(Doncaster North) (Lab)
(Urgent Question): To ask the Secretary of State for Business,
Energy and Industrial Strategy to make a statement on support for
business and the retention of jobs on the high street in light of
the announcement of Arcadia entering administration and Debenhams
going into liquidation.
The Parliamentary Under-Secretary of State for Business, Energy
and Industrial Strategy ()
Speaking as the retail Minister, let me say that I hope the right
hon. Member for Doncaster North () realises that although the Secretary of State is
not here, we take this incredibly seriously. That is why I want
to focus on the detail, because it is a worrying time for the
retail sector, particularly for those affected by the
announcements this week.
On Monday, Arcadia Group Ltd, which employs approximately 13,000
people, appointed administrators, who are assessing all options
available to the group. They will honour orders made over the
black Friday weekend. No redundancies have yet been announced and
existing sales channels will continue to operate while
administrators evaluate options. The Secretary of State has
written to the Insolvency Service asking that it expedites
consideration of the administrators’ report. Yesterday,
Debenhams, which employs approximately 12,000 people, announced
the decision of administrators to wind down the company. No
redundancies have been announced and existing sales channels will
continue to operate while administrators evaluate options. We
know that this will be a worrying time for employees and their
families, and we stand ready to support them. I pay a particular
tribute to the hard-working staff, who have kept these well
recognised businesses going in difficult times for so long.
Although the Government have no role in the strategic direction
or management of private retail companies, we are in regular
contact with both companies and the administrators in order to
understand fully the situation they are facing. The coronavirus
crisis has made life difficult for retailers such as Arcadia and
Debenhams, particularly those that were already facing
challenging trading conditions before the pandemic. We acted
quickly at the start of the pandemic to deliver one of the most
generous and comprehensive economic packages in the world. It
included: the coronavirus job retention scheme, which up to 30
September had provided £7.7 billion-worth of support to companies
in the retail and wholesale sector; removing all eligible
properties in the retail, hospitality and leisure sectors from
business rates for 12 months—that is worth more than £10 billion;
cash grants of up to £25,000 for retail, hospitality and leisure
businesses with a rateable value of between £15,000 and £51,000;
more than £50 billion in business loans, which supported 9.6
million jobs and provided flexibility; and legislation to protect
commercial tenants from eviction.
Through the plan for jobs, we have also announced a series of
measures to protect, support and create jobs, including our £2
billion kickstart scheme and a doubling of the number of
frontline work coaches, which will be important in this situation
in particular. The Government have committed to supporting the
retail sector, and we are working closely with industry through
these unprecedented times, particularly to ensure the safe
reopening of non-essential retail today. On Monday, my right hon.
Friend the Communities Secretary encouraged local authorities to
allow shops to open for extended hours, to accommodate more
shoppers safely in the lead-up to Christmas.
I will continue to work with the sector to meet future
challenges. Indeed, I will co-chair the next meeting of the
Retail Sector Council tomorrow to discuss our strategic approach
to the sector. I have regular retail calls, including one last
week, with representatives from Arcadia among the retailers on
that call. We are confident that the sector has the skills,
knowledge and drive to bounce back.
Let me join the Minister in expressing deep sympathy for those
who are at risk of losing their jobs. The test of Government, and
indeed the House, is whether that sympathy translates into
action, so I have four specific questions for him.
First, Philip Green owes workers at Arcadia a moral duty. His
family took from the company a dividend worth £1.2 billion, the
largest in UK history, more than three times the size of the
pension deficit. Workers at Arcadia should not pay the price of
Philip Green’s greed, so will the Minister now publicly call for
Philip Green to make good any shortfall in the pension scheme,
and will he ensure that the Pensions Regulator takes all possible
steps to make sure that that happens?
Secondly, we need to learn lessons. In the summer, Labour tabled
amendments to the Corporate Governance and Insolvency Bill to
make pension fund holders priority creditors when businesses went
bust. The Minister said it was not necessary. Does he now agree
that that was a mistake, that that change would have better
protected the pensions at Arcadia and that this should be put
right through legislation in the future?
Thirdly, on the workers at Debenhams and Arcadia facing
redundancy, given the scale of redundancies and the grim economic
backdrop, will the Minister look at providing specific and
targeted help for them to get back into work? Fourthly, we have
an emergency on our high streets, with an estimated 20,000 shops
closing and 200,000 workers losing their jobs since the economic
crisis began. While we welcome the support that has been
provided, will he recognise that the Government must do more:
extend the rent evictions moratorium beyond December, when it is
due to expire; increase support for hospitality businesses, which
was called for across the House yesterday; and address the
massive disadvantage that high street businesses face around
business rates compared with online retailers?
Today is a day of great news on the vaccine, but the Government
have a massive responsibility to preserve the businesses and jobs
we will need on the other side of this crisis. They are still not
acting on a scale that meets the economic emergency our country
faces. They need to do so.
I am grateful to the right hon. Gentleman for raising some really
important points. On pension schemes and support for those facing
redundancy, the majority of defined pension schemes are run
effectively. We are fortunate to have a robust and flexible
system of pension protection in the UK. The independent Pensions
Regulator has a range of powers to protect pension schemes, and
it works closely with those involved. For schemes where the
employer goes insolvent, the Pension Protection Fund is there to
help protect the members. Anybody already in receipt of a pension
will continue to be paid, and other members will receive at least
Pension Protection Fund compensation levels. The Pension
Protection Fund is confident that its funding plan investment
approach positions it well to weather the current market
volatility and future challenges.
