I beg to move,

That this House has considered Government support for high street businesses.

It is a pleasure to serve under your chairship, Ms Lewell. For decades, centuries and even millennia, towns and their high streets have been the focus of commercial and community activity—not just for the towns themselves, but for surrounding villages and rural communities. Whether it is for market day, celebrating great events such as VE Day, essential services such as banking and laundrettes, or spending time eating and drinking with friends and family, high streets and urban centres have long offered so much. However, across the country, our high streets and their businesses are struggling as never before. Too many, sadly, are falling into disrepair, with empty shops, cracked pavements, antisocial behaviour and crime, and streets strewn with waste.

Such issues are seen across the country. The 2025 Simply Business “SME Insights Report” on small and medium-sized enterprises found that more than half, or 63%, of small businesses believed that the high street as we know it will be obsolete in the next 10 years. This debate is an important opportunity to set out why central Government support is essential for high street businesses to thrive.

My constituency has three towns. I will say a little about the challenges and opportunities that they each face, before covering three key themes on the support that they and other high streets and businesses need. Didcot is the largest town in my constituency. It has seen huge housing growth in recent years, a trend that continues with the ongoing development of Valley Park. The town centre does not have a single focus, such as a traditional market square. Instead, it has two key areas: an older high street called the Broadway and a new retail park called the Orchard Centre.

Both the Broadway and the Orchard Centre face the challenges of antisocial behaviour and shoplifting; far more co-ordination between police, local authorities and businesses is needed. Didcot Broadway contains a range of shops, cafés, takeaways and restaurants. I thank Little India for the fantastic paneer jalfrezi that I got for a takeaway on Monday evening. Broadway also has the wonderful Mulberry pub at its western end. The Broadway forms the centre of the town, but businesses face many challenges, including the presence of the popular Orchard Centre retail park close by.

Amer Siddique, owner of Snack@Teas, formed a group of local business owners and is a passionate advocate for investment in the Broadway and town centre. I shall explore a number of those business owners’ concerns in my speech. Didcot’s last bank closed this year, despite the town’s population having grown to more than 32,000. It remains to be seen how well a proposed banking hub will fill that void. Parking in the town is a big concern as well, as a result of the rising population, although I am pleased that the Orchard Centre listened to vociferous local concerns and changed its mind on introducing car-parking charges.

In the east of my constituency, Wallingford is the smallest of the three towns, but more than makes up for that with its history, which goes back to Anglo-Saxon times. Its town centre high streets have a range of small businesses, full of character, such as the independent Wallingford Bookshop and Le Clos, a wine bar also offering amazing food, including tarte flambée with a range of toppings—baked flatbreads originating in the Alsace region of France. A key challenge for an ancient town is how to accommodate car traffic and parking to maintain visitor levels, given the large towns and cities fairly nearby. There is also frustration in Wallingford that NHS criteria seemingly prevent more than one pharmacy being able to serve the town.

Finally, Wantage is the second largest town in my constituency and the birthplace of King Alfred. In Wantage, the great Market Place is lined with independent shops, cafés and restaurants, with a retail park in the town centre, too. Wantage’s Argos store has been shut for two years, and New Look has now closed its doors as well, so vacant premises are a concern and many existing businesses highlight the crippling impact of significantly increased business rates—including the Vaults bar and pizza restaurant, the Kings Arms pub and the Bear Hotel, the last of which reports a doubling of its business rate charges. Consultation and debate are ongoing about how to further improve Wantage Market Place, which is dominated by car parking and bus stops. Special events that see Market Place closed to traffic, including the annual Dickensian evening, are popular and see the place filled with visitors.

The three towns, and their high street businesses, have three themes at the heart of their challenges and concerns, the first of which is the growing burden of business taxation and costs. Local businesses are feeling hammered by rising costs and barriers to their growth and hiring people; they feel there is an unfair playing field, given that online businesses are not taxed in the same ways and to the same degree. They feel that business rates are a flawed tax that is not directly related to either income or profit. Businesses in my constituency feel that recent Government changes to business rates have done little to ease the difficult situations they face, and certainly fall well short of the radicalism that was at least implied in Labour’s 2024 manifesto.

I salute the speech that my hon. Friend is giving; I am seeing the same situation play out in my constituency. Brecon has one of the most beautiful high streets in Wales, with its gorgeous Georgian buildings, but local businesses are telling me exactly the same thing. They are taking an absolute hammering from this Government’s decision to push through business rate revaluations. Does my hon. Friend agree that that is a real concern? Does he believe that the VAT cut to hospitality that the Liberal Democrats are calling for would at least help to restore some activity, life and profit to our hospitality businesses?

I agree that such a VAT cut would help, because it is not just business rates that small businesses on high streets are facing. On top of business rate increases and the burden of value-added tax, they are also paying for increased labour and payroll costs, including the higher national living wage and increased employer national insurance contributions. Some of those measures are understandable, and they will of course be welcomed by some, but the story I hear from my high street businesses is that the cumulative impact of all these things in a small space of time is creating challenges. Many businesses are also still servicing debts from the covid-19 pandemic, such as repaying bounce back loans, which further restricts their finances to ride out the current challenges or invest in the future.

Electricity, wage costs, business rates and general taxation are adding up to a perfect storm when combined with ongoing cost of living pressures for consumers, which affect demand. Constrained finances in high street businesses have a knock-on effect on their capacity, meaning that owners are particularly reluctant to hire entry-level or younger workers. That is exacerbated by the recent compression of the wage floor with changes to national insurance contributions and the national living wage.

While recognising the benefits of such changes for workers, businesses raised concerns in Alan Milburn’s interim report, “Young people and work”, saying that these pressures make them consider reducing staffing altogether, or hiring fewer, more experienced workers. This affects the flexibility of the businesses to staff correctly against fluctuating footfall, and reduces opportunities for entry-level workers. Labour is effectively one of the few remaining adjustable cost bases within owners’ control, and it is suffering accordingly.

High street retailers continue to adjust to the changing nature of consumer behaviour, such as online competition and destination shopping. There is a lack of consistent support available to high street businesses at a local level to support retailers through these challenges, and I will come on to say a little bit more about that.

The second key theme is transport and access, which is a key challenge as a result of population growth and central Government housing targets. A growing amount of car traffic, competing for a constrained amount of car parking in town centres, creates real challenges, particularly in older towns such as Wallingford. That is why the reality is that more must be done to help those who can, and would like to, walk and cycle by providing them with safer and better options for doing so. For example, cycle parking can reassure them that their bicycle will be safe.

At this point, I should say that when we get into a debate about transport, it is often presented as an either/or between cars and public transport, walking and cycling. However, those things are not mutually exclusive. The Netherlands does not just have a globally leading cycling infrastructure and culture; it has the most comprehensive motorway in Europe, as well as a fully electrified mainline railway network. Public transport, walking and cycling are complementary to cars—we need both. Even small increases in the use rates of public transport, walking and cycling can help to ease congestion and free up parking spaces for those who need them.

Investment in roads, pavements and general town centre infrastructure is also a concern. Poorly maintained pavements can be a barrier for older residents and those with mobility issues, increasing the risk of falls and discouraging visits to the town centre. Improving accessibility would help to attract more visitors and support local businesses.

The third theme is local government funding pressures. Of course, many small businesses in my constituency, entirely understandably, look to local councils to help them with their high street and business challenges. I want to explain why local councils are too affected by central Government policy and face reduced budgets amidst growing costs.

