coalition agreement and we will be implementing it soon—the sooner, the better.

The state of the country is very bad. As the hon. and learned Member for Torridge and West Devon mentioned, 12,000 independent shops closed in 2009. When people buy their consumables in the local economy, 50% to 70% of that money stays in the local economy. If they go to a large retailer, £7 of every £10 that they spend will leave the local economy. It is therefore very important that the Government give a lead on public procurement. There is a Government aspiration that 25% of procurement will come from small businesses. What is the proportion now and what steps are we taking to achieve that? I commend the Federation of Small Businesses, which has been a tireless campaigner on this matter, particularly with its “Keep Trade Local” campaign. That has been tremendous.

I want to ask the Minister a couple of other questions. Many retailers export, but when I was reading the Department for Business, Innovation and Skills business plan the other day, I could see no mention of support for retailers or small businesses seeking to export—unless of course it is arms that are being exported, which seems to be all right. Also, the hon. and learned Member for Torridge and West Devon talked about the local government role in assisting small business. It has been perceived in the past to be more of a hindrance than a help, although I am sure that that was not intentional.

[Simon Danczuk]

I want to make the point about local government in relation to Rochdale. About two years ago, I suggested that Rochdale council introduce free parking across the town centre. It eventually introduced that a few months ago, with much reluctance on the part of senior council officers—it is not so much elected members who are the issue. I have to put it on record that the credit goes to a Conservative councillor, Ashley Dearnley, who had to drive that change through the local authority. Free parking on a Saturday is not the complete solution, but it does help.

[Lorely Burt]

Absolutely. I could not agree more with the hon. Gentleman. The point of local government is to show good political leadership.

The hon. and learned Member for Torridge and West Devon talked about the needs test and the local interest test, which would be a tremendous help. If we had that now, we might not have the situation that we have in my constituency of Solihull, where a huge Asda is being built on 3 acres of parkland on the main shopping street of Shirley. Will that stimulate custom for small independents on the rest of the high street? I doubt it. I think that it will bleed them dry, but we shall have to wait and see.

I welcome the help that the Government are already giving. With regard to regulation, we have the one-in, one-out policy and the sunset-clause policy and all the other aspirations that we are moving strongly towards. I would like to suggest consideration of small business as an automatic part of any pre-implementation review of new regulation and of the post-implementation review. It would be very good to build that into whatever legislation we produce.

With regard to the banks, I have a constituent who has an independent retail company. She applied for some help from the banks and was told, “Sorry. You’re in the wrong sector.” My right hon. Friend the Secretary of State for Business, Innovation and Skills is examining that, and I hope that he has a good go at ensuring that the banks give small business, independent retailers and everyone else who needs it the help that they deserve.