It would not be appropriate at this stage for Ministers to
comment on individual cases, which are a matter for the
regulator. However, in respect of staff facing possible
redundancy, the Department for Work and Pensions’ rapid response
service has been in ongoing conversations with Debenhams and has
now been in contact with Arcadia. Both have been offered support
by the rapid response service, including connecting people to
jobs in the labour market, helping with job search—including CV
writing, interview skills, where to find jobs and how to apply
for them—helping to identify transferable skills and skills gaps
linked to the local labour market and what benefits they may get
and how to claim. I talked about the fact that we have doubled
the number of workplace support staff in Jobcentre Plus. Clearly,
knowing where the big stores are, for Debenhams in particular, we
will be able to offer that sort of targeted support.
The right hon. Gentleman talked about his proposed changes to the
Corporate Insolvency and Governance Bill. This was a matter of
balance, because elevating pension debts, which can often be
quite large, will by its very nature dilute the amount available
to trade and credit suppliers, but also to other suppliers,
including people with unpaid wages. It is trying to get that
complexity and balance right.
Finally, the right hon. Gentleman talks about hospitality and
support for other sectors. Clearly, the high street is an
ecosystem—it is not only about shops and retail. We need to make
sure that we do as much as we can to continue to wrap our arms
around the economy at this particularly challenging time. As he
acknowledges, there is light at the end of the tunnel, but we
must not take our foot off the gas. We must remain alert, in
terms of our own behaviours, as community members going up and
down the high street, shopping local where we can to support
retailers as they remain open, but also as a Government, making
sure that we support the retail and hospitality sectors through
both the support that I mentioned but also through encouraging
them to be able to trade and remain open in all three tiers as
best we can.
(Stourbridge) (Con)
I am sure the thoughts of the whole House will be with employees
of Debenhams and Arcadia, who face huge uncertainty this week,
particularly in the run-up to Christmas. These are long-standing
bastions of the high street. However, both organisations have
been struggling for quite some time; indeed, Debenhams has been
in administration since January. While no redundancies have yet
been announced, many of my constituents will be affected. Can my
hon. Friend assure me that, if the worst were to happen, the
Government are ready to support anyone affected, whether through
jobcentres or universal credit?
My hon. Friend is absolutely right. I know her constituents will
be concerned about this. We are prepared to step up concentration
within Jobcentre Plus. We will make sure there is support for
people in finding jobs and for retaining as many jobs as possible
on our high streets.
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
[V]
I am sure the Minister agrees that there is a great deal of
public affection for the Arcadia brands and in particular for
Debenhams. While we must hope that redundancies can be avoided
wherever possible, this is a sad day for our embattled high
streets. All our thoughts are with the thousands of workers,
including those in my constituency, many of whom have given
years, or even decades, of service in retail, who will be
devastated by this news. They must be given all the help they can
get to ensure that all their pension rights are retained. Will
the Minister ensure that Sir Philip Green’s obligations to
pensions are met, and will his Department work with trade unions
to make sure that the workers are treated fairly and adequately
supported through the process?
Like others, many of the workers will face difficulty in putting
food on the table and finding a new job or retraining in a
crowded market. They will need the safety net of universal credit
to make ends meet. I urge the Minister to use his best efforts
and to work with colleagues to retain the £20 a week uplift and
to scrap the planned benefit cap that will cost an average of
£250 a month. Universal credit is already not enough; taking away
the uplift is taking food from people’s tables.
We need to remember that many small businesses in local supply
chains will be affected by the news. Some of them will not
survive without support, while the owners of others will be
joining the 3 million people who have been excluded from support.
The Government cannot continue to ignore them. I urge the
Minister again to finally get support to this group, who are
becoming increasingly desperate.
The existing commitments made to the Pensions Regulator do indeed
need to be kept—it is important to say that.
The hon. Gentleman talks about support for employees. If people
need financial support quickly, they may be able to claim
universal credit and/or employment and support allowance. Our
plan for jobs includes a series of measures to protect, support
and create jobs, because it is important to get the people
affected back into work as soon as possible. We have our £238
million job entry targeted support programme to support that.
The hon. Gentleman also talks about the possibility of suppliers
losing out. Administrators will take over the company and seek to
establish the position regarding suppliers. The trade credit
reinsurance scheme is designed to support businesses coping with
the economic impacts of covid-19 and to ensure that there is
adequate confidence and credit in supply chains.
(Cities of London and Westminster) (Con) [V]
As my hon. Friend is aware, the Arcadia Group is headquartered in
my constituency and its brands, including Debenhams and Topshop,
have their flagship stores on Oxford Street. Covid has the
potential to be the straw that breaks the camel’s back for
bricks-and-mortar retailers. The New West End Company and I
welcome the continuing support of my hon. Friend and his
Department for the retail sector. I note the Government’s
announcement this week on extending shopping trading hours for
Monday to Saturday until January but, particularly in the short
term, an extension of Sunday trading hours would be of huge
benefit to retailers. Will my hon. Friend support me, The Sun on
Sunday newspaper, retailers such as Marks & Spencer and
others who are campaigning to extend Sunday trading?