With their origins in European Union funding streams, South Oxfordshire and Vale of White Horse district councils have, until now, benefited from allocations from two funds: the UK shared prosperity fund and the rural England prosperity fund. Between them, those funding streams have supported more than 130 local projects across the councils so far. Projects were hugely varied, but they included grants to support businesses and community groups with a transition to more efficient and affordable energy use—pubs and cafés, for example. They also included providing capital investment into equipment that supports productivity gains, funding a huge range of business and skills support programmes, often targeting those most at need; developing a visitor economy support programme to support our market towns; and making several small-scale improvements to the public realm across the two districts.

Unfortunately, this Labour Government have decided to scrap those funds, and their replacements, Pride in Place and the local growth fund, are principally targeted at city regions and areas of high deprivation. The impact of the abolition of the two funds is not trivial. In 2025-26, the allocations from the two funds across the Vale of White Horse and South Oxfordshire districts were £1 million; in 2024-25, the total was £2.4 million. At the same time, changes to local government funding formulae mean that Oxfordshire county council will lose £24 million in funding over the next three years.

Those changes affect all three councils’ abilities to invest in high streets and support local businesses. They also make it harder for them to explore new ideas, such the ones requested by the town councils of the three towns I mentioned: grants to town and parish councils to invest in civic pride, such as floral planting, hanging baskets, more street cleaning and more ways to promote local shopping; or funding to employ town centre managers to link the town council with retail centres and independent traders.

I want to set out my key asks of central Government. Once again, the Government need to go much further in reforming business rates—a form of taxation that bears little resemblance to a business’s earnings. Does the Minister recognise that evidence submitted to Alan Milburn’s interim report into young people not in education, employment or training identified labour costs as a key concern? The Government, to their credit, have announced serious intentions in relation to energy prices, but what should be done in the meantime, particularly with no sign—very sadly—of war in the middle east abating?

Once again, will the Minister heed Liberal Democrat calls for a 5% cut to VAT for hospitality? Does he agree that taxation arrangements need modernisation, given the rising threat to physical businesses posed by online retail? Given rising demand and the same amount of space for car parking, do the Government agree that greater investment in public transport and walking and cycling infrastructure is needed to make it easier for people who need to drive to have the road space and car parking to do so?

What fresh, new ideas do the Government have to help our high streets? I have a few examples to consider. National “buy local” schemes would incentivise and reward people for spending their money locally. A “high streets back home” scheme would give people a clear route to invest in their own community, whether by restoring heritage building, supporting local enterprise or helping to secure community assets. The Government could give councils the power to designate independent shop zones, protecting and championing small locally owned businesses against the tide of chains and empty units.

Does the Minister accept that, for councils not benefiting from Pride in Place funding, including in Oxfordshire, the end of the UK shared prosperity and rural England prosperity funds constitute a cut to local government funding? That undermines their ability to invest in staff and initiatives to help small businesses improve town centres, and to award grants to businesses and community organisations to help them reduce their energy bills or upgrade their equipment. Our high streets and local businesses are critical to the successes of our towns and surrounding communities, and I call on the Government to give them the support that they deserve.

It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing this debate.

I want to focus on an important lever that the Government should pull to regenerate our high streets: tackling the illicit financial activity that is hollowing out towns and undercutting legitimate local businesses. That matters because these streets are the soul of our communities; they are where local traders serve their regulars, and where the greengrocer, butcher and corner café have always been part of who we are as a country.

Despite all the pressures that our high streets face, brilliant independent businesses—whether new ventures like Hive in Westhoughton in my patch, or long-standing local favourites like Serendipity in Horwich, run by Chris and Kath Parbery—are still choosing to invest in our communities. But millions of us no longer recognise the high streets where we grew up. The bakery, now a barber shop, is somehow always empty. The greengrocer is now a vape shop. The pub on the corner is boarded up for the third time in five years. The Woolworths is long gone, replaced first by a pound shop and then by something called an “American candy store”. Now, just like all the empty barber shops, vape shops and mini-marts, the high street is silent.

The number of vape shops in England has grown by nearly 1,200% in a little over a decade. The number of barber shops per 10,000 people in the UK has more than doubled in the same period. Meanwhile, the National Crime Agency assesses that at least £12 billion of criminal cash is generated in this country every single year, and our high streets have regrettably become a primary route for washing those proceeds. Behind some—not all—of the cheap shop fronts sits drug money, trafficking money and money stripped from the most vulnerable in society. The proceeds of human misery are being cleaned through card machines on high streets in every town represented here today.

The all-party parliamentary group on anti-corruption and responsible tax, which I chair, has spent the past year speaking to individuals on the frontline with responsibility for tackling the explosion of cash-intensive businesses. Representatives from the banking sector told me that they hold significant data on suspicious cash flows but lack the legal architecture to share it usefully. Legitimate hard-working barbers being driven out by criminal operators told me that their trade is being tarnished in plain sight. Officials in local government told me that they watch shops close one week and reopen the next under a new name and a new nominee director, with the unpaid business rates simply written off.

The NCA’s Operation Machinize has shown what is possible. In my constituency, Horwich Mini Market on Lee Lane was closed for three months last year after the seizure of almost 20,000 illegal cigarettes, hundreds of illegal vapes and 7 kg of illegal tobacco. The nearby Texaco service station on Chorley New Road was prosecuted in December 2024—the first prosecution of its kind in the north-west of England—with more than 7,000 illegal vapes seized across four visits. But let us be honest: Operation Machinize has visited more than 2,500 premises across two waves, and its initial wave produced only 10 permanent closures—that is 10 out of 2,500 businesses. Organised crime will absorb that figure as an operating cost and shrug it off by the end of the week.

After years of austerity and inaction under successive Governments, I know that this Government understand the severity of the situation facing our country. Measures announced include a new £30 million high street organised crime unit, which I was proud to lobby the Chancellor for before last year’s Budget, and 75 new officers in the worst-affected regions, including the north-west of England. Trading Standards will receive £6 million, after a decade of cuts that halved its capacity.

Other measures include a new cross-Government taskforce, 350 new His Majesty’s Revenue and Customs investigators, a new abusive phoenixism taskforce and a consultation on extending closure orders. All that shows real progress, and the APPG that I chair has campaigned hard for many of those measures, so it would be remiss of me not to thank the Minister and his colleagues across Government for their work over the last two years.

But money alone will not finish the job. The criminals hollowing out all our communities have to know that they are no longer welcome, and that must mean three things. First, we should adopt a British equivalent to the Dutch Bibob regime. The officials in the port city of Rotterdam I met earlier this year told me how they have spent 14 years dismantling the organised criminal infrastructure that we are struggling against in the UK. Dutch officials in one Rotterdam suburb told me how their integrity screening regime reduced the number of firms from 111 to 65 without recourse to a single criminal prosecution, removing suspicious businesses en masse. We should learn from our Dutch counterparts and give our local authorities similar powers to refuse permits to applicants linked to criminal intelligence and to look through nominee directors for the real money behind them.

Secondly, we should move to mandatory licensing for barbers, vape shops and the other high-risk sectors that have become criminal franchises in plain sight on our high streets. If someone needs a licence to sell a pint of beer, someone should need one to open a barber shop or a vape store.

Thirdly, we should extend closure powers so that persistent offenders are shut down for good. Members of the Chartered Trading Standards Institute overwhelmingly back the idea: 98% support extending closure orders and 97% support permanent closure for repeat offenders. And let us remove, in a single line of legislation, the absurd £1,000 cash seizure threshold that lets criminals wave goodbye to trading standards officers with fistfuls of notes in their hands. Let officers seize every pound of ill-gotten gains from the till.

Our high streets are where this country lives. They bind our communities together and they are where the next generation of British entrepreneurs will cut their teeth. Businesses like Hive, Serendipity and Blackedge Brewery are proof that there is still enormous pride, creativity and resilience in our towns. They are worth fighting for, so let us do so.

