Supporting High Streets

Tim Farron Excerpts

Tuesday 4th November 2025 Commons Chamber

[Miatta Fahnbulleh]

My hon. Friend is absolutely right. We know that there is a fundamental link between public services that work and can support people across the economy and how well the economy does. This Labour Government have made the decision that it is right for us to invest in our public services, and right for us to invest in our NHS, because it is good for people, but also good for the economy. We do not resile from that decision.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I strongly empathise with the Minister’s articulate fury at the previous Government and the damage they did to our village and town centres. But will she acknowledge the fact that Cumbria Tourism, which represents the employers of 60,000 people in Cumbria, reports that the national insurance rise has seen 37% of those businesses cutting staff, 34% freezing pay and 33% halting recruitment? Is that not likely to reduce the tax take—as well as damaging businesses generally—and reduce our ability to support the public services that she says she is so passionate about?

[Miatta Fahnbulleh]

We understand that businesses across all sectors are under pressure. We are working with the tourism sector, because it is absolutely vital to the growth of the wider economy, and with all sectors. This requires a whole set of interventions, whether that is what we are talking about today, in terms of our high streets, the action we are taking to support training and skills for the workforce, or the investment we are putting into the economy.

We recognise the pressure, but I come back to the fact that that pressure did not come overnight. If you decimate and under-invest in the economy for 14 years, you end up where we are now. The choice for this Labour Government is that we can now do the job of renewal. It takes time, and we recognise that, but that is a journey that we are determined to go alongside business on.

--- Later in debate ---

[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.

--- Later in debate ---

[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.]