High Streets

Stephen Pound Excerpts

Tuesday 1st March 2016 Westminster Hall

[Stephen Pound (Ealing North) (Lab)]

I have heard of competition on the high street, but here there seems to be competition between high streets. I congratulate my hon. Friend the Member for York Central (Rachael Maskell) on making a persuasive case. I can almost see her on one of those 1930s rail posters, saying “Come to York, to Bishy, and live.”

Were any Member who is here today to stroll down to Westminster station, hop aboard the District line, take the scenic route to Ealing and alight at Ealing Broadway—at Haven Green, where many a scene from the “Carry On” films was made—and then to hop on the E2 bus, they would come to Pitshanger Lane, which won the Great British High Street award for best high street in London. In every shop and retail premises on the lane, there is a letter from the Minister, signed personally by him, congratulating us. I have tried to take some credit for it, but the credit goes to the organisers and the local council, to the Pitshanger Village Traders Association and the three active local councillors—particularly Lynne Murray and David Rodgers—and also to John Martin, from the local estate agents, who has done so much work for it.

The important thing is that a massive change is happening in high streets, before our eyes. Throughout the 1980s barns on the bypass seemed to be the thing. We had planning policy guidance almost encouraging people to move out of the city centre. We had inward-looking malls that did not encourage any interaction. They did not encourage people to walk through but were inward-looking, defensive and negative. They are not fit for purpose any more. Those malls are usually too small—people need bigger retail space—and not specialist enough. What is happening in the high street today is dramatic, and it is almost a case of the Government needing to follow behind the change, which is happening organically. There are many things that the Government can do, which have been mentioned by the hon. Member for Fylde (Mark Menzies). I appreciate that I should not refer to him as my hon. Friend, but he is my friend, and I am grateful to him for raising the matter.

There are things that the Government could do to encourage things that are already happening in the high street. High streets are specialised, with more high-end, quality smaller retailers. In my part of the world we have butchers and bakers and the marvellous Pitshanger Bookshop, which has managed to survive despite the depredations of the internet. If the major internet book suppliers paid a little more tax, there might even be a level playing field; but such shops survive. There is also more pedestrianisation, and it would be marvellous if cycling were encouraged. We have a lot of empirical data about high streets and if there is one thing we know about pedestrians and cyclists it is that, although you would not think they would be major purchasers, they are. That is why we need public transport and a different sort of high street. We also need housing on the high street. What is wrong with emulating Pitshanger Lane, and having housing in the high street itself—getting totally away from the inward-looking mall and the barn on the bypass, and into something more organic, structured and accessible, from which it is easier to operate?

I would not be a member of my party were I not to mention in passing the potential horror and devastation that the relaxation of Sunday trading laws could bring. It is an appalling proposal, which I hope all right-minded people will immediately oppose. [Interruption.] I hear the hon. Member for Strangford (Jim Shannon) vociferously commenting. When the Sunday trading laws were relaxed at the time of the London Olympics we gained all the empirical evidence needed to show that retail sales declined in and around the area. We could see it happening. Oxford Economics calculates that we will lose 3,000 jobs if we relax Sunday trading.

[Gavin Robinson (Belfast East) (DUP)]

The Association of Convenience Stores carried out a survey of chief executives, and asked how they would use the powers if there was a relaxation: 52% said they would use them to support out-of-town shopping centres as opposed to high streets. Is not that a disgrace and something that highlights the intrinsic danger of the proposals for our high streets?

[Stephen Pound]

I am grateful for that point, particularly as when the hon. Gentleman was Lord Mayor of Belfast he was a proud champion of the retail sector, in a fairly challenging environment. I entirely agree, and we should perhaps give the Association of Convenience Stores credit for the detailed briefing it has circulated, which provides a great deal of evidence.

The business rates situation will never satisfy everyone. People will always want zero business rates for themselves, and 100%-plus for their competitors. We must calculate on a more subtle, sensitive basis, because at the moment our approach is too broad-brush. Local authorities should have more freedom and a greater ability to encourage people by giving holidays, to help them come into an area. That was brought dramatically home to me in August 2011 when we had riots in west London. How could the local authority and the Government encourage traders to get back on their feet? We did a lot, and to be fair—though it sticks in my craw to say so—the Mayor of London stepped up to the plate. We all came round together on that occasion, with the Mayor’s relief fund, but would not it have been wonderful if the local authority had been able, without suffering a capitation cost, to provide the opportunity for people to go back to the high streets on a rate-free or rate holiday basis?

