That this House has considered the future of high streets.
I will call Gregory Campbell to move the motion; I will then call the Minister to respond. I remind other Members that they can make a speech only with the prior permission of the Member in charge and of the Minister. As is the convention for 30-minute debates, there will not be an opportunity for the Member in charge to wind up.
I beg to move, That this House has considered the future of high streets.
When I was considering a title for this debate, I toyed with “High streets: a future?” or “High streets: is there a future?”, but I settled on something more neutral. We had a debate on a similar topic this morning in which many of us took part, such is the concern in almost every town and city across the United Kingdom.
It is not the case that there is absolute and total dereliction in 100% of town and city centres. Some towns and cities are getting by, but they are the exception, not the rule. Many high streets, unfortunately, have a poor look. In some town centres that I know of, there are shops that have been empty for so long that people have received small grants to paint them as if they were occupied. There is a door front, a window, curtains and some flowers painted to make a passer by who does not look too closely think that it is an occupied dwelling, when in fact it is an empty shop and has been so for a number of years.
I completely appreciate the point that the hon. Gentleman makes about the decade of decline for our high streets, but does he agree that initiatives such as high street rental auctions and Pride in Place are putting money back into them? Does he recognise that those are positive schemes for his high streets and that they need to be made more widely available across the United Kingdom?
I agree, and in a few moments I will talk about some of the positive developments, but they are chinks of light, not the answer. I believe that we need to look at this issue much more radically.
I congratulate my hon. Friend on securing this debate. Anchor institutions on our high streets, such as banks and post offices, are disappearing. Across the United Kingdom, 7,000 banks have disappeared, including 11 in my constituency, and post offices have disappeared in my constituency too. According to a YouGov poll, 76% of Britons say that access to a physical bank branch in their local area is important to them. Does my hon. Friend agree that that issue is contributing to the decline of high streets and that steps must be taken to ensure that high street regeneration policy reflects the importance of maintaining anchor institutions to sustain economic stability?
I agree that that is contributing significantly to the downturn.
The hon. Gentleman is being very generous in giving way. I concur with the hon. Member for Strangford (Jim Shannon). The removal of banks from our high streets and village centres in Westmorland has had a huge impact. The relationship with post offices is important. High street banks have saved about £2 billion every single year by evacuating our town and village centres. For doing their work, post offices receive from the banks merely £350 million a year, less than 20% of that saving. Does the hon. Member for East Londonderry (Mr Campbell) agree that to underpin our post offices, which are the centre of our village and town centres, the banks need to pay more of what they have saved?
I agree. The roll out of banking hubs has helped in a small way, but has made only a marginal difference.
The other issue is the difficult problem—or the advantage, as some would see it—of online shopping and its effect on the high street. I go out weekly to distribute my MP business cards on doors in my constituency, in a whole range of areas. On every third or fourth house I see a little Post it note that says, “Leave the parcel in the garage,” or, “Leave the parcel in the porch.”
The hon. Member is making a powerful speech. With reference to the change in the nature of our high street, he is absolutely right that online retail has taken over. Does that not mean that we need to look at a mixed use offer that takes into account things like housing, the impact of health in the area more broadly and general disadvantage, which have an impact on how high streets look and feel for communities?
I do not know whether the hon. Member is a mind reader, but I was about to come to that very point. The prevalence of online shopping has dramatically changed the high street. People are free to take advantage of online shopping, but on many occasions it is to the disadvantage of the high street. On numerous occasions, we have heard about things that can help in a small way. For example, urban improvements such as better seating can make town centres more attractive and bring people in. They do help, but they are on the margins.
In Truro, the city council has bought a property to convert to commercial and residential use. It is using some of its town deal—what would have been Pride in Place money—to invest in properties and restore some of the flats above shops that have been empty for so long. Does the hon. Member agree that that is progress and that it would be good to have more funding available for that sort of thing?
Yes, I agree. When I conclude, I will try to draw some of these threads together into a proposition that I hope the Minister will consider.
