UK Parliament / Open data

The High Street

Proceeding contribution from Simon Danczuk (Labour) in the House of Commons on Tuesday, 21 May 2013. It occurred during Adjournment debate on The High Street.

My hon. Friend makes an important point. The question is about how Government can affect the situation locally. There are lots of examples of good practice at a local level, but we have not had a strong sense of direction or leadership from the Government on town centres and high streets.

Rather than talking about high street champions, I would like the Government to consider funding digital champions: experts in multichannel retail, who can make a real difference and work with the independent retail community to help it embrace multichannel retail to supplement shops and safeguard its future. Independents make up 69% of all shops, and we need to do everything we can to safeguard their presence on our high streets.

When we look back on high street policy carried out by the coalition Government, we see that the multitude of headline grabbing initiatives have blinded us to the elephant in the room that is causing the most damage on the high street. I refer of course to business rates. The Government have collected an extra £500 million over the past two years through increased business rates, and yet they have spent only £20 million on the Portas pilots. Week in, week out, businesses in Rochdale tell me that the tax is far too high and is dragging them close to the brink. Research published this year by the Forum of Private Business shows that 94% of small business owners think that business rates are far too high. There is a growing sense that the Government see the high street only as a cash cow to milk to exhaustion.

The sense of injustice is further embedded by the Government’s decision to postpone next year’s business rates revaluation. While London property prices continue to rise, business owners in more affluent metropolitan areas can breathe a sigh of relief knowing that the Government will keep their rates artificially low, but many northern businesses, which have seen property prices fall by 40% in some areas, have to pay the top-of-the-market 2008 rates until 2017. We end up with the absurd scenario of Burnley effectively subsidising Bond street, and Rochdale subsidising Regent street. Business rates for an Amazon fulfilment centre in Doncaster are calculated at £44 per square metre, yet for an out-of-town Comet store in Rochdale, which as we know subsequently closed, they were £125 per square metre. Even worse, the rates for one unit in a Rochdale shopping centre are calculated at £1,080 per square metre—24 times more expensive than the rates Amazon pay in Doncaster.

Type
Proceeding contribution
Reference
563 c87WH 
Session
2013-14
Chamber / Committee
Westminster Hall
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