I look forward to joining the New West End Company and, I assume,
my hon. Friend on Saturday to celebrate not only Small Business
Saturday but traffic-free shopping in the west end. The west end
accounts for 3% of the entire UK economy and many, many jobs. We
do not propose to extend Sunday trading at this stage, but we are
extending shopping hours throughout the weekdays. We want to work
with local authorities to make sure that they can support the
safe return of shoppers to high streets up and down the country,
including in the west end.
(Bristol North West) (Lab)
The collapse of Arcadia and Debenhams are two big examples of the
broader challenge of survival in the high street-based retail
sector. Every job lost and every store closed is devastating for
families and communities across the entire country. The Business,
Energy and Industrial Strategy Committee has today written to the
Secretary of State, and I know we will have full answers in due
course, but may I ask the Minister one specific question about
support for small businesses in the retail supply chain? I wish
to push him a bit further on whether there will be specific
support—perhaps a taskforce—for small retail businesses, to help
with the hundreds of millions of pounds of orders that could go
unpaid.
I cannot give specifics on a taskforce or any other group, but we
will look acutely at what we can do for supply chains and the
future of the high street. When flagship stores like the
200-odd-year-old Debenhams leave our high streets, it is so
important to make sure that we have a co-ordinated response. I
will happily work with the hon. Gentleman on that.
(Romsey and Southampton North) (Con) [V]
My hon. Friend, and the whole House, is concerned about the
numbers of jobs potentially lost in the Arcadia Group, but we
also have to be concerned about those employed by
microbusinesses, perhaps without premises, who have so far not
benefited from Government schemes to support them. Will he think
again about those who so far have not had Government support and
may well be adversely impacted by the news we have heard about
Arcadia if they work in the retail supply chain?
My right hon. Friend raises a really important point. We have
wrapped our arms around the economy, but clearly it is very
difficult to do things at pace to cover everybody. We will always
make sure that we reflect on what happens, to help as many people
as we can and try to fill the cracks as best we can.
(Richmond Park) (LD)
I, too, express my sympathies to all those employees of Debenhams
and the Arcadia Group who find themselves out of work so close to
Christmas and in such an uncertain time. Will the Minister’s
Department work with local authorities to support them to offer
more flexible rates terms to new businesses that want to come in
and set up in the large voids that a lot of town centres will be
experiencing in their retail spaces? Those voids affect town
centres and communities. What can the Department do to work with
local authorities to lower the barriers to new entrants into the
retail sector?
There are plenty of things on which we can work together with the
sector and, indeed, the whole gamut of British high street
businesses, including by talking about getting the rent balance
right between landlords and tenants, as well as rates, as the
hon. Lady says. The Economic Secretary to the Treasury is joining
me on tomorrow’s Retail Sector Council call that I mentioned, to
talk about the fundamental business rates review. I hope we will
be able to work with local authorities to get that flexibility.
(Dudley North) (Con)
Does my hon. Friend agree that Dudley Council and other local
leaders in my constituency will play an instrumental role in
rebuilding and revitalising the high street? Will he confirm that
the high streets taskforce will stand ready to provide whatever
advice may be needed in this endeavour?
I know that my hon. Friend works tirelessly for his constituency
and local economy. It is so important that we get together to
look at the high street, because many of these conversations were
about what the high street will look like in 10 or 15 years’
time, but now they are about what the high street will look like
next year and maybe only the year after. We have to get a speedy
but holistic response.
(Sheffield South
East) (Lab) [V]
The business rate relief for retailers this year has been
welcome, but it was obviously not sufficient for Debenhams and
Arcadia and all their employees, who will tragically lose their
jobs just before Christmas. There is a fundamental unfairness in
the fact that Amazon pays only 0.7% of its
turnover in business rates and high street retailers pay 2% or
more. Last year, the Housing, Communities and Local Government
Committee suggested that the Government look at bringing in a
digital sales tax and use the money to provide long-term business
rate relief for retailers on the high street. Given that the
Government promised to look at business rate reform in 2015, will
they now get on with it and give that certainty of reduced
business rates to the high street as a matter of urgency?
That is an important question, and it is exactly why we are doing
fundamental business rates reform. The first stage of the
consultation has ended, and we will respond in the new year, but
we need to have a comprehensive approach to tackle this both
online and offline.
(Buckingham) (Con)
The Risborough basket is an innovative scheme founded by Princes
Risborough Town Council in my constituency, with a mission to
keep the pound in the town, enabling local shoppers to buy from
small independent retailers and have their purchases personally
delivered. It is a real boost to those high street businesses,
but in setting up the scheme, they have come across a number of
regulatory burdens. Will my hon. Friend join me in congratulating
everyone who set up the Risborough basket and commit to working
with them, so that we can get rid of those regulatory burdens and
ensure that such schemes can help high streets up and down the
land?
The Risborough basket is one of those brutally simple schemes
that are from the grassroots up. It is fantastic to hear about
that innovation, and I would love to see what we can do to spread
it across the country, never mind working with the council to get
rid of some of the burdens in bureaucracy and regulation to help
it prosper.
