High Street Businesses

I beg to move,

That this House has considered Government support for high street business.

It is a pleasure to serve under your chairmanship, Sir Desmond. High streets and town centres play a huge role in our communities. They are a place where people come together, they define our sense of place, they can be a source of local pride and they can be home to a huge number of jobs and opportunities. Retail is the largest private sector employer in the UK. When coupled with the hospitality sector, they are some of the biggest drivers of social mobility. There are endless stories of those who started as shelf stackers or pint pullers making it to the boardroom, with jobs that are accessible to all and where hard work can pay off. Then there are the small family businesses—the people-powered engine room of our economy, with individuals who dared to take the risk and have a punt, who get up early to drive their businesses forward, creating jobs while adding colour, flavour and vibrancy to our town centres.

In recent times the rise of online shopping and changing consumer habits, coupled with the cost of living, have created a challenging environment for many businesses operating on our high streets. It is for that reason that now more than ever we should back the great British high street. It is also why it is so astonishing that the Government’s Budget not only failed to back our high streets, but actually seems to be beating them into extinction. The national insurance tax raid, the slashing of small business rates relief and the ending of the community ownership fund will do irreparable damage to our high streets, and that is before we mention the impact and costs of the Employment Rights Bill.

In the last Parliament I campaigned for the 75% relief for leisure, hospitality and retail businesses. That was game changing for many, but with the stroke of a pen the Chancellor slashed that relief, ending the lifeline that was thrown to many employers. It is estimated that that will represent a 140% increase in business rates for more than 250,000 high street premises in England. The average shop will see business rates increase from £3,589 to £8,613. The average pub will see its business rates increase from £3,938 to £9,451, and the average restaurant will also see its bill rocket from £5,051 to £12,122. That is a huge cost for small businesses in an already challenging environment that will prove insurmountable for many. But it does not stop there.

The Government’s national insurance tax raid—their jobs tax—is doing exactly what everybody said it would do. Job losses in the retail sector are already mounting up. Tesco has announced plans to axe 400 jobs. New Look is expected to close as many as 91 stores.

I am grateful to my hon. Friend for bringing forward this debate. The point he makes is a really important one. He has mentioned New Look and Tesco. I think we have already heard comments from Marks and Spencer; HSBC is another group. We are hearing of job losses from some of those big high street names, but smaller businesses are affected as well. Does he agree that we cannot simply keep squeezing and squeezing businesses and thinking, “Well, they are making lots of profit; they can pass it on to their customers.” We squeeze them out of business, which means loss of jobs, loss of vibrancy on our high streets and loss of that sense of community that is so, so important.

As a former Woolies worker, I know only too well the consequences for businesses. Not only are we squeezing many businesses out of a future; there is a cost to be paid on the prices in those stores and costs on those jobs and the opportunities that they provide for young people and others to get on in life. There are huge costs to what has been done. We can only squeeze so far. The pips are definitely squeaking in retail.

Sainsbury’s has announced plans to axe 3,000 jobs. Retail and hospitality are already two of the most taxed businesses in our economy, but the sectors employ large numbers of people in entry-level or part-time roles, so are disproportionately hit. A CBI survey of business leaders found that 62% are slashing hiring plans. Almost half will be forced to lay off staff, and 46% are looking to delay pay rises for their workforce. Almost every Labour Government in history has left office with more people out of work than when they arrived. With these measures it looks like the Government are trying to set a record. All too often we see employment figures as numbers, but the jobs that will be lost as a result of this measure are not just numbers; they are families without the security of a pay packet, people stripped of ambitions, dreams and aspirations and left on the scrapheap.

The commercial director at the British Independent Retailers Association gave a realistic but depressing summary of what the Budget means for retailers. He said it was the

“Worst Budget for the high street in my 35 years working in retail”,

and that it showed a

“complete disregard for the thousands of…shop owners who form the backbone of our high streets. Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases; their business rates will more than double…while they’re hit simultaneously with employer National Insurance increases.”

Dena, a constituent of mine who runs a small high street business, is seriously concerned about the possible removal of small business rate relief. Does the hon. Member agree that a commitment from the Government about the future of rate relief would give reassurance to high street business owners like Dena?

The hon. Member is right. For many small businesses, the specific relief for leisure, hospitality and retail has already been slashed from 75% to 40%, the end consequence being a more than doubling of what they are paying. It is just not affordable for businesses that are struggling to carry on employing people and doing business, especially with the other challenges that come their way. It is simply not affordable. It is the wrong thing to do, and it has a cost for our communities and those employers.

