Tagged: London and the South East

‘Cut rates to help our struggling shops’ says South Shields MP

South Shields MP Emma Lewell-Buck has called on the Government to cut business rates to give South Shields’ struggling shops a chance to survive.

 The plight of her constituency’s beleaguered shopping centre was raised in Parliament last night in an adjournment debate with High Street minister Brandon Lewis.

The move came amid concern for the retail viability of the town centre, following the recent departure of such big-name outlets as Marks & Spencer and Mothercare.

To prepare for the debate, Mrs Lewell-Buck paid a fact-finding visit to King Street to find out what the main concerns of traders are.

She said that the clear message was an alarming decline in both income and customer numbers in the last two years – and the high cost of business rates.

She said: “Shops in King Street have reported that footfall is down in the last two or three years, at the same time as incomes are being squeezed and families have less money to spend.”

Last night, Ms Lewell-Buck called on the minister to take more action to cut business rates.

One in 10 businesses now spends more on business rates than rent. Rates have risen by an average of £1,500 under the coalition.

“The Government also delayed the revaluation of business rates, which many firms have said means business owners in smaller towns are paying unfairly high levels compared to those in London and the South East.

“The Government relaxed planning rules in a way that has made it easier for betting shops and payday lenders to cluster on high streets, giving shoppers less incentive to visit.”

‘Trade is at its worst for 20 years’

Emma Lewell-Buck’s intervention has been welcomed by the traders she visited, including Lesley-Annz ladies’ fashion shop in the Market Place and Premier Furnishings and Carpets in King Street.

 Michael Blake, owner of Premier Furnishings, has revealed he pays a whopping £600 a week in rates – twice as much as he pays in rent.

And in the last four years he has seen profits fall from up to £12,000 a week to between £700 to £2,000 a week.

He said: “I do appreciate the fact that she made the effort to come and see us and I hope this achieves something.

“We’re really suffering at the hands of competition from internet shopping, and parking is also a big issue.

“I have people in here who say after 10 minutes that they have to dash – because their car is on a meter. Shoppers can’t relax.”

Lesley Dawson, owner of Lesley-Annz fashions, said: “Just take a look around. It is shocking. There’s no shops. There’s nothing.

“I have been in the trade 20 years and this is the worst I have known it.

“We have lost so much footfall since Wouldhave House and Franchis cafe were demolished. We know there’s a new library to be built on the site, but that’s two years away. That’s a long time.”

Source – Shields Gazette, 27 June 2014

North East MPs clash over house prices effect on Chancellors Budget

Stagnating North East house prices are undermining George Osborne’s Budget, MPs have warned.

Labour has hit out at claims the region is set to benefit from the Chancellor’s latest Budget, despite many of the measures being welcomed by the North East Chamber of Commerce.

As the Budget debate continues in Parliament, Hexham Conservative Guy Opperman spoke up for what he said were Government policies helping grow the North East economy.

He told MPs: “In the North East, the Help to Buy scheme is absolutely transforming the housing market. In Humbles Wood in Prudhoe, a housing development in my area, 90% of new purchases have been through Help to Buy. That must be good news.”

But his claim riled North Durham MP Kevan Jones, who quipped that the Conservatives are likely to adopt “Happy Days are Here Again as their 2015 General Election theme tune” but said people wouldn’t be fooled into believing everything was rosy.

He told the House of Commons: “I am not sure what nirvana the honourable member for Hexham lives in if he thinks that the housing market in the North East is booming. Average house prices here are still £5,000 lower than in 2008; that compares to an increase of about £77,000 in London.

“The honourable gentleman also fails to recognise that 16% of people in the North East are still in negative equity. The idea that somehow the housing market in the region is booming is wrong. We have a two-speed Britain – a booming South East and London, and a stagnating North.”

“The honourable member for Hexham described Hexham, which is a nice constituency, and the North East, but he is living in some type of parallel universe if he thinks that the North East economy is booming. Well-paid jobs in the public and private sectors have been replaced by low-paid zero-hours contracts.”

Source – Newcastle Journal  03 April 2014

Living Wage campaigners call for better pay in the North East

Living wage campaigners have hit out after it emerged a third of people in some North East towns are not earning to enough to get by.

Unions, politicians and even the new Bishop of Durham have called for more firms to take up the Living Wage, currently set at £8.80 in London and £7.65 across the rest of the UK.

Just 20 North East firms pay the higher than minimum wage to their lowest paid staff, a move the unions say has to change.

Latest figures show more than one in five people receiving less than the living wage, with some parts of the region faring much worse.

Darlington tops the region’s blackspots with 37.6% of people paid less than the living wage, with Blaydon at 34.2% and Berwick 31.7%.

