Retail Crime

Steve McCabe Excerpts

Thursday 11th April 2019 Westminster Hall

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

It is good to see you in the Chair, Mr Robertson. I congratulate my right hon. Friend the Member for Delyn (David Hanson) on securing this debate and on his thoughtful and comprehensive opening speech. Not surprisingly, much of what I say will echo comments that have already been made. I thank members of the all-party group on retail crime and its former chair, the hon. Member for Wimbledon (Stephen Hammond), who have done so much to raise awareness of the issue both in Parliament and elsewhere.

In my constituency of Selly Oak, shops lost more than £214,000 last year because of shoplifting and other criminal acts. As we have heard, the knock-on effect is equivalent to a tax of about 7% on every consumer transaction. Much harder to calculate, as my hon. Friend the Member for High Peak (Ruth George) indicated, is the impact on owners, family members and staff who are threatened, intimidated and subjected to frequent violent assaults, including murder. Tragically, we recently had the murder of Ravi Katharkamar in Pinner, north-west London—a hard-working family man trying to go about his business.

We know that there were at least 10,000 attacks on shop workers. My right hon. Friend the Member for Delyn cited a higher figure from the British retail crime survey, which suggested that one of the issues is how the crime is identified and recorded. As with a number of offences, there is always some dispute about how a crime is recorded and therefore how much certainty we can have about the volume of particular crimes. As has been said, many of the perpetrators are repeat offenders, and perhaps in some cases regular offenders. They tend to target high-value items or items that are easily disposed of. It is a growing problem. The Home Office’s commercial victimisation survey reported that such crimes in the retail and wholesale sector had doubled between 2016 and 2017, and the same study also revealed at least half a million assaults and threats against retail staff—about 250 a day.

Part of the problem, as we have heard, is overstretched police services, which have substantially fewer resources. In the west midlands alone, we have seen the loss of 2,000 officers since 2010 and cuts to the budget of about £175 million. Our own chief constable has publicly admitted that his force can no longer cope with the range of demands made on it. Against such a background, we need a new approach to the issue of retail crime.

I certainly agree with my right hon. Friend the Member for Delyn that, first, we have to recognise the scale of the problem, its financial impact on consumers and businesses, and its effect on ordinary people just trying to go about their business, earn a living and provide a service. There are about 46,000 convenience stores in the UK, of which 72% are operated by independent retailers or as part of a symbol group such as Spar, Nisa or Costcutter. They provide flexible employment for more than 365,000 people and 24% of shop owners work more than 70 hours per week. It is not easy, and they deserve a better deal.

On recognition, we need an agreed definition of business crime, so that all police forces record such crime to the same agreed standard. My right hon. Friend referred to the retail crime survey, which reported something like 3.5 million incidents of retail crime in 2017. At the same time, official statistics recorded only 382,000 incidents of shoplifting, which implies that there is massive under-reporting of the crime or that there is a recording issue.

Interestingly, if we add the definition of robbery, we get nearly 12,500 further incidents per year, and if we add the definition of burglary, we come up with another 7,000. There is an argument for agreeing a common definition that would allow us to get a better grip on what is happening. That would go a long way to identifying the real scale of the problem and might end the false debate about whether there are significant regional variations, which is not entirely convincing—it may be more of a recording issue.

The fact that the police will not investigate shop thefts with a value of less than £200 is virtually an incentive to offend. As my right hon. Friend the Member for Delyn said, because of stretched police resources and different ways of dealing with things, I understand how we have ended up in the situation where those who are caught with stolen goods worth less than £200 are fined and allowed to pay by post, but frankly that reduces it to the status of a parking offence. Psychologically, it decriminalises the activity, which is why people think it is not as serious as it genuinely is. His call for a review is essential in the face of the growing crime levels.

For years, before I came to this place, I worked with young offenders, and I spent a lot of my life arguing for out-of-court disposals and community disposals, but the problem with out-of-court disposals in this area is that offenders are repeatedly issued with cautions, conditional discharges and small fines for committing almost identical crimes, so it has no impact. We should at least introduce proper banning orders, so that people who commit repeat offences in that way are banned from specific shops or retail areas. We have to find a way to curb the repetition of the activity.

Where those who are engaged in these offences have obvious addiction problems, we have to place more emphasis on that and make more effort to deal with the addiction issue. My right hon. Friend referred to the reduction in the numbers from the last year of the Labour Government to last year. There must be pressure on the courts to recognise that that is a problem and to ensure that the sentence sets out to tackle the addiction issue. A disposal that pushes that to one side is of little value and, again, is an incentive to repeat that behaviour.

