Our High Streets Need Immediate Support

Our high streets are the heart of our towns, but they are equally the engines of growth that the government desperately needs if we are to kickstart our stuttering economy.

However, across Newbury and West Berkshire, many are facing a looming cost cliff edge - increasingly squeezed by rising business rates, National Insurance Contributions, and an outdated system that is placing a relentless pressure on everyday costs. 

Over the past few months, I’ve spoken with many local business owners about the challenges they’re facing. Several meetings with Newbury BID, Milk & Bean Café, and Newbury Better Health, and many others have drawn out a clear message: the current system is pushing them to the brink.

When I visited the Funghi Club in Hungerford, the owners told me that increases in National Insurance Contributions and higher business rates mean they now need to generate an additional £150,000 a year just to cover their costs. That isn’t money for growth or investment, but just to keep the doors open.

Instability in the Middle East is going to add to this pressure. Crude oil prices have risen by 29%, energy bills could climb by £160 per year to deepen the cost-of-living prices for residents and businesses across the country.

Against this backdrop, last week’s Spring Statement doesn’t only look like a missed opportunity but a serious misstep in providing the stability and support for independent business at a time of real uncertainty.

While I welcome January’s relief package for pubs and the announcement of a high street strategy – piecemeal measures offer little reassurance to business owners across Newbury. 

That’s why I wrote the Chancellor urging both immediate support and deep-rooted reform to help protect our high streets:

·       An emergency 5% VAT reduction for the hospitality sector until April 2027 – a sudden drop would provide immediate breathing space for small businesses and protect jobs on our high streets.

·       Fundamental reform of business rates - replacing the current system with a Commercial Landowner Levy based on the land value of commercial sites rather than the entire property.

·       Fairer ways of raising revenue – strengthening the public finances should not fall disproportionately on small employers. Options such as increasing the Digital Services Tax to 6% or a one-off windfall tax on big commercial banks would ensure those with the broadest shoulders pay their fair share.

As the Government rolls out its Pride in Place programme, the Treasury’s current approach risks hollowing out the very spaces that form the bedrock of our communities.