High Street Regeneration and Unlawful Storefronts

Debate between Bradley Thomas and Rachael Maskell

Tuesday 30th June 2026 Westminster Hall

[Bradley Thomas]

The hon. Member is correct that the issue is acutely felt in rural areas. I am delighted that the Conservative party has put forward a plan to abolish business rates for thousands of small businesses, including shops, pubs and hospitality businesses on the high street. I will come on to some solutions to the challenges we face.

There are 1,400 postcodes across the country that do not have a bank within a 5-mile radius, which demonstrates the scale of the challenge. One in seven high street shops across the country are currently empty. An estimated 38 businesses close every day. When businesses close, there are job losses, with an estimated 93,000 retail jobs lost in 2025 alone. In the hospitality sector, it is reported that up to 5,000 jobs are being lost per month. I make a plea to the Government to change course on the additional costs that they have placed on small businesses across the country. They are unquestionably killing employment and putting greater pressure on the long-term viability of those businesses.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful to the hon. Member for securing this important debate. York is fortunate that two thirds of its high street businesses are independent, but they are really struggling at the moment, not least because of the costs pressing on their finances—particularly business rates, which have gone up incredibly steeply. Does the hon. Member agree not only that businesses are laying off staff, but that they are not recruiting staff, which is vital for the regeneration of high streets? We need the Government to take an overview and make a plan for regeneration, as my right hon. Friend the new Member for Makerfield (Andy Burnham) made the case for just yesterday.

[Bradley Thomas]

The hon. Member is an ardent champion of her constituency. It is reassuring to hear that her area has a strong and thriving independent sector, but she is right that the first rung of employment for so many has been pulled away from that ladder, in large part because of choices that this Government have made. Small retail businesses have reduced recruitment, and in many cases they have had to let people go because of the pressure on them.

Another reason why the debate about town centres matters, as hon. Members have touched on, is that far too often our high streets are becoming a very visible front for illicit or illegal activity. That is a problem in plain sight that none of us can deny.

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[Bradley Thomas]

I do agree. Dudley is next door to my constituency, so I will actively encourage Bromsgrove district council to have a conversation with Dudley council, because it sounds as though it is doing absolutely the right thing.

[Rachael Maskell]

The hon. Member is being incredibly generous. He has talked about infrastructure and agencies. It is also important to ensure that we have facilities such as public toilets and good seating on our high streets, but the disinvestment in our local authorities over a long time has prevented that. Will he support my call for investment in local areas so that we have seating for the elderly and play areas for children on our high streets?

[Bradley Thomas]

The hon. Lady is absolutely correct. Those factors contribute to a healthy and thriving community, and it is really important that all local authorities do what they can to support investment in such facilities in their areas. This is not all down to what the state can do; there are other things that local authorities can do. They have a role in getting the factors right to empower the private sector to invest in our areas.

Another policy that I would like to see is a greater push towards local economic investment plans. Prior to being a Member of Parliament, I served as a district councillor in south Worcestershire. As leader of Wychavon district council, I pursued investment prospectuses for three main towns. They were not planning documents; they were targeted at strategic investors to say, “These are the reasons why our towns are attractive.” They might say, “There’s a population of x within a hinterland of y. These are all the social and economic indices that make our areas attractive.” But guess what? If we are not enforcing the basics, we should not be surprised if it is difficult to get that investment on the hook. Society, the state and councils are not doing all they can to ensure that the communities that we represent are ultimately very attractive destinations for businesses to come and spend their money.

I am conscious that many other Members wish to speak, so I will draw my comments to a close in a second. Again, I impress on the Government the importance of reducing costs to businesses, which are unquestionably having an impact on our town centres and high streets. The Government need to abolish business rates for thousands of shops, hospitality venues, pubs and small retailers across the country to give our high street traders a boost. They should endorse the Conservative policy that has been put forward. We need to get energy costs down, and the Government can do that by endorsing the Conservatives’ clean power plan.

Let me reiterate the points I have made: we must restore pride in our civic areas, and strengthen the teeth of the state and its ability to collectively identify and tackle these problems. It needs to speak to other agencies with commonality in identifying and tackling the solution. We should not be afraid to use the teeth of the state to clamp down on this, because the very best thing we can do is demonstrate that if illegal, illicit or low-grade retail appears on our high streets, we are serious about cracking down on it so that we can ensure the vitality of our high streets continues for the enjoyment of all our communities.