There will now be a five-minute time limit on Back-Bench contributions.

It is a real pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing the debate, setting the scene and giving us all a chance to participate.

In Northern Ireland, the future of our high streets is of great concern. We have seen some of the steepest falls in footfall on our high streets compared with the rest of the United Kingdom. Six or seven years ago we would not see an empty shop front in Newtownards; now there are 10 or 11. Owners have retired from family firms and been unable to get someone to take over. I saw in the paper the other day that businesses are closing and people cannot sell their businesses. Perhaps, Minister, there is something to be done to encourage people who want to have a business on the high street but are unable to.

There used to be 11 butchers in Newtownards town, but now there are two. That is because of changing habits: all the big stores now have a butcher’s counter—they have a cabinet—and purchasing is done differently. The Minister and the Government are not responsible for certain things, but something can be done for those who want to open a shop.

All four UK nations record year-on-year declines in footfall, which is a reminder of the economic pressures on our high street shops, some of which are forced into administration. Our high streets have been hit hard by the cost of living crisis, both directly as a result of their costs going up, and because footfall has decreased due to the effects of the crisis on potential customers. Smaller independent retailers made up 84% of all closures in 2024; that shows the effects of decreased footfall and increasing costs.

As an increasing number of shoppers use contactless payments, businesses are suffering, with increased amounts of their revenues going to payment providers. Shops processing £10,000 a week in card payments are paying around £13,000 a year in fees, and there has been a big increase in credit card payments. The Government have no say in that, but could contact be made with credit card companies to ensure that they drive down their charges? That might help a bit. To put that figure into perspective, it could cover several months of rent or the salary of a part-time staff member. These costs are one of the reasons why high street businesses are not employing new staff—they have to cut back somewhere.

Crime and antisocial behaviour leave high street firms facing extra expenses for security measures, insurance, replacing stolen or damaged stock, getting CCTV and establishing contact systems with local police. Larger retailers are not unaffected, with retailers such as Claire’s Accessories, Poundland and River Island announcing closures. Even charity shops such as Cancer Research UK are on the list.

Large banks are also affected, the impact of which cannot be overlooked, as their branches act as an anchor, driving foot traffic to surrounding high street shops. Eleven banks have closed in my constituency. We have been able to get banking hubs to fill in the gaps, and there are post offices in nearly every Spar shop down the Ards peninsula, so there are ways of addressing this. Fewer people are visiting town centres, leading to high street decline. The combination of higher running costs and less disposable income has led to more and more vacant premises.

A considerable factor in this decline is the rise of online shopping, which again relates to the people’s habits. It poses a particular concern to smaller enterprises, which are unsupported when it comes to e-commerce and accessing the necessary technology. Consumers should be encouraged to consider the fact that online shopping cannot replace the experience of face-to-face contact with retailers and the opportunity to see, touch and assess products themselves.

We are very fortunate in Newtownards, the main shopping town in my Strangford constituency, to still have many family shops—I think of Knotts, Wardens and many clothes shops that are family firms as well. Consumers’ ability to make more informed choices will contribute to the creation of a more loyal and consistent customer base for our high street shops. Retail parks and larger shopping centres have fewer economic pressures because they have the car parks. Sometimes the car parks in towns charge fees, which by their very nature create issues.

In conclusion, I endorse all the recommendations made by the hon. Member for Didcot and Wantage. There are some really good ideas that would help each and every one of us, including our constituents. The Government’s aim should be to create a more resilient high street that can survive as well as thrive long term. We look to the Minister so that the high street can be supported for our customers and shopkeepers.

It is a pleasure to serve under your chairship this afternoon, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing the debate.

For some time now, there have been unrelenting efforts from colleagues across the House, many of whom are here today, to keep the future of our high streets firmly on the desks of Ministers. That reflects how important our town centres are not only to local economies but to the social fabric and cohesion of communities right across the country. High streets are where people come together. They are places of commerce, but also places of connection, identity and pride. When they thrive, communities thrive. When they decline, the effects are felt far beyond empty shop fronts and reduced footfall.

One issue that has become impossible to ignore is the growing criminality taking root on some of our high streets. Alongside my hon. Friend the Member for Leigh and Atherton (Jo Platt), I have been leading a campaign to shut down dodgy shops, which has now secured the backing of more than 50 Members from across the House. We were really pleased to meet the Chancellor recently to discuss the steps to tackle the organised criminal enterprises operating behind many premises. I am pleased that significant action has been taken across Government Departments to address the issues, some of which I will outline today.

Progressive announcements in the Budget included increased resources for trading standards officers— I feel I am repeating things that my hon. Friend the Member for Bolton West (Phil Brickell) mentioned, but it is worth reinforcing. Budget announcements also included the creation of a dedicated cross-Government taskforce to develop an intelligence-led understanding of organised crime on our high streets; the deployment of 350 newly recruited criminal investigators in HMRC’s fraud investigation service; and the recruitment of 50 additional Insolvency Service staff through a new abusive phoenixism taskforce. These are important and welcome interventions, and they would not have happened if not for my hon. Friend and the APPG he so ably leads.

Under the Tobacco and Vapes Act 2026, the Government are introducing a licensing scheme for retailers selling tobacco and vape products, helping to strengthen enforcement and improve accountability across the sector. Most recently the Home Office announced a £30 million enforcement blitz to target organised crime gangs that exploit UK high streets, sending a clear signal that the Government understand both the scale of the challenge and the need for co-ordinated action.

All that will come as very welcome news to residents in communities such as mine in Great Grimsby and Cleethorpes, because local people are absolutely fed up with seeing their high streets abused. They are frustrated when they see businesses apparently operating outside the law, while honest traders who pay their taxes, employ local people and contribute to their communities in many different ways are expected to compete on an uneven playing field.

However, if we are to achieve the tangible change that communities want to see, the Government must go further and faster. Speed matters because, while we discuss these issues in Westminster and in rooms like this, more of these businesses continue to appear on our high streets. They pop up every single day. Every month that passes without visible enforcement undermines confidence in the rule of law and leaves legitimate businesses feeling completely abandoned.

If this is a Government priority, as I believe it is, we must consider how to encourage more local authorities to move the issue higher up their agendas. Many councils face severe pressures on resources and capacity, but tackling high street criminality cannot be viewed as an optional extra. It must be recognised as central to economic regeneration and community safety. We must continue to reinforce the message that these enterprises are not simply untidy retail operations or minor breaches of regulations: organised criminality, tax evasion, exploitation and fraud lie behind many of them. Frankly, their presence drags down shopping areas, deters investment and damages public confidence.

The prize for getting this issue right is enormous. Economically thriving high streets support local jobs, encourage investment and help small businesses to succeed. Socially, they provide communities with places that they can be proud of, and morally, they help to restore faith that the rules apply equally to everyone. In too many towns across the country people feel left behind, ignored and increasingly sceptical that the law is being enforced fairly. Pulling high streets away from criminal exploitation offers an opportunity not only to revitalise local economies but to rebuild trust. That is why I welcome the progress the Government have already made, but urge Ministers to maintain the pace, strengthen enforcement and ensure that communities finally see the change they have been waiting for.

It is an honour to serve under your chairship, Ms Lewell.

I congratulate my hon. Friend the Member for Didcot and Wantage (Olly Glover) on securing this debate. I declare an interest as the owner of CellarDoor, a bar and cabaret venue in Covent Garden, and as the chair of the all-party parliamentary group for the night time economy.

