The Future of the High Street

Eleanor Laing Excerpts

Thursday 10th December 2020 Commons Chamber

[Kelly Tolhurst]

It has been an absolute pleasure to listen to the passion that Members from across the House displayed when talking about the needs of their high streets and their hopes for them to flourish at a local level. Our high streets have a solid future, which will be born from the ambition and innovation that is taken forward by the diversity and strength of our local retailers, local businesses, local authorities and elected Members, who will work together in order to see their areas flourish and their high streets survive. They will provide community hubs and places where consumers, shoppers, visitors and residents want to spend their time. I believe that our high streets have a very prosperous future.

There is no doubt that the covid-19 pandemic has had a crippling effect on our high streets, small businesses and many sectors of our economy. It is only right that the Government have supported many of those retailers and businesses—particularly those on our high streets—in their endeavour to survive the pandemic.

I want to highlight a few things that the hon. Members for Croydon North (Steve Reed) and for Bradford West (Naz Shah) addressed. There was a lot of bluster and criticism of what the Government have done throughout the pandemic. The hon. Member for Croydon North talks about the fundamental business rate review, but it is this Government who have issued the call for evidence to look at the business rate review. That was not done by the Labour Government. This is not a new issue. Business rates are a perennial issue, and this Government are taking action. We will review that and listen to business up and down the country.

The hon. Gentleman talked about grants and money for local authorities to support our high streets, but the grants to local authorities given by this Government, representing nearly £12 billion, have supported just under 1 million SMEs. He talked about our not supporting councils. He knows that I respect him, as I have mentioned before, but it is a shame he did not take that attitude towards his own council’s reckless borrowing of £1.5 billion, which has put it in such a mess. That cannot be blamed on covid.

I want to quickly reflect on many of the points that my hon. Friends and hon. Members across the House have made. Business support has been a lifeline for many businesses and SMEs on our high streets during the pandemic. The Government gave a 100% rate relief for 12 months. I know that the Chancellor and the Treasury will be looking at what happens after that over the coming months, but businesses were being given—and are being given—a £3,000 per month grant, with an extra £1,000 for pubs this Christmas.

The £1.1 billion of additional restrictions grants for local authorities was also mentioned. Where that money is required has been down to the discretion of local authorities. Where that support is necessary, it is being delivered, and that is exactly what we want. We want high streets in thriving communities that are driven by the people who use them, and that is what we are doing. This Government are giving that flexibility and discretion, supporting our local communities to drive their centres forward.

That brings me to the Government investment that we are making through the future high streets fund and the town deals: 101 of the high streets that applied have got through to the next stage of the future high streets fund. That would represent an investment of potentially £831 million that this Conservative Government will be delivering through that competition, driven—I make the point again—by local people, local plans, and their ideas and dreams for their local communities to survive. That is what I want as a Conservative Member of Parliament and a Minister: to support local communities to deliver exactly what they want on their doorsteps. Through the towns fund, this Government are again making a significant investment—more so than any Labour Government, and certainly more in my area since I have been involved in politics.

I want to highlight a few other things that have been mentioned. I absolutely understand Members’ concerns about parking charges. I look forward to coming to the Champs Élysées of the north in the future, in my role as high streets Minister. I am also happy to meet with my hon. Friend the Member for Stone (Sir William Cash), and other interested MPs, to discuss some of the issues that he has raised in today’s debate.

We are absolutely ready and prepared, and will continue to work with stakeholders, businesses and local representatives, to ensure that our high streets and our economy can bounce back as soon as we can move out of restrictions, which is something the Government are working very hard to deliver.

I want to pick up on a very important point that my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) made about the VAT retail export scheme. The Government recognise the contribution that VAT RES had made to international tourism retail in the UK. However, there was not a choice of maintaining the VAT RES as it is today. The choice was between extending the scheme to EU residents or removing them completely under World Trade Organisation rules. HMRC has estimated that refunds cost around £0.5 billion, for around 1.2 million non-EU visitors, which puts the issue into context, in that only one in 10 non-EU visitors is using the VAT RES system.



We will survive this pandemic, and our high streets will survive with the determination and dedication of all the men and women who are working in our businesses and shops. [Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Do you know, I have never heard that before, in all these years. It was a very good debate on all sides, and all the better for short speeches—to the point, and many of them.

Question put and agreed to.

Resolved,

That this House has considered the future of the high street.