I have said that the high street is changing; there are premises on the high street nowadays that we would simply not have recognised previously. There are showrooms for online providers, which I never thought I would see. There are places where people can deliver and collect parcels. I am not a great customer for fine clothing but it is quite good to be able to pop into a shop to see what a suit looks like. In my case obviously any suit would be an improvement, but it is good for people to be able to see the goods and not just to have their order whispering through the ether on the internet.

I have a couple of things to ask the Minister. First, I ask him to look at the high street in its totality and not just from the point of view of business rates and charity shops, important as those issues are. Will he consider it from the point of view of transport? The second thing that any trader I talk to on my patch mentions, after business rates, is parking. We must address that issue. I apologise, because I appreciate that York and Fylde have powerful cases, and powerful advocates to make them, but the problem in London is horrendous. Stop and shop schemes and other developments like that are very important. The issue is one on which the Minister, for whom I have a lot of respect, needs to do some cross-departmental work with the Department for Transport, the Department for Business, Innovation and Skills and various other agencies, to pull things together.

We also need relaxation of the use classes orders. At present, the variation that local authorities have been given has not been effective. Local authorities do not have the ability to use the old classifications they could use before; and the consequence is a proliferation of a particular sort of trader. As the former leader of one of the largest councils in London, Mr Chope, you probably know more about this than I do; however, I understand that there are restrictions on funeral parlours and off-licences, but no general restrictions. Why cannot the local authority have some input into the range, type and style of premises opening on the high street? I have no objection to having 29 cappuccino bars in the high street—but frankly it is 27 too many. I am not sure that we need them. I appreciate that the flinty-eyed, hard-hearted Adam Smith devotees on the Government Benches might say, “Let the market decide”—that is fine, but I think the market can work with the state and the council on this, in everybody’s interest.

I want to see the continuation of what is, in fact, a renaissance of the high street. I want to see that not only on Pitshanger Lane, which is a wonderful place that I would advise anyone to visit, but on Greenford Avenue, Greenford Road and Yeading Lane. I want to see it throughout my constituency and throughout the country, from Fylde to York and everywhere else. To do that, we need the chance to take it seriously.

The renaissance of the high street has not been easy. It is the result of a great deal of work from a lot of dedicated councils and councillors and, above all, local people, local traders and the local community. They need a little bit of help and encouragement. We are looking for a bit of fiscal generosity in the Budget, in order to encourage the people on the high street who are holding the line at the present time and enable them to expand and extend what is, after all, an absolute miracle; it is not only a renaissance. Look at the modern high street: it is a sight to behold. When looking at the modern high street, we must look at it in Ealing.

[Rosie Cooper (West Lancashire) (Lab)]

In Skelmersdale, we would love a high street. There are plans for a town centre development that currently consist of just one building, yet the owners of that building are fighting tooth and nail to stop the development, despite 90% of the retail spend going outside of Skelmersdale. Does my hon. Friend agree that sometimes the protection of individual interests, as in that case, damages the wider benefits for all residents and the community? The town and its community should come first, and we need extra help to make that happen.

[Stephen Pound]

If I have learnt one thing in my many, many years in politics, it is to never comment on internal Skelmersdale matters; that has been my watchword. Fortunately, the area is represented by an excellent Member of Parliament, and I have every confidence in my hon. Friend’s analysis.

I will close by making one last request: will the Minister consider the reinstatement of the retail rate relief scheme, which provided relief to all businesses with a rateable value of £50,000 or less? It was a good scheme that everybody supported, and it was very helpful. I thank the Minister for his work, particularly on the Great British High Street competition. He is something of a legend in Pitshanger Lane, and he can have a free cup of coffee in many a premise there, but I ask him to consider the reinstatement of the retail rate relief scheme.

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[Sue Hayman (Workington) (Lab)]

I am delighted to be able to speak in this important debate, secured by the hon. Member for Fylde (Mark Menzies).

