WIREDGOV

Government statement given yesterday to update the House on the latest position following the announcement that BHS has filed for administration.

With permission, Mr Speaker, I would like to make a statement to update the House on the latest position following the announcement earlier today that BHS has filed for administration.

Clearly this is sad to hear that a great British name like BHS has been finding trading conditions challenging.

BHS, a name synonymous with British high streets for over 80 years has been an important player in the history of British retail. The company still has a significant high street presence with 164 stores nationwide with around 11,000 employees. I recognise that consumer trends are changing moving away from high street shopping and increasingly towards online retail channels, which continues to see the retail landscape change.

Today – and the last few days of media speculation – have of course been particularly troubling for BHS’s workers and their families. However, I understand that the there is a clear message going to all staff today, and that is that BHS is still open for business as usual. I understand that there are no plans for immediate redundancies or store closures, and that the administrators are looking to sell BHS as a going concern.

Clearly if this proves not to be possible, then the Government stands ready to offer its assistance, including through Jobcentre Plus’ Rapid Response Service, to help people move into new jobs as quickly as possible.

There has been some speculation about the BHS pension scheme. I cannot comment on this or any other individual case directly, but I understand that the BHS schemes are in the early stages of a Pension Protection Fund (PPF) assessment period, during which the PPF will determine the final funding position of the scheme and whether it should assume responsibility for a scheme.

The retail sector is a crucial one for the UK economy. The total value of retail sales (excluding Fuel) in 2015 was £340 billion. The value of retail sales has increased every year for the last twelve years however in 2015 volume of sales grew faster than values indicating a decline in prices overall. The sector accounts for c3 million jobs; almost a third of employees are under 25.

We intend to ensure that this success continues. At Budget 2016 the government announced the biggest ever cut in business rates in England, worth £6.7bn over the next 5 years.

This government is supporting UK business by:

Cutting corporation tax to 17% in 2020, the lowest of any major economy, benefitting over a million companies. This follows cuts in the last parliament from 28%

We are continuing to simplify and modernise business taxation, for example by simplifying business energy taxation.

Since 2010 the retail sector has seen productivity growth of around 1.4% per annum and productivity gains far in excess of the economy as a whole-8.2% whereas UK productivity saw an increase of only 1.1%. We will do more to help increase productivity still further with our target of 3 million apprenticeships by the end of this parliament.

The retail sector continues to change and adapt. Internet sales made up 13.8% of all retail sales in December 2016. The peak being in November 2015 when this was 15.5%1.In 2015 12.5% of all retail sales (excluding fuel) were made over the internet compared to 7.3% in 2010.

These remarkable advances have meant that the great British High Street has also had to change and adapt to survive. The government is committed to help communities adapt their town centres. We have just launched a digital pilot in Gloucestershire with the support of the Future High Street Forum to support businesses to embrace digital.

This government is proud of its record of supporting British businesses, workers and communities.

I commend this statement to the House.