Small businesses, hospitality and the night-time economy are the backbone of our high streets. In London alone, they support nearly 1.5 million jobs and generate close to £50 billion a year. Yet the independent, locally-owned shops that once defined our high streets have been squeezed out and far too little has been done to nurture those that remain. That said, I welcome new investment in my constituency. Primark is coming to the Wimbledon Quarter—Primark’s first new London store in nearly a decade—and Aldi, Marks & Spencer and Barclays have all recently invested in Wimbledon town centre, but they are international chains with deep pockets and preferred borrowing arrangements. Their confidence must not mask the fact that there are fewer and fewer independent businesses in Wimbledon. Such businesses are worn down by costs that they can no longer absorb.

Like the coalition in 2010, this Government received a hospital pass from their predecessors, but that is no excuse for making matters worse. The rise in employer’s national insurance contributions—Labour’s tax on jobs—fell hardest on high street businesses, whose staff cannot be automated or offshored. That measure, along with record increases in the minimum wage and an expansion in the legal burden of workers’ rights, both of which have a disproportionate effect on small businesses, seemed almost designed to destroy growth and hold back our high streets.

Online shopping is a major contributing factor. By failing to enact sensible reform of the business rates system, successive Governments have failed to address the unfair advantage enjoyed by online retailers. Increasingly, high streets are filled with things that one cannot get online, but even here, Government policies are failing responsible employers. Take the hair and beauty sector as an example. The first Headmasters salon opened in Wimbledon village more than 40 years ago. Across the sector, the number of apprenticeships dropped from 16,000 to 6,000 between 2016 and 2023 because of a VAT regime that incentivised salons to use self-employed staff rather than to grow and develop their own talent.

However, my constituency is doing better than many parts of the country. Footfall in Wimbledon town centre is rising, and Wimbledon village was recently named the UK’s top neighbourhood high street. However, the same is not true of Morden town centre, most of which has been part of the Wimbledon constituency since the 1980s.

Morden town centre was once a go-to destination. I am a south Londoner, even though my parents were both cockneys, because my mother came to Morden from Hackney one day in the 1940s to attend a Sunday Pictorial film stars garden party—as a fan, not as a celebrity, I hasten to add—in nearby Morden Hall park. She was enraptured by the thriving art deco high street that she encountered and decided on that day that she wanted to live in south London.

Sadly, Morden town centre has been in decline for many decades, despite Merton’s Labour council promising, for at least the last 30 years, to rejuvenate it. The council’s latest plans have now been put on hold till the end of the decade. Sadly, nothing is happening. I thank the Minister’s colleague—the former Parliamentary Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Nottingham North and Kimberley (Alex Norris)—for meeting me to help to move things forward, although sadly Merton council declined to attend that meeting.

Nationally, the Liberal Democrats are offering concrete solutions. We would cut VAT for hospitality from 20% to 15%, which a study from the Night Time Industry Association shows would pay for itself by increasing sales and VAT revenue. We would reform business rates to reward occupancy and community value, while agreeing a youth mobility scheme with the EU to resume the flow of young, eager Europeans keen to work in hospitality in their gap years. We would also reform the apprenticeship levy so that our hair salons and other small businesses are incentivised to develop talent. Our high streets need urgent help. Too many shops have put the “closed” sign up for the last time. I look forward to hearing how the Minister is proposing to reverse that trend.

It is an honour to serve with you in the Chair, Ms Lewell.

I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing this important debate. The question of support for our high street businesses cuts to the very core of what economic policy in this country sets out to achieve. For decades, a flawed orthodoxy has promoted the concentration of economic activity in a few urban centres, with the expectation that the rest of us will commute from the towns and villages we live in to the city centres for work. It is a vision for the economy that reduces the hopes and talents of citizens in every part of the country to units of social capital that should be deployed in the most “efficient” manner, and one that measures success in GDP figures rather than in thriving communities.

The reality is that an economic theory based on principles of agglomeration and spill-over effects has next to no relevance for improving the daily lives of our constituents. Whether measures of productivity would be zero-point-something per cent higher over the next 10 years if we focused on high-growth centres is totally beside the point when it comes to what makes for true prosperity. That can come only from ensuring that every high street is a success.

High street businesses give life to the heart of a community. Independent traders, entrepreneurs and innovators give a place its identity. Pubs, bars, coffee shops, community hubs, restaurants and the rest provide the social space for a town to come together and connect, rather than us remaining atomised in our private lives. These are the businesses that so often offer those first, defining jobs for young adults, and where staff build genuine connections with local customers, keeping an eye out for the elderly and vulnerable if they need a bit of assistance. In short, the success of our high street businesses is essential for a healthy, happy society. We are very fortunate in North East Hertfordshire to have many fantastic high street businesses, including G’s Deli, Vutie Beets and the Uniform Monkeys in Letchworth, the Cheese Plate in Buntingford, Bow Books in Royston and Café Luna in Baldock, to name just a few.

There is no denying that our high street businesses are under enormous pressure, and we must take immediate, decisive action to help them. I ask the Minister to look at the following priorities as a matter of urgency. First, energy bills are crippling our high street businesses. They need support just as much as domestic users but have none of the protections, and that must change. Secondly, the business rates system is manifestly unfair and a huge burden. Frankly, the Byzantine complexity of the whole edifice is mind-boggling. We cannot keep debating discounts, transitional support and multipliers. In the manifesto that this Government was elected on, Labour—my party—promised to abolish business rates and replace them with a fairer, more transparent system. We must deliver on that promise now.

I urge the Minister to ensure that, as we deliver reform, we not only remove the loopholes that allow huge corporations to practically choose how much tax they pay while independent businesses play by the rules, but shift the burden of taxation away from high streets, which give so much to our communities, and balance that with a fairer share being paid by online sales giants.

Finally, we have to recognise that, to create the environment for thriving high street businesses, we need to reverse the huge damage done to our local councils by the years of austerity under previous Administrations. Only with properly funded councils will local democracy have the power to take back control of empty shops and give commercial opportunities to a wider range of retailers and local entrepreneurs, rather than the endless parade of vape and betting shops that too often seem to be the preference of absentee private landlords.

What is more, properly funded councils are essential for tackling the scourge of overflowing bins, littered streets and crumbling roads, which do such a disservice to our high streets when it comes to attracting people. We need councils that are able to make more than a merely financial decision about the cost of parking around our high streets, and that can take a more creative approach to the differing needs of small market towns such as Buntingford and large towns such as Bishop’s Stortford down the road.

To conclude, supporting our high streets is essential for spreading genuine prosperity across every part of our country. I hope to hear from the Minister today about more decisive action to achieve just that.

It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing today’s debate. As we have heard, we are all increasingly concerned about the state of our high streets.

As the House will know, I am a former furniture retailer. That was many years ago, and I think I would struggle in today’s environment. My plea to the Minister and to the Government is to change tack and support wealth creation. The high street is really suffering. Hospitality venues, independent retailers, SMEs, post offices, pharmacies and other local businesses are all facing rising costs and challenging trading conditions.

The diversity that thriving high streets depend on is being destroyed by cost increases caused by this Labour Government. We have seen an increase in taxes for employing new people and in business rates, which makes it even harder for businesses to invest, grow and create jobs. My party has come up with an alternative plan. I am sure that the shadow Minister, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), will articulate what we think are the solutions to this huge problem, but here are the highlights.

The back our high streets Bill would introduce a permanent 100% business rates relief for the retail, leisure and hospitality sector in England. The get Britain working Bill would scrap job-killing elements of the Employment Rights Act 2025, and the reducing bureaucracy Bill would repeal and cease a number of environmental, social and governance reporting requirements. We also have the save British industry and cheap energy Bills. Others have spoken about energy costs, which have put significant pressure on businesses. The middle east is part of the problem, but some of the Government’s policy decisions are only going to exacerbate those issues.

