😔 Closure of High Street Services: Rural Areas

Westminster Hall

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Rural communities are facing a crisis as high street services continue to close, diminishing the vibrancy of town centers and the sense of community. MPs from various regions highlighted the severe impact of bank, shop, and post office closures, emphasizing the need for government intervention to support struggling rural high streets. The debate stressed the importance of essential services like pharmacies and the potential of community-owned businesses to revitalize local economies. Government initiatives such as banking hubs and business rate reforms were discussed as potential solutions to these challenges.

Summary

  • Impact on Rural Communities: The closure of high street services like shops, banks, and post offices significantly affects rural areas, reducing community vitality and job opportunities. The debate highlighted how these closures diminish the social and economic health of rural towns.

  • Causes of Closures: Factors contributing to these closures include the rise of online shopping, changing consumer habits, economic pressures, and the dominance of out-of-town supermarkets. In rural areas, challenges are exacerbated by isolation and poor access to alternative services.

  • Bank Closures: The rapid closure of bank branches was a major point of discussion. The need for physical banking services, especially for vulnerable and elderly populations, was emphasized, with calls for faster rollout of banking hubs as a solution.

  • Banking Hubs and Post Offices: Banking hubs, operated by the Post Office and Cash Access UK, offer essential banking services and are seen as a positive step. However, concerns were raised about their sufficiency and accessibility, particularly in very remote areas.

  • Post Office Services: The importance of post offices as community hubs was recognized, yet worries about potential closures and downgrades of Crown post offices were expressed. Suggestions included more government support to maintain these vital services.

  • Community Initiatives: Examples of community-led solutions, such as volunteer-run shops and community ownership models, were praised. These initiatives are seen as crucial for sustaining local services and fostering community engagement.

  • Business Rates and Economic Support: Calls were made for an overhaul of the business rates system to support small businesses and high streets, including the introduction of a commercial landowner levy and rent caps to make rural trading more viable.

  • Cultural and Leisure Services: The loss of cultural and leisure facilities like heritage centers and pubs was discussed, with a plea for more government funding to support arts and culture projects that can revitalize high streets.

  • Rural Connectivity: Poor broadband and transport connectivity in rural areas further exacerbate the challenges faced by rural high streets. There were calls for more investment in digital infrastructure and public transport to improve access to services.

  • Government Action: The government’s five-point plan to revive high streets was mentioned, including addressing antisocial behavior, reforming business rates, rolling out banking hubs, tackling late payments, and tackling vacant properties. Continued government support and policy adjustments were deemed necessary to support struggling rural high streets.

Divisiveness

The disagreement in this parliamentary session was moderate, warranting a rating of 3 out of 5. While there was evident frustration and critique of government policies, there was also a significant amount of consensus on the problems facing rural high streets and the solutions needed to revive them. Here are some detailed observations and examples to justify the rating:

  1. Critique of Government Policies: There were notable criticisms of government actions, such as the increase in national insurance contributions and the decision on business rates, which were perceived as detrimental to small businesses. For instance, Manuela Perteghella from Stratford-on-Avon said, ‘I completely agree. Many hospitality businesses have written to me about the damage from the hike in national insurance contributions.’ This shows disagreement with the government’s economic policies.

  2. Call for Policy Reform: Multiple MPs called for reforms, particularly regarding business rates and banking services. Alison Hume from Scarborough and Whitby highlighted the need for ‘banks and services that local residents want,’ indicating a disagreement with the current banking hub arrangements. Similarly, Sarah Dyke from Glastonbury and Somerton advocated for ‘fundamental reform of business rates,’ suggesting a disagreement with the current system.

  3. Support for Local Initiatives: There was a broad consensus on the positive impact of community initiatives and local government efforts to revitalize high streets. MPs praised local councils for projects such as the heritage action zone in North Norfolk and the community-owned Blue Bell pub in South West Norfolk. These instances show agreement on the value of grassroots approaches.

  4. Government Responses: The Minister, Gareth Thomas, acknowledged the concerns raised and outlined government initiatives to support high streets, which indicated an attempt to address the criticisms and show willingness to work on these issues. His mention of initiatives like banking hubs and the high street rental auctions reflects a proactive approach to the issues discussed.

  5. Consensus on Problems: There was a widespread agreement on the challenges facing rural high streets, such as bank closures, pharmacy closures, and the impact of online shopping. MPs from different parties highlighted similar problems in their constituencies, suggesting a strong consensus on the nature of the challenges.

In summary, while there were clear points of contention on specific policy measures and their impacts, there was also a significant level of agreement on the need to support rural high streets and the effectiveness of community-led initiatives. The level of disagreement did not dominate the session but was a notable aspect of the dialogue, hence the rating of 3.