The Future of Town Centres and High Streets debate

In a speech on 17th January Meg raised the issues that the local shops in Hackney are facing, lower turnovers and new competition from out-of-town shopping centres such as Westfield in Stratford.

Meg emphasised the need for the action needed to sustain our local High Streets which are the hub of the local communities. Action is already taking place in Hackney, with the local council running events to encourage people to shop on the High Street in addition, Meg and the Hackney Gazette have run a joint awards scheme in order to encourage local businesses to up their game. (Read more about the shopfronts awards and how you can get involved here) Although this is a good start more is needed to be done, a combination of private sector investment and local leadership is necessary to encourage people to keep shopping locally.

See full text of speech below:

The main high street in my constituency was rocked by the riots on 8 August, but the effects of the riots have not been the main problem for the high street. It was already struggling, and businesses now tell me that turnover is down by between 25% and 45%, and footfall down accordingly.

The impact of Westfield in Stratford has been dramatic. It has even affected the high street chains in Mare street, as they have bigger stores in Westfield to which people go for the wider choice of products that they can offer. Often, people use local shops for convenience during the week but tend to go to the bigger shopping centre at weekends when they have time to choose their retail centre.

The council and its partners in the town centre forum have been proactive in running events and activities to address that decline, such as ice rinks and personal appearances by celebrities and sports stars, but such things cannot be done on a weekly basis and do not help on their own. There are long-term plans, including for an outlet store offer to build on the success of the Burberry outlet store, which is a well visited international shopping space in Hackney"”for those hon.

Members who are keen to get a cheap mac, it is in Chatham place. Mare street also has the only Marks & Spencer in east London, so it is a shopping centre that has many things to offer, including independent stores such as Mermaid Fabrics, Argun Printers and Stationers, and others.

Some of the improvements that Mare street needs can be led or supported by the private sector, but local leadership, which takes many forms, is needed. Additionally, the council is looking into pedestrianisation and support for businesses to improve their retail offer very much along the lines of what Mary Portas outlined in her report. With the Hackney Gazette, I have launched an award scheme for local shops to encourage them to up their game. Local residents will vote for their favourite shops in a number of categories.

Planning powers, particularly in respect of bookmakers, are a big issue. Hackney has more bookmakers than any other London borough, and we need a change to the law

Intervention, Dame Joan Ruddock:

My hon. Friend will know that I have a private Member's Bill that establishes a separate use class for betting shops. It is due in the House on Friday. Does she agree that if the Minister chose to let that Bill through and provide it with time, we could solve the problem of the proliferation of betting shops on our high streets?

Meg Hillier:

I completely agree with my right hon. Friend. I hope the Minister is listening to the debate and to the support on both sides of the House for that private Member's Bill, which will make a difference.

I have focused on Mare street, but in the time remaining I want to touch on some of the other high streets in Hackney. Three main markets sum up Hackney: the Ridley road market, which is a traditional fruit and veg and general market, is in the constituency of my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott); the Hoxton street market, where you can buy three pairs of knickers for £1, should you so wish, Mr Deputy Speaker; and Broadway market, which I also recommend, where a loaf of bread costs about £2.50, but is very nice. As hon. Members may gather, each market represents a different aspect of my constituency.

Broadway market, which is on a small street off London Fields, is an example of what can be achieved with local determination and drive. Traders and residents took matters into their own hands and established a Saturday street market in 2004. It has been a great success for local businesses and created an attraction for visitors. Andy Veitch of the traders and residents association told me recently that they like to think of the market as more friends, less frenzy. That pitch sums up some of today's debate. We want Hackney shopping centres to be friendly and welcoming places to shop, which is a different offer to the out-of-town malls, particularly Westfield.

Broadway market began a customer survey at the end of last year because traders and residents there are aware that they need to keep up the best of what they are offering, particularly in this recession. They are also aware that they need to work together. They are fearful that a new Sainsbury's Local will open nearby, but they are proud of what they have achieved, maintaining a mix of the low-cost, useful shop, and niche shopping with a thriving café culture. One local delicatessen employs 27 local people, which is quite different from some of the metro stores that open.

Hoxton street market is in the most southerly part of the constituency. It has not been thriving, but with a vibrant businessman newly working with the council, we hope that that will change. It is early days, but I am hopeful. I put on record my respect for Councillor Philip Glanville of Hoxton ward, who has done an awful lot to get that moving.

Tesco has been mentioned a number of times, and I cannot speak about retail in Hackney without mentioning it for two reasons, the first of which is that it was in Hackney's Well street that the young Jack Cohen started out in 1919 with a market stall, selling a few days later the first branded tea"”Tesco tea. Secondly, Tesco now has stores across Hackney, including a large one in Morning lane and one in Well street. Not all residents are happy about the number of Tescos, but that makes it an important player, even in a borough that prides itself on its independent shops.

I was heartened when I spoke to the manager of the Well street store. He made it clear to Tesco headquarters that he did not want a fresh meat counter in his 2012 revamp because there is a good and well-used local butcher outside his door. Of course, the desire to support local businesses is not entirely selfless"”Tesco and other big retailers will benefit from an environment that attracts shoppers"”but it is important that businesses work together, which they often do not do enough.

I have not had enough time to mention Chatsworth road, but there has been great local innovation there too; or the Shoreditch Boxpark, which has become a shopping centre because of an innovative approach by the council"”containers have small shops in them on short-term leases to allow retailers to experiment.

The Portas review is important, and I wish to highlight a few key points. Regeneration led by businesses works best. Too many of one type of shop is not good. In Hackney, we have too many bookies and money shops. We have quite a lot of £1 shops too, and my hon. Friend the Member for Hackney North and Stoke Newington has a 98p shop in her constituency"”ever the discount in the recession. We need more local control, but that needs to be well thought through to avoid perverse outcomes, and we need to harness technology rather than see it is an enemy. We should encourage local websites and local linking of the internet with local shopping.

Read the full debate here