A local wine merchant in Kings Langley, who provides white labelling for multiple retailers, is really struggling. They said that extended producer responsibility cost them an additional £240,000 in its first year of being introduced, and new bureaucratic regulation cost £15,000 to manage and adhere to, with an overcomplicated application. It feels like death by a thousand cuts for these businesses. It is affecting decisions to invest in those businesses, which in normal times would be increasingly successful.

Hubs, a franchise owner in my constituency, said that his national insurance contributions alone increased by £138,000 from April to September, and he expects the figure to be £275,000 in the full first-year cycle. Mark, the Rickmansworth Waitrose branch manager, said there has been a 45% increase in wages in the last five years, and NICs are costing Waitrose millions. If a huge high street giant like Waitrose is suffering to this level, how can a small independent retailer of whatever type survive?

My plea to the Minister, for whom I have the utmost respect, is to think twice about the burdens we are putting on businesses. Local councils can help, for example by not introducing parking charges for short stays. That would encourage footfall. We saw the upside of strong communities and high streets during the pandemic, where it was typically the retailers who knew their customers inside out who could identify where particular elements of our communities were suffering and proactively reach out to them. My worry is that if we continue with the drive towards online shopping— I am as guilty as anyone else—we will lose the face of our high streets, and the soft power relationship between retailers and the clients and consumers they serve.

It is a pleasure to serve under your chairship, Ms Lewell. I thank my hon. Friend the Member for Didcot and Wantage (Olly Glover) for securing this debate and introducing it in the way he did.

Earlier this week, the second largest settlement in my constituency, West Byfleet, lost its last bank. That is a stark, sad reminder that high streets are really struggling in Woking and across the country. They are under pressure because of business rates, energy bills, increases to national insurance contributions, the Ukraine war causing inflation costs and, quite frankly, customers not having so much money because of the cost of living crisis, so they cannot shop and visit as much.

Heartbreakingly, my constituency also recently lost its last local brewery, Thurstons, whose demise is another example of the decreasing number of pubs—we lost more than 300 across the country last year. My constituent John, who used to run Thurstons but still runs a local pub, the Crown, said that this was

“death by a thousand cuts”.

It was not one thing that caused the brewery to close; it was the cumulative impact of many problems.

One of my other Woking constituents, Jo Moulton, owns and runs a salon in Knaphill. Hairdressing is another sector that is really struggling. Several hairdressers have closed in my constituency recently. Jo’s salon, Sorella Hair Salon, is facing a 340% increase in its business rates over five years. That is unacceptable. No business can cope with that, and that is why so many are closing.

Pubs, the hospitality sector and hairdressers are so important: they make our high streets thrive, and they are key employers of local young people. Given that we have increased the bill for businesses of employing people, we cannot be surprised that they are not employing young people any more or providing those vital training opportunities, but it is a real concern.

Despite what feels like the Chancellor’s best efforts, there are actually thriving high street businesses in Woking—fortunately, my constituency is doing better than most. Ihlara restaurant in Woking town centre and the Drumming Snipe pub in Mayford have recently been nominated for awards. Many businesses have adapted to the changing world after the pandemic: with people working from home more, every village and high street in my constituency now has a café. A Cup of Peace in Kingfield is amazing. The owners regularly pick my brains on foreign policy, because they are from Iran and are really concerned about what is happening there.

Businesses can adapt, but they need the Government to give them a break. That is why I urge the Minister to look at the Lib Dem proposals to cut VAT, including a 5% cut for pubs, the hospitality sector and, I hope, hairdressers.

Property taxes—business rates, council tax and stamp duty—are some of the most controversial and despised taxes in the country. We should look at property tax reform and genuinely reform business rates. I am pleased that the Government have given support to some businesses, but the fact that they are tinkering around the edges shows that the whole system is broken.

I urge the Minister to look at the effectiveness of the high street rental auctions scheme. At the last count, Woking town centre had 112 properties that have been empty for a year or more. Very few of them are being brought back into use, and I know that the same is true elsewhere. I do not think the rental auctions scheme is working as well as the Government had hoped, and I urge them to review it and work with local authorities to ensure they are empowered and have the resources to bring those properties back into use. If the Government do at least some of that, we can grow our economy, provide employment and training for young people, and ensure that our high streets thrive.

It is a pleasure to serve under your chairship, Ms Lewell. I thank the hon. Member for Didcot and Wantage (Olly Glover) for securing this debate. Many in my constituency will welcome the comments by my hon. Friends the Members for Bolton West (Phil Brickell) and for Great Grimsby and Cleethorpes (Melanie Onn), given the kind of shops that we have in Bexleyheath and Crayford and the changes we have seen in recent years.

I declare an interest: I am a member of the USDAW parliamentary group. I spent 11 years working in retail. I started as a Saturday boy—an old-fashioned term, I know—in my Marks & Spencer in Bexleyheath, and I worked my way up to a management role, so I understand the importance of high street businesses to our communities.

In my constituency, we have two town centres in the two towns, with a mix of large retailers and independent stores, a smaller high street in Northumberland Heath and a number of smaller shopping parades. I appreciate that, in the 32 years since I first worked in retail, our town centres have changed, and that has been heavily driven by changes in our shopping habits.

In my constituency, with a retail park in Crayford and a 1980s shopping centre in Bexleyheath, we have lost some of our high street shops from the shopping centre, which has a higher footfall, because of the pattern of businesses, particularly my former employer, that want to be in those retail parks. I know from the hon. Member for Wimbledon (Mr Kohler) that my former employer has recently invested in its store in his constituency—in fact, in a number of stores in London—but with a very defined model, which is very different from when I first worked for it 32 years ago. It is about food retail rather than clothing, and it is about retail parks. That is the reality of where some of our high street businesses have gone; we cannot replicate the high street of the 20th century.

There are some issues unique to my constituency. I thank my local business improvement district and Broadway shopping centre in Bexleyheath for the work they do to diversify opportunity and to try to bring leisure opportunities into the town centre. I hope there is some good news coming, with a new retailer in the near future. I receive requests, notably from the Kings Arms, Globetrotters soft play, Masala Inn, Zingara, Stuzzichini and Buddha restaurant in Bexleyheath, and the Duke’s Head, and the Duchess of Kent in Northumberland Heath, about the pressures on the hospitality industry. I thank you, Ms Lewell, for the work you do leading on those issues.

I support the Government’s Great British summer savings, which I hope will increase footfall for a number of those businesses. I note that Government changes have meant that two thirds of the pubs in my constituency have seen their business rates go down this year, but there is more we need to do and, while any measure would need to be costed, I am receptive to looking at the rate of VAT in the hospitality industry.

On cash, there are no longer any banks in Crayford and Northumberland Heath. We rely on post offices in those two places for cash services. We need to look further at the criteria for banking hubs and make sure there are more of them.

I welcome the Government’s announcements on the high streets strategy. I engaged with the previous Minister and I look forward to engaging with the new Minister to look at more investment in my patch. On Pride in Place, we are seeing £20 million coming into Slade Green; the retailers in Forest Road and Slade Green will look forward to that investment.

On transport, I continue to press Transport for London for a direct bus route between Crayford and Northumberland Heath to support the shopping parades, and to press my Conservative council to introduce a fairer short-stay parking arrangement for traders in Northumberland Heath.

I welcome measures in the Crime and Policing Act 2026. I have been at the forefront—I have wrestled shoplifters to the floor, many times—and I welcome the measures that the Government have brought forward, but there is still much more that we need to do to support people, and I will continue to press for that.