Northern TUC boss Beth Farhat said the unions were looking to see more support for their pay battle: “Extending the living wage is a vital way of tackling the growing problem of in-work poverty across Britain.

“Working families are experiencing the biggest pressure on their living standards since Victorian times. Pay has been squeezed at all levels below the boardroom and it’s costing our economy dear.

“The number of living wage employers is growing rapidly and unions are playing their part in encouraging more employers to sign up and pay it – but Government must show equal initiative.

“We need to see a far greater commitment to pay the living wage from Government and employers, and modern wages councils which could set higher minimum rates in industries where employers can afford to pay their staff more. During Fair Pay Fortnight we’re asking workers to back our call to MPs to get all political parties to put decent pay at the top of their agendas in the run up to the election.”

The TUC campaign is today backed by Paul Butler, the Bishop of Durham, who said: “The Living Wage is good for everyone: good for the employee and their family – they have enough to live on; good for the employer in recruitment, retention and morale of their staff; good for us all.

“The Living Wage makes sense for everyone. It makes sense economically, socially, morally and spiritually. It helps us all build better lives and a better society.”

Union research suggested that for working women the picture is even bleaker.

The campaign has been backed by Hexham’s Conservative MP Guy Opperman, who has said he supports the need for firms to voluntarily take on the wage increase.

He said: “I have long been a supporter of the Living Wage. The campaign has really taken off in London and the South East, but what I hope to do today is to bring the campaign right here to the North East.

“I understand the concerns that business has, but I really want to explain the benefits it can bring. As many people will be aware, I am a huge advocate of the regional banking system we see in Germany. There are lots of things we can learn from our Germanic neighbours, especially around productivity.

> Is this guy (sic) really a Tory ? He won’t get far with opinions like those.

“Paying the Living Wage can have a hugely positive impact on things like productivity, quality of work, reduced absenteeism and retention of talented staff.

“In a recent independent study 84% of businesses believed paying the living wage led to increased productivity.”

Source – Newcastle Journal  01 April 2014

The Budget: George Osborne told to focus on North East

he Chancellor has been told his Budget today must address the North East’s unemployment record.

Businesses, house builders and unions have said the Government needs to start growing all parts of the UK economy, not just the South, and urged George Osborne to use his Budget to tackle the number of people out of work in the region.

At 10%, the region’s unemployment rate stands as the highest in the UK, remaining around that level even as unemployment falls in large parts of the rest of the country.

The North East Chamber of Commerce has already written to the Treasury calling for a renewed focus on tackling job creation in all parts of the UK.

Policy director Ross Smith said: “We have seen the recovery really accelerate over the past year. We now need to see measures that will sustain this for the longer term and make it better balanced – not a series of pre-election gimmicks.

“North East businesses are making a huge contribution to that recovery, but doing so within an economic system that is still skewed towards the South East. We need to see measures that will capitalise on the region’s export success, energy expertise and capacity for growth.

“That includes taking better account of the regional implications of taxes such as fuel duty and air passenger duty, better balanced delivery of infrastructure, and greater scope to ensure skills training matches the labour market needs in this region.”

The need for a regional focus was repeated by Beth Farhat, regional secretary of the Northern TUC.

She said: “Most people in the North East aren’t experiencing a real recovery and in fact for many here it’s getting worse, with unemployment for women rising 20% in the last year alone.

“We need a Budget focused on creating more North East jobs, with better quality work alongside with fairer pay. Ministers should end their ideologically obsession with cuts and privatisations to public services and focus much more on a thought-out approach to developing the economy, particularly in regions like ours.

“When eight out of 10 private sector jobs are being created in London it’s clear the current plan isn’t working and the economy is still geared towards London and the South East at the expense of everywhere else.

“There is a consensus across the region about what we need to do, so I’d urge the Chancellor to hand us the economic tools, powers and investment needed to enable us to contribute to regional success and balanced national growth.”

Newcastle Council leader Nick Forbes said house building was a key way of kickstarting the North East. He said: “What we need is a tax break to incentivise house building on brownfield development sites – this would help deal with the chronic shortage of housing and make it financially viable for construction companies to take on more apprenticeships.

> Would it ?  Or are we just talking about more housing that the majority of us couldn’t afford even if we are working ?

“The Government has announced their intention on building a New Town at Ebbsfleet, but a tax break like this would help us rebuild areas like Scotswood and Walker Old Towns.”

And the North East-based Home Group has also had its say, calling on the Government to force through better use of public land, making it easier for firms to build.

The affordable housing group called for the creation of special Housing Zones in which, like the business-led enterprise zones, incentives would be offered to kick start the building process.

Source – Newcastle Journal,  19 March 2014