Supporting High Streets

Iain Duncan Smith Excerpts

Tuesday 4th November 2025 Commons Chamber

[Andrew Griffith]

That was a valiant attempt to return to past history, but on this side of the House we are looking forward. Our plan for the high street would remedy the damage that has been done not over past years but over past months, and even again this morning—the collapse in confidence caused by our Chancellor.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

Will my hon. Friend reflect on the fact that many of those sitting on the opposite Benches have clearly been dragooned into coming here to support the Government—as often happens in government, God help us. Does he think that they walk down their high streets telling the shopkeepers, “It is great to have national insurance charges so high that you cannot employ anyone, it is great to have an employment Bill that means you will not be able to employ anyone again, and with the rates that are out there, you may all be out of business—suck it up”?

[Andrew Griffith]

My right hon. Friend has made exactly the right point. It is genuinely bewildering—and we will see this again tomorrow—that when every single major business group in the country urges the Government not to proceed with their damaging unemployment Bill, when Labour think-tanks urge them not to proceed with that Bill, and when not a single business in favour of that Bill can be named by a Labour Minister—other than the Co-op and one that is overseas—they still seek to proceed with it.

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[Miatta Fahnbulleh]

My hon. Friend is completely right. We feel that we are giving places the tools and levers that they need to turn around the legacy of the last Government.

[Sir Iain Duncan Smith]

The hon. Lady is making great pace through her speech, but I want to bring her back to one point. She has made the case for all the peripheral things that the Government have done to try to help high streets, and for various other things. Does she not understand—I would like her opinion on this—that raising national insurance on small businesses, and reducing the time in which they have to pay, has damaged their ability to take people on and is really costing them, to the point that many have closed? Does she not agree that that single decision has done more damage to our high streets than anything that she talks about repairing?

[Miatta Fahnbulleh]

What has damaged the high street is 14 years of neglect. The Conservatives pretend that it was thriving for 14 years and that we did not see shops closing down, boarded-up shops and the decimation of our public realm. We will take no advice from them, because they had 14 years to respond, but they categorically failed.

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[Tom Tugendhat]

Forgive me, but I do not agree. I can see that transport connections and the £2 bus link—which has now gone up by 50% under this Government—was crucial to helping small businesses survive in rural areas, but businesses that were taking in younger people as new starters are not hiring them because of cost. The cost of any change that may be needed in the business, which may evolve or shape itself differently, means that effectively it is not worth the risk. We see this again and again.

The tragedy is that I am not telling this House anything new. This speech could have been given anytime in the past 50 years. The reality is that we have tried all these experiments, and we know how they work: they end up with rising unemployment, rising debt burdens and fewer public services. We know where this goes.

[Sir Iain Duncan Smith]

The real problem in all this is that the Government imposed a national insurance increase on businesses. The second problem is what they have done for businesses that might have taken on new starters by lowering that threshold. It has been an absolute killer on both counts for businesses, so there is a reason why they are not taking on new starters at the moment.

[Tom Tugendhat]

My right hon. Friend is absolutely right. That is the reality of what this Government have done. I understand that they have decided to defend the established strength of unionised and employed workers. I get it, but they have chosen specifically to punish incoming workers, young people and those who are trying to enter the labour market. That is the choice they have made. They have also chosen to defend established businesses—those businesses that can pay a large amount for human resources functions—rather than the smaller businesses that innovate and start up. Again, that is a choice that they have made, and let us not ignore the fact that it was a choice. They have chosen the large company, the institution, the established worker, and they have decided to punish the high street.

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[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

It is good that the hon. Member for South Dorset (Lloyd Hatton) finally remembered the money given to his area by the last Government, even though it has not been spent, which is a double pleasure for him; I am sure he will find another way to spend it.

I speak today to support the key high street shopping areas in my constituency: the Mount, Hatch Lane, Highams Park, Station Road, Woodford Broadway and George Lane. Each one of them now suffers as a result of a whole lot of different problems, some of which have been going on for a long time and some of which are more recent issues that have erupted as a result of Government policy.

There has been a slow, progressive increase in difficulties on the high street under many Governments, even though Governments have tried to do different things. What this Government have done is not helpful. The Minister spoke about the difficulties that high streets face and all the things the Government want to do for them, but they have decided to introduce higher national insurance contributions. More importantly, in a way, the Government have also lowered the starting point for paying national insurance, which has been a body blow to small shops and retailers in all our constituencies.

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

Andy Rafter, owner of the award-winning Rafters greengrocers in Driffield, was telling me just this morning that the bill he has received as a result of his national insurance contribution increase is £30,000 a year. Does my right hon. Friend agree that that deters investment, deters future employment and is just bad for businesses on our high street?

