Andrew Dismore

At today’s Mayor’s Question Time, Labour London Assembly Member for Barnet and Camden Andrew Dismore AM, questioned London Mayor’ Sadiq Khan over the problems facing our high streets.

Mr Dismore asked the Mayor:

‘How can you encourage Londoners to support their local high streets this festive season?

‘The Black Friday 3.2% downturn in shoppers’ footfall, dropping to its lowest level since the 2008 recession, is continuing into the Christmas period, including at John Lewis, Tesco and Sainsbury’s. John Lewis has seen sales fall by more than 5%. Big companies have gone into administration or closed stores, including House of Fraser, M&S, Toys’R’Us, New Look, Mothercare, and Debenhams as well as restaurants like Jamie’s Italian, Prezzo, Carluccio’s, and Byron Burgers. Much of this is due to the fall in people’s disposable income and a loss of consumer confidence, worsening as a result of Brexit. What action can you take to help our high streets?

‘Do you agree that high streets are also struggling due to increased rent and business rate costs, and competition with online retailers, who it seems may also be  in trouble, in light of Asos’s profit warning, resulting in their shares falling by 40%. What can be done especially to help small businesses with their overheads like rent and rates?’

The Mayor said that:

High Streets contribute massively, not just for shopping. The beginning of December saw Small Business Saturday, with his full support. Pressures include business rates, rents and online shopping, as well as Brexit uncertainty. High Streets have demonstrated their benefits. He has campaigned for business rates policy change. The draft London Plan has a “town centre first” approach.

The Good Growth Fund is investing in High Streets. Loss of consumer confidence leads to loss of jobs and loss of business rates. Planning has a role to play in protecting uses. He is engaging with stakeholders and is lobbying government on it’s business rates thresholds. London and Partners are publicising London’s offer elsewhere in the country. He is working with Business Improvement Districts, Chambers of Commerce and the boroughs.

After Question Time Mr Dismore added:

‘High streets are vital to London: outside the centre of London, over half of London’s jobs are spread across 600 high streets. High streets are more than just shops, in a GLA survey, 45% of surveyed users’ primary high street use was non-retail related.

‘High street businesses are struggling with huge rent and business rates increases, presided over by the Conservative Government. The GLA found that nearly 70% of small businesses find rent to be unaffordable. In London, business rates increased by 23.7%, costing London’s businesses as much as £1.2 billion.

‘Economy Committee Assembly Members have heard that rents had increased by 7-8%. The business rates support provided to local authorities by the Government was not enough to cover the rates increase, either. As a result, premises are being left empty, contributing to the decline of the high street. High street shops are also facing challenges from online retailers and businesses such as Amazon who sell the same products at a cheaper price.’