Independent Retailers

Anne Marie Morris Excerpts

Wednesday 24th November 2010 Westminster Hall

[Anne Marie Morris (Newton Abbot) (Con)]

After such a bravura performance by my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox), it is with some trepidation that I contribute to the debate. This is a very worthwhile topic, and I would like to contribute my view that the solution is a matter not just of what local authorities can do or what the Government can do—as has been said, many of these issues are within the hands not of the Minister, but of a number of his colleagues. The solution is also in the hands of people. In that respect, we can look at the role that the big society can play for small business, because I think it has a place.

In the south-west, we have a high number of small businesses; indeed, 91% of businesses employ fewer than five people. This debate about the small retailer is therefore crucial to us. Unlike my hon. and learned Friend, I will include the small villages in my constituency —there are 30 of them alongside the four towns—because these problems also exist in those villages. Small retailers, particularly in those small villages, are the lifeblood of their communities. They can be like the local pub, which is too often long gone. They can also be like the local post office, which is, again, too often long gone. I am therefore pleased that local residents in Stokeinteignhead have come together to found and now run a volunteer system to keep the local shop in their community. That helps elderly residents, who will come in—perhaps a little confused—to do their shopping. The shop also produces newsletters. It does all sorts of things that mean that that small retailer is at the core of the community. I reinforce the points that have been made about colour, diversity and, indeed, identity, which we need to retain not only on the high street, but in villages. That is a key issue.

The Independent Retailers Confederation has looked at the issue and come up with a number of thoughts, which I can perhaps share with the Minister. The confederation represents 100,000 small businesses, which is no small number. It has categorised its findings into five key areas. I will not spend a lot of time on each area, because hon. Members have already covered a lot of these points very well. In fact, there are six areas, and I want to explain what they are. They include planning, which we have touched on; skills training, which we have not touched on, and which I will come back to; regulation, which we have touched on in part; crime, which we have also touched on in part; and access to finance. To that list of five, I would add taxation. Business rates must, of course, be key. I will go briefly over each of those subjects.

On planning, there is clearly an issue about the power of the supermarket. There is also the issue of charity shops, which has been well rehearsed. When the Secretary of State for Communities and Local Government begins to look at the overall shape of planning, I want him to consider localism and the power that he intends to give to local communities to make proposals for plans and for what they should look like. I would encourage him to ensure that the plans consider not only housing, but businesses. We will help to shape the planning of our communities if those plans look at businesses as well as residential. If they do that, they will say, “We want one supermarket here, not two.” In one town in my constituency, Dawlish, we have an ongoing battle between Tesco and Sainsbury’s, which is a waste of taxpayers’ money and deeply frustrating for local residents.

I would also commend the greater use in our communities of the community land trusts. We look at them just as vehicles for residential, but they are equally appropriate in this context. I would encourage the Government to market such things better and to explain to local communities what they can already do.

On parking, which, if I may, I will envelope within planning, there are a number of very good schemes in other parts of the country—I regret that they are outside Devon—that combine the idea of a loyalty card with the idea of sharing parking. I absolutely take on board the point that local authorities will often use parking as a milch cow. However, there are schemes that allow shops, working with the local authorities, to increase the revenue and put some of it back into the local community. I commend those ideas.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady agree that of all the six critical factors that she is speaking about, parking is the most important, because it shapes what happens in the town? There is not a one-hat-fits-all approach, whether we are talking about out-of-town, out-of-town-centre, in-town-centre or off-town-centre parking. The chamber of trade must be involved in these issues. There is also the issue of the connection between the centre of the town and the edge of town and the issue of regeneration. There are many things to be done, and the same hat does not fit everything when it comes to planning.

[Anne Marie Morris]

I thank the hon. Gentleman for his contribution. I think that that is an issue, but it is not the most important one, as I will explain.

The second issue is Training Access to training for retail skills is pretty rare. I am pleased that South Devon college, which is in my constituency, has a course on retail skills, and I would like the Government to encourage more such courses.