Those who threaten, intimidate and commit violent attacks on shop workers should be charged with an aggravated offence. There should be an additional penalty and it should be made abundantly clear that they are not able to get away with that. My right hon. Friend mentioned the request by the Association of Convenience Stores for a pledge from police and crime commissioners. Next year, we have an election for the police and crime commissioner in the west midlands—in fact, I think that there are elections in other parts of the country as well. I will certainly demand such a pledge from all candidates in the west midlands election, and will encourage all shop owners in my constituency to do the same. We want a clear and unequivocal commitment to prioritising the tackling of retail crime and violence against shop workers.

I have a pretty good relationship with the current police and crime commissioner, David Jamieson, who is doing a good job. I looked at the police and crime plan for 2016 to 2020 while I was thinking about this debate. It is quite an impressive document of 40 pages, which deals with all sorts of important issues—road traffic injuries, mental health, young people and animal cruelty—but I could not find a single reference to retail crime, shoplifting or violence against shop workers. To be fair, page 6 refers to

“working with companies and other partners to reduce overall business crime”,

and on page 27 there is a section on supporting economic development, which also refers to working with companies.

My right hon. Friend the Member for Delyn said that 25 of the commissioners have not signed up to the pledge. The same ACS survey shows that only nine of 40 police and crime plans explicitly refer to retail or business crime. That is simply not good enough. We want a pledge from all candidates at the next election that if they win, the plan will contain a section about tackling retail crime and shop worker violence. It should detail what they will do to address the issue.

I, like my right hon. Friend, acknowledge that the Minister has indicated her interest in this subject and her determination to improve the situation, for which I thank her. Ideally, we would see the production of a new retail crime prevention strategy, drawn up in conjunction with the sector. We need a strategy that expands on who has responsibility and what items are required to crack down on crime. We have heard about some of the good initiatives, such as that in Manchester and those of USDAW, ACS and the Central England Co-operative, which I understand is seeking a meeting with the Mayor of the West Midlands combined authority, Andy Street. If he is listening, he has an opportunity to get in on the act and help out.

We need a strategy that expands on who has responsibility for what and itemises the steps that are required to crack down on crime. I would like to see a process in which MPs get a monthly or bi-monthly constituency-level report that shows the hotspots and trends, so that there is a constant focus on taking action and utilising the measures that prove successful.

As we have heard, we must do more to help both smaller and independent stores, and encourage the Government to look at additional ways of helping to fund new and better security equipment for smaller retailers. There is a tendency to view the proceeds of crime funds as the answer to everything these days, but that money is derived from the actions of criminals, so maybe that is an area from which we could draw a little additional funding to support smaller retailers. I understand that they already spend something like £5 million of their own money on such measures. That is quite a lot for the owners of small shops, many of whom barely scrape a living—they are not rich people in any sense. We need these businesses; they provide crucial services. These people work very long hours and deserve our support.

--- Later in debate ---

[Victoria Atkins]

My intention is to publish it in the autumn. I ask all right hon. and hon. Members to spread the word through their networks and encourage local shopkeepers to contribute to the consultation, because the richer the tapestry of evidence that we have, the better we will be able to respond.

The call for evidence is supported by a wider package of measures. The Home Office is providing £50,000 of funding for a targeted communication campaign, led by the Association of Convenience Stores, to raise awareness of the existing legislation to protect shop workers. We have published guidance on gov.uk about the use of impact statements for business, which provide victims with the opportunity to tell the courts about the impact a crime has had on their business. From my experience of working in the criminal courts, I know that those statements can make a huge difference and have a real impact on judges as they are considering how best to sentence offenders.

We have also worked with the police to develop guidance for staff and retailers to use when reporting emergency and violent incidents. As I say, I encourage everyone with an interest to respond to the call for evidence, including shop staff who have been directly affected by violence and abuse at work.

Interestingly, the hon. Member for Ogmore (Chris Elmore), who is sadly no longer in his place—he may be in the main Chamber—made a wider point about courtesy and the use of language. I am sure that we all consider that an important point that we will encourage people to remember as they visit our shops. Shop workers deserve politeness and courtesy, as does anyone else in this world. The example was given of an item of stock running low, which can be frustrating, but we should try to behave with courtesy.

I will quickly touch on the issue of police funding, which a couple of hon. Members raised. It has largely been a debate of great collaboration and agreement, but I must point out that police funding will increase by more than £1 billion in 2019-20, including, with the help of council tax, extra funding for pension costs and the serious violence fund. The Home Secretary has also stated that he will prioritise police funding at the next spending review.

[Steve McCabe]

Does the Minister accept that in the west midlands, the increase in the central grant for police funding will be entirely eaten up by dealing with the pension funds? That will mean that the same consumers who are paying the 7% tax on crime will also pay the council tax for any improvement in their policing position. In the west midlands, that is a standstill position.

