Supporting High Streets

Sarah Olney Excerpts

Tuesday 4th November 2025 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

The current landscape is extremely challenging for high street businesses. I am sure that Members across the House have heard from countless local businesses in their constituencies, on their high streets and in the hearts of their communities about the challenges they face—from the Government’s national insurance increase to sky-high energy bills and uncertainty about what the Employment Rights Bill means for them.

I wish to contextualise the motion and the challenges of the business landscape after years of dire economic mismanagement by the last Conservative Government. On their watch, energy costs soared and economic chaos unfolded following their mini-Budget. Business confidence fell, in part because of the scrapping of the industrial strategy and the huge increases in trade barriers following their botched trade agreement with the EU.

[Graham Stuart]

Does the hon. Lady understand the immediacy of the problem facing companies in the high street? She has mentioned energy costs, and she is quite right to do so, but why does the Liberal Democrat amendment suggest that changes should be made to reduce them “within a decade”?

[Sarah Olney]

The Liberal Democrat plan aims to halve energy bills within the decade by scrapping the link between gas and electricity prices. We have a positive plan to make a real difference to energy prices for households and businesses.

I wonder whether the Conservatives have really learned the lesson from their time in government. I listened with interest when my hon. Friend the Member for Mid Dorset and North Poole (Vikki Slade) asked the shadow Business Secretary, the hon. Member for Arundel and South Downs (Andrew Griffith), about how their plans for business rate cuts would impact on local government finances, and he had nothing to say. To me, that is an indicator that the Conservatives have not yet learned the lessons of the mini-Budget, and that they plan to repeat all those errors again if they ever get back into government.

However, many of the challenges that businesses face are being compounded by decisions taken by this Government, from their damaging national insurance rise to continued uncertainty about Ministers’ approach to the Employment Rights Bill. The economy is practically stagnant, with business confidence down and unemployment up. The Government must act more urgently to support our high streets, which are vital to our local economies and provide the jobs that so many rely on.

[Steff Aquarone (North Norfolk) (LD)]

Stalham, a beautiful market town in North Norfolk, is one of the places receiving support from the high streets taskforce to revitalise its high street, and local businesses are enthusiastically getting involved. However, to support businesses to thrive, we have to equip them with skills and expertise. Will she join me in praising the work of my local councils in providing training for small businesses, and does she agree that we need more ways to upskill and support business owners and managers so they can run the most successful businesses possible?

[Sarah Olney]

My hon. Friend represents his constituents and their businesses in North Norfolk so admirably. He is absolutely right about skills, which neither Conservative nor Labour Members have yet mentioned, but which are fundamental to powering the growth we really need in our economy.

Providing the support that our high streets need should not and cannot be done by cutting public expenditure, as the Conservative motion calls for, but by taking bold action: implementing the industrial strategy with more urgency, addressing the workforce crisis and negotiating a new bespoke UK-EU customs union to grow our economy.

In 2019, the previous Conservative Government made a manifesto pledge to fundamentally review the business rates system, and the Liberal Democrats agree that we need a fundamental overhaul of this broken system. However, throughout their tenure, they failed to keep that promise to businesses and local communities, so we will continue to call on this Government to reimagine business rates, and not just by tinkering around the edges and putting in place sticking-plaster solutions.

[Edward Morello (West Dorset) (LD)]

On business rates, coastal communities such as West Dorset are heavily reliant on hospitality for providing jobs—over 6,000 locally—and it is vital to our tourism economy. The George in West Bay has seen its business rates go from £8,000 to £27,000, which basically ends any chance of its making a profit in the foreseeable future. How can we talk about supporting hospitality, tourism and small businesses when such businesses have to suffer those kinds of costs?

[Sarah Olney]

My hon. Friend is absolutely right. Businesses all across the country, including in my own constituency of Richmond Park, have reported similar massive increases in their business rates bills, and the Government urgently need to get to grips with that.

[Monica Harding (Esher and Walton) (LD)]

I would like to raise the plight of hairdressers. Angels in Thames Ditton in my constituency told me that this Government are hitting small businesses with higher employer costs, rising business rates and wage hikes that are already squeezing very thin margins. They are facing not just one increase, but a combination of high utility supply costs, wage rises, NI hikes and business rates that are all adding up, and they are really struggling to survive.

[Sarah Olney]

My hon. Friend is absolutely right. It is not just one thing or two things, but a whole range of different costs are being loaded on to businesses one after the other, all at the same time and during a time when the economy is very sluggish and growth is extremely difficult.

[Tim Farron]

My hon. Friend has listed a number of factors, but one that would not cost the Government very much money to put right is the lack of a workforce. In areas such as mine, 63% of all the hospitality and tourism businesses are operating below capacity, because they cannot find enough staff. There is surely room in town centres, helped by flexibility in planning law, to create more affordable housing in those town centres and create a workforce, as well as to create footfall to create demand for those businesses.