(Huddersfield) (Lab/Co-op) [V]
Mr Speaker, thank you so much for the opportunity to ask this
young Minister to take a message back to No. 10 and the
Chancellor of the Exchequer. As someone who worked in retail as a
young man, and as a Co-op Member of Parliament, I know about
retail. We have a workforce facing redundancy and hardship at
Christmas. What we want from this Government is a strategy and
leadership, not crocodile tears. A fifth of young people have
lost their jobs. With 20,000 jobs, the kickstart programme has
hardly touched young people’s lives. Will he get on with it and
take that message back to No. 10?
The hon. Gentleman talks about me being young, which he can do
many times over, but as he says, retail is largely staffed by
young people and those on comparatively low pay, so there is so
much we can do. The strategy comes not just from Government but
from working with the sector. The Retail Sector Council can take
a long-term view, but we can also work with retailers on the
short-term covid response. This is something for all of us to
tackle.
(Newbury) (Con)
Not many of my constituents will shed a tear for Philip Green,
but we should be profoundly concerned about the 25,000 jobs at
risk of redundancy. The high street has been under unprecedented
pressure. I welcome the remarks that my hon. Friend made about
the business rates review, but will he commit this afternoon to
an extension of another six to 12 months in which rates are
either reduced or reprieved, to give the high street the best
chance of recovery?
I know that those in the Treasury will have listened to that, and
they are very aware, particularly in relation to retail and
hospitality, of the cliff edge that comes when business rates are
due to return at the end of April. We will certainly look at
that, and an announcement will be forthcoming.
(City of
Chester) (Lab)
In 1791, Susannah Towsey, a draper and haberdasher, moved to more
commodious premises on Eastgate Street in Chester. She became
Susannah Brown, and Browns of Chester still trades today at the
retail heart of Chester, as part of Debenhams. As with other
retail premises, it has been undermined by dodgy sale and
leaseback property deals led by private equity firms, which has
not helped the situation. Browns is one of Debenhams’s stores
that trades well, at a profit. Will the Minister speak to
administrators and support them, so that where there is potential
for shops to continue as a going concern, that is explored and
supported?
I agree that it is so important that we continue a viable
business where it is possible, and I know that the administrators
will have that at heart.
(Barrow and
Furness) (Con)
The news about Debenhams and Arcadia will cause many concerns as
we head into Christmas. Can my hon. Friend reiterate the support
that the Government will make available to the employees who face
an uncertain future? Further to that, this year alone in Barrow,
we have lost M&S and Topshop, so Debenhams will be another
heavy blow. What support will the Government provide to offer
hope to the high street in future?
In terms of employees, as well as universal credit and access to
other support through Jobcentre Plus, we will connect people to
jobs in the labour market, help with their employment skills,
such as CV writing, interview skills and so on, and identify
transferable skills. It is, though, so important that we do more
than that for our high streets to create the opportunities for
those people to take up, through the future high streets fund and
the work that we are doing with the Retail Sector Council and
others at every level of government.
(Ogmore)
(Lab)
The Minister will be aware that a third of all retail jobs are
held by people under the age of 25, and that a huge number of
retail workers are women, because it allows flexible working and
part-time hours. He will also be aware that many jobs in retail
are highly skilled. It is a complete misconception that working
in retail is not skilled and that, in years gone by, it was not a
job or a profession for life. What specific support will the
Minister put in place to offer to young people and to women, who
will be more disproportionately affected by this and who have
also been more disproportionately affected by the covid pandemic,
to ensure that we do not have a lost generation of young people
when it comes to finding their first job?
Essentially, it is about creating those jobs and opportunities on
the high street to ensure that we can keep retail and expand the
offering on our high streets. Clearly, though, we need to ensure
that we have that skills transfer work at jobcentre level and
elsewhere to encourage our young people to take up those
opportunities.
Mr Speaker
Order. Before we go to , let me try to
help, because I know how important it is to everybody to get on
with the Order Paper, by saying that we need to speed up the
answers and speed up the questions. I do not want to miss out
people, but we may have to if we do not speed up. I am sure that
will provide us
with a good example of speed.
(Harrow East)
(Con) [V]
Debenhams in Harrow town centre is an anchor store to the town
centre. When Debenhams went into administration, 20 stores across
its network were due to close. Fortunately, Harrow was not one of
them. However, this has a long-term effect on the entirety of
Harrow town centre, so will my hon. Friend—[Inaudible.]
Mr Speaker
Minister, can you pick out the best of that?
I think my hon. Friend was talking about anchor stores and the
effect on the high street. I know him very well, so I can predict
his question. Yes, if we take out an anchor store, we hollow out
a high street, so it is so important that we look at this
holistically, work together with local government, national
Government and with retailers themselves to build up our high
streets and shape them anew.
(Ellesmere Port and Neston) (Lab)
Ellesmere Port, like many places, has seen an exodus from the
high street over the past decade, which has been accelerated in
the past year. Of course, it is no coincidence that, at the same
time, online retail is booming, but my constituents do not judge
the vibrancy of an area by the number of delivery drivers up
their street; they judge it by the number of boarded-up shops in
their town centres. Therefore, we need a consistent funded plan
for the high street, but, just as importantly, we need a level
playing field so that high street shops have a chance of
competing. Can the Minister assure us that we will get that?