As I said, funds such as the community ownership fund were not just about a lick of paint but turning around vacant and lifeless high streets, and they created community spaces that were valued, restoring pride in our towns. What is more, community-owned assets are estimated to contribute £220 million to the economy each year.

My constituency of Stockton West saw real progress under the last Government in taking our town centres forward. In Thornaby, the £23.9 million town deal we secured from the last Government has allowed us to achieve many things, including the creation of a new vocational training centre, security and energy interventions in some of the most challenging housing, upgrades to cycling infrastructure and much more. It is allowing us to build a new swimming pool in the town centre, which will drive footfall to businesses.

For years, Thornaby’s skyline was dominated by the eyesore that was the disused Golden Eagle hotel, but now, thanks to money from the last Government and following a long debate with the council, it is finally coming down. Those moves are game changing for Thornaby. They will drive further footfall to local businesses and restore pride in our town centre.

My hon. Friend is demonstrating what a great champion he is for Stockton West and why he has a reputation in this place for being one of the hardest-working MPs in Teesside. Does he agree that high streets are a lifeline for our local communities? In the Scottish Borders, I am fortunate to have a whole number of small and vibrant high streets, but their businesses are being hammered, not only by the Labour Government’s tax hikes through national insurance but the SNP Government’s tax hikes through business rates.

I could not agree more. Looking at the value of high streets, it is not just about businesses and jobs. They are places where people come together, and they can tackle isolation. There is also the feeling of pride in our town centres. Businesses only have so much money to give in tax, and it is going that bit too far now, to the point where we will lose businesses forever.

I will carry on my list of wonderful things that are going on in Stockton. In Yarm, levelling-up money from the last Government has meant that we are seeing nearby Preston Park improved and upgraded with new exhibition spaces. There are upgraded toilets, a café and more parking. We are sorting the disused aviary and creating a tribute to our railway heritage. This will drive visitor numbers to our area and complement the changes taking place in the high street, where we have seen the town’s skanky public toilets replaced. Streetscape interventions are planned to make the town centre more accessible, and we have gained a much-needed car park. The levelling-up money from the last Government has also helped the town council in Yarm to deliver on its ambition to renew our town hall, creating a visitor centre fit for the amazing high street that Yarm has.

In Stockton, £16 million of future high streets funding has allowed for the complete reconfiguration of our high street, also making way for our new £25 million diagnostic hospital. Securing the money for the diagnostic hospital remains my proudest contribution during my time as an MP, because I know the huge difference it will make to the people of Stockton. We ran a petition and gathered thousands of signatures to demonstrate public support. I was involved with the NHS trust and local authority officers drawing up the bid at its inception, and, when the bid was initially rejected due to a prolonged delivery timetable, I met the Secretary of State to hear his reasoning, and then, that same day, met directors from all the stakeholders to come back with a renewed timetable and a plan to unlock this investment.

We will start with an informal limit of five minutes.

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Stockton West (Matt Vickers) on securing this important debate.

I will focus my remarks on Scottish high streets, which should be the beating hearts of our communities, because thriving high streets, and the businesses based there, promote thriving local economies. More than that, they promote a thriving civic culture, a genuine sense of pride among people about the place in which they live and the community that they are part of. Yet, right across Scotland, our high streets and our main streets have seen better days. But the decline of these high streets, main streets and town centres is not inevitable, and communities across Scotland are already taking innovative action to arrest that decline.

I will share just one example from my constituency. I recently had the pleasure of visiting West Calder and Harburn Community Development Trust, which is transforming the iconic Central Bakery in West Calder into the Scottish Co-operative discovery and activity centre. It is an incredible £6 million project that will create jobs, investment and training opportunities in the area, and will honour our co-operative roots.

A few months ago, I met with the traders from West Calder, and they have a vision for the main street that is about solidarity among their businesses, supporting each other to grow and thrive. Projects and businesspeople such as those demonstrate that, with vision, energy and determination, the decline of our town centres and high streets is far from inevitable—and, more than that, that rejuvenation is possible.

My hon. Friend is making an excellent speech, because, for too long, places such as Slough have been painted with empty and boarded-up shop faces. Local businesses are of course at the heart of our community, but, after over a decade of cuts by the previous Tory Governments, and rampant antisocial behaviour, they have been struggling, and have been left hollowed out. Does my hon. Friend agree that allocating more resources and attention to places such as Slough high street is more vital than ever to boost the confidence of local businesses and residents and help revitalise town centres?