[Sarah Olney]

My hon. Friend is absolutely right. We are talking about high streets, but there is a much wider issue across the entire economy about the workforce. If we can get solutions to work for some of these things, they will have a knock-on impact, and many more sectors will see a boost to their economic prospects.

On business rates, which so many of my hon. Friends have raised, the current Government pledged in their manifesto to replace the business rates system, but still no meaningful action has been taken. As we are nearly 18 months into this Government, I wish to ask if they plan to keep their word on that commitment.

[Dr Al Pinkerton (Surrey Heath) (LD)]

I am grateful to my hon. Friend for giving way four times in such quick succession. Of the £40 million of business rates levied this year by Surrey Heath borough council, only £1 million has been retained locally. Given that borough councils levy business rates and that businesses have an expectation that the money is retained locally, does my hon. Friend agree with me that it is vital that the money gets put back into the local economy to improve infrastructure and to increase the sense of place? If that cannot be done, perhaps business rates should be scrapped altogether and replaced with a more just way of raising funds.

[Sarah Olney]

My hon. Friend’s local high street in Camberley is very close to my heart, because my first job was in WH Smith there some years ago now. He is absolutely right about business rates, and I repeat my question to the Government: please, what action are you going to be taking on business rates?

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Member should say, “What action are they going to take?” If she says, “What action are you going to take?” that means me, and I am not taking any.

[Sarah Olney]

I apologise, Madam Deputy Speaker: what action are they going to take?

While the last Government did so much damage to our high street businesses, the Labour Government’s national insurance jobs tax has only made things harder for them and for the workers. The Liberal Democrats have voted against the change to employer national insurance contributions at every opportunity, and I once again urge the Government to scrap these measures. The changes to employer national insurance contributions announced in the last autumn Budget are an unfair and deeply damaging tax measure that is hitting small businesses of all kinds—social care providers, GPs—and the lack of sector consultation and business foresight prior to the changes has been hugely damaging to business confidence.

The Government’s handling of the Employment Rights Bill seems to have only compounded that uncertainty. So much of the detail that was expected in the Bill has been left to secondary legislation or future consultation, making it impossible for businesses to plan ahead with certainty. The lack of clarity on probation periods risks piling undue worry on to business managers who are struggling to find the right skills in the first place, for which many of my colleagues have provided evidence.

[Chris Vince]

I thank the hon. Lady for giving way. This is a friendly intervention. She is a pro-European. Is she pleased that IKEA, a brilliant Swedish company that invests heavily in this country and has a fantastic business model, is pro the Employment Rights Bill? Will she push her colleagues in the Lords to get it through and on to the statute book?

[Sarah Olney]

I thank the hon. Gentleman for his intervention. There are many parts of the Employment Rights Bill that we are happy to support. However, there are some bits—

[Tim Farron]

Just like IKEA, it may not fit together. [Laughter.]

--- Later in debate ---

[Sarah Olney]

There are, dare I say, perhaps some bits missing, which mean it does not add up and we can’t put it all together—I don’t know where I am going with that, sorry! [Laughter.]

The training, hiring and retaining of a skilled workforce are issues affecting businesses across the country. The apprenticeship levy does not work and many businesses cannot get the funding they need to train staff, while hundreds of millions in funding goes unspent. The Liberal Democrats have been calling for the apprenticeship levy to be replaced with a wider skills and training levy, which would give businesses flexibility over how they spend their money to train their staff. We therefore welcome the Government’s intention to reform the levy and refocus it towards growth and skills, but we need faster progress and Skills England made into a properly independent body, with employers at its heart. However, we have concerns about moving funding away from level 7 apprenticeships, as we know this initiative increases social mobility. I will continue to ask the Minister if they will accelerate the announcement of the details of the new scheme, outlining exactly what training will be eligible so that businesses can plan with certainty and develop the workforce we need.

Perhaps the most obvious issue that has impacted our high streets over recent years is the last Government’s botched Brexit trade deal. Many business owners have highlighted the reams of red tape and trading forms that they must navigate to import goods from Europe or export them to the continent. This is valuable time taken away from the productive tasks involved in running a business, and Government policy has simply made life for managers far more difficult.

Meanwhile, unemployment has gone up and a range of sectors are facing acute labour shortages, as my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) has highlighted on many occasions in this place. Many high vacancies are concentrated in high street sectors such as hospitality, retail, the arts and entertainment. Those are exactly the kinds of industries that young people visiting the UK for a few years might wish to work in. A youth mobility scheme would offer British businesses a real opportunity to address staffing shortages by welcoming young people from EU countries for a limited period, bringing fresh talent and energy to our workforce. I ask the Government to set out a timeline for when their announced youth experience scheme will be introduced.

