Brandon Lewis
Main Page: Brandon Lewis (Conservative - Great Yarmouth)(10 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text
The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
High streets are far more than shop windows to the retail industry. They have moved far beyond just being a retail hub. They are the heartbeat of our towns and cities and have always been the linchpin of our communities. With that in mind, I was disappointed if not surprised to hear the hon. Member for City of Durham (Roberta Blackman-Woods) reduce the issue to Labour wanting more regulation, more borrowing and higher taxes while, in one fell swoop, managing to destroy local government finance post-2015.
Mr Jamie Reed
The hon. Gentleman is absolutely right that high streets are about civic identity and elements of civic society. Does he think that the closure of NHS walk-in centres, police stations, courts and more in our high streets is helping or hindering them?
Brandon Lewis
Our high streets benefit from wider community access, whether that includes fire stations, the police, children’s centres, the NHS, retail, leisure or hospitality. The hon. Member for City of Durham says she wants the town centre to be the heart of the community and a real community hub. I applaud that. I am just not quite sure how, in the same speech, she managed to argue against that by proposing to ban conversion to residential, which brings more people to our high streets. The hon. Gentleman is right: people care deeply about their high streets because they are the centres of their community. We want to see vibrant, viable high streets where people live, shop, use services, and spend their leisure time, and that includes a safe night-time economy.
Jason McCartney
Will the Minister join me in saying how disappointing it was that the shadow Minister had nothing to say about car parking charges in the centres of our small towns? Labour-run Kirklees council still imposes inflexible car parking charges in Holmfirth, which is a small market town. No wonder shoppers go to Morrisons two miles down the road, where they can park for free. Will he encourage Labour-run Kirklees to be more flexible and have more supportive car parking charges?
Brandon Lewis
My hon. Friend makes a very good point; councils should look closely at their car parking charges, not least because, as they will know if they have any real business sense—I would hope that even a Labour council would seriously consider its future financing opportunities—successful high streets will drive business rates retention. However, for that they need footfall and for footfall all the evidence shows we need easy, cheap car parking.
I will take no lectures from Labour on our high streets.
Alex Cunningham
Stockton boasts the widest high street in England, and a major project to rejuvenate it is under way, thanks to a Labour local authority. Many organisations are involved, but the Post Office has opted to walk away from our high street, downgrading the service and burying it at the back of another shop. Does the Minister agree that the Post Office should be a partner in our high streets, instead of walking away?
Brandon Lewis
I would encourage the hon. Gentleman to be more persuasive about what is right for his community. In a range of communities, the Post Office is investing in high streets, including in mine in Great Yarmouth.
I will remind the House of Labour’s record on the high streets. It introduced 24-hour drinking laws. Its campaign in the 2001 election actually said:
“Couldn’t give a XXXX for last orders? Vote Labour on Thursday for extra time”.
It then gave our town centres a Jekyll and Hyde personality—quiet by day, often nasty and brutish by night—whereas this coalition Government have given more powers to councils to rein in the excesses of the late-night, vertical drinking establishments, while supporting well run, popular and safe community pubs. Labour pushed through the Gambling Act 2005—I am pleased to see the then Minister, the right hon. Member for Tottenham (Mr Lammy), who took it through the House, here today—leading to a rise in uncontrolled gaming, including addictive fixed odds betting terminals.
Bill Esterson
Government Members jumped up and down defending bookmakers earlier, but does the Minister agree that encouraging more bookies, which is what the legislative changes do, will put people off going to the high street and that those who visit the bookies only spend their money in the bookies and do not go to the other retailers?
Brandon Lewis
I do not think the evidence entirely backs that up, but I will let the hon. Gentleman discuss that with his right hon. Friend, who brought in the Act that created a lot of the problems. Online gambling, which the hon. Gentleman spoke about earlier, is part of what takes people away from the high street. I was disappointed to hear Opposition Members lambast some good, strong small businesses employing people and bringing money into our economy, including some of the fast food outlets, which are a phenomenally important part of the high street.
