My Lords, this Government recognise the very real pressures facing high streets and town centres, from long-term vacancy and rising costs to crime and changes in how people use town centres. That is why we are backing councils with long-term investment through the £5.8 billion Pride in Place programme, and with new powers such as high street rental auctions to tackle vacancy and shape high street uses, strengthened community right to buy, and bringing forward a cross-government high street strategy later this year, backed by at least £150 million. Together, these measures give councils the funding, powers and flexibility that they need to drive regeneration locally and restore pride in place.
My Lords, Pride in Place is a programme delivering to 300 communities over the next 10 years. In those next 10 years, what financial support will be available to those hundreds or maybe thousands of communities across this country that are not included in the scheme but whose high streets are also struggling, mainly due to the Government’s policies, taxes and national insurance increases?
I think that might be more due to 14 years of letting high streets sink into decline. However, the places that are subject to Pride in Place funding will also be joined by the new cross-government high street strategy, which will look at all high streets. This will be backed by £150 million of targeted support, which will help to tackle some of the structural issues holding high streets back and the challenges facing retail, leisure and hospitality. We will align policy across government and strengthen our councils’ roles as leaders of place-based regeneration. We will develop that with councils, businesses and communities. We recognise that there is no one-size-fits-all for high streets, and this builds on our commitment to pride in place everywhere.
My Lords, I declare my interest as the executive chairman of Iceland Foods. Does the Minister accept that it is retail businesses which are the catalyst that make a high street thrive? Yet many fail to survive because of the outdated Victorian taxation system of business rates, which are simply too high. Although the recent reduction in the multiplier is welcome, the balance between bricks and mortar retailers and online giants remains badly out of kilter. Will the Minister do all that she can to speed up the rollout of a new, fairer system that we promised in our manifesto and consider including an online sales tax? I say that as one of the biggest online retailers in the UK.
I was tempted to ask whether my noble friend wanted to answer the Question rather than me; I am sure he knows a great deal about high streets. I thank him for his support for the new business rates multipliers announced at the Budget. The new multipliers replace the temporary relief that has been winding down since the pandemic. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability. There will be no cap, meaning that all qualifying properties on high streets across England will benefit. The Government are introducing a higher rate on the most valuable properties, which he rightly pointed out should and will include large distribution warehouses, such as those used by online giants. The high-value multiplier is 33% more than the multiplier for small RHL properties. We are carefully considering representations to the call for evidence, which asks for much more detailed evidence on how the business rates system influences investment decisions. I hope that will result in some movement on business rates.
My Lords, the Minister will be aware—obviously, because it has been discussed already—that pubs are a vital part of the high street. Is she also aware that, since Labour came to power, on average one pub per day has closed? A total of 10,000 jobs have been lost in pubs and hospitality. This Government came in on an agenda for and a commitment to growth. What has gone wrong?
We do have an agenda for growth, but we are having to tidy up the mess that was left behind before we can achieve it. We are introducing the hospitality support fund, which has been more than doubled to £10 million over three years, helping over 1,000 pubs to diversify, boost productivity and support people into hospitality jobs. Those measures sit alongside business rates support and the wider planning and licensing reform that we have introduced.
My Lords, initiatives such as “health on the high street” in Doncaster, where the NHS uses buildings in the city centre to provide scans, blood tests and physiotherapy, are a very good way of drawing people into the city centre and regenerating the area. Will my noble friend the Minister talk with the NHS and other departments about how initiatives such as this can be spread to other areas and help with overall regeneration?
My noble friend is quite right. One thing that happened as a result of Covid was seeing vaccination centres, for example, introduced into high streets. In my own regeneration scheme, part of the plan was to have a healthy hub in the middle of the town centre so that people could come and get their health treatment there. I absolutely understand the point that she is making. I talked about the high street strategy, which will be a cross-departmental strategy. I know that the Secretary of State for Health and Social Care is determined to have neighbourhood health hubs and I am sure that our discussions will consider how we can incorporate those into high streets.
My Lords, will the Government look at implementing a commercial landlord levy, which would help small businesses by moving the cost from them on to commercial landlords? It would also have the benefit of ensuring that landlords have an incentive to fill vacant units.
We are very keen to make sure that vacant units get filled. We have introduced lots of powers to enable councils to do that, but we also recognise upward rent pressures. Many landlords have upwards-only rent reviews now, so we are bringing in a step in the English devolution Bill to make sure that there are no more upwards-only rent review clauses by which rents can only stay the same or rise. We are legislating to ban those in order to help smaller retailers have more stability in their outgoings.
My Lords, I hate to be a killjoy, but will the Minister accept that she has no hope of regenerating our high streets unless she works closely with the Minister from the Home Office to sort out the ever-increasing infection of streets full of county lines drugs and drug dealing? The shops that call themselves Turkish barbers, vape shops and everything else are cash only and have no interest in business rates. They are not paying business rates. They are destroying our high streets and our way of life. What is she doing to work with the Home Office to change this?
I do not share the noble Baroness’s pessimism about high streets. It is perfectly possible to re-energise our high streets. We are already working with the Home Office, and one of the things we are doing is stopping the shoplifters’ charter, introduced by the last Government, of discounting or decriminalising thefts worth under £200. We are also providing over £7 million to support the police in tackling retail crime, including continued funding for a specialist policing team to tackle organised retail crime gangs and identify more offenders. Through the Crime and Policing Bill, we will scrap that failure to prosecute shop thefts worth under £200. We are also introducing more training for the police to identify illegal trading and fraudulent shops, and supporting trading standards officers through more funding to local government.