Indeed, high streets will certainly change, but we need to get
the balance right between online and bricks and mortar as well,
because both have a really important position to play in our
retail offering.
(The
Cotswolds) (Con)
In just three towns in my constituency, 27 shops have either
closed or are about to close because of the pandemic. Will my
hon. Friend commit today to use the Government’s very generous
package of measures to retail businesses at all levels of
Government—from central Government to local government to local
enterprise partnerships—to follow the Prime Minister’s lead to
encourage a massive return to the high streets now that we are
allowed to do so under the guidance?
It is really important that, as we extend hours for retailers to
be able to open up for Christmas, we rip up and peel back on our
bureaucracy as well. We must also encourage local authorities to
do more such as offering free parking and other such things.
(East Londonderry) (DUP)
The high street is facing utter devastation in the next few
months, unless drastic action is taken. Will the Minister
undertake, in conjunction with the Treasury, to discuss a
proposal that I put to the Chancellor three months ago? The banks
and building societies are currently sitting on almost £200
billion in current accounts and deposit accounts, paying 0%
interest. A 1% voucher would release £2 billion to be spent on
the high street only, at no cost to the taxpayer, and would bring
a benefit equivalent to that which was seen in Jersey in the
summer and which hopefully will be seen in Northern Ireland next
month, as a similar voucher scheme is going to be discussed and
released there.
It is certainly something that I will ask the Treasury to look at
and discuss with me.
(Carshalton and Wallington) (Con)
As my constituency neighbour, my hon. Friend will be aware that
many Carshalton and Wallington residents work in Debenhams and
Arcadia stores, particularly the flagship store at the St
Nicholas Centre in Sutton. Will he join me in meeting the
affected workers should the worst happen at that flagship store
in Sutton, and reassure them that the Government are doing all
they can to support them?
Indeed. As well as being a Minister, I am clearly a constituency
MP, and Debenhams is also at the heart of my high street. I will
certainly continue to meet constituents affected by this and
other issues around the high street.
(Hertford and Stortford) (Con)
The Government’s support for business has been unprecedented and
unparalleled, particularly in the retail sector. The Minister is
right to call it an ecosystem, because it does have a
far-reaching effect on the economy. Does he agree that we have
seen incredible creativity and resilience in our local
communities and on our high streets, including from residents and
retailers in Hertford, who have formed the Hertford hub and the
Bishop’s Stortford business improvement district; and that, while
we should look at business rates and so on, it is working with
and supporting those communities that will let the sector create,
thrive and survive?
It is so much about a “grassroots up” approach. It is great to
hear about the Hertford hub and the Bishop’s Stortford BID. There
are some brilliant examples of BIDs and initiatives; I would like
to hear more.
(Motherwell and Wishaw) (SNP) [V]
Retail trade union, the Union of Shop, Distributive and Allied
Workers, has said that it is seeking urgent meetings with
Arcadia’s administrators in a bid to preserve jobs. It is crucial
that the voice of staff is heard over the future of business in
all circumstances. What reassurance can the Minister give that
this request will be met?
Clearly, the administrators will do their work under their own
purview, but I encourage them to ensure that they look at the
whole issue to keep as many viable jobs going and as many viable
parts of the business going as possible, so as not to hollow out
our high streets.
(Merthyr Tydfil and Rhymney) (Lab) [V]
This is an awful situation for every high street and retail park
across the country, and even more so for the 25,000 people at
Arcadia and Debenhams who are at risk of losing their jobs just
before Christmas. In outlining what action the Government are
taking to support the people affected, will the Minister
specifically highlight any discussions that the Government are
having with the Welsh Government, so that any support packages
from both Governments can be co-ordinated?
Given that these businesses are big brand names, this is clearly
an issue for the whole UK. We will continue to work with and
listen to the devolved Administrations, and to speak to them
about what support we can look at across the UK as a whole.
(Broxtowe) (Con)
Hospitality businesses are a vital part of our high streets.
Winter is the time that these businesses, like many others, make
their plans for the next season. They are currently planning in
the dark, having been singled out for restrictions and excluded
from the Christmas bubble proposals. Therefore, many will have no
option but to make some very difficult decisions this Christmas.
Does my hon. Friend agree that we need to consider a longer-term
recovery for this vital component of the high street, and that
there is a case to make the 5% VAT rate more permanent—extending
it to the end of the financial year—which might help to address
the issues of rent, debt and an uncertain cash flow going into
2021?
My hon. Friend is working hard for his hospitality sector
offering in Broxtowe. I will be leaving this place to speak to
hospitality sector representatives immediately after this urgent
question, and they will have a number of those asks. I look at
this sympathetically because, as I have said, the high street is
an ecosystem; we must all work together to support the business
community as a whole.
(Denton
and Reddish) (Lab) [V]
It is a very worrying time for those employed by Debenhams and
Arcadia stores in Denton, Stockport and Manchester, and indeed
right across the country. Greater Manchester’s independent
prosperity review identified structural changes in the retail
sector due to the rise of e-commerce, and sadly we are seeing a
rapid acceleration in these changes due to the pandemic. What are
the Government doing to put in place a strategic plan for the
sector, including retraining and reskilling into digital roles in
the sector and in adjacent industries?