However, the Liberal Democrats welcome the motion’s call to increase support for high business energy bills. I urge the Government to act with more urgency in addressing energy costs for businesses, including by accelerating the launch of the industrial competitiveness scheme, the consultation for which is not even due to be launched until the end of the year. The Liberal Democrats will continue to push the Government to look closely at our proposals to break the link between gas and electricity prices, halving household bills within a decade and significantly cutting business energy costs over the same period.

[Graham Stuart]

I would fascinated to hear from the hon. Lady precisely how the energy market can separate gas from electricity prices. If she has a plan to do so, it would be lovely to hear it.

--- Later in debate ---

[Sarah Olney]

By breaking the link between gas and energy, electricity does not need to be sold at the same rate as wholesale gas. We are advocating for a change to the way the market operates. That deserves serious consideration, because currently the current market and the current way it is managed is resulting in enormous energy bills for both businesses and households.

Our party also agrees that more must be done to tackle retail crime. Shoplifting not only causes shops to lose out on sales, with the costs then passed on to paying customers; it also means that staff members—often young people—are met with the possible threat of violence. Shoplifting has risen by a staggering 48% in England and Wales over the past five years, and by an even more horrifying 104% in London. Every time I meet the owner of a local store, I am told that shoplifting has become effectively decriminalised, as thieves do not feel the threat of reprisal. And then there is the impact on prices.

The Government talk about bringing down inflation. One measure that can be taken to reduce the cost of everyday goods is to tackle the rise in shoplifting. It is incredibly frustrating to me that the Government have not connected the dots between an increased fear of crime and the stripping back of our police forces’ ability to do their jobs. As is so often the case, shop owners are told by the police that it is not a cost-effective use of their resources to follow up on relatively minor thefts. However, to every local business and paying customer, it is. I urge the Government to recognise the detrimental impact that shoplifting is having in our society, and to take this issue seriously.

The Liberal Democrats acknowledge that the Government inherited a dire economic landscape from the Conservative party. However, 18 months in, I do not believe that businesses feel that life has been made easier for them. Small businesses are struggling with the cost of doing business. They are finding it hard to plan around parts of the Employment Rights Bill, and they are struggling under the burden of sky-high energy bills and the employer national insurance contributions rise.

[Ms Billington]

I am grateful to the hon. Lady for giving way. I am interested in her acknowledgment that we have made specific progress in dealing with the botched Brexit deal left as part of the legacy of the previous Tory Government, which she may indeed welcome. For example, our sanitary and phytosanitary deal includes being able to boost exports by slashing red tape and bureaucracy specifically for our farmers and food producers, lower food prices at the checkout and co-operation on energy. [Interruption.] Opposition Members may chunter from a sedentary position, but it is actually really important when you look at how—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Lady will know that interventions need to be short, and not read off phones.

[Sarah Olney]

I am, of course, delighted that we are making some small progress towards a better relationship with Europe—I welcome that wholeheartedly. However, we could go a lot further. The Liberal Democrats have been pushing for a UK-EU customs union, which would unlock many, many more benefits, but the Labour Government are very reticent. I welcome some of the noises from both the Treasury Bench and many Labour Back Benchers. I find it astonishing the number of Labour MPs I have encountered over the past couple of weeks who are suddenly desperate to tell me how very pro-European they have always been. I am very pleased to hear that, but I would say that I have not always heard that from the Labour Benches. But all progress in this area is welcome.

[Dr Murrison]

I am very grateful to the hon. Lady for giving way and I am listening very carefully to what she has to say. One of the more useful things the Liberal Democrats have done in the past is to support the future high streets fund, brought in by the last Government, but she has not mentioned it and neither did the Minister. That is surprising. Nearly £10 million of future high streets funding was given to Old Kent Road in Peckham in her constituency, but she did not mention it. A large sum of money was given to Trowbridge, the county town of Wiltshire, to good effect. What does she think of the fact that the future high streets fund has been ditched and replaced by something called pride in place, which is a pale reflection of the future high streets fund? Would she like to think about including that in her contribution?

[Sarah Olney]

I am very grateful to take advice from the right hon. Gentleman as to what I should and should not include in my speech. What I would say is that it is always targeted pots of money for individual places, but we have always advocated for a much more wide-ranging set of policies that would support all high streets wherever they are in the country.

The Government must take bold action to boost our economy. We urge Ministers to scrap the national insurance jobs tax and act with far more urgency on implementing the industrial strategy, cutting energy bills and strengthening our workforce. We call for bolder, more ambitious and fairer measures to replace business rates with a fair new system that can boost high streets and town centres, and we call on the Government to negotiate a new customs union with the EU, which would cut red tape for small businesses and supercharge our economy as a whole.