Moves to allow shops to be turned into houses without needing planning permission could spell catastrophe for city centres, says Shadow Chancellor Anneliese Dodds.
The Labour politician said the Government’s bid to allow a range of commercial uses to convert into housing under permitted development rules (PD) threaten viability of retail businesses.
She also said a reform of business rates was needed to safeguard the high street and put bricks-and-mortar traders on a level playing field with e-commerce giants, following a meeting with businesses and business leaders in Plymouth city centre.
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The ahead of May’s council elections, meeting city MP Luke Pollard, with Labour hoping to cling on to power in Plymouth.
She met representatives of the FSB, Devon and Plymouth Chamber of Commerce, colleges, and went on a tour of the city centre, meeting independent traders and hearing about the challenges they face in a post-lockdown economy.
She said: “Labour’s view is we need to do more to secure a bright future for the high street and face up to big issues, like high street businesses having to pay business rates that internet-based companies are not having to face. And some big tech giants are paying very little corporation tax.”
And she singled out the planned expansion of PD rights which would mean unused commercial buildings, such as shops and restaurants, could be converted into housing without planning permission,
There are fears this could encourage landlords to create low-quality, cramped housing in city centres, such as Plymouth’s.
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MsDodds said: “This is a big problem in places like Plymouth and across the South West. We have to prevent conversion into poor-quality flats.
“We need our high streets for people to be in to work, shop, socialise and, yes, live, but where there is good quality housing.”
She said there is a fear the PD changes could also push commercial businesses away from city centres by effectively “pricing them out” and said: “We are calling on the Conservatives to stop plans that could hurt the high street.”
The Government has said it will review the business rates system, and Ms Dodds said it must be adapted to protect high street retailers.
“The concern is that there’s no level playing field between businesses based on bricks and clicks,” she said.
But she said that inequality also applies to workers’ pay and while it is good e-commerce firms are creating jobs, they need to be secure and well-paid.
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“We need to see the new jobs being decent jobs, and paid decently,” she said.
Ms Dodds recently hospitality and tourism sectors and boost growing green and marine industry.
She has said there is a danger the South West could be overlooked by the Tory Government’s “levelling-up” agenda, with focus given to the North instead.
She has said investment is necessary for the region’s innovative and environmentally-friendly ventures, including the marine, geothermal, solar, and tidal industries.
And she used her visit to Plymouth to raise concerns about the future of the South West’s hospitality and leisure sectors, and the defence industry in Plymouth, accusing the Government of “pulling back on a lot of previously promised support.”