Let me move swiftly on to the third issue, which is regulation. As I am sure many Members are aware, it is estimated that it takes the average retailer seven hours a week just to deal with regulation, and that can cost them anything from £100 to £10,000 a year. This is about not just employment regulation, which is clearly one of the most onerous issues, or health and safety, but issues such as the minimum wage and how pension schemes will change. We need to look at the perhaps unintended consequences of the new shape that regulations will take when the Government put them forward.

The fourth area is crime. This is probably a well-known statistic, but crime and theft cost the retail sector £2 billion a year nationally. Two issues have been raised by the Independent Retailers Confederation: one is antisocial behaviour, which has been covered by the hon. Member for Vale of Clwyd (Chris Ruane); the other is theft. The challenge in dealing with the problem is that a theft does not happen until the culprit leaves the premises. How many small shopkeepers wait until the individual has left the shop to apprehend them? The answer is that they do not. They keep the individual there and call the police. The result is that there is no prosecution and police time is not particularly well used. There must be a better reporting method, and it must be possible to find a legal approach that is a better deterrent than the system we have now.

I am saddened that only two of the large banks are making significant progress with the lending guarantee scheme, and I look to the Minister to encourage more on that front. However, something that the banks suggested, which I think is very helpful, would be the introduction of a new mentoring system that would ultimately replace, in a way, much of what Business Link, which is being phased out, used to provide. That would provide excellent support for the retail sector. I suggest that such mentoring should be something we can see—the big society for small business in action. In my constituency I have considered getting local businesses together and asking them to help each other. Business surgeries are being set up, and local business men and women, as well as local banks and others, will be involved.

We are also setting up a group of individuals who will act as one-on-one mentors—not expensive, paid-for, qualified mentors, but local business men next door to other local business men. For example, the other day a business man wanted to become VAT deregistered and did not know how to go about it; a colleague had the answer. There are all sorts of things that we can do, and politicians can play a role in our communities. I am pleased to say that I have a great deal of support from my local chambers of commerce.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I am pleased to serve under your chairmanship, Mr Weir, and congratulate my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox) on securing the debate. Given that banks are not lending as much as before, and small business is being starved of cash, does my hon. Friend the Member for Newton Abbot (Anne Marie Morris) agree that stricter regulation is needed in relation to corporations having to pay suppliers within a very short time? Often, smaller businesses get penalised much more for delays in paying tax and VAT. Does that need to be reviewed?

[Anne Marie Morris]

That is a valuable contribution on an important issue, and I am sure the Minister and his Treasury colleagues will take it into their thinking.

My hon. Friend’s intervention leads me neatly on to taxation and business rates. I take on board the points that were made earlier about timing, and the fact that we have revalued at exactly the wrong time, when the market is in recession, with figures from when the market was at its peak. I am sure that the Minister and his Cabinet colleagues have taken that on board and will consider it. However, I offer congratulations to, I think, the Treasury team, on thinking about a holiday—100% relief—between October this year and next September from business rates where rateable value is less than £6,000. That is an excellent thing to do, and I commend it. I would like that to be extended, if it works well.

Hon. Members will be pleased to hear that I have now covered my six areas.

[Guto Bebb (Aberconwy) (Con)]

Many retailers, especially in my constituency, which is very dependent on small businesses and retailers, feel frustrated because when Governments—of all colours—decide to help them, they often do it by promising to reduce corporation tax. However, small businesses are often sole traders and partnerships. There is great frustration because, when corporation tax is reduced to help small businesses, they face increased national insurance contributions.

[Anne Marie Morris]

I thank my hon. Friend for that intervention, which follows on from one I made in the House yesterday. I agree that small businesses need some help. I should like the holiday that has been extended to new businesses to be extended to what I would describe as micro-businesses—those small businesses with one or two employees that find it a significant challenge to take on a third employee. I entirely understand his point.

There is much to be done. The sector is a very valuable one. May I commend to the Minister the idea that there is such a thing as the big society for small business? He might want to consider how to promote that. Finally, micro-businesses deserve particular attention, and the retail sector provides a good example. There is a very large number of such businesses, and whether the issue is tax or regulation they need special care and consideration.