Revised planning policy on economic growth published

The Government has published new advice for planners which combines town centre and economic development policy into a single, streamlined document, replacing previous guidelines and cutting guidance from 137 pages to 32.

The revised policy advice in Planning Policy Statement 4 has retained the “sequential test” which requires that most central town centre sites should be developed first for shops, leisure and offices, rather than out-of-town sites.

Communities and Local Government has also introduced what it argues is a tougher “impact test” replacing the “needs test” which ministers say had become "dysfunctional”.

Under the new test development which might harm town centres will be assessed against key factors including climate change, impact on the high street, consumer choice, consumer spending and jobs.

The “competition test”, recommended by the Competition Commission following its probe into grocery shopping, is not included in PPS 4.

The competition test was a key recommendation from the independent watchdog which proposed a measure requiring local authorities to assess planning applications for new grocery floor space over 1,000 square metres for their impacts on competition, in consultation with the Office of Fair Trading

The Government will formally respond to the Commission's recommendations, including the competition test proposals, shortly.

Planning Policy Statement 4 allows rural authorities to plan for economic development in rural areas subject to the need to protect the countryside, recognising that a site may be acceptable even if it's not readily accessible by public transport. This increased flexibility was urged following the Taylor report into rural housing and planning.

Planning minister John Healey said: "We need to protect and promote town centre economies, which is why I am publishing streamlined guidance strengthening the ability of councils to safeguard local services like shops and pubs - the lifeblood of our towns.”

He added: "The new tools go further than ever before to protect town centres from the harm large out-of-town developments can have. This new approach also gives rural and urban councils the powers to back developments while making sure that the impacts on important local services like pubs and shops are fully considered in planning decisions.”

Read the Communities and Local Government press release.

 

Roger Milne

7 January 2010