Britain’s blighted high streets will improve by next election, says Rayner

Housing secretary says Labour wants to reverse fortunes of towns plagued by boarded-up shops and rogue businesses

Angela Rayner has said voters will begin to see a difference in their high street before the next general election as Labour prioritises investment in struggling local communities.

The housing secretary said the government had made it a top priority before the country goes to the polls to begin turning around the fortunes of places blighted by boarded-up shops and rogue businesses.

“There’s been a real sense of decline,” she said. “People see it as part of the identity of their town and area, and that’s why we’ve got our high streets strategy.”

Speaking after John Healey, the chancellor, earmarked more than £1bn in his debut budget on Wednesday to support retail, hospitality and leisure businesses, Rayner signalled that the government stood ready to take further action.

“The chancellor has shown he’s backing our high streets, backing our businesses that have been struggling and giving them the breathing space,” she said. “And he’s going to continue with that.”

In an interview for the Guardian’s series on the fortunes of Britain’s towns, Rayner insisted that the budget was “moving the needle” for the economy as she sought to defend Healey from criticism.

On Thursday the chancellor was warned by the Resolution Foundation and the Institute for Fiscal Studies that his measures were poorly targeted and had paved the way for a “brutal” spending review next year.

Meanwhile, the owners of Poundland filed a notice of intention to appoint administrators, putting up to 12,000 jobs at risk in a blow for towns across the country where the discount chain is a high street fixture.

Speaking before that announcement, Rayner said the government was taking action to ease the pressure on businesses and households amid the damage to Britain’s economy from the Middle East war.

“All these businesses that people value, that make up a thriving high street, the chancellor is really giving them support,” she said.

Asked whether voters would be able to see a difference in their local shopping districts before the next general election, she said: “The money will start to come through. Already we’ve put the £5.8bn in.

“Next year, from April, business rates [cuts] will apply and you’ll see [other] money in more areas.”

On his way to becoming prime minister, Andy Burnham pledged a new dawn for Britain’s high streets, placing the revival of overlooked town centres at the heart of his agenda for government.

In response to this agenda, Healey said he would cut business rates for retail, hospitality and leisure companies in a plan worth £1bn over two years, with the relief partly funded by higher taxes on gambling and vape shops.

Labour also launched a revamped “hope on the high street” strategy alongside the chancellor’s budget to coordinate investment and the transfer of power to local leaders. This includes the already announced £5.8bn “pride in place” programme to support regeneration projects and £210m fund to transform derelict buildings.

“There’s a lot of money and funding pots going into the high street, as well as work in the public realm to deliver services and housing,” Rayner said.

However, business leaders said more fundamental changes to the business rates system were needed, highlighting that Labour had promised to replace it entirely in its manifesto.

Before the budget Andy Haldane, the former Bank of England chief economist, told the Guardian that changes to tax online sales at higher rates than in-store purchases were needed to help “level the playing field” for struggling bricks-and-mortar stores.

Hinting at further changes to come, budget documents show ministers are exploring “how the business rates system could better target online retailers in ways that minimise any indirect impacts for wider retail businesses” to fund support for the high street.