High Street Regeneration and Unlawful Storefronts

I beg to move,

That this House has considered Government support for regenerating local high streets and removing unlawful storefronts.

It is a pleasure to serve under your chairmanship, Ms Vaz, and a delight to see so many Members present to talk about this important topic. High streets matter: they are one of the most significant topics in UK society and politics today, because our town centres are a barometer of the vitality of all the areas that we represent, both economically and socially, for good or for ill.

Town centres are changing. There has been a perfect storm: retail habits have changed since e-commerce set in the best part of two decades ago, and social habits have changed as a result. In many areas, we have seen a hollowing out of high streets and a different type of retail moving in, often with different problems. Low-grade retail and the decline in investment in the public realm are significant factors in the vitality of the areas that we represent. The British public have clear opinions: 79% of Brits are concerned about the decline of high streets and town centres, 65% believe that there are not enough shopping options and 68% believe that there are too many vape shops, barber shops, charity shops and mini-marts in their communities.

We have to think about why footfall in retail has declined. There is the effect of internet shopping, which is very much a normal part of life nowadays. We must also acknowledge the increasing costs that businesses face, including business rates, utility bills and rising labour costs. It is a perfect storm: I do not think that anyone across the House would deny that high streets are under probably the most acute pressure in living memory.

I congratulate the hon. Gentleman on his success in securing this debate, which I suppose is indicative of the crisis that he is talking about. I have secured a similar debate this afternoon on a directly related issue. This demands not only our attention, but immediate Government action, because in 10 years’ time we will not know the high street as we have known it in the past 10 years.

I congratulate the hon. Gentleman on securing a debate later today. He is absolutely right: the pressure and stress that high streets are under mean that, on the current path, they will be unrecognisable in a decade.

I congratulate the hon. Gentleman on securing this important debate. He mentioned vape shops, barber shops and mini-marts. He will be aware of the evidence that some of those enterprises are masking quite serious organised crime on our high streets. This has been a decades-long failure in regulation. The cracks between which the issues fall, between different agencies, is immense. Does he agree that greater action is needed on the joint taskforce that this Government have now set up, and that we should also look at some of the commercial private landlords? We should ensure more regulation on them to check who is renting the properties that they let out.

The hon. Member is correct: without doubt, a strong regulatory failure over the past decade has contributed to the problem. I will address some of her points later in my remarks.

There is also a rural/suburban distinction. In rural areas, the British public have a stronger opinion: about 55% of people in predominantly rural or semi-rural areas believe that their high street is undergoing a decline, whereas the figure for those living in urban areas is only 19%.

Let us look at some of the stats that back up the evidence about the narrowing range of high street retail across the country. There are now believed to be at least 3,500 nail bars, 20,000 to 25,000 barber shops and 3,500 vape shops. As we are all aware, those numbers could well be significantly under-reported, so they do not necessarily give an accurate picture of the extent of the challenge. On Oxford Street alone, a mile or so from here, there are 18 American candy stores.

I thank the hon. Member for securing this important debate. The issues that he highlights exist across the country. A common struggle for hon. Members across the House is that we cannot find out who owns these buildings on our high streets. I have approached my council, but it either does not have the information or is not willing to share it so that we can regenerate our high streets. Does the hon. Member agree that we need mechanisms to ensure greater transparency and due diligence so that these landlords can take some ownership?

The hon. Member is correct. At the centre of a Venn diagram of regulatory and reporting blackspots, there is a sweet spot where it is difficult to identify those who are responsible behind the building ownership or the so-called businesses appearing on our high streets as a consequence of the pressure that I am outlining.

Another consequence that is being discussed across the House is the decline of vital services in our areas. Some 7,000 banks have closed across the country since 2015, which is two thirds of the entire banking network. We have all heard stories from constituents who are increasingly dependent on retail banking presence. There has been a push towards banking hubs, and the Post Office performs a role to some extent.

Does the hon. Member agree that in rural areas we need a lot more banking hubs, because the banks are going, and that we should scrap business rates for start-ups and independent businesses? Rural communities are losing shops big time.

The hon. Member is correct that the issue is acutely felt in rural areas. I am delighted that the Conservative party has put forward a plan to abolish business rates for thousands of small businesses, including shops, pubs and hospitality businesses on the high street. I will come on to some solutions to the challenges we face.

There are 1,400 postcodes across the country that do not have a bank within a 5-mile radius, which demonstrates the scale of the challenge. One in seven high street shops across the country are currently empty. An estimated 38 businesses close every day. When businesses close, there are job losses, with an estimated 93,000 retail jobs lost in 2025 alone. In the hospitality sector, it is reported that up to 5,000 jobs are being lost per month. I make a plea to the Government to change course on the additional costs that they have placed on small businesses across the country. They are unquestionably killing employment and putting greater pressure on the long-term viability of those businesses.

I am grateful to the hon. Member for securing this important debate. York is fortunate that two thirds of its high street businesses are independent, but they are really struggling at the moment, not least because of the costs pressing on their finances—particularly business rates, which have gone up incredibly steeply. Does the hon. Member agree not only that businesses are laying off staff, but that they are not recruiting staff, which is vital for the regeneration of high streets? We need the Government to take an overview and make a plan for regeneration, as my right hon. Friend the new Member for Makerfield (Andy Burnham) made the case for just yesterday.

The hon. Member is an ardent champion of her constituency. It is reassuring to hear that her area has a strong and thriving independent sector, but she is right that the first rung of employment for so many has been pulled away from that ladder, in large part because of choices that this Government have made. Small retail businesses have reduced recruitment, and in many cases they have had to let people go because of the pressure on them.

Another reason why the debate about town centres matters, as hon. Members have touched on, is that far too often our high streets are becoming a very visible front for illicit or illegal activity. That is a problem in plain sight that none of us can deny.

Does the hon. Gentleman agree that the closure order powers that we have in this country are not fit for purpose? Until local authorities have the power to act swiftly and decisively, organised criminals will continue to exploit our high streets with impunity.

The hon. Lady is correct: the tools at the disposal of the state are not used often enough, there are not enough deterrents and there is not enough strong and visible action to clamp down on this behaviour and prevent such instances from recurring.

Will the hon. Gentleman give way?

I will make a tad of progress, if I can.

The Office for National Statistics has reported that in 2025 there were 530,000 shoplifting offences, an increase of 20% on the previous year. That is the highest figure on record, and it does not take into account crimes that are not reported because there is a general malaise or a suspicion that they will not be investigated. I read a similar stat from public authorities that only 50% of shopkeepers report crime, while a staggering 55% of reported cases are closed without a suspect ever having been identified. That is despite retailers having spent £300 million on measures such as security, CCTV and facial recognition to mitigate the effects of shoplifting.

It is believed that up to one half of vape shops and a large proportion of American candy stores have ties to organised crime. The scale of the problem is unquestionable; we all recognise it. Over the past 12 months, 3,600 shops have had illegal goods seized, and it is estimated by the National Crime Agency that £1 billion of criminal cash is laundered through high street retail. The scale of the problem is undeniable, which brings me to the question of what we can do about it.

I am genuinely interested in hearing what fellow Members have to say, so before I continue I will give way to my right hon. Friend.