Charity shops and vaping shops are now prevalent on many of our high streets. I have sometimes been criticised, unfairly in my view, for being an arch critic of the BBC. I do not regard myself as an arch critic of the BBC: I always say that I commend it when it does well and criticise it when it does wrong or shows bias. If I am seeing more reasons to criticise it—well, I will leave people to pass judgment on which is more accurate. I have to say that in the past few months, though, BBC News has been excellent on vaping shops on the high street. It should not have been the BBC that had to do that work, but I am glad that it did.
The hon. Gentleman talks about the BBC investigation work that has been undertaken in recent months, which has exposed a huge amount of organised crime, including child sexual exploitation, money laundering and links to false asylum claims. Given how the fronts of these shops—so many of them are fronts—are tearing down legitimate businesses and making things so difficult for them, is it time to have a central agency to take responsibility, maybe under the guise of something like the national retail police?
I agree. If we are to see the clampdown that the Home Secretary has outlined, as I hope we do, the problems that we are discussing will not get better in the short term. There will be more vacant shops, because illegal shops will be put out of business. That is a good thing, but we need to ensure that there is no gap and we need to get life back into our town centres.
We are talking about vacant shops, but there is also a lot of antisocial behaviour on our high streets, which in some cases is largely due to the existence of vacant shops. I was speaking to the headteacher of a school in Glastonbury that is based just off the high street. The children there are already vulnerable; they are being exposed to violence and antisocial behaviour on the way to school, and teachers cannot get into school safely because there are altercations and violent incidents daily. Does the hon. Gentleman agree that the current arrangements for managing some prolific and repeat offenders are simply not working, and that we need to make our high streets a safer place?
Yes, I agree, and I will come on to that point. If we make our high streets more attractive to families, to shoppers and to those who live and work in town centres, the vacuum that enables antisocial behaviour will reduce as we increase the number of people in town centres.
The hon. Gentleman is being generous in giving way. Does he join me in congratulating Barnsley market, a local market that is leading the way by bringing health services into the town centre, which is driving up footfall and has led to a thriving community? We will be leading a delegation from the all party parliamentary group on local markets next week, so we can all learn from that example and hopefully feed into the high street strategy.
Yes, I do, and I am glad to hear that. I hope that the Minister can deal with that type of intervention.
I secured a similar debate in Westminster Hall just 18 months ago, but unfortunately things have not improved since then. I believe that what we require is a radical, fundamental overhaul of how we develop our town and city centres. I have listened to the right hon. Member for Makerfield (Andy Burnham), who will presumably be our next Prime Minister, and he has talked about the promise of devolution and more devolution. I believe that that approach offers the opportunity, whether it is in northern England or southern England, for mayors and others involved with the devolution settlement that exists in Northern Ireland, Scotland and Wales to come together in a format that accepts the need for a radical overhaul of our town centres right across the UK.
I thank the hon. Member for securing this debate. Given the current pressures on high streets across the UK, including in my constituency of North Down, does the hon. Member agree that everything should be on the table when it comes to supporting small, independent and hospitality businesses, including measures such as VAT and national insurance relief, and expanding the British Business Bank and the local growth fund to back high street start ups and expansions? Does he also that part of the problem is the growing number of out of town supermarkets, which also affects our town centres?
The hon. Member is right. I agree that edge of town and out of town retailing are having an impact on city centres and town centres.
I give way to my hon. Friend, who I think is the only hon. Member I have not yet given way to in this debate.
“The best till last”—I am sure that was coming. I agree that we need to take a real look at town centres and their problems and issues, but does my hon. Friend agree that the biggest complaint from the businesses that still exist and are still working hard in our town centres is about business rates? He mentioned charity shops; they are rates exempt. He mentioned online businesses; they do not have business rates to deal with and cope with. Does he agree that a UK wide look at business rates is needed and that we should really start supporting our businesses in that way?
Yes, I agree. Edge of town and out of town retailers have the advantage in one sense, while the huge multinational online retailers have the advantage in another sense—and they have both put our high streets at a major disadvantage.
I move on to some of the positive contributions that have been made. In Northern Ireland, our own Department for Communities has a Shaping Sustainable Places programme under my colleague Gordon Lyons, the Minister for Communities. That draws together a range of Departments to try to revitalise town centres and co ordinate more closely on how that can best be sustainably delivered for the future.