My policing teams have done some great work in Crayford around illegal working, particularly with delivery drivers in my retail park, with arrests and deportations as a result. I thank my policing team in Crayford for that. They have also worked on shoplifting there. In Bexleyheath, they have done similar work; I went out on a raid with them last summer and looked at the work they do. They have also done some great work on illegal shops, which hon. Members have commented on, but they still need an increase in police numbers.

I have welcomed the changes that have been brought forward. Police in Bexleyheath now have higher police numbers at the end of the day and at school kicking-out time, and on a Friday and Saturday night. That is as a result of changes that were controversial, but which I have supported.

There is more that the Government could do to support our high streets and businesses. I will continue to press them on that, but, as I have said, I support them on a number of the things that have already been done.

It is a pleasure to see you in the chair this afternoon. Ms Lewell. I thank my hon. Friend the Member for Didcot and Wantage (Olly Glover) for giving us the opportunity to speak in this debate on the importance of high street businesses.

It was once said by American President Calvin Coolidge that the chief business of the nation is business, but high street businesses in Tiverton and Minehead tell me of how they feel more squeezed than ever before. I must confess that my deepest frustration as an MP is seeing people and enterprises held back stubbornly and unnecessarily by basic challenges, and by Governments who have spoken the language of growth while too often acting against it. The cost of energy has been crippling for high street businesses. I commend the Government on having the antenna to keep out of Washington’s war, but that has not left us insulated from its effects; as alluded to by many, energy prices have soared.

The hikes in national insurance contributions, business rates being at the level they are, and the rise in the minimum wage make it extremely difficult, if not impossible, to hire local young people looking for work, who often rely on summer jobs over the school holidays. We see that borne out in the number of young people who are not in education, employment or training, and in the mental health epidemic making victims of so many of our young people.

The high street is as much a place of commerce as it is of human connection, and when that hollows out, so does something vital in the lives of local people. I therefore simply ask this: what happens when the goose is no longer laying the golden eggs, when the tax revenue is no longer there, and when the properties sit empty? This is not sustainable.

I would like to say just a brief word on Europe: the most powerful growth lever available to this Government requires no new spending, no new legislation and no great political imagination; it is to ease the red tape choking trade with Europe. My constituents, including my farmers, tell me—in language rather more colourful than parliamentary convention permits—about the bureaucratic absurdities they have to navigate just to trade with our nearest neighbours.

In Tiverton and Minehead, threadbare transport is a choke on high street trade. For a significant portion of my constituents who do not have access to a car—and I have one of the poorest constituencies in the country, even though it is beautiful—public transport provision is so painfully limited that employment opportunities just a few miles away might as well be on another planet. That is a structural drag on our local rural economy.

It is also true that a local economy is only ever as strong as the talent feeding it. The skills gap that employers in my constituency raise with me begins here; backing business has to mean investing in the pipeline that feeds it. Without that, we get a brain drain away from rural areas. While that is far from a new phenomenon, it is a cumulative one, and my local rural economy bears the cost: businesses lose potential employees and communities lose the purchasing power and energy of young professionals, who might, with the right provision, have chosen to stay and build their lives in their community—the most beautiful constituency in the United Kingdom.

It is a pleasure to serve under your chairship, Ms Lewell. I thank my hon. Friend the Member for Didcot and Wantage (Olly Glover) for the interest, passion, desire and ideas that he brought to the debate—I think we all really appreciate that—and I thank my other hon. Friends for all their good ideas. I will give a particular shout-out to the hon. Member for Bolton West (Phil Brickell) for his ideas about enforcement and dealing with illicit businesses on the high street—I think all our constituencies would benefit from those.

It is clear that we have a serious problem. Local pubs, family-owned shops and restaurants matter—they make our communities tick—but up and down the country they are closing at an alarming rate. I want to quantify just what that means: according to figures from the British Beer and Pub Association, 161 pubs—nearly two per day—closed in the first three months of this year across England, Scotland and Wales, taking with them 2,400 jobs, and in 2024 the UK lost 37 shops per day, with almost 13,500 closing. Preliminary figures for 2025 indicate that last year was likely even worse and could surpass 2022, the previous record year for closures. Alarm bells are ringing.

A successful high street is not just about shops; it is about community and connection. As almost everybody in the room has said, it is about bringing community together and giving people opportunity and fun. It is on us as politicians to do our best to make that happen and ensure that it survives. The Lib Dems have been calling consistently for a package of support that recognises the scale of the problem: cutting VAT for hospitality and attractions from 20% to 15%; reforming business rates to reward occupancy; and strengthening the town centre-first principle in planning policy to tackle vacancy rates. That requires applications for main town centre uses to be located in town centres rather than edge-of-centre locations, which should be used only if suitable sites are not available in the town centre. I will give a special shout-out to Witney as an example of a place where decades of support from planning officers and councillors has kept the high street lively, as opposed to everything being dragged out of town. Well done to everybody for doing that over decades.

Let me turn to the problems. I will start with the big stuff: at the top is the failure to get our economy moving. As my hon. Friend the Member for Tiverton and Minehead (Rachel Gilmour) just mentioned, being back inside the European single market and customs union would not cost anything—it makes really good sense. Dealing with tax reform makes really good sense. Those measures would cut the cost of doing business by reducing the cost of food, addressing the chronic vacancy rate in hospitality, easing labour shortages and reducing the cost of energy. This is all doable.

At the top of the charge sheet are national insurance contributions. As an ex-entrepreneur, I feel the horror of this daft tax on headcount. Before getting out of bed in the morning—before generating any revenue, let alone profit—businesses are being whacked, and they do not want to hire people. That is really bad news. Liberal Democrats have consistently opposed the change and think it should be reversed in full. We are also calling for a consultation on a new NICs band from £5,000 to £9,100, with a lower rate to better support part-time workers, on whom the hospitality industry relies heavily.

Then there is VAT—that is the 5% cut—and business rates. The numbers on business rates are terrifying. Statistics from the Valuation Office Agency show rateable values rising by an average of 30% in 2026 for pubs and restaurants in England, and by an average of 70% for pubs with accommodation—imagine if that was your business!—outstripping the still substantial average increase of 19.4% across England for all properties. Those increases are completely unsustainable, and I do not think the Government are doing nearly enough to address them.

In my constituency we have fabulous high streets. We have the medieval wonders of Witney and Burford, which rightly attract visitors from around the world. We have much-loved and much-defended free parking, which matters a lot to people, and we are working hard to better our local transport, whether that is buses, walking or biking. As my hon. Friend the Member for Didcot and Wantage said, we need all those things, not to pit one against the other. Often-overlooked Carterton and Faringdon have tons of wonderful independent shops and need so much more support than we are currently giving them.

I want to focus on a few examples. Lisa and Kirsty have been running Sassi, a clothing shop on Witney high street, for over 15 years. Their business rates bill has gone up by £1,200 this year. Clive, who runs The Flooring Centre in Witney, has seen his business rates increase by 15% this year. This is not being addressed as a problem. Given the dire economic circumstances, such big increases in rates are a disaster.

Let me turn to solutions and return to the need for a 5% VAT cut, a reversal of the increase in employer NICs, and the proper and fair reform of the business rates system that businesses have long been promised. As an interim support measure, we have called for the Government to keep in place the existing 75% relief for retail, hospitality and leisure until the new system is in place.

Our high streets and town centres are places that we all rely on and depend on, hang out in and have fun in, and they are going in the wrong direction. I look forward to hearing the Minister’s thoughts on what we can do about it.