We are working with the retail sector itself, including online
businesses like Amazon and Asos, and bricks and
mortar businesses providing the retail brands that we all know
and love, to make sure that we can get the whole gamut of retail
together as one and look at the long-term prospects, including
digitisation and increasing the skills of retailers and those
wanting to go into the sector.
(Dudley
South) (Con)
Workers at Debenhams, Dorothy Perkins, Evans, Miss Selfridge,
Burton, Top Man and Top Shop in Dudley South face a really
worrying time, but the challenges facing retail go much wider.
Can my hon. Friend therefore confirm that the £1 billion future
high streets fund will be accelerated, and will he join me on a
visit to Brierley Hill so that he can see for himself how much
our bid will transform the town centre and help to support retail
jobs in my constituency?
Owing to the restrictions it is nice to be offered a trip
anywhere, so I will be more than happy to take that up. Yes
indeed—the future high streets fund is a really important
initiative along the way of tackling the issues in retail and our
high streets as a whole. I wish my hon. Friend well in his bid.
The results will be announced shortly.
(Blackburn) (Lab) [V]
There is a Debenhams in my constituency and my thoughts are with
the staff at this time, but sadly it is not the only business
going to the wall. Yesterday I spoke to Barry, who runs the Bee
Hive pub in Blackburn, and he described the Prime Minister’s
announcement of £1,000 for pubs as a slap in the face. Barry has
spent thousands on making sure that his pub was covid-secure, and
with no evidence of spread of the virus in the pub sector, he
will now have to throw away thousands more in stock. He is now
wondering whether he can survive. So I ask the Minister: did he
pluck the figure out of the air, and does his Department think
that £1,000 will really be able to save our pubs and, in turn,
our high streets?
Wet-led pubs have a particular issue where they are not offering
food, and £1,000 does not go far enough in itself, but it does go
alongside the other payments such as the forbearance on rent, the
moratorium that is still in place until the end of the year,
business rates relief, and VAT relief on certain areas of
food—although not necessarily in that pub. I will continue to
work with the hospitality sector. It is important to say, as the
hon. Lady said, that those in hospitality should not be
scapegoated, because they have done so much work to make sure
that they can offer a covid 19-secure and warm welcome to their
customers.
(Guildford) (Con)
Guildford High Street is not only picturesque but is home to one
of the finest retail offerings in the south-east, including
Debenhams and Arcadia brands. We acknowledge not only the
difficult uncertainty for employees today but the significant
square footage that these businesses occupy and the gaps that
they will leave behind. Does my hon. Friend agree that the
Government must actively work to help the high street to recover
from coronavirus and also adapt to the long-term changes that
will make our town centres sustainable for the future?
I know Guildford very well. It is a destination for residents
around Surrey and further afield. Yes, we must all work together
to get the balance right so that we do not hollow out our town
centres, including Guildford.
(Warrington North) (Lab)
The Debenhams liquidation is a tragedy not only for the thousands
of Debenhams employees but for all retailers in shopping centres
like Warrington’s Golden Square, where Debenhams is the anchor
department store driving footfall for the whole centre. With
Arcadia brand stores in Golden Square also at risk, and
confidence in the wider retail sector waning, what specific
support will shopping centres like Golden Square get to protect
all its retailers, their employees, and the vibrancy of our town
centres?
In terms of shopping centres it is really important that we get
the balance right between landlords and tenants. The moratorium
helps tenants but clearly does not help landlords, so we have to
get the balance right. We will work with the retail sector to try
to achieve that balance in the weeks and months to come.
(Newcastle-under-Lyme) (Con)
The Dorothy Perkins in Newcastle-under-Lyme was already closed
earlier during the pandemic, and we have also lost major tenants
such as Laura Ashley and Edinburgh Woollen Mill during this
pandemic, so I welcome what we are doing with the future high
streets fund. We have a bid in with the Ministry of Housing,
Communities and Local Government. Can the Minister confirm that
it will be accelerated? We need to hear about that bid as soon as
we can so we can get our towns fund bid in as well.
I wish my hon. Friend every success in that bid—the announcement
will be forthcoming. It is important that we have small business
Saturday coming up this Saturday, and we must make sure
independent stores thrive. However, the brands he talks about
that are going do drag footfall towards those smaller businesses,
which is why we need to look at the high street as a whole.
(Arfon) (PC) [V]
Debenhams is a cornerstone employer in Bangor city centre. Its
closure will be a severe blow to the staff who have worked there
loyally for many years, and even more so now, I am afraid,
because North Wales Mersey Dee Business Council reports that,
across the region, 17% of businesses in retail and hospitality
have already made redundancies. Thinking creatively, what
consideration has the Minister given to material Government
support specifically for repurposing large retail spaces into
smaller, short-term, start-up units?
We always work with local authorities to see what initiatives can
come up. We work closely with them because it is typically the
local authorities, local enterprise partnerships and other
business groupings in each local area that know their local
economy, and we are always happy to look at any initiatives.
(Darlington) (Con)
As a student, I worked for the then Burton Group, and I know how
vital retail jobs are, especially for students and young people.
Can my hon. Friend confirm for my constituents in Darlington who
worked at Topshop, Burton and Dorothy Perkins the steps he is
taking to provide support, advice and assistance to them?