[Victoria Atkins]

As the hon. Gentleman knows, we have given specific money to deal with the increase in pensions. I think he would agree that it is important to make sure that our police officers have their pension rights adhered to and honoured.

Furthermore, in the west midlands, we recently had a meeting with the police and crime commissioner and the chief constable to talk about measures to tackle serious violence, which is a particular problem. I was therefore delighted when the Chancellor granted an extra £100 million to deal specifically with serious violence. I am sure that the hon. Gentleman’s area will benefit from some of that.

I am delighted that the new hon. Member for Newport West (Ruth Jones) joined us. I was most interested to hear her intervention. I hope she will urge her police and crime commissioner to spend some of his reserves, which stood at £56 million as of March last year, because that or just a bit of it could go some distance. I am sure she will do that as a good new Member of the House of Commons.

The national business crime centre is a significant step in tackling business crime more generally. We recognise the importance of ensuring a co-ordinated response to crimes against businesses. That is why we have supported the national business crime centre, which launched in October 2017 with the support of Home Office funding through the police transformation fund. The centre provides information for police forces and businesses, offers a targeted alert service to support businesses nationally and facilitates national consistency in the management of business crime. It has proved to be a valuable resource for all businesses, not just retailers, and continues to provide essential guidance and support nationally. The resources include advice, examples of things that retailers can do to prevent crimes and training for staff to defuse potentially violent situations to help protect businesses, staff and customers alike. I urge Members to see whether the centre can be of assistance to shops and businesses in their local areas. In addition, the Home Office runs its commercial victimisation survey, which is an important measure of business crime as well.

One of the six points that the right hon. Member for Delyn made was about gathering good practice. There is a great deal of good practice already in the system. For example, many business crime reduction partnerships operate across England and Wales and bring significant benefit to their members, the wider community and the police. We have heard about other schemes, such as Pubwatch and Shopwatch, which the hon. Member for Bradford South (Judith Cummins) mentioned. There is also BusinessWatch and Radio Link, which I saw for myself in the constituency of Erewash. I liken such schemes to a form of vaccination. If every shop in the local area participates, the whole community is strengthened and empowered through the scheme’s operation, but if one or two businesses do not sign up, it weakens the overall strength of the community response to these crimes. We are keen to encourage such schemes. The hon. Member for Birmingham, Selly Oak challenged police and crime commissioners to make retail crime a priority. I agree with him; the point of police and crime commissioners is to set local policing priorities. I encourage Members to raise the issue with their PCCs.

The hon. Member for Strangford (Jim Shannon) highlighted the importance of the response of local businesses. Indeed, there is lots of good practice from individual businesses that shows a very positive impact, such as the use of CCTV, which he rightly mentioned. It is much cheaper than it used to be. One plea to everyone who uses CCTV is to maintain it and replace the tapes. I know that seems a small, practical point, but regrettably investigations sometimes show that the CCTV evidence is not there because the machines have not been kept up to date. As long as businesses are able to do that, it is of real benefit. Some stores have invested in body-worn cameras to help to reduce levels of violence and abuse towards staff.

The hon. Member for Stoke-on-Trent Central made a point about the future high streets fund, which is £675 million to support local areas in England to invest in town centre infrastructure and to support redevelopment. He made an interesting point about whether the fund could be used to help with security, and I am happy to look into that for him.

My hon. Friend the Member for Chichester (Gillian Keegan) is sitting behind me. She takes a keen interest in these issues, but because of her commitments cannot contribute verbally to the debate. She has reminded me that we have business improvement districts, which are business-led partnerships created through a ballot process to deliver additional services to local business. Improvements may include extra safety and security. In Chichester, all retail and other businesses contribute a 1% levy, and some of that money is used to fund walkie-talkies to act as a security system for support for workers. There are many examples out there of interesting schemes. They may differ in their applicability to different areas, but there are schemes out there that may help, if Members are interested.

The right hon. Member for Delyn rightly raised the issue of drugs and alcohol, as did other Members. We know that drugs can devastate lives, ruin families and damage communities. Our approach to drugs remains clear: we must prevent drug misuse in our communities and support people through treatment and recovery. Although drug misuse is at similar levels to a decade ago, we are absolutely committed to reducing it and the harm it causes. We have done that through, for example, the Psychoactive Substances Act 2016. Since it came into force, more than 300 retailers across the UK have either closed down or are no longer selling psychoactive substances. That has helped to remove the presence of such substances from our high streets. Of course, there is more to do. Our drugs strategy sets out our approach, bringing together the police, the health community and global partners to tackle the illicit drugs trade, protect the most vulnerable and help those with a drug dependency to recover and turn their lives around.