Marks & Spencer

John Bercow Excerpts

Thursday 24th May 2018 Commons Chamber

[The Minister for Energy and Clean Growth (Claire Perry)]

I welcome the chance to address the House on this matter. I pay tribute to the hon. Lady for her chairmanship of the all-party group on textile and fashion, and I commiserate with her on the fact that one of the stores that will be closing is in her constituency.

Who among us is not touched by the hand of M&S? I counted up this morning, and I am in fact wearing three items of M&S clothing—I will not declare what they are. Indeed, my breakfast this morning entirely comprised items bought at the Gatwick M&S after a late-night flight. By the way, I defy anyone in the House not to say that they have at least one item of clothing in their wardrobe from that fine retailer. This is, however, a worrying time.

As the hon. Lady said, Marks & Spencer made an announcement on Tuesday about 14 of its UK stores. This is part of a well-advertised plan to reshape its estates and, essentially, to reshape its stores to compete, given the very big challenges of many online retailers in the country. Five of the stores will close this year or early next year, and all colleagues at those locations will be offered redeployment to other stores. Nine other stores have been proposed for closure, and Marks & Spencer has entered a period of consultation on the redeployment of staff in those stores. All of us will of course recognise that this is a worrying time for the over 600 staff members currently going through that process. I know that there will be concern among Members on both sides of the House about this issue. The Government—the Department for Work and Pensions and Jobcentre Plus—will of course stand by, should support be required, to work with the company.

There have been a number of announcements in the retail sector recently—negative and also positive in terms of job creation. We should all recognise the incredible contribution of this sector to the UK economy—it was almost £95 billion in 2016—and this Government’s ongoing support for the sector. We have announced measures worth more than £2 billion over the next five years to cut business rates, with a positive change to the indexation of business rates.

Only this March, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton (Andrew Griffiths), set up the Retail Sector Council, which is determined to drive up this sector’s productivity and ensure that it is fit to face future challenges. Sitting on the sector council are retailers—large and small; online and offline; in town and out of town—and the unions are of course very much a part of that process. The object of the council is for the Government and industry to work together to drive up productivity, and also to secure our fantastic retail sector’s future health and direction. We are working together on the requirements to make sure that productivity and economic growth in this sector can continue for many years to come.

[Mr Speaker]

I must just say—I probably do not have to, but I will do so anyway—that I share the Minister’s enthusiasm for Marks & Spencer, which is a most admirable institution. What she said about almost every Member having an item or more from Marks is incontrovertible.

[Dr Cameron]

I thank the Minister for her response.

Over the past few years, there has been a cascade of commercial announcements from well-known companies saying that iconic retail high street stores need to close if they are to cut costs: British Home Stores, Mothercare, Toys R Us, the Royal Bank of Scotland and now Marks & Spencer. As chair of the all-party group on textile and fashion, I know that the market is changing, but retail companies need to strike a balance between remaining competitive and understanding the wider implications of closing landmark stores. Marks & Spencer’s proposed store closures—14 imminently, and more than 100 in the next few years—will not only result in thousands of potential job losses, but could devastate our local town centres. It is well known that when anchor stores close, the surrounding subsidiary stores feel the impact of reduced footfall, meaning that many close as well.

Are our high streets to become ghost towns? My constituency has already felt the effects of BHS closures, and we expect to lose 67 jobs if the Marks & Spencer closes. Has the Department made any assessment of the impact of the proposed closures on local economies in Scotland and across the UK? What is the impact on disabled people who find it difficult to travel to outskirt retail parks to shop? Since the report by Mary Portas on saving the high street that the Government commissioned in 2011, how many of its recommendations have been implemented? Finally, will the Minister agree to meet jointly with the all-party group, MPs affected and representatives from Marks & Spencer to facilitate further consultation on these proposals, and to consider desperately needed plans to save our high streets?

[Mr Peter Bone (Wellingborough) (Con)]

I must declare an interest: I am wearing a Marks & Spencer suit, although I do not want to give the House the impression that I am the fashion icon for Marks & Spencer.

Does the Minister agree that it is not all bad? Marks & Spencer has opened a massive store at Rushden Lakes in my constituency. It is hugely successful and employs lots of people. The store is a mixture of retail and leisure. It might just be that times are changing and Marks & Spencer is changing with them.