As far as I am concerned, high streets are only going to survive as long as the shopping experience they offer is better than the one offered elsewhere. To me, that experience includes an element of convenience, such as affordable close parking, which hon. Members have mentioned, and a variety of shops within easy walking distance of one another. There is also a social element to the experience, as the cafés, bars and pubs that are also part of our high streets are places where people can meet and relax. The important thing about our high streets is that we get a personal service. We have face-to-face interaction and we get to know our local shopkeepers.

Retail is a competitive business, and it is no business for the weak-hearted. Most independent shops such as the ones in my constituency—in Cockermouth and Maryport, for example—are run on modest finances, and they make their owners a living rather than a fortune because margins and profits are tight. Government policies aimed at supporting and reinvigorating our high streets need to focus on reducing the cost burdens on retailers. We have talked about business rates, but the Government need to increase the opportunities for business owners to invest in and expand their businesses.

The two town centres in my constituency that I would like to talk about briefly are Cockermouth and Maryport. Maryport has a wonderful town centre, with fantastic examples of Georgian and Victorian buildings. It has a lovely harbour and a proud Roman history, and I would like to invite everybody to come to the blues festival held there in the last weekend of July.

[Stephen Pound]

We’re going to be busy, aren’t we?

[Sue Hayman]

We certainly are.

Despite all that has happened in recent years, Maryport still struggles. It has some excellent independent shops, but it also has a lot of charity shops, which have been mentioned, and too many empty units to be the thriving centre that it deserves to be.

Last time I was there, a local shopkeeper said to me that she was fed up with people thinking that her shop was a charity shop, because there are too many charity shops in the area where her shop is. Specialist independent shops are the anchor of our high streets and are a key factor in encouraging people to come in and shop there, and that also includes local pharmacies. We have an excellent local pharmacy in Cockermouth called Allison’s, which is really concerned about some of the Government’s proposals on pharmacies, so if that could be taken into consideration, I would be grateful.

We need to look at the significant increase in internet shopping and the impact that that has on our town centres. Town centres can compete by offering the great shopping experience that I have talked about, but internet companies really do need to pay the same taxes, so that they do not have the different profit advantages that they currently have.

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[Stephen Pound]

I apologise for my southern ignorance, but I am not familiar with “charrette”. Will the hon. Lady explain what it means?

[Alison Thewliss]

I do not think it is a Scottish word. It is a process by which community organisations come together to discuss their future plans for an area, which then become part of the planning process. The community starts on that and builds it together, which is a positive way of doing things.

[Stephen Pound]

Sounds good to me.

[Alison Thewliss]

It seems to be working quite well. It is fairly new to Scotland, but communities have really embraced it. It needs support from local councils and other people, but it is worth doing.

Hon. Members have stressed the importance of business rates in the mix of encouraging community development. The Scottish Government have also accepted that. The fresh start relief was introduced in 2013 and gives occupiers of shops or offices that have been empty for at least a year a 50% discount on their business rates for 12 months. Other reliefs include new start relief of up to 100% to owners and developers of new build empty properties for up to 18 months to encourage speculative development and investment, and to help to increase the supply of new premises for businesses in communities. These reliefs are provided on top of the small business bonus scheme, which has been excellent in Scotland.

The hon. Member for Rochdale (Simon Danczuk) mentioned business rates and removing them for small businesses. The small business bonus scheme applies to businesses with a rateable value of £35,000, with a scaled relief system up to £35,000. If the rateable value is under £10,000, no business rates are payable, which is really good for small businesses, particularly in these difficult times, and has been a great success in encouraging small business development. Across Scotland, the small business bonus scheme delivers rate reductions for 100,000 firms, with 46% of rates bills removed or reduced. Councils in Scotland also have the ability to reduce rates through the Community Empowerment (Scotland) Act 2015, so greater flexibility is provided.

The Scottish Government are moving towards a review of non-domestic rates to make sure we are supporting investment and growth in Scotland. The Scottish Government are absolutely committed to ensuring that town centres and high streets across the country are hubs of innovation, community cohesion and social interaction.