The deputy leader of the Labour party, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), has since admitted, as my hon. Friend the Member for Burton (Andrew Griffiths) said:
“I think we were wrong, we have made a mistake... it’s ruining people’s lives.”
Brandon Lewis
Councils have the power of article 4, but there is a wider issue about ensuring that our town centres are vibrant places that businesses want to be in, so that they are filled with the kind of retail, hospitality and leisure industries that consumers and residents want.
In response to the sedentary intervention just now from the right hon. Member for Tottenham, we are reviewing betting machines and have given our full support to councils, such as Labour-run Barking, to use their existing envelope of planning powers to tackle the community impact of betting shops.
Brandon Lewis
The simple answer is no. Those authorities are wrong: it simply does not. They need to go back and think much harder about changing their offer and doing what they believe is right for their communities. If that means using article 4, it is there for them to use.
Mr John Redwood (Wokingham) (Con)
Given the impact of the internet on shopping habits, does the Minister agree that councils have to work with their local town centres to maximise their use, which would include office use and leisure use, as well as shopping use?
Brandon Lewis
My right hon. Friend makes a good point. I agree and will come to that in a few moments.
Labour made it more difficult to park in town centres—my hon. Friend the Member for Colne Valley (Jason McCartney) has mentioned that point—with Whitehall guidance issued by John Prescott telling councils to cut the number of parking spaces, increase parking charges and hit drivers with fines. In 2008, the local government Minister, the right hon. Member for Wentworth and Dearne (John Healey), complained that councils were not using parking charges to their “full potential”. By the end of Labour’s time in office, 9 million parking fines a year were issued in England. What was the public’s response? Quite sensibly, they are taking their time to shop online or drive to out-of-town stores where they are not penalised for using their cars. That was Labour’s response to changing lifestyles and the internet—to make it as difficult as possible for people to shop in and visit our town centres.
Simon Danczuk (Rochdale) (Lab)
Does the Minister not accept that the elephant in the room is not the Secretary of State and his views on car parking, but business rates rapidly increasing and damaging small businesses?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Can we try to be a little more courteous to Members in all parts of the House?
Brandon Lewis
Thank you, Mr Deputy Speaker. I will come to business rates in a moment, but when I talk to retailers, there are two key issues, one of which is how we get more footfall into town centres, and there is no getting away from the fact that parking has a key part to play in that.
As the hon. Member for City of Durham rightly said, the internet is not just a creative technology; it is changing retail dramatically. The fall of some retailers—household names that we all knew well, such as Blockbuster and the old HMV—was down to weaknesses in their business models and an inability to keep up with the pace of change. They struggled to adapt to modern behaviour and could not compete with the rise of the new online retailers, which now make up almost 15% of the market—a figure that experts say will rise exponentially. High streets have changed and must continue to do so. The best retailers and the best high streets and town centres are already looking at how they can and should adapt to become places where people live, shop, use services and spend their leisure time, but there are no quick and easy solutions. As hon. Members will know, that will take time.
Neil Carmichael (Stroud) (Con)
The Minister is making some excellent points. We need more diverse, innovative high streets. Does he agree that it might be a good idea to encourage colleges to open employment shops on high streets for young people?
Brandon Lewis
My hon. Friend makes a good point. In fact, on Monday I was in Bedford seeing how the town has integrated the educational establishments into the town centre. That is a good example of how to bring the whole community together.
Richard Fuller
As the proud Member for Bedford, may I thank the Minister for visiting the town on Monday with Mary Portas? She said three important things: that Bedford is a beautiful town, which it is, that we have a glorious river, which we do, and that the best way for towns to work is for the community to work together on its future, which we are doing. Does the Minister agree with those three points?
Brandon Lewis
It was clear on Monday how proud of Bedford the team rightly are. They have done some great work, and it was a wonderful place to visit and to see some of it.