Independent Schools: VAT and Business Rates Exemptions

Debate between Bradley Thomas and Rachael Maskell

Tuesday 8th October 2024 Westminster Hall

[Bradley Thomas]

Thank you, Dame Caroline. Education is an investment in our future. It is in everyone’s best interests that children are well educated so that they can make an engaged and positive contribution to our society. We do not charge VAT on many types of private healthcare, as that is beneficial when people use their own money to pay for a service that the state would otherwise provide. We do not charge VAT on university or nursery fees, so why should schooling be any different?

There are approximately 2,500 independent schools in the UK educating more than half a million children. They are often small schools: more than 40% of independent schools have fewer than 100 pupils according to Department for Education data. The reality is that the policy will not fulfil its aims and will displace children mid-education. State education must be funded by the state, supported by taxpayers. The VAT exemption encourages greater use of independent education, reducing the number of state school pupils, meaning more money available per pupil in the state sector.

The Times recently stated that 71% of parents felt that rising school fees would influence their future decision about independent schooling. Additionally, 26% of parents said they would have to withdraw their children from independent schools if VAT is introduced.

An Adam Smith Institute report provides a detailed examination of the potential economic impacts. If 10% to 15% of students transfer, the net revenue could be negligible. Alarmingly, in a scenario where 25% of students switch from the independent sector to state schools, the tax could cost the Government £1.6 billion.

Currently, independent schools’ significant economic benefits include supporting 328,000 jobs, saving £4.4 billion from the education budget, and supporting £5.1 billion in additional tax revenue. They do this while saving the state £4.5 billion by removing the requirement to fund the education of 7% of children as the result of parents exercising this choice. Furthermore, independent and state boarding schools are a unique subset of the schools system, with the additional feature of attracting overseas students to the UK. Some 62,700 pupils are international students in independent schools, making up 11% of the population. This is a key export for the country, adding £2.1 billion to our economy annually.

[Rachael Maskell (York Central) (Lab/Co-op)]

Will the hon. Member give way?

[Bradley Thomas]

I will not give way. Independent schools should be seen as a British success story, both culturally and economically, instead of being discouraged and punished with the imposition of an education tax for socialist ideological principles. Most importantly, the human impact of the policy is stark. The failure of this education tax will not just be academic or financial; it will have a serious impact on families.

One parent wrote to me:

“As a widowed single mother who works full-time, I make enormous financial sacrifices to ensure my child can attend the same school from age 3 to 18. This stability is not only essential for my child’s development but also enables me to work and contribute to society. This proposed VAT would be devastating for families like mine.”

Another mother wrote to me and said,

“We also have a daughter who will need to start secondary school in two years. We had hoped for her to attend the same school as her brother but, with no scholarship likely and the addition of VAT, it is simply impossible. This is a painful realisation, and I worry that she will resent the opportunities that we couldn’t give her (but we could give her older sibling).”

We have yet to talk about the impact on special educational needs and disabilities education. This measure will cause particular problems for children who are in receipt of such bespoke education. Nationally, at least 130,000 pupils in independent schools receive SEND support in mainstream and specialist settings. That is 20% of the pupils in UK independent schools, which is slightly higher than the state school average. Independent schools help to provide additional value-adding capacity to SEND education.

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[Bradley Thomas]

My right hon. Friend echoes the point that I made earlier that this is about not just a service that is provided but a key segment of the UK economy that bolsters the value of UK plc and UK GDP.

[Rachael Maskell]

Will the hon. Member give way?

[Bradley Thomas]

I will not; I will make progress. Labour committed in the House of Commons in 2023 that armed forces families need not be concerned about proposals to charge VAT. With the current retention crisis in the armed forces, and the current volatile state of world affairs, the Government need to confirm what impact analysis has been carried out on the effect of taxing education on military personnel.

We then get into issues around the implementation of the policy. Implementation in January will put pressure on local authorities to find rare and academically disruptive in-year placements. Those will be difficult, as state schools will be full and many will be oversubscribed, with areas that have a high number of pupils attending independent schools having some of the busiest state schools.