[Sir Iain Duncan Smith]

I instinctively agree with my hon. Friend’s constituent, even though I have never met him, but I wish him well—I was worried that I should have remembered meeting him, but I realise now that I have not, so there is no early onset.

If the Government really wanted to raise national insurance, surely they should have made a major change by not imposing it on small retail outfits, and certainly not small shops and shopkeepers. It has been a disaster, frankly, and it has added massively to the bills. Another huge problem for these businesses is the rise in electricity costs, which is not necessarily to do with the strike price of gas but is massively down to the fact that we are now charged huge amounts on our bills simply to subsidise the unbelievably high-paced drive to get to net zero, which will affect many of them.

I recommend that the Government look again at the hospitality sector, which has lost 100,000 jobs. As has been said, 100,000 jobs lost in any other industry would have been a major issue debated on the Floor of the House. It is a huge number. This is an industry where many people start their businesses, and these pubs, restaurants and so on are high points on our high streets.

Added to all this, Labour councils seem incapable of understanding why parking charges are a real problem for these businesses. The council in my area now levies very restrictive parking charges on high streets. The trouble is that many high street businesses rely on passing trade—somebody who wants to get one thing pulls in for 15 minutes of free parking, goes over to another shop and buys something there before getting back into their car. Free parking encourages people to do that. My high streets—particularly Station Road—have seen a significant fall-off in trade simply because of those parking charges being imposed. It is not helpful.

[Adam Thompson]

In my area, the Conservative administration brought in a parking charge after Labour campaigned extensively for free parking. I was reassured by the local council recently, because the data showed that parking charges actually made no difference at all to footfall. Could the right hon. Gentleman comment on the fact that, in many areas, small parking charges do not make an awful lot of difference?

[Sir Iain Duncan Smith]

I do not have a Conservative council to criticise, although I would criticise it if it had done that. It was a Labour council that introduced these charges, and they have had a dramatic effect on those who would have come to shops. A small bookshop that has been there for many years is now thinking about calling it a day. That is a real problem, and it is bonkers to add that to the other problems these businesses have.

Something that ruins high streets and causes real problems is the inability of local authorities to control the number of adult gaming centres on the high street. I and many others are campaigning to get the Government to allow local authorities to make a decision about that, rather than being overridden. I hope the Government will look at that in due course.

The big thing that is affecting our high streets above all else is the crime and shoplifting going on. We have had a huge problem in our main shopping centres. These people go into shops and are violent. They threaten the shopkeepers, who are often pressed to the wall while they take thousands of pounds—this is not £1 or £2; thousands of pounds of goods are robbed from shop shelves. Those who are shopping are also threatened, and it drives people out of the high street.

We have tried hard to bring this all together, so that the shops report the crime and the police are there for it, but despite that, this crime is still rising. One of the biggest problems is that when a shoplifter is arrested, they say that they wish to be tried in the Crown court. They know full well that the backlog in the Crown court is so great that they will be out on the street again that afternoon. The Government should consider carefully whether shoplifters should be allowed to do that, and whether magistrates courts, which do not have a backlog, should be doing summary charges on shoplifters in criminal cases—with limits, obviously—which would get them off the street that day, not back on the streets committing crime again.

[Josh Fenton-Glynn]

Will the right hon. Gentleman give way?

[Sir Iain Duncan Smith]

I cannot give way again because the hon. Gentleman does not have a minute to give me—sorry about that. Otherwise, I would have loved to give way.

That kind of shoplifting is a major problem, and I want to know that the Government will do what is necessary to bring the levels down. As long as crime is at such a huge scale on our high streets, we will lose more and more people and see more shops close. I ask the Government simply to think again about the national insurance charges, the level of business rates, and the nature of crime on our high streets. Those are the three main things driving people away from the high streets, mostly into shopping centres, which are not where we want them. We want people on our high streets, which are really important and vital to our communities.

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[Sir Iain Duncan Smith]

One of the biggest problems with the Employment Rights Bill is the day-one rights that it introduces, which will remove the flexibility that allows employers to decide whether someone is the right hire or not.

[Aphra Brandreth]

My right hon. Friend makes an important point, and it is one that businesses have raised with me directly. They all want to do the right thing, but they need the flexibility to be able to employ in different circumstances.

Just last week I met Richard, who runs several independent pubs across Cheshire, including the Boars Head near Wybunbury. Like many landlords, his biggest worry is not just his own business, but his staff. Because of higher costs and new employment burdens, he has been forced to make difficult choices. He is concerned that he will not be able to offer part-time jobs this Christmas to give young people some extra cash—and, more importantly, some experience—and help him meet the demands of the festive season.