Given the time, I want to make a bit of progress. Some recent research suggests that the vacancy rates on high streets are beginning to plateau, after about 20 years of decline. If that is true, we should celebrate that—and celebrate the great British high street—but we must also look to do more. The coalition Government are committed to helping communities to adapt. We believe that plans and ideas for town centres must come from local areas themselves. It is for councils, businesses and communities to decide what their high streets and town centres will look like. Government cannot and should not look to bail out or prop up ailing high street businesses with taxpayers’ money, nor should we just introduce new taxes—as has been suggested by the Opposition—to create a level playing field of misery. Higher taxes destroy jobs and undermine enterprise. Government must support local people, building skills and spreading best practice.
Mark Pawsey
Does the Minister agree that one way in which a community can effectively defend its town centre is to take a more positive attitude towards new housing development, which provides additional consumers for the shops in the centre of town?
Brandon Lewis
My hon. Friend makes a superb point about how we can improve footfall in our town centres by being flexible enough to allow people to live nearer to them and in and around them.
The Government are looking at building skills and spreading best practice, as well as doing everything we can at national level to support high street growth. That is why we invited Mary Portas, who has championed the British high street, to review the future of the nation’s high streets. She has done a phenomenal job of raising the profile of that issue around the country over the past few years. We took action following her review, providing communities with the means to establish Portas pilots and town teams across the country to test different approaches. We have put in place 27 Portas pilots and more that 350 town team partners, with funding and a defined support package for each of them.
Over the past year, the Government have worked closely with the Association of Town and City Management and with Business in the Community to support the Portas pilots and the town teams. The ATCM is making use of a £1 million fund to provide practical assistance to improve leadership, town team capabilities and partnership working, and to share learning and spread best practice. Business in the Community has set up a high street champions programme to give dedicated support to the Portas pilots on business engagement and mentoring. Businesses with a commitment to town centres provide support and encouragement to Portas pilots to help them to achieve their objectives.
The high street champions are working with their town teams to deliver positive change in their towns, and a lot has been achieved by the pilots and town teams. For example, Market Rasen has built a market from scratch, which earlier this year won a prestigious award for being Britain’s best small speciality market. Dartford has introduced Sunday trading with free parking and subsidised advertising. Stockton has launched a discounted business rates scheme for businesses that take over a vacant shop in the town centre. That is something that councils now have the power to do, thanks to this Government. Ipswich has a brave, large-scale master plan to reorient its high street so that it runs from east to west instead of from north to south. It is making the most of its assets to transform its existing town centre and its waterfront. A variety of mixed and leisure uses have been approved, and that has attracted further investment and created new employment opportunities. Those are just a handful of examples; there are many more great pieces of work being done around the country.
Mr Jamie Reed
I am genuinely grateful to the Minister for giving way. He is being generous with his time and it is appreciated. Will he tell me what specific support the Government are giving or intending to give to communities in areas of market failure that are being particularly affected by the public spending cuts that we have seen since 2010?
Brandon Lewis
As I have just said, councils and communities must look at what they can do. For example, councils could use powers to alter business rates, which the previous Government did not allow them to have. They could also do more in relation to parking. I will outline some more specific points in a moment.
Earlier this year, we established the future high streets forum, which brings together leaders from retail, property, academia, hospitality and local government. They include sector experts from organisations such as Boots, Costa Coffee, John Lewis and the Post Office. The forum is taking forward important work, looking at local leadership, at the barriers to and enablers of success, and at what the future high street will look like.
Simon Hughes
The Government have taken loads of really good initiatives, and the Minister is right to put them before the House today. It is also clear that some of Labour’s criticisms about gaming issues are completely misconceived, given that it was the Labour Government’s legislation that caused the problem. I supported the motion on reviewing use orders that was passed at our conference, and I hope that the Government will look seriously at the question of use orders in relation to betting establishments—
Simon Hughes
It is not what the motion is all about; it is one of the points in the motion. I am asking the Government to look into the question.
Brandon Lewis
I thank my right hon. Friend for his intervention. He will appreciate that, at the moment, the Government are not looking to create more regulation on the high street.