Here in Westminster, along with colleagues, I have been pressing the Government for the past 12 to 18 months to complete the future towns fund, as they now have. As a result, Londonderry and Coleraine—one is entirely in my constituency and the other is partially in it—will get £2 million per year over the next 10 years. That is progress and something of a start, but it must become part of a co ordinated approach that includes other Departments and some of the local councils that have been mentioned, to radically reassess where we take town councils in the future.
I hope the Minister will agree that discussions are needed between devolved Ministers and their Departments on whether an agreement can be reached about a pilot scheme in the English regions, Northern Ireland, Scotland and Wales, to see how to transform town and city centre landscapes—not just over the next year or two, but the next decade or two. If the decline continues, it might not be me back here in 10 years’ time—I probably will not be, or anywhere else for that matter—but someone will be, saying, “When are we going to do something to transform and revitalise our town and city centres?” We need a radical overhaul. I hope the Minister responds positively so that various Government Departments and devolved institutions can co ordinate to deliver the tangible change that people want.
I must point out that this is our second debate on this subject on the same day, in the same place and with the same Minister, whom I invite to respond. You will say something like what you said earlier, I guess.
Thank you, Sir John. As I look around the Chamber, I see that some of the Members who were here earlier are still here. I thought I might get away with repeating much of what I said this morning—but then I saw that you were chairing the debate, so I will have to say some other things, but in absolutely the same spirit with which I spoke this morning.
This is such an important topic. I thank the hon. Member for East Londonderry (Mr Campbell) for securing this debate: high streets matter to every Member of Parliament because they matter to everybody up and down the country and across the devolved nations. They symbolise the places where people live, the communities that they are part of and the places that they identify with. They are more than just bricks and mortar; they are also the spirit of where individuals live and the communities that they are part of.
Like every Member here, when considering this debate I thought about the high street in my own constituency. I thought about the brilliant businesses in Barking that I have had the pleasure of coming across since being elected; they include businesses from the beauty industry, which I hosted in Parliament last year, and other businesses too. I thought about the fact that high streets have so fundamentally changed in recent years. The hon. Member for East Londonderry is absolutely right that the challenges we face exist in every corner of the country, but every high street and town centre should be different because they are about the character of that place. We must help different businesses to thrive and give local communities the power to shape their high streets for the better.
The Government are taking action on that, whether through the £300 million of funding to support those efforts or the £10 million used to expand high street rental auctions, which Members have already referenced. That has been successful at tackling the issue of empty shops. We are launching a £61 million fund as part of Pride in Place, and the community right to buy fund is also making a difference.
Unfortunately, Cornwall was unsuccessful in the latest Pride in Place funding round. Does the Minister agree that Cornwall desperately needs a proper devolution settlement so that Cornwall council can fill the many empty shops in Bodmin, in Launceston, elsewhere in my constituency and across Cornwall? The council does not currently have the power to easily put shops back in community use or put them to other excellent uses.
I thank the hon. Member for raising Cornwall; he and his fellow Cornish Members of Parliament make excellent representations. He eloquently set out the case for giving power back to local areas. I know he is disappointed that Cornwall has not secured Pride in Place funding, but he will forgive me for recognising that lots of other places have. They are celebrating that as they should, because Pride in Place funding provides an opportunity for areas to regenerate their high streets. Perhaps even more importantly, Pride in Place provides a different way of doing things, because the boards allow communities to shape what the money is spent on over a longer period of time.
Funding is important, but it is not the complete answer. We need indeed a radical rethink of how high streets work. Although retail remains important, high streets cannot rely on it solely; online shopping will remain, so we need to be more creative, as the hon. Member for East Londonderry recognised. High streets must become more diverse. They need to include hospitality, leisure, public services, and art and culture.
The Minister is making a really important point. Grimsby town centre has diversified what the town centre offers; there will be a new cinema and more activities for families. That all ties into a youth offer with the brand new Youth Zone, a community hub for people in crisis, and town centre housing, which was desperately needed. It is absolutely essential to take a holistic view of how we rebuild our town centres.