Yes, I completely agree with my hon. Friend. I also think that his point about antisocial behaviour is a strong one; these town centres and high streets need to be places where people feel safe and want to spend time with their families.

As I was saying, the rejuvenation of our high streets and town centres is possible, but the problem in Scotland is that the Scottish Government have failed to share that vision, energy and determination. Sadly, there has been little in the way of action from the SNP but—as always with the SNP—over its 18 years in power there has been no shortage of reports. Since 2013, we have had the national town centre review, the town centre action plan, the town centre action plan year 1 progress report, the town centre action plan year 2 progress report, the town centre action plan review, the “A New Future for Scotland’s Town Centres” report, a joint response to that report with the Convention of Scottish Local Authorities, and the town centre action plan 2, which is a response to that response. Little wonder then that David Lonsdale, the director of the Scottish Retail Consortium, spoke recently on the need for coherent policymaking. The fact is that Scotland’s town centres are yet another casualty of the SNP’s mismanagement and chaotic government.

In a rare moment of consensus, I agree with the hon. Member’s criticism of the SNP Government. Does he agree with me that one of the changes that could be made in Scotland is to the planning system? If we allow our high streets to be more flexible in how they respond to challenges, that is a way to get new life into something that has been traditionally at the heart of the community.

I completely agree. We need to be much more creative about how we use the units. Some of these businesses, frankly, are not coming back to our high streets so we should be honest about that and look at other options such as childcare, co-working spaces and housing in town centres to help rejuvenate those places and get them into action. That creative policymaking in planning is absolutely required.

The Scottish Government can take a number of steps. First, we need a level playing field between the small businesses based on our high streets and the global online retailers. Secondly, as has been discussed, more thought needs to go into the housing stock being built in our towns. With many buildings left empty, it is right to relax planning rules to make it easier to convert shop fronts into flats, while still ensuring quality housing for their residents. Thirdly, the way people work now has changed, and our town centres must reflect that, so we need to prioritise superfast broadband in our town centres. Local planning should also take childcare into account, ensuring the businesses can thrive in the places to be. Fourthly, councils should be encouraged to use the powers available to them to make ownership data on high street properties public, so that the community has the opportunity to step in and take over some units. Finally, as my hon. Friend the Member for Slough (Mr Dhesi) said, town centres will never thrive unless people feel safe in them, so a focus on safety is key.

All those ideas can perhaps contribute to making our towns better places to live; none would constitute a revolution, but they would be revolutionary for millions of people because, for too long, main streets in towns and villages such as Fauldhouse, Broxburn, West Calder, Uphall and others in my constituency have been neglected by the SNP Government. This can change: we can refresh and rejuvenate our high streets, but it will require fresh and rejuvenated leadership.

Order. We have done our sums; Members have three minutes each.

I would thank you for calling me, Sir Desmond, but you have given me a real challenge. Nevertheless, it is a pleasure to serve under your chairmanship. I thank the hon. Member for Stockton West (Matt Vickers) for securing this important debate.

We all know that for generations, high streets have been at the heart of our communities—providing spaces for our local businesses to thrive, for social connections to flourish and for economic growth to be driven from the grassroots, yet across the United Kingdom, high streets are in decline. Businesses are closing at an alarming rate, there is crime and antisocial behaviour, depressing footfall, and outdated business rate systems stifling local enterprise.

In my constituency of Surrey Heath, we have numerous high streets across market towns and villages, all of which are interconnected to a larger ecosystem. Camberley, our historic market town, has struggled to grow over the past five years. Despite being just 28 miles from central London, the town centre is suffering from increased vacancy rates, crime, antisocial behaviour and public infrastructure that persistently fails to meet the needs and expectations of local businesses and residents.

Our high streets should be hubs of activity, but they have been undermined by the long-term absence of Government support and mounting economic pressures. One of the greatest challenges that I hear about from local businesses is related to the broken business rates system. In 2025-26, for example, despite paying business rates in excess of £30 million, businesses in Surrey Heath will see just £900,000 of their contributions re-invested into their local community, which is just 3% of the business rates raised. The vast majority of revenue raised through business rates is spirited away from the place of generation and collection by central Government.

My hon Friend is making a fantastic speech. He will know the importance of pubs to our high streets, particularly in rural areas, to drive footfall and support our rural economies. I spoke to a tenant of a pub in Castle Cary who is trying to develop a community space for social and cultural cohesion, at a time when the town is growing quite significantly. Does my hon. Friend agree that the Government’s proposed changes to business rates for properties with rateable values above £500,000 are potentially ruinous for many pubs on our high streets and in our rural villages?