Ed might want to revise his position on "Tesco-isation of the high street"

Big stores go bust, smaller ones follow.

Shortly after he was elected labour leader Ed Milliband criticised the "Tesco-isation" of British high streets, calling for specific policy changes. Asked on the Daily Politics show if if Labour would prevent more supermarkets on the high street, he said: "I think that is an issue, yes and it is something that we're looking at … It's about local people. It is about planning."

Back then, he was adding his voice to a generally held view, that big chains stifle competition on the high street and kill off independent stores. But figures to be released next week by the Local Data company suggest a rather different picture. It's the big stores themselves that are in trouble, and they're taking the small ones down with them. According to the FT today:

The scale of closures among the big chains is having a knock on effect on independent retailers, many of whom rely on chains to anchor high streets, and act as a magnet to shoppers.

There was a net decrease in large chain stores by 1.4 per cent in the first half of the year, down from a net decrease of 0.25 per cent last year, as more big stores closed than opened. This is a sharp change even from 2009, where despite the banking crisis the number of big stores on the high street was still growing by 1.2 per cent.

The independent stores are following suit: while still on the rise, there has been a significant slowdown from last year. A net increase of 2.4 per cent has become a net increase of 0.8 per cent. And according to Matthew Hopkinson, director of the Local Data Company, it is town centres that are bearing the brunt.

It will be interesting to see if Miliband revises his position in view of this news.

 

Ed Milliband. Photograph: Getty Images
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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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