I thank my hon. Friend, and I commend his work in retail before;
many others around the House have done such work. Yes, as well as
offering them support through universal credit and other
benefits, we will work with them through the Jobcentre Plus and
its frontline workers to help them with CV writing, creating
opportunities for and sharing opportunities with them, and
ensuring that transferable skills have a massive role to play in
that.
(Nottingham
North) (Lab/Co-op)
Up and down high streets in Nottingham, businesses big and small
are really worried about their viability in the early parts of
next year. They look at us talking about Debenhams and Arcadia
today, and they think we will be back in January, February and
March talking about them unless something changes. I ask the
Minister the same question they are asking me: beyond reviews and
promises of reform in the future, what support is coming now to
keep our high streets viable?
We are keeping our high streets viable by giving people business
rates relief and giving businesses a moratorium to make sure they
cannot be evicted and cannot be chased for rent debts, but, most
importantly, by keeping retail open in all three tiers so that
they can actually trade their way out of this. What they want is
not handouts, ideally, although they do need the support; they
want customers. They want customers for long-term support.
(Crewe and Nantwich) (Con)
But our high streets need all the help that they can get, and the
towns of Crewe and Nantwich are facing the highest parking
charges in the region, while other towns in the area face none.
Would the Minister agree that the local authority should at least
ensure there is a level playing field, and perhaps reconsider its
decision to reject some initiatives for December to introduce
free parking to encourage people back on to the high street?
I thank my hon. Friend, and he is absolutely right. When people
are bringing back their heavy bags—after a long evening’s
shopping, hopefully, in the lead-up to Christmas—just a simple
token like free parking or cheaper parking can really help drive
footfall and support our local high streets.
(Eltham) (Lab) [V]
Debenhams workers have expressed concern about the performance of
the administrators. There has been a lack of communication and
delays in registering redundancies with the redundancy payments
service, which in turn has led to delayed payments to the workers
themselves. What can the Minister do to ensure that the rights of
workers are protected in these situations?
Clearly, as I have said, there are measures in place that govern
the administrators, but we will keep on top of this. My right
hon. Friend the Secretary of State has already written to the
administrators to expedite the report. We will also follow up to
make sure we keep an eye on them to support workers not only
through the administrators and redundancy phase, but back into
good work.
Mr (South West Hertfordshire) (Con)
As my hon. Friend will know, I was a furniture retailer for many
years prior to arriving in this place. This year has been hugely
challenging for our high streets, and my thoughts are first and
foremost with the employees of Arcadia and Debenhams. Does my
hon. Friend agree with me that the Government must continue to
actively work to help high streets both recover from coronavirus
and, more importantly, adapt to the more long-term challenges
that our town centres are facing at the moment?
I know that my hon. Friend’s experience as a retailer, and his
other work, will be massive in the months to come. Yes, we must
ensure that we shape the change of high streets. We must allow
businesses to pivot to allow for that change, so that our high
streets can survive and thrive.
(Edinburgh
West) (LD)
Like many others, I am concerned about the many workers across
Edinburgh and in my constituency who will today be worried about
their jobs with Arcadia. My constituency also contains a number
of independent shops that are struggling and need a level playing
field with the online behemoths of this world, such as
Amazon. I have a suggestion and plan to offer
postage support for those independent businesses, in the same way
as the Government helped the hospitality sector. Would the
Minister be prepared to meet me to discuss that?
I will happily meet the hon. Lady. She mentioned independent
retailers, and it is important to realise that big anchor stores
have a massive effect on smaller businesses if they hollow out
the high streets. It is important to look at both sectors alike.
(Stockton South) (Con)
I too earned my spurs in retail at Woolworths and Home Bargains.
This year has been incredibly challenging for high street
retailers, and my thoughts are with the employees of Arcadia and
Debenhams. Does my hon. Friend agree that we must not only work
actively to help high streets recover from the pandemic, but also
consider all the other long-term issues they face, from car
parking charges to businesses rates? I co-chair the all-party
parliamentary group on the future of retail, and we would very
much like to see the Minister at its next meeting to discuss
those issues.
I thank my hon. Friend—his experience will be valuable, and I
would be happy to join him at the APPG. It is important not just
to consider the immediacy of this, but the fact that with the new
normal there is a new reality—a behaviour change that is baked
into people’s approach to the high street. It is important to get
right that long-term strategic view.
(Glasgow Central) (SNP)
I am deeply concerned by the situation facing Debenhams, which is
a key part of Glasgow city centre, as well as the stores operated
by Arcadia. My thoughts are with the staff, and I know that the
Scottish Government stand ready with a pay scheme if it is
required. Has the Minister established whether HMRC’s Crown
preference rules, which came into force yesterday, had any
bearing on the decision by Arcadia to go into administration on
Monday? Has he calculated how much HMRC stands to lose as a
result?
I have not had any information or consideration of that issue as
yet.
(Amber Valley)
(Con) [V]
Does the Minster agree that the best way to save these businesses
is for people to keep shopping at them? Can he assure people that
their rights are protected if they buy vouchers, shop online, or
want to return items after Christmas?
That is a really important issue, and my hon. Friend is
absolutely right to say that these businesses want people to
trade. At the moment, both Arcadia and Debenhams have said that
they will accept vouchers, and I encourage anybody who is
shopping at either store to use their credit card if they are
spending more than £100, because then the Consumer Credit Act
1974 kicks in. At this moment, vouchers are accepted.
