Labour’s increase in national insurance could be the “last nail in the coffin” for the declining British high street. Liberal Democrat MP Steve Darling, who represents the seaside constituency of Torbay, made the claims during a debate in parliament on High Street businesses. Mr Darling believes that the increased cost of doing business combined with a rise in anti-social behaviour and online shopping have all contributed to the closing down of physical shops across the country.
He said: “We have that uncertainty, and if we want to drive that imagination for our communities, we need certainty.” Of the increase to national insurance announced by Chancellor Rachel Reeves in October’s budget, he added: “Although the policy is still slightly over the horizon, its cold hand is sending a chill through the heart of our town centres.
Don't miss... Inside the town where Rachel Reeves is MP - even her own voters have had enough
“The Conservatives may have almost nailed down the coffin lid on our town centres, but I fear that the Labour party will actually put in the last nail.”
Mr Darling believes that government legislation could halt the decline of the high street as he advocated for legislation to speed up town centre developments.
He added: “We need to ensure that local authorities have the ability to place-shape, whether that is having influence over stopping immediate transfer from retail to residential, or whether it is enhancing and speeding up the abilities of compulsory purchase orders.
“I am only too alive to one case in my constituency of Torbay. It straddled the Ukraine war, which meant that we saw a massive boost in the cost to redevelop Paignton town centre, and now that particular location is just a car park. If we want to drive that imagination for our communities, we need certainty.”
Don't miss...
Locals turn on Rachel Reeves as town blighted by crime - 'she's never here' [LATEST]
Farmers plotting huge protest against Labour that could 'shut down economy' [INSIGHT]
'I applied for Pension Credit - and this one thing absolutely enraged me' [REPORT]
The Liberal Democrat MP added that a rise in anti-social behaviour is a further factor in deterring people from the high street in favour of the convenience of online shopping.
He said: “At the last count, 40 people were sleeping rough across Torbay, which is absolutely shocking. The number has more than doubled.
“Sadly, people sleeping rough make others feel unsafe, and therefore unwilling to go into our town centres. We need more funding to support people, but we also need the stick of more bobbies on the beat – more uniformed officers who can be seen supporting our communities.”
The Chancellor has been widely criticised for her decision to raise the amount of national insurance that businesses pay, with many fearing the move may to dissuade businesses from hiring more staff due to the increased cost.