Andrew Griffiths
The Minister has mentioned the hospitality and leisure sectors on a number of occasions. He will know, through his magnificent work as the pubs Minister, the importance of the community pub. Does he agree that the night-time economy and the leisure sector play a massive role in revitalising our high streets and in providing jobs and opportunities for young people?
Brandon Lewis
My hon. Friend makes a good point. It is important that we look at what a community needs and wants. Our high streets are changing into places where people go for a day out or a night out. While they are there, they might do some shopping, have something to eat, or go to a bar, a club or the local community pub. It is important to embrace that and not to try to have what can be inferred from earlier: some sort of socialist or Marxist control from the centre of what the high street can or cannot have, or of what we should facilitate in our high streets. The consumer and the customer will drive what the businesses want to provide. That is how to get a high street that serves its customers.
Mr Brian Binley (Northampton South) (Con)
Does my hon. Friend agree that, although pubs are very important to our town centres and communities, they do not need to stay open until 4 o’clock in the morning to serve that purpose?
Brandon Lewis
My hon. Friend has made that point on a range of occasions. It is an issue on which the authorities will have to decide in each individual case when they look at the licensing.
The sector specialists are putting their own time and expertise into this project; they are the ones best placed, with the best experience and knowledge of the market, to support and advise us and others on the programme of work. We are helping local people to adapt their high streets, making available new tools and powers. Through the planning system, we are removing barriers and we have set out a “town centre first” policy in the national planning policy framework. We want to see more people living in and near their town centres to make them more vibrant, but also to increase footfall. That could include bringing in housing or other business uses alongside the traditional retail offer.
In May, we introduced measures that allow property owners to take advantage of new rights for temporary changes of use. Those measures have been well received by developers. A recent survey of just 15% of councils by Planning magazine showed that there have been 262 prior approval applications for change of use from offices to residential in the first two to three months. That includes a number of applications to create over 100 new dwellings. The Labour party opposes those reforms, yet also opposes brownfield regeneration—providing badly needed new homes at no cost to the taxpayer. If the Labour party does not want more homes in our towns and cities, where should people go for them? These practical changes are already helping to boost the economy, but there is more we can do.
The sense of decline in some areas can be aggravated by the sight of closed or run-down shops. A public consultation has just closed on further relaxations of change of use. We want to unlock the potential of underused and unused retail premises while providing much needed homes at the same time. More people living closer to or in town centres will increase footfall and boost local shops and businesses. We also want to allow retail premises to change to banks and building societies, delivering more branches on the high street and encouraging more choice and more competition for consumers. By contrast, Labour’s planning policies mean more red tape, higher costs for business, and more boarded-up, empty shops.
As well as cutting excessive regulation, this Government are easing the tax burden on small shops. From April 2014, every business and charity will be entitled to an allowance against their national insurance contributions bill each year. That will reduce the costs of employment, supporting small businesses as they grow. We have doubled small business rate relief until 2014, and made it easier to claim. Since 2010—and it is important to put this in context—the level of relief given has trebled from £333 million to £900 million. We have cut corporation tax, whereas Labour wants to hike it for successful companies.
Let us compare the record of this Government with that of the last Government.
Labour opposed making it easier to claim small business rate relief; we changed the law to make it easier to claim, and doubled the rate relief for four years. Labour hiked up business rates on empty properties, with no offsetting reduction elsewhere; we are introducing a new rate relief for empty new build to help to kick-start development. Labour imposed retrospective business rate hikes on England’s ports; we scrapped Labour’s unfair port tax. I recognise, however, that there is still more to do on business rates, which we will balance with the need to pay off Labour’s vast deficit. At a time when businesses are looking to grow and help the economy recover, tax stability is vital.
Mr Lammy
I want to drag the Minister off ports and back to the high street. The Government are doing a review of the Riot (Damages) Act 1886, and the Minister will be aware of the destruction caused to many of our high streets across the country. In those circumstances, it is right for people to receive compensation in relation to a crime that was no fault of their own. Will he report back to us on where that review has got to? It would be devastating for high streets if we got rid of that compensation.
