High Street Businesses: Government Support

Debate between Blair McDougall and Tom Gordon

Thursday 4th June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing this important and passionate debate, and I thank him for his own thoughtful and passionate contribution.

It was interesting to hear so many hon. Members name different local businesses in their areas without necessarily explaining what those businesses did—I am intrigued what Serendipity in Horwich or the Uniform Monkeys do. I would be remiss if I did not abuse my position by naming some of my favourites in my own constituency, including Bica in Netherlee; Wheataly in Clarkstown, which does the best Italian food in Glasgow; The Pad in Neilston; and Valentini’s ice cream in Giffnock.

What is encouraging about this debate is that it has placed the role of high streets in its proper context. Yes, they are full of businesses, which are about a bottom line, but as was said by the hon. Members for Woking (Mr Forster) and for Tiverton and Minehead (Rachel Gilmour) and my hon. Friend the Member for North East Hertfordshire (Chris Hinchliff), this is about more than just soulless economics; it is about how we feel about where we live. It is essential that we understand that.

We must also place high streets in the wider economic context. They are not only the engines of very local economies but a barometer for how the wider economy feels. We have to recognise that the reason why so many of our town and city centres sometimes feel so down at heel is that before we lost the shops on those high streets, we lost the industry at the edges of towns.

It is important to put this debate in the context of the Government’s wider efforts to reindustrialise the country, to create good work and a sense of economic pride and purpose in places. I disagree with the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith): yes, to tackle the insecure work and low incomes that left people without the money to spend in the neighbourhoods where our high streets are—

[Tom Gordon (Harrogate and Knaresborough) (LD)]

Whenever we talk about high streets, we think primarily about town centres, but there are smaller communities and sub-neighbourhoods, such as Bilton and Starbeck in my Harrogate and Knaresborough constituency—and even Kings Road, just a little further outside the town centre—that often miss out on support from the likes of the local chamber of commerce or business improvement district. Does the Minister think there should be additional measures for those that struggle because they are a little further from the town centre?

[Blair McDougall]

One of the hallmarks of our efforts through Pride in Place and other measures is recognition that there is not really a one-size-fits-all solution. In my constituency, we do not have one central high street; we probably have about a dozen separate ones, which sounds similar to the hon. Gentleman’s constituency.

It is clear from what everyone has said during the debate that high streets are facing real pressures, from changing consumer habits to crime and increasing costs. There is not a single quick fix—there is no one-size-fits-all solution. It will take determined effort and real strategy from the Government. A key part of that is our small business strategy, which was launched just short of a year ago and aims to cut red tape, cut costs and make things just a little easier in challenging times. We will build on the strategy later this year as we bring forward a cross-Government high streets strategy that aims to support the businesses that we have been talking about today and equip local authorities with the tools that they need to drive long-term regeneration. We are working really closely on that with businesses, representative organisations and, indeed, Members from across the House.

We have already started taking significant action through, for example, our high streets innovation partnerships—a £301 million package that aims to help local areas to reinvent and reimagine high streets, to make them more attractive places to live and put more services into them. My hon. Friend the Member for Bolton West (Phil Brickell) mentioned a Woolworths that had been replaced by businesses of lower value over the years. There is a challenge for all of us within our areas, working with local authorities and health authorities, to make sure that we locate more services in our areas and drive more footfall to them.

I will give an example of that type of action. I also oversee the Post Office, and as well as the Government making the decision to keep the Post Office network open at its current level, there are really exciting plans under way from the Post Office to create a new community hub model for post offices in towns across the UK. That will offer a place for commercial services and public services to be delivered, and enhance the role that post offices have as an anchor in the high streets.

I will turn quickly to some of the issues raised by hon. Members and outline the areas that the Government are focusing on within each of them. The hon. Member for Strangford (Jim Shannon) raised the issue of payment providers. That issue was raised with me by Kadir’s, a chip shop in Barrhead in my constituency. The payment services regulator recently carried out two market reviews in this area to look at those cost increases and is currently looking at what action to take as a result.

Many hon. Members rightly raised the impact of business rates on high street businesses. They say that all of heaven rejoices more over one sinner who repents, so I welcome the acknowledgment by the shadow Minister that we inherited a system that was, frankly, a mess. It was chaotic; it kept changing. It did not give people any sense of stability. For high streets, we have to ensure that our business rates system is fair, stable and responsive to the changing economic situation that hon. Members have described. That is why, in the face of the cost of the first revaluation since the pandemic, we have put in the £4.3 billion support package.

The hon. Member for Wimbledon (Mr Kohler) asked when we will take on the big online giants—the warehouses—and start to shift some of the burden on to them and away from high street businesses. That is exactly what we did with those lower multipliers. That was paid for by putting the burden on to the big warehouses. We are working in that area. Rather than tinkering, we are doing that big structural change.

Let me turn to jobs, and particularly youth unemployment and the link to high streets. My hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) said that he was a Saturday boy. I was a Saturday boy as well in Beveridge’s fishmongers in Giffnock. It taught me everything about how to talk to people. It gave me confidence. Every time someone came into the shop, I had to re-find my confidence—remake myself. I do not think that I would be where I am now had I not had that experience.

Some Members raised national insurance contributions in that context. Businesses still have those reliefs for under-21s and for apprentices under 25. It is worth about £2.5 billion. In terms of national insurance, there is relief there for employing young people, but I absolutely take the point. Obviously, the Milburn review is working on the much bigger issue of the number of young people not getting that opportunity.