Challenging retail policy changes welcomed

The Government's proposed changes to retail planning policy – now out for consultation - should generate more development in and on the edge of town centres and less in out-of-centre locations, according to a top retail planning expert.

That's the view of Jonathan Baldock, head of retail planning at property giant DTZ. He argued that the proposed new impact test is more stringent than the one it is planned to replace. This will make it more difficult to obtain planning permission for out-of-centre retail developments, he argued.

Baldock also stressed that the new regime would require a greater emphasis on research, analysis and evidence. This will be the case both at development plan stage and when applications are submitted.

He said: "Local authorities will need to commission more comprehensive and thoroughly evidenced retail and town centre studies. Developers will need to submit more extensive and detailed documentation supporting planning applications."

He insisted: "If rigorously applied, the proposed new policy should result in more development in and on the edge of town centres and less in out-of-centre locations."

Conservationists, though, have voiced concern over ministerial plans to drop the current needs test. The Campaign to Protect Rural England argued that this could threaten local retail diversity and choice.

Graeme Willis, supermarket campaigner at CPRE, said: "These plans could take away the rights of local authorities to resist large supermarkets on the grounds of need. The replacement - a new impact test - could shift power from planners who say 'no' to developers who say 'why not'."

The Government says the tougher 'impact test'  it is introducing will give councils a better tool to prevent big developments that put small shops and town centres at risk. Using this test, councils will examine more factors including retail diversity, consumer spending, loss of trade, impact on town centre investment, scope for regeneration and job creation to ensure the vibrancy of town centres and high streets is protected against harmful development.

Communities Secretary Hazel Blears said: "We need a policy which provides the right degree of protection for smaller retailers who are facing very challenging trading conditions and increased levels of competition.

"I believe that the strengthened rules will guide future town centre development by giving councils the tools to attract investment and protect and promote their high streets."

Earlier this year the Competition Commission published its final report into the supply of groceries in the UK market. A key recommendation was that the Government should introduced a 'competition test' into the planning system. The watchdog called for new measures requiring local authorities to assess planning applications for new grocery floor space over 1,000 square metres in size for their impacts on competition.

This would be done in consultation with the Office of Fair Trading.The Government will formally respond to the Commission's recommendations, including the competition test proposal shortly.

The Government is delaying publishing its proposals until the outcome of the legal challenge launched by Tesco which is due to be heard in the High Court later this year.

The supermarket giant has claimed that the new piece of planning legislation would prevent stores from opening in towns where they already have a high share of the market.

Roger Milne

17 July 2008