[Mr Speaker]

In relation to the first part of the hon. Gentleman’s inquiry I say simply this: so am I, and neither do I.

[Claire Perry]

Perhaps there will be a competition at the end of these proceedings to judge who wears M&S best—I am declining all responsibility for that.

My hon. Friend the Member for Wellingborough (Mr Bone) makes an important point. Companies such as Marks & Spencer, John Lewis and other major retailers have embraced this change and worked out how to be fit for the future. Sadly, in other companies—BHS, for example—the corporate management and the level of responsibility that were taken did not prepare the chain adequately for that change, meaning that many jobs were lost. Addressing that is partly the responsibility of the Retail Sector Council.

I appreciate that changes to jobs can be worrying for the more than 600 staff involved, but it is great that one of our iconic British retail chains is prepared to embrace the future, invest, and ensure that it can continue selling us the things that all of us—old and young—would like to buy. I will declare a final interest: I have about 12 Marks & Spencer jackets. They are the perfect combination of cheap and bright, meaning that I could catch your eye, Mr Speaker, when I was standing on the Back Benches.

[Mr Speaker]

Truly the Minister is a woman of the people.

[Bill Esterson (Sefton Central) (Lab)]

My suit is from an independent retailer in my constituency, not from M&S.

The Press Association reported last month that 21,000 retail jobs were at risk in the first three months of the year, with administrations at Maplin and Toys R Us, and store closures at New Look, House of Fraser and Carpetright. We now learn that M&S is to close 14 branches this year, and 100 stores by 2022. As we express our fond memories of M&S, may we remember that 872 members of staff will lose their jobs? We need some sobriety in the proceedings here.

High street retailers struggle to compete against out-of-town and online shopping, given their lower cost base, and that is not helped by the long-term squeeze on incomes under this Government. The Government have their much-trumpeted industrial strategy, but where is the retail sector deal? How do they propose to help the affected communities and high streets? The Government must go much further on business rates because the changes simply have not cut through to make the difference needed by high street retailers. What conversations have the Minister and her colleagues had this year with trade unions that represent retail workers?

Unless the Government are prepared to step in to secure a level playing field between our high streets, and online and out-of-town retailers, more shops will close, more high streets will lose key big-name brands, more communities will lose out, and more workers will lose their jobs. The Marks & Spencer closures show that leaving market forces to their own devices is simply not working, and the Government must ensure that there is a fair market in retail for the good of businesses, workers, communities and our high streets.

--- Later in debate ---

[Claire Perry]

Mr Speaker, you can tell by the vigorous debate on this point the importance of having local government and national Government—[Interruption.]

[Mr Speaker]

Order. There are very unseemly exchanges between Scottish National party Members and Government Back Benchers. All should be united in wanting to listen to the reply from the Minister of State.

[Claire Perry]

This vigorous exchange points to the responsibility that we all bear—Westminster, national and local governments—for supporting our high streets and not using short-term measures, particularly tax-raising measures, that might further drive out the precious high street stores that we are all so interested in protecting.

--- Later in debate ---

[Claire Perry]

My hon. Friend has made clear exactly why the industrial strategy—which, as I have said, sounds a bit “smokestacky”—is actually focused on industries such as retail and hospitality, in which we know we must increase productivity and in which so many hundreds of thousands of staff, many of them women, are employed. That is why the sector council was set up. It has existed for only six weeks, but it has already had several very productive sessions. Ultimately, this is why the move to local industrial strategies, working with local enterprise partnerships and devolved Administrations—[Interruption.] Goodness me. Members are very shouty across the Chamber today. We have already had a discussion about politeness.

[Mr Speaker]

As I said a few moments ago, there is too much shouting between Conservative Back Benchers and members of the Scottish National party. The Minister must be heard. If Members want to squabble, they should not squabble when a Minister, a shadow Minister or anyone else is on his or her feet. Let us hear the answers.

[Claire Perry]

Thank you, Mr Speaker. I will endeavour to be brief.

It is vital for us to develop the national industrial strategy and to make it local, ensuring that mayors, devolved Administrations, local councils and local enterprise partnerships are involved in these decisions.