Hon. Members today have referred to opportunities to offer something different for our town centres, not just malls, to which the hon. Member for Ealing North referred. There has to be a range of different things, whether coffee shops in Strangford or jazz festivals in Maryport. Different things are going on in different parts of the country. There are many different opportunities to offer something different from the large malls, with a bit of additional value to make town centres somewhere that people go to and, more importantly, spend money in. The Government have a big role to play in creating the conditions for that to happen.

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[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

It is a pleasure to serve under your chairmanship, Mr Chope. I congratulate my hon. Friend the Member for Fylde (Mark Menzies) on initiating this important debate. It has been an extremely good debate, and I thank him for bringing this matter to the House, because it provides an important opportunity for me to set out the Government’s vision for the future of our high streets and town centres. I am passionate about our high streets and town centres and how important they are to local communities and local economies. This is a critical moment for our town centres, and I am dedicated to giving local authorities, local enterprise partnerships and local communities access to the tools that they need to transform their local areas.

High streets and town centres play an essential role in facilitating the creation of jobs and nurturing small businesses. In fact, a recent Association of Town and City Management report showed that town centres contribute nearly £600 billion to UK plc each year. The Government have taken significant action to support town centres to drive growth. Since 2010, we have helped to create more than 360 town teams, and given more than £18 million to a number of towns. That is on top of a range of steps including supporting the phenomenally successful “Love your local market” campaign.

We have introduced a package of important financial reliefs for small businesses, such as a £1.4 billion package of small business rates relief. We are now reviewing the future structure of business rates. That all goes hand in hand with reforms on parking and the lifting of planning restrictions to increase flexibility of use on high streets, making it easier for high streets to adapt to the needs of their communities. Additional rights now support click and collect, which has not been the enemy of the high street as all had feared. Rather, research is showing that click and collect is driving people back to the high street.

News shows that high streets across the country have fought back valiantly from the great recession. Recent data show positive footfall trends in most locations, and year-on-year retail sales have increased for 33 consecutive months—the longest period of sustained growth since 2008. According to recent statistics, the national vacancy rate is now at a level not seen since December 2009.

[Stephen Pound]

On that point, has the Minister done any research on the impact of the relaxation of the Town and Country Planning (Use Classes) Order 1987, to which he referred in passing? I have not seen any beneficial consequences but I am interested in whether any analysis or work has been done that could be shared with the House.

[Mr Jones]

I have a number of points to cover but I will say, very quickly, that the relaxation is showing benefits, particularly where redundant offices are being converted for residential use. As the hon. Gentleman mentioned, that is now an important part of the high street. Areas that do not want to go along with the relaxation of planning regulations can invoke an article 4 direction if they so wish.

I am keen to continue celebrating the passion and commitment found in high streets and town centres up and down the country. We have recently celebrated the success of the Great British High Street competition 2015, and have been bowled over by the quantity and quality of the entrants. This year, applications almost doubled as more than 230 high streets applied. I hope that figure will more than double again for next year’s competition and I am looking forward to seeing lots of entries from across the country.

I hope that a number of hon. Members here will promote their local areas. We have had a healthy spirit of competition in the Chamber today. It is good to see Lancashire against Yorkshire. It is not necessarily the war of the roses but many of our local areas competing, which is healthy. Examples include Bishy Road in York, which was the winner of this year’s competition, as the hon. Member for York Central (Rachael Maskell) mentioned. By working collaboratively, local traders have turned around an area that was once run down and suffering from chronic vacancies into a community hub where local people now shop, meet their friends and tweet about how great it is to go to the famous street parties. That is great news. As I understand it, the traders are even looking into developing a community app to allow people to browse their shops and see whether their friends are nearby on Bishy Road, which is a fabulous idea.

Public reaction to the Great British High Street awards has been absolutely incredible. Nearly 200,000 people voted in the competition and there were more than 30,000 tweets about it, which shows just how much people value and care for their local high streets.

While there is a lot of good news for high streets, in some places retail spaces that have seen better days remain. The Government cannot and will not rest on their laurels, and I am working hard to develop a range of support to help high streets thrive. I strongly believe that we have reached a crossroads for high streets and town centres. We need to act to make them fit for purpose for today’s consumer.

My vision is for high streets to be vibrant and viable places where people live, shop, use services and spend their leisure time during the day and in the evening. The Government aim to promote mixed high streets with a stronger range of retail and leisure and, crucially, more residential opportunities.