These Yorkshire's tourism hotspots risk 'hollowed out high streets' without more support, says Labour

Shadow business secretary Ed Miliband has urged ministers to extend the current tax relief available to avoid England's third lockdown from creating a host of ghost towns in areas like York and North Yorkshire.

The party is warning of devastation in areas such as the Isles of Scilly, where Labour calculates that as much as 44 per cent of businesses rely on visitor, retail and hospitality trade.

According to Labour analysis of Office for National Statistics (ONS) data, a fifth of businesses are in the same position across the rest of Cornwall, in Devon's Torbay and in the Isle of Wight, while 17 per cent of those in Brighton and Blackpool are also retail, tourism or hospitality reliant.

In York 16.6 per cent of businesses fit this description, making it the eighth most at-risk area, while North Yorkshire is 16th at 14.2 per cent.

The Government says it has spent tens of billions of pounds supporting shops, restaurants and cafes throughout the pandemic as well as extending the furlough scheme through to April.

Labour is urging Chancellor Rishi Sunak to confirm it will extend the 100 per cent business rates holiday for retail, hospitality and leisure businesses for at least another six months.

The Opposition party also wants the reduced rate of VAT for businesses in the hospitality, tourism and culture sectors to continue and is calling for businesses to be given greater flexibility to manage debt, including using student loan-style arrangements.

The reduced VAT rate is set to expire on March 31, when it will return to 20 per cent.

Doncaster MP Mr Miliband said: "We are facing a national economic crisis, but it's clear that if high street businesses like restaurants, hotels, shops and salons go bust the impact will be felt much more deeply by communities in certain parts of the country.

"It's striking that before Covid these places, from Cornwall to Cumbria, were bustling with tourism and trade. Businesses were supported by visitors and local people - and they will be again when our economy can open up.

"Standing by and letting these businesses collapse with the vaccine rollout making huge progress and recovery in sight would be absolutely devastating for business owners and employees who have done the right thing by shutting to help tackle the virus.

"The Government must stand up for local high streets and abandon the sink or swim approach. They must urgently confirm they will extend business rates relief to give struggling businesses the breathing room they need." We cannot allow these places to be hollowed out."

Earlier this month, during a Commons debate on the controversial Towns Fund project, Conservative MP for Brigg and Goole Andrew Percy said town centres like his and many others nationwide had been "hollowed out" because of missing out on regeneration.

And in December the leader of City of York Council, Liberal Democrat Keith Aspden, said the historic city was "proud to be the home of a wide range of hospitality, leisure and retail businesses, from historic wet pubs to world-class restaurants and hotels".

But he said: "Months of either closure or extremely tight restrictions on the sector have seen balance sheets reduced almost to breaking point."

A government spokesman said: “We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops, restaurants and cafes throughout the pandemic.

"And we’ve extended our furlough scheme through to April as well as providing £4.6bn extra in grants earlier this year, so that people have certainty that help is in place.

“At the upcoming Budget we’ll outline the next stages of our Plan for Jobs to support businesses and families across the UK. That has been our priority throughout the past year and it will be the priority for the year to come.”