(Putney) (Lab)
Will the Minister accept that although Putney high street is very
much loved and the centre of our local community, people are
concerned about the fact that covid is accelerating the number of
shops that are going? Will he consider a reform of the business
rates, and of the meanwhile use rules, so that we can have more
community activities in our shops on the high street?
There is a really good community in Putney—I was there a few
months ago at the business improvement district—and the more we
can strip away through encouraging innovation through meanwhile
use provisions, the better. I have spoken about the fundamental
review of business rates, and it is important that we look at the
whole thing.
(Harlow) (Con) [V]
In Harlow, we have an excellent Topshop that has done very well,
and clearly the staff are worried about their pensions and their
jobs. Surely, the time has come for legislation to stop these
robber barons who own these big companies, who plunder the
assets, with the taxpayer left to foot the bill and anxious
employees losing their jobs and pensions. We should make sure
that we seize the assets of those big vulture capitalists and get
the money that the hard-working employees deserve.
My right hon. Friend raises some important points. There is
already legislation and regulation in place to look at this. That
is why my right hon. Friend the Secretary of State has written to
the administrators to make sure that they can expedite the report
looking at directors’ behaviour, not just in the immediate weeks
but looking back to see if anything untoward has happened.
(Liverpool, West Derby) (Lab) [V]
The job losses resulting from what is happening at Arcadia and
Debenhams are on top of a series of devastating job losses across
the north-west. Vacancies are scarce and people have few places
left to turn. In Liverpool, West Derby, we have had increases of
over 100% in both youth unemployment and universal credit
claimants since March. Will the Government now commit to
cancelling their heartless plan to cut universal credit, which
will take £20 a week from struggling families in my constituency?
To flip the question slightly, I know that a number of people up
and down the country have been appreciative of the Government’s
increase in universal credit to make sure that we can help them
through this particularly acute time. Clearly, as I say, we will
continue to work not only to support people who are out of a job
but to make sure that we can create jobs and opportunities for
them to get back into good work.
(Chipping
Barnet) (Con)
Retail is at the heart of our local high streets, and the
Government’s huge programme of support has been vital in keeping
it going. Will my hon. Friend join me in encouraging my
constituents to back Barnet and to come out and shop local on
small business Saturday?
My right hon. Friend absolutely nails it, as usual, in supporting
her independent retailers—her small businesses. They are the
backbone; 99.7% of businesses in this country are small and
medium-sized enterprises. She is absolutely right, and I
encourage everybody, both in Barnet and across the country, to
shop local and get out there and spend money where possible to
make sure that there is a high street to enjoy for years to come.
(Slough) (Lab)
Arcadia entering administration and Debenhams going into
liquidation is devastating news, with thousands facing the risk
of losing their jobs, but this is also an issue of greed, with
Philip Green having paid his family a tax-free dividend almost
three and a half times more than Arcadia’s current pension pot
deficit. Does the Minister agree that while Philip Green retains
his fortune, employees should not end up paying the price with
their pensions?
The hon. Gentleman raises an important point. Clearly, as I say,
the Pensions Regulator has significant powers here, and we will
make sure that it has the space and ability to do its job.
(Workington) (Con)
My heart goes out to all those affected by the collapse of
Arcadia and Debenhams, both of which affect my Workington
constituency—particularly Workington town centre, which has a
Debenhams anchor. Alongside the stronger towns fund, the
Government’s future high streets fund will be crucial to helping
town centres not only recover but adapt in the future. In the
light of unprecedented challenges this year, can my hon. Friend
confirm that future high streets fund decisions are imminent and
that the Government will get the cash out of the door quickly so
that it can have a positive impact as soon as possible?
I thank my hon. Friend for his work to support Workington. The
stronger towns fund and the future high streets fund are two
really important instruments in making sure that we have high
streets up and down the country that can survive and thrive and
that we can be proud of, and we will make sure that those
announcements are forthcoming as soon as possible.
(Aberdeen South) (SNP)
As Arcadia collapses and jobs are put on the line in Aberdeen and
across the country, Amazon pays less than £300
million of tax on almost £14 billion of revenue. Does the
Minister therefore agree that, in order to protect our city
centres, we need a level playing field and the Government must
toughen up their digital services tax?
This is an important situation. Our hearts must all go out, as
they have done today, to the employees of both Arcadia and
Debenhams. In terms of an online sales tax, that is something we
will look at in the fundamental business rates review. It is
important that our high streets survive. There is an
understanding that online businesses have an important role to
play, but they must pay their fair share of taxes.
(Rugby)
(Con)
The challenges that Arcadia and Debenhams face existed before
covid, but they have been accelerated by it as people move
online. The Minister outlined the very substantial support the
Government are providing to retailers, but, to follow the
question from the hon. Member for Aberdeen South (), should the Government go further and consider
levelling the playing field between bricks and mortar and online
retailers through an online sales tax?
An online sales tax is one consideration that the Treasury will
look at, but it is more than that. We need to ensure, in the
fundamental business rates review, that there is a connection
between businesses, bricks and mortar retailers, and their place,
rather than just the customers themselves. There is an important
body of work to be done and I know the Treasury will have heard
the comments and views today.