What a pleasure it is to serve under your chairmanship, Ms Lewell, and to make common cause with so many hon. Members. Our passion for our high streets—something we share, as proud representatives of our constituents—has come through in all the contributions to the debate. I thank the hon. Member for Didcot and Wantage (Olly Glover) for sharing that with us. I speak on behalf of my own wonderful high streets in Midhurst, Storrington, Arundel, Steyning, Petworth, Pulborough and Henfield —we are so lucky to have them, Ms Lewell. I hope that you will come and visit them, and the Minister always has an invitation to see the wonderful enterprises in my constituency.

Here I fear that the consensus may break down a little, but I hope that the hon. Member for Didcot and Wantage and his colleagues will join me in condemning the decision of my local Lib Dem district councils to increase parking charges and bleed the life out of our high streets—an unwarranted headwind, transferring economic life into the coffers of the town halls. I invite the hon. Member to join me in seeking to reverse that unwarranted decision.

The Minister is a good man, and many of these measures were not of his making, but I fear that what we are seeing is the Government’s fundamental—albeit perhaps unintentional—misunderstanding of business: what it is to combine so many different factors of production, to take risks and to try to give back, through economic activity, to our communities. We heard many examples of that today. We heard about the difficulty for employers of making ends meet with the unwarranted increase in national insurance—not just the rate but, in particular, the threshold. Anyone who really understood the granularity of business, and the number and mix of part-time employees who were previously outwith the national insurance net, would never have made the decision to reduce the threshold from £9,100 to £5,000, encompassing at a stroke hundreds and thousands more employees. What do businesses do when faced with the anaemic top-line growth in the economy and the pressure on consumer household spending? They have to sit down on a Sunday afternoon and work through the shifts, trying to pare back hours and work out which employees they may let go.

We heard from my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) the challenges of making the business rates calculation add up. I accept that this challenging problem did not start at the last election—I am very ecumenical in that sense; it has been creeping up on us for a long time—but the first and best advice that I got was that when you are in a bit of a hole, you should stop digging. Rather than the permanently lower business rates that we were promised and that businesses relied on—many placed their votes accordingly —we have got permanently higher business rates. That started with a swingeing increase. The Government, under pressure from other parties represented in this House, listened—eventually—and have mitigated that increase through some welcome measures in the short term, but they have done nothing to provide the long-term relief that for many would mean they had a viable future as a business.

I know that the Minister will have been given some brilliant lines to read out this afternoon, but I ask him, in all seriousness, to hear the will of the House on the perennial challenge of business rates, perhaps work on a cross-party basis and see what we can do over time to lance this very difficult boil. This is part of an overall picture of spending first and taxing second—certainly, that is the view of the Secretary of State for Work and Pensions, from his description of meetings with so many of his colleagues.

The challenge is that we are just not seeing any top-line growth, any confidence in the economy, anything to make people think that it is a good idea to go and start an enterprise, to hire people, to take some risk in our high streets. We all want that for our communities. We want our high streets full of lively, independent, diverse shops catering to the needs of local people, not merely those catering to the lowest common denominator —vape shops—or, meritorious though they are, charity shops in perhaps too great an abundance.

There is a real desire to work on the future of the high street, because we all care so much about it. We need the employment opportunities for our young people. We have heard about the challenges for the hospitality sector. VAT is of course one potential relief, but what people are telling me is, “Just do something. Stop piling more and more taxes and levies”—packaging taxes, bed taxes—“on us. Let’s have a little bit of a moratorium.” My party’s fully costed plan would go much further by taking 250,000 small businesses out of business rates entirely. I know that the Minister will disagree, but I am afraid that we would go back to the very settled status of employment law that was good enough for Tony Blair and Gordon Brown. It persisted for many years and gave many of our young people the opportunity to get their first foot on the ladder, particularly with starter jobs. Indeed, some hon. Members have spoken today about their own first experiences working in hospitality and retail.

I will leave it there, but I am very keen to hear from the Minister what new hope he can inject into our souls and hearts—we want to take it back to our high streets to give people good cheer, so that they are no longer just surviving, but thriving. I leave the final word to the Prime Minister’s Chief Secretary, a man infamous for his self-confidence and, I am told, more than a little ambition. Upon discovering that the nation’s growth plans are in the hands of the right hon. Member for Leeds West and Pudsey (Rachel Reeves), he said:

“It doesn’t fill you with confidence.”

It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Didcot and Wantage (Olly Glover) on securing this important and passionate debate, and I thank him for his own thoughtful and passionate contribution.

It was interesting to hear so many hon. Members name different local businesses in their areas without necessarily explaining what those businesses did—I am intrigued what Serendipity in Horwich or the Uniform Monkeys do. I would be remiss if I did not abuse my position by naming some of my favourites in my own constituency, including Bica in Netherlee; Wheataly in Clarkstown, which does the best Italian food in Glasgow; The Pad in Neilston; and Valentini’s ice cream in Giffnock.

What is encouraging about this debate is that it has placed the role of high streets in its proper context. Yes, they are full of businesses, which are about a bottom line, but as was said by the hon. Members for Woking (Mr Forster) and for Tiverton and Minehead (Rachel Gilmour) and my hon. Friend the Member for North East Hertfordshire (Chris Hinchliff), this is about more than just soulless economics; it is about how we feel about where we live. It is essential that we understand that.

We must also place high streets in the wider economic context. They are not only the engines of very local economies but a barometer for how the wider economy feels. We have to recognise that the reason why so many of our town and city centres sometimes feel so down at heel is that before we lost the shops on those high streets, we lost the industry at the edges of towns.

It is important to put this debate in the context of the Government’s wider efforts to reindustrialise the country, to create good work and a sense of economic pride and purpose in places. I disagree with the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith): yes, to tackle the insecure work and low incomes that left people without the money to spend in the neighbourhoods where our high streets are—

Whenever we talk about high streets, we think primarily about town centres, but there are smaller communities and sub-neighbourhoods, such as Bilton and Starbeck in my Harrogate and Knaresborough constituency—and even Kings Road, just a little further outside the town centre—that often miss out on support from the likes of the local chamber of commerce or business improvement district. Does the Minister think there should be additional measures for those that struggle because they are a little further from the town centre?

One of the hallmarks of our efforts through Pride in Place and other measures is recognition that there is not really a one-size-fits-all solution. In my constituency, we do not have one central high street; we probably have about a dozen separate ones, which sounds similar to the hon. Gentleman’s constituency.

It is clear from what everyone has said during the debate that high streets are facing real pressures, from changing consumer habits to crime and increasing costs. There is not a single quick fix—there is no one-size-fits-all solution. It will take determined effort and real strategy from the Government. A key part of that is our small business strategy, which was launched just short of a year ago and aims to cut red tape, cut costs and make things just a little easier in challenging times. We will build on the strategy later this year as we bring forward a cross-Government high streets strategy that aims to support the businesses that we have been talking about today and equip local authorities with the tools that they need to drive long-term regeneration. We are working really closely on that with businesses, representative organisations and, indeed, Members from across the House.

We have already started taking significant action through, for example, our high streets innovation partnerships—a £301 million package that aims to help local areas to reinvent and reimagine high streets, to make them more attractive places to live and put more services into them. My hon. Friend the Member for Bolton West (Phil Brickell) mentioned a Woolworths that had been replaced by businesses of lower value over the years. There is a challenge for all of us within our areas, working with local authorities and health authorities, to make sure that we locate more services in our areas and drive more footfall to them.

I will give an example of that type of action. I also oversee the Post Office, and as well as the Government making the decision to keep the Post Office network open at its current level, there are really exciting plans under way from the Post Office to create a new community hub model for post offices in towns across the UK. That will offer a place for commercial services and public services to be delivered, and enhance the role that post offices have as an anchor in the high streets.

