PARLIAMENTARY DEBATE
High Street Businesses - 31 October 2024 (Commons/Commons Chamber)

Revitalising our high streets is a priority for this Government, and I and the Secretary of State have spoken to colleagues across Whitehall to ensure that we are working together to create better conditions over the long term for high street businesses to thrive. That means addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network, reforming the apprenticeship levy and, as the Chancellor confirmed yesterday, reforming business rates.

There are just short of 5,500 businesses in Sheffield Central, and more than 80% of them are micro-businesses employing fewer than 10 employees. These are the engines of local economic growth in our area, and they provide vital services in our community. Many businesses in my constituency welcome yesterday’s announcement of permanently lower business rates for hospitality, retail and leisure properties from 2026-27. Will the Minister outline what further steps he is taking with the Chancellor to create a fairer business rates system, so we can ensure that our high streets thrive permanently?

I am grateful to my hon. Friend for her question, and I think this is the first time I have had the chance to congratulate her on her election to this House. She is absolutely right that if we are to see our high streets thrive, we need to ensure there is a genuinely level playing field for businesses online and those on the high street. As the Chancellor announced yesterday, to deliver that pledge we intend to introduce permanently lower tax rates for retail, hospitality and leisure properties from 2026-27. To fund that, we intend to introduce a large business multiplier from 2026-27, which will apply a higher rate on the most valuable properties. That will capture the majority of large distribution warehouses, including those used by the online giants. However, we want to go further, so the Chancellor published a discussion paper yesterday asking businesses for further ideas on the reform of business rates.

Small and independent shops are the lifeblood of our high streets, and they make the communities in my Ashford constituency special. Far too many high street businesses have been feeling the squeeze over recent years, which has led to empty units being an all too familiar sight. I welcome the measures announced in yesterday’s Budget, particularly the reform of business rates. Will my hon. Friend update the House on what the Government are doing to empower local communities to acquire empty units?

Again, I congratulate my hon. Friend on his election to this House. Colleagues across Whitehall are bringing forward plans to introduce high street rental auctions, which will bring vacant units back into use. That should make town centres more accessible and affordable for tenants. We will also take steps to crack down on antisocial behaviour. We saw a huge increase in antisocial behaviour and crime in our high streets under the Conservative party, and we are determined to take steps to crack down on that.

I welcome my hon. Friend’s question, and I know the high streets in his constituency that he mentioned, as they are very close to Britain’s greatest constituency. He will be aware that we have already taken steps to help businesses recruit more skilled staff. It is one of the reasons why we have established Skills England. We have also taken steps to reform the apprenticeship levy, and earlier this week the Prime Minister brought forward plans to help people get back to work.

The anti-growth coalition on Mid Sussex district council, led by the Lib Dems, Labour, independents and Greens, is bringing in Sunday, bank holiday and evening town centre parking charges on top of a 30% rise, and there is the sword of Damocles of possible village car parking charges. Will the Minister reiterate to councils that are determined to derail his growth mission that such draconian measures on our high streets will do exactly the opposite of what he and his Budget are apparently looking to achieve, and will he perhaps meet them?

I gently suggest to the hon. Lady that those making up the anti-growth coalition are sat on her side of the House, and I gently point out to her that the highest number of businesses to go bust for 30 years was under the Conservative party last year. I would also happily ask her to use her influence with the Conservative-led council in my constituency, which is bringing in parking charges that will certainly damage the night-time economy.

I welcome some things that the Minister has referred to regarding high street businesses, and I thank him for that, but there are many other matters. For example, in Newtownards family businesses make up a great many of the attractive high street businesses, such as Wardens, Knotts Bakery and the family butcher, and they are important, as they are in Ballynahinch. Has the Minister had the opportunity to talk to the chamber of trade in Newtownards, which is working well? Other chambers of trade in my constituency can also contribute, so has there been an opportunity to speak to them to get their ideas about the way forward?

The hon. Gentleman is an assiduous champion for his constituency in this House. If he wants to bring his chamber of commerce to meet me to discuss issues in his constituency in more detail, I will happily make time to meet him and them.

We are 10 minutes gone and still on Question 1. We need to speed up a little bit. If the Minister could look at me, that would be helpful, so that we are going through the third person. I know that Mr Shannon is popular, but even so, it should go through me. I call the Liberal Democrat spokesperson.

In my constituency, the number of people shopping on our high streets has not returned to pre-covid levels, and we have lost anchor stores such as Marks & Spencer, and several banks. The Government urgently need to save our high streets, but the reduction in retail, hospitality and leisure business rates relief from 75% to 40% will come as bad news for thousands of businesses. When will the Government deliver a fundamental reform of business rates to save our high streets and end the penalising of productive investment?

I am grateful for your guidance, Mr Speaker. While the hon. Member for Strangford (Jim Shannon) is popular, you are much more important.

I gently point out to the hon. Member for Wokingham (Clive Jones) that we have started the process of reforming business rates. We are introducing permanently lower rates for retail, hospitality and leisure from 2026-27. We have listened to businesses and kept business rates relief, and we are opening up opportunities for businesses to come forward with ideas for future reform of business rates.