My hon. Friend is absolutely right. Diversification is very important in town centres. It drives footfall, which is what keeps high streets alive. Footfall, coupled with having money to spend, will mean that businesses can thrive. The Government are committed to publishing our high streets strategy, which looks at all the elements referred to already in the debate. We have announced funding for innovation partnerships to support local communities to reimagine and revive struggling high streets and make them purposeful and fit for the future.
The Minister is making a powerful point about community partnerships and how we work together. Does she agree that involving the community in decisions about the future of the high street, as we are doing in Gillingham, is really important? It will secure the future of high streets.
I know my hon. Friend’s area well, and she does good work not only to champion it but to campaign for improvement. She is absolutely right: if local communities have a real say, and that is coupled with backing from central Government, we can see real progress in our high streets and towns. That is important not only for local communities to feel ownership and pride; it is also crucial for employment. High streets are often where young people go for their first jobs. Small and medium sized businesses are the backbone of the local economy for many towns, so being able to support high streets, including through the high streets strategy, is a crucial part of the Government’s agenda.
The hon. Member for East Londonderry was absolutely right to talk about the opportunity to relocate public services to high streets, which could improve the accessibility of those public services, as well as drive footfall and boost vibrancy. Many places are already doing that effectively.
The Minister is talking about driving footfall, but driving footfall in rural areas is sometimes quite difficult because of the sparsity. Rural high streets face significant challenges—if car parking charges are forced on our local authorities, for example. Will the Minister outline what specific support she is putting in place to help our rural high streets to thrive?
On car parks in particular, a review is under way; I am happy to write to the hon. Member to set out timelines for when we will have the responses.
The point about rural communities is important, which is exactly why the Government are committing to making sure that while we do what we can from central Government, we really allow communities to shape their own services locally. The density point is important, particularly for rural communities. Banking hubs, for example, have been a real lifeline for communities that have had no banks in their area. As a Government, we have committed to almost 300 hubs; more than 230 have already opened. It is important that we commit to more initiatives like that, so that high streets get the support that they need.
As I say, there are good examples of public services locations. Barnsley, for instance, has opened a community diagnostic centre in its Glass Works shopping centre; that has led to more screenings and fewer missed appointments, and has brought a £3 million boost to the local economy. I could list many examples from across the country that really make the point that the relationship between the relocation of public services and our high streets can be a powerful tool in regenerating our high streets. The Ministry of Housing, Communities and Local Government has been working closely with other Government Departments, including the Department of Health and Social Care, to encourage them to roll out like health centres in other locations.
I recognise that we have to go further. With local community leaders, we have to think about how central Government can be more strategic and purposeful and how we can support those leaders to deliver locally. We have to work with local government and mayoral strategic authorities so that devolution and reorganisation can lead to tangible improvements on high streets.
Local capacity is an issue for local authorities, which is why MHCLG is committed to supporting local councils to shape high streets in a way that works for local residents. We are bringing vacant shops back into use and tackling the perverse incentive that makes shops remain empty. As I said, high street rental auctions have already proved successful—we have been oversubscribed, which is why we are expanding the programme. We are supporting local authorities by upskilling local authority officers so that they can use compulsory purchase order powers to bring landlords to the table, enabling more transformational change for areas that have a particular problem with empty shops. The national planning policy framework is playing a role in some of that work, too.
Finally, I will address business rates. Many retail, hospitality and leisure businesses are grappling with rising costs. We are committed to supporting high street businesses so that they can compete with online and out of town alternatives. Most of that is about appropriate place making, but we are also reducing the burden of business rates on independent high street businesses and introducing permanently lower business rate multipliers for retail, hospitality and leisure properties, giving greater certainty and long term support. The new multipliers are worth £1 billion per year, will benefit more than 750,000 properties and will give long term certainty and support to high streets.
I thank Members for their contributions. I recognise that high streets are a topic that people feel passionate about, and rightly so. They are intrinsic to constituents’ identity and local place. I thank the hon. Member for East Londonderry again for securing the debate.
Question put and agreed to.