I will turn quickly to some of the issues raised by hon. Members and outline the areas that the Government are focusing on within each of them. The hon. Member for Strangford (Jim Shannon) raised the issue of payment providers. That issue was raised with me by Kadir’s, a chip shop in Barrhead in my constituency. The payment services regulator recently carried out two market reviews in this area to look at those cost increases and is currently looking at what action to take as a result.

Many hon. Members rightly raised the impact of business rates on high street businesses. They say that all of heaven rejoices more over one sinner who repents, so I welcome the acknowledgment by the shadow Minister that we inherited a system that was, frankly, a mess. It was chaotic; it kept changing. It did not give people any sense of stability. For high streets, we have to ensure that our business rates system is fair, stable and responsive to the changing economic situation that hon. Members have described. That is why, in the face of the cost of the first revaluation since the pandemic, we have put in the £4.3 billion support package.

The hon. Member for Wimbledon (Mr Kohler) asked when we will take on the big online giants—the warehouses—and start to shift some of the burden on to them and away from high street businesses. That is exactly what we did with those lower multipliers. That was paid for by putting the burden on to the big warehouses. We are working in that area. Rather than tinkering, we are doing that big structural change.

Let me turn to jobs, and particularly youth unemployment and the link to high streets. My hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) said that he was a Saturday boy. I was a Saturday boy as well in Beveridge’s fishmongers in Giffnock. It taught me everything about how to talk to people. It gave me confidence. Every time someone came into the shop, I had to re-find my confidence—remake myself. I do not think that I would be where I am now had I not had that experience.

Some Members raised national insurance contributions in that context. Businesses still have those reliefs for under-21s and for apprentices under 25. It is worth about £2.5 billion. In terms of national insurance, there is relief there for employing young people, but I absolutely take the point. Obviously, the Milburn review is working on the much bigger issue of the number of young people not getting that opportunity.

I spoke to Alan Milburn about this yesterday. Does the Minister accept that, although there is a clear job for Government in this matter, there is also a clear job for retailers? The kind of schemes the retailer I worked for had in the ’90s for young and disabled people have gone by the wayside for many large retailers. We need to bring them round the table and get them to bring back some of those schemes.

My hon. Friend will know from talking to Alan Milburn that he is very much of the view that this is not something the Government can do alone; it will need to be done in partnership with industry and, as my hon. Friend says, with retailers in particular.

Nothing in recent years has made people angrier than either experiencing retail crime or seeing videos and images of it on social media, in which shop workers are treated appallingly. Despite that, there are encouraging signs that our efforts to tackle retail crime are beginning to bite. Shop theft has started to fall, following really sharp increases under the previous Government. At the heart of that effort was the revitalisation of neighbourhood policing with 13,000 additional personnel being delivered, 3,100 of whom are already in place.

My hon. Friends the Members for Great Grimsby and Cleethorpes (Melanie Onn) and for Bolton West spoke, rightly, with some anger at how organised crime—as they correctly named it—has impacted the way that our high streets feel. We are seeing legitimate, independent and valued businesses having to compete with businesses that are not real, and that is simply unfair.

My hon. Friend the Member for Bolton West was right to talk about his campaign and efforts, along with other Members, to deliver the high streets organised crime unit to bring about the system-wide response that he described—bringing together HMRC and local authorities, and working with Companies House, the Insolvency Service and the organisations that I oversee. As part of that, my officials have joined the Home Office in engaging with the Dutch Government to learn the lessons from their approach with the Bibob Act, highlighted by my hon. Friend, with a view to exploring whether a similar approach could be taken here.

The Home Office will shortly launch a consultation on strengthening closure orders, with stronger powers for local authorities being considered as part of our work on the high street strategy. Importantly, this is all backed by funding for the organisations that we rely on to do this. This is about fairness, but it is also about the way people feel about where they live. It is one of those issues on which our constituents have been ahead of us; they have noticed that there is something wrong on the high street, and we need to deal with it.

Finally on the point about that sense of where we live, many hon. Members referred to Pride in Place, and the nearly £6 billion invested to support hundreds of places around the country. This is not a one-size-fits-all approach and it is not directed from Whitehall; it is communities shaping for themselves how they want their high streets and local areas to be reimagined.

Alongside that, hon. Members mentioned the perennial problem of empty properties. They are one of the most visible challenges facing our high streets. High street rental auctions are now beginning to bite, not just in terms of the number that have gone through the whole process; the very ability of local authorities to have that conversation is letting them engage with landlords, changing the nature of that relationship and changing things on the high streets. This week, we announced £10 million of funding to support the expansion of high street rental auctions to help councils to identify opportunities, deepen engagement with landlords and get properties ready for use. That is a practical and important step forward.

Finally, hon. Members raised the issue of banking hubs and the loss of banking facilities in local areas. In Barrhead, a large industrial town in my constituency, we recently lost our last bank, so I get the frustration, particularly with the process of deciding whether an area gets a banking hub or not. As hon. Members will know, the Government commissioned an independent review into access to banking services. Alongside that, we are supporting the roll-out of 350 banking hubs, 235 of which are already open. That is alongside the work that we are doing to make sure that the Post Office network is sustained, invested in and able to provide the banking services that people rely on.

I thank again the hon. Member for Didcot and Wantage for securing the debate. As I have said in this room before, we sometimes talk about high streets as being an important part of the community, but for me, as many hon. Members from all parties have made clear today, they are not just a part of the community but where community happens. They are where people get services, meet their friends and have fun, and where those who are otherwise socially isolated find companionship and community. That is why we have to do far more to support them, to ensure that all the places that we represent thrive and have a sense of pride.

I thank all hon. Members who have attended the debate. I hope I will not get in too much trouble for suggesting that this is a bit of a graveyard slot, so in that context I welcome that hon. Members from four parties and from many geographical parts of the UK have given their time to attend. I will briefly bring out some of the wide range of important themes that other hon. Members raised during our discussion.

On the important issue of illicit businesses on the high street, the hon. Member for Bolton West (Phil Brickell) cited good practice in the Netherlands—as did I, for different reasons—on tackling illicit and suspicious businesses. It really is a remarkable country in terms of how much good practice there is to be found there. The issue of an EU youth mobility scheme remains important for helping with labour shortages and boosting opportunities. The hon. Member for Bexleyheath and Crayford (Daniel Francis) definitely deserves a mention, given his experience of wrestling shoplifters personally. It is important that we have people in this House who can bring such real-world experience to bear here. My constituency neighbour, my hon. Friend the Member for Witney (Charlie Maynard), mentioned the critical issue of pub closures, the huge issues that pubs face and the very valuable role that they play in the rural economy.

I thank the Minister for his remarks. From what he said, I could hear that he very much recognises the importance of high street businesses. I shall read with interest the small business and high streets strategies, although I hope I am not being too cynical in noting that history is paved with the paper of Government strategies that have not always translated into action. He mentioned the Post Office community model; he will be receiving a parliamentary petition about East Hagbourne post office in his ministerial inbox. My concern is that, while the community model may be suitable in some locations, the Post Office as an organisation may be a bit too keen to foist it on areas for which it is less suitable.

The Minister’s comments did not address the impact of the scrapping of the UK shared prosperity fund and the rural England prosperity fund, perhaps as it is an issue more for the Ministry of Housing, Communities and Local Government. Perhaps he will be so good as to take that point to his colleagues.

I thank everybody for attending and giving their time. Let us hope that all of us across this House can work together to ensure that we continue to have thriving high streets, with thriving businesses on them.

Question put and agreed to.

Resolved,

That this House has considered Government support for high street businesses.