Economy: High Street Trade

Lord Naseby Excerpts

Tuesday 10th May 2016 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government whether they have plans to undertake an urgent review into the financial sustainability of high street trade in England and Wales in the light of the growth of online retail and the increase in overhead costs for shops trading on the high street.

[Lord Naseby (Con)]

My Lords, in asking the Question standing in my name on the Order Paper, I declare an interest in that a member of my family is a retailer.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)]

My Lords, there is no plan to undertake a review in England. In Wales this is a matter for the Welsh Assembly. The Government have taken action. Our high streets will benefit from the £6 billion business rates support package announced by the Chancellor at the Budget. We have also given more than £18 million to fund successful initiatives such as Love Your Local Market and the Great British High Street competition, and announced a digital pilot programme.

[Lord Naseby]

I recognise the work that Her Majesty’s Government have done to help retailers. Nevertheless, in essence it amounts to a modest amount of tinkering. Is my noble friend aware that 36 major chains have gone bankrupt, thousands of other retailers have stopped trading and retailers are faced with ever-increasing overheads, declining footfall and increasing competition from online? Against that background, will Her Majesty’s Government review the statement that the Minister has just made and recognise that we need a fairer tax covering both retailers and online trading, and that possibly that means a turnover tax rather than a property tax?

[Baroness Williams of Trafford]

I thank my noble friend for recognising what the Government have done. He talked about various chains going bankrupt and the declining footfall on our high streets. In fact, footfall is now increasing and some high streets have responded very well to the changing patterns of the high street. The ones that have responded well are seeing very good results; for example, in my own town of Altrincham the market has almost completely revitalised the town centre.