Brandon Lewis
That is also why it is important that we ensure, in every part of the country, and especially where the riots caused damage, that we get high streets working, bringing back vitality and business. It is also why we postponed the revaluation until 2017, helping to avoid sharp changes and unexpected hikes in rates bills over the next five years. The biggest beneficiaries from a 2015 revaluation would not have been small shops, including in the north of England, but prime office space in London. City banks would have seen plummeting bills, while everyone else would have faced soaring bills to pay for it. We have cut taxes for small firms and small shops, and we are encouraging innovation. Pop-up shops are a great way for start-up businesses to enter the high street. We have provided support through practical advice on how to set up pop-up shops. My Department even has its own pop-up shop, which I commend to hon. Members wondering what Christmas presents to buy this year.
We have also backed the “Love your local market” campaign. This year’s campaign in May was almost twice the size of the first. More than 700 places ran 3,500 markets in England, and many people took the opportunity to try trading for the first time. Dates have already been announced for 2014, so “Love your local market” is well on its way to becoming an annual event. Markets have an important part to play in a vibrant town centre. We will do our part by continuing to put in place the framework that will allow local government, businesses and communities to develop their own vision and solutions, driven by their circumstances and needs.
We are keen to see the creation of more business improvement districts, given their significant potential to revitalise town centres. We have also consulted on plans for property owners to have a greater role in revitalising their high streets though their involvement in business improvement districts. This week I was delighted to announce that British BIDs will be operating the £500,000 business improvement districts loan fund. The fund is now open for business and will be offering loans up to £50,000 to prospective districts that want help with set-up costs.
We cannot avoid one important fact. For many people going to a town centre, there is a need to park. Parking is vital to modern high streets. Councils must recognise the influence of their parking policies on the viability of high streets, and adjust those policies accordingly. We are taking steps to tackle the draconian parking charges and enforcement that we inherited. We have removed previous requirements in planning guidance to set parking fees that are designed specifically to discourage car use. Our guidance now encourages authorities to set competitive charges, and to ensure that parking in town centres is convenient, safe, secure and affordable. Our new national online planning guidance, issued for public testing and comment in August, encourages councils to provide more town centre parking spaces and to end anti-shopper practices.
However, there is still more to do. My right hon. Friends the Secretaries of State for Communities and Local Government and for Transport jointly announced last month that the Government will publish details of further reforms.
Mr Jamie Reed
Will the Minister offer a Marxist solution with regard to what happens in those communities where town centre parking is principally owned by private sector interests?
Brandon Lewis
I am not sure why the hon. Gentleman would be so against the private sector, which is what develops businesses and creates jobs. After 13 years, under the previous Government, of decline and failure to deal with the issues, this Government have put together a package of measures to take matters forward. We are now seeing exciting things happening in town centres across the country, with forward-thinking councils—generally, good Conservative councils—developing their town centres for their residents, to give them a product they want to use.
As I said, my right hon. Friends are looking at further reforms, including stopping CCTV spy cars being used for on-street parking enforcement. We also intend to consult on updating parking enforcement guidance to support local shops, and on issues such as tackling wrongly issued fines, reviewing unnecessary yellow lines and increasing the grace period for parking offences. We will empower local residents and councillors, and stand up for hard-pressed shops.
Despite 13 years of Labour Government efforts to control everything from the centre, we should all recognise that there is only so much that Government can do. Councils should work to encourage and support high streets by using the powers they already have, particularly on business rates and parking. Local government, businesses and communities need to work together to create their local version of the future high street that is right for their community, harnessing the energy and enthusiasm of local people who best understand the unique needs and opportunities of their community, rather than having a one-size-fits-all approach.
The Opposition motion goes in the wrong direction for our high streets and our country. The coalition Government are standing up for local shops and local shoppers, with lower charges, lower taxes and less red tape. We are giving a helping hand to allow our town centres to thrive and prosper in a modern age. I urge the House to reject the motion.