High Streets: Autumn Budget 2024

Motion made, and Question proposed, That this House do now adjourn.—(Gen Kitchen.)

It is an honour to secure this debate on the autumn Budget’s impact on high streets as my first Adjournment debate, not just because it is such a vital topic but because it is a topic dear to my heart. In my maiden speech, I shared the story of helping my mum on the shop floor, and it seems only fitting that my first Adjournment debate is on our high streets.

Every night after school, and most weekends, I helped out in my mum’s gift shop. I remember chatting away to the staff, the customers and our neighbouring businesses. I remember late nights sorting out items to donate to the local charity, and the summer when I offered to run the shop myself.

I also remember what happened when the economy turned, having to pack away stock and move to smaller premises because it was that or closure. I remember helping my parents with the mortgage as a teenager, gleefully buying broken biscuits as a family and only now, later in life, realising how much work my parents put in to keep a roof over our heads and food on the table.

After many successful years, during which several premises were opened, the cost of retail and business rates, the competition from online giants and the decline in consumer spending was too much. My mum could not beat them, so she joined them and took her business online. In many ways, it was a relief for the family. It was a simpler way of continuing the business, but it was hard to see the store close 30 years after she first set up shop.

My hon. Friend is right about how sad it is to see high street shops close, such as the one in which she used to help. We have seen local councils invest in Cullompton’s high street, but this is sadly offset by the shop closures. Will my hon. Friend make some recommendations on what the Government could do to prevent some of these shop closures?

The heart of this debate is about making sure we look after those businesses and the many more that could open.

My story shows why this debate is so important to me. I know that the story of our high streets is the story of our local communities.

Will the hon. Lady give way?

I will make a little progress.

Both for the families behind the doors, and for the families and local people who shop there, our high streets are truly at the heart of the community. I have the honour of representing seven high streets across Harpenden and Berkhamsted, and I am grateful to the local businesses that responded to my survey ahead of this debate. Today, I am sharing their voices, as well as the impact the Budget will have on their businesses, their livelihoods their families and our community.

Responding to my small business survey, a local business in Street said that high employer national insurance contributions is one of the major challenges and that it could force them to cancel some of their investment plans. Does my hon. Friend agree that the measures being proposed do not encourage growth and could instead push more high street businesses to close, significantly impacting the already fragile rural economy?

Absolutely. Sadly, the desperation that came through in my survey shows that a lot of businesses are very worried about their future.

Motion made, and Question proposed, That this House do now adjourn.—(Gen Kitchen.)

I call on Victoria Collins to stand so that she can take Mr Shannon’s intervention.

I will take the hon. Gentleman’s intervention.

From 1959 to 1979, my mum and dad had a shop in Ballywalter, and they had a shop before that as well, so there is a history of having shops. I will take the example of today’s high street in Newtownards. National insurance contributions, wages, theft and attacks on shop staff are all issues now being faced there. Does the hon. Lady agree that the high street needs help today like it has never needed it before?

Absolutely; that is very much in line with the feedback I had from businesses. Indeed, it is with much disappoint that I share the impact of the autumn Budget on my local businesses. It is no secret that the Conservatives left our economy in a mess, and many of our businesses are still reeling from that. That is exactly why it is important for the Government to get this right.

Many of the proposals in the autumn Budget will not lead to growth on our high streets. I would like to have faith that Labour intended to do the right thing and that these are unintended consequences. I hope that the Government heed some of the warnings and take action to mitigate the impact and change course. In the words of one director in my constituency,

“it is a disaster…all planned investment has been cancelled, expansion plans cancelled. Prices will go up on 1st April by at least 10%. And we’re looking at ways to reduce staff count.”

Does my hon. Friend agree that the high streets of Tiverton and Minehead, as well as those of every other constituency in the country, will be hurt by this Government’s decision to lower the amount of relief offered to retail, hospitality and leisure businesses from 75% to 40%? Does she also agree that they should instead be looking to replace business rates with an entirely new commercial landowner levy, rather than tinkering around the edges and making an already bad system worse?