Retail Strategy

David Crausby Excerpts

Wednesday 10th July 2019 Westminster Hall

[Several hon. Members rose—]

[Sir David Crausby (in the Chair)]

Order. There are six Members standing to speak. I want to call the Front-Bench spokespeople at 3.30 pm. If Members could keep contributions to around six minutes, everybody should be able to get in. I call John Howell.

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[Justin Madders]

My hon. Friend and neighbour makes an excellent point. Indeed, the power that central Government have through procurement and their control over many of those private enterprises should be used for the wider benefit of communities. As my right hon. Friend the Member for Delyn (David Hanson) mentioned, post offices are a great example of where we have lost control of an organisation. A number of the post offices on high streets in my constituency are closing, without any regard for the wider community impact. We really must begin to take back control, to coin a phrase.

Most of all, it is our town centres that are in need of a retail strategy. They are the heart of our communities, and their importance must not be underplayed. A new approach that regenerates our town centres is vital if we are to preserve their character, restore civic pride and give people a positive reason to visit their high streets. Local authorities have the knowledge and tools to tackle this, but they cannot do so without significant financial support. However, local authority funding has been cut like never before and the money needed for a true transformative approach to regenerate our town centres simply is not there.

As my hon. Friend Member for Batley and Spen (Tracy Brabin) said, we need to be much more joined up in how we approach these things. The move to electric vehicles is one such example. It is not entirely clear who is in charge of the charging infrastructure, but it would be great if there were joined-up thinking, with charging points located in town centres used to encourage people to use the town centre facilities while they charge up.

As we have heard, unfortunately the Government’s plan to address the crisis is to pit towns against one another in a competitive bidding process known as the future high streets fund. Only a lucky few get a slice of the pie. I learned this week that despite putting in an excellent bid for Ellesmere Port, my local authority was not successful in the process. What does that say to the people of Ellesmere Port about the importance of their town, compared with others? What will the Government do to support Ellesmere Port town centre? Will there be a second round of funding? Will there be other initiatives, or will we have a rerun of the 1980s policy of managed decline for parts of the north?

My local council is doing what it can, but the multifaceted challenges we have heard about in the era of austerity cannot fall entirely on its shoulders. The trends are there for all of us to see. The evidence is clear that the capacity to meet such challenges has been hollowed out after a decade of cuts. It will take sustained, focused and locally driven but nationally supported investment. It will take imagination, requiring a change from the old way of doing things. It will take central Government to realise that one of the reasons why so many people feel disengaged and disenfranchised is that when they go to their town centre and see empty shops—

[Sir David Crausby (in the Chair)]

Order. Will the hon. Gentleman wind up?

[Justin Madders]

I will, Sir David. When people see the household names going, the banks closing and the public sector shrinking, they have a stark reminder of how the growth of the economy has not been evenly distributed. Civic pride, community identity, jobs and opportunities all suffer when the high streets are in decline. We owe it to the people in our communities to do much better and reverse the decline.

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[Drew Hendry]

Unfortunately, the hon. Gentleman is trying to punt a line that is not the fact. Through the small business bonus, 100,000 businesses in Scotland pay no rates at all, and those are mainly businesses in rural areas that do not come up to the level for being taxed.

The hon. Member for Batley and Spen (Tracy Brabin) correctly talked about public transport and its impact on retail. She gave the example of the fall in revenue for one of her constituents due to a change in bus routes. That brings us back to town planning. People must plan for the unintended outcomes as well as those they want in the future. She also mentioned banks and building societies, the importance of business rates and the need to tax big online retailers.

The hon. Member for Strangford (Jim Shannon), as ever, did a great job of promoting his own constituency. He talked about the chamber of trade and, importantly, the need for a shopping experience. Green areas, coffee culture and all those things need to be thought out in planning for the future. He talked about the mix of online and physical, which is what we used to call—

[Sir David Crausby (in the Chair)]

Order. Will the hon. Gentleman bring his remarks to a close? I added a few minutes for earlier speakers, so I will have to take a minute off each of the Front Benchers.

[Drew Hendry]

I will try, but there is a lot to say.

Unfortunately I cannot discuss the speech of the hon. Member for Ellesmere Port and Neston (Justin Madders), who made a number of important points. I will finish with something that is important to me and my constituents: the unfair situation on delivery charges. As we move to a culture of more online deliveries, consumers in Scotland are having to pay a disproportionate amount more because of a postcode system used by retailers to charge them extra for deliveries. That is unfair, and the Scottish Government have done a lot of work on that issue. My colleague, Richard Lochhead MSP, and I have worked very hard over the years to make changes, and have made significant breakthroughs with individual retailers. However, it is time for this UK Government to step up to the mark and do something to ensure fair delivery charges for people across Scotland, particularly in rural areas of the highlands and elsewhere.

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[Kelly Tolhurst]

Absolutely, but the hon. Lady will know that all the sector deals are being driven by the sectors themselves with the support of Government and with strong leadership and great ideas. My wider hope for the retail sector is that we will see that deal delivered by the Retail Sector Council as soon as possible.

Costs to business is another workstream, and a number of Members raised them. As part of that workstream, the co-chair and I are meeting the Financial Secretary to the Treasury next week to discuss some of the preliminary findings on costs to business in the retail sector. A large survey of the entire sector was carried out. That area is of big interest to me in terms of how we levy taxation in the future. The skills and lifelong learning workstream is running in parallel with the costs to business workstream. Some of the early work on that is being led by Amazon and a small working group, and that is proving useful.

Alongside the work of the retail sector, the Department regularly considers a wide range of policies. My officials are working across Whitehall on policies that affect the retail sector. A number of Members have mentioned support for our high streets. Members may know that the high streets Minister, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), has recently taken on a joint portfolio with my Department. As I am the retail sector Minister, we work closely on joined-up thinking on retail and high streets. We have the £1.6 billion action plan for high streets, which includes the £675 million future high streets fund. We are seeing 50 organisations move to the next stage in the development of the plans, which will enable local authorities and local populations to drive the development of their towns. We have the taskforce, which will work with local authorities across the country to deliver help for those that need to increase their retail space.

I will sit down now, because I recognise that the hon. Member for Blaydon may want to come in. I am happy to have another meeting with her on the other questions she asked.

[Sir David Crausby (in the Chair)]

With not much time, Liz Twist to wind up.