High Street Regeneration and Unlawful Storefronts
Debate between Alex Brewer and Susan Murray(4 weeks ago)
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Alex Brewer (North East Hampshire) (LD)
The small businesses that my hon. Friend is talking about make up 84% of store closures nationally. That trend is felt very much in my constituency, as I am sure it is in hers. Does she agree that the Government must urgently reform our business rates system before those independent businesses vanish from our high streets entirely?
Susan Murray
I absolutely agree with my hon. Friend on business rates.
I have heard repeatedly from businesses in Mid Dunbartonshire that they are unable to afford to hire young people and give them their first experience of work, or that they have had to cut their hours due to rising costs. At the same time that they are being hit by rising costs and static VAT thresholds, they are competing with online giants that pay a fraction of the tax they pay. Amazon’s five main UK companies paid just 7.1% corporation tax last year, while our main high street businesses are expected to pay 25%.
The Government have the ability to put us on a different path by cutting VAT for hospitality and attractions. Our cafés and restaurants are the beating heart of the high street. They bring footfall, they create atmosphere, they give people a reason to go to town centres, and they create community. A great example of this is the Bookmonger at Bearsden Cross, which celebrates its first birthday on 11 July. Aside from transforming the Cross with a new, fresh business idea, Caitlyn, who owns the business, is a cancer survivor who raises a lot of money for the Beatson cancer centre in Glasgow, and I hope that this business can also survive.
The Government should close loopholes that allow online giants to pay a fraction of the tax that our high street traders pay in full. We cannot ask local businesses to compete with not only the economies of scale that those conglomerates bring, but a tax system rigged to punish those who play by the rules. The sad truth is that the soul of our town centres is being slowly eroded: businesses are taxed into administration, their customers have moved online and our favourite shops are slowly replaced by the neon signs of vape shops and barbers. The Government have a choice to back our local businesses.