Future of Town Centres and High Streets

I congratulate my constituency neighbour, my hon. Friend the Member for Nuneaton (Mr Jones), on stimulating a lively, interesting and largely well-attended debate. We must support our town centres. If we do not, we will witness their demise, and the economic, environmental, retail and community value of those centres will be lost. Anyone who has visited the United States, where there are fewer planning controls than we have had in the UK, will have seen many towns with holed-out centres where there is little life or activity, but also with a doughnut of development all around of large-scale retail shopping centres. My constituency has fared rather better than most in relation to the recent changes in town centres. The Association of Convenience Stores states that the average level of vacant shop units is 14%. The situation in Rugby has improved, however. The vacancy rate was just 3% in 2007. It then rose to between 8% and 10% at the peak of the recession in 2008. Since then the proportion has fallen back to 6.25%. That compares very favourably with the national average. As elsewhere, there have been recent shop closures in Rugby as a consequence of difficult Christmas trading, but I pay tribute to our progressive forward-thinking council. It is aware of the problem and has taken action to deal with it, including through adopting a flexible approach to planning and introducing ““moving in”” grants of up to about £5,000, which often go to smaller independent businesses. The total spend on that has been £70,000 over three or four years, and it has been an effective investment. This is a national problem, however, and we all must consider what to do to halt the decline in high street retail. It is important to understand what is happening in retail. Many Members have referred to the influence of the internet and have rightly stated that we cannot fight the power of the internet. According to the House of Commons Library, just 3% of retail purchases were made on the internet in January 2007, but the internet now accounts for 12% of UK retail trade. Local communities have two options. With a decline of 12% in retail trade, it is clear that the number of retail outlets and the amount of retail space must fall, not necessarily by the full 12% but certainly to some extent. Alternatively, the population in the local area must grow. I am delighted that Rugby is taking the latter approach, with a substantial development of 13,000 homes about to start on the Gateway site as well as development due for 6,200 homes on the Mast site. There are many reasons why communities should embrace new housing. Our young people need homes, and the new homes bonus provides an income stream for local councils. New housing also supports our existing town centres. Communities should not complain about the decline of their town centres if they do not accept more housing where that is possible. In areas where new housing is not possible and town centres shrink, properties at the edge of the town centres should be able to be used for retail—indeed, many of them were originally developed for retail use. We must react fluidly in order to adapt to times of growth and decline. Communities should also develop their independent stores. Rugby has a very successful independent sector in the Regent street and Albert street area, and The Rugby Observer report on Christmas 2011 trading highlighted the success of independents in Rugby that give great service and flexibility in the range of products they sell. As elsewhere, chain stores did badly. I believe that people are now bored by the uniformity of multiples, and independents offer something different. We need more support for independent retailers, especially as that would effectively be backing winners. That was recognised in the Mary Portas review. She visited our town and said in her report that she had been very impressed with the ““champions of change”” she met in Rugby. They were not managers of national multiples, but independent entrepreneurial traders. They must be encouraged. There is much good news and much that can be done, and I look forward to hearing the Minister's response to the debate.