Newsroom

Developers to be forced to subsidise small shops

The BPF and BRC have called for more clarity in the London Mayor Boris Johnson’s proposals to force developers to create smaller ‘affordable’ retail units in new developments.

Andrew Teacher, spokesman for the BPF, said: 'While we support the intention of helping small shops, we need to be totally clear about determining what an ‘independent’ or ‘small’ retailer is. Many large chains operate with franchisees, so while the company may be a multi-national, the business itself may be technically independent.

'Any subsidised retail space in a shopping centre would have an impact on rents for other tenants, as well as for the investor and landlord itself. The British Property Federation will consider this consultation in due course and thoroughly investigate the detail when it becomes available.'

The BRC said it was not yet clear whether the Mayor’s proposed move would undermine existing retailers of all sizes.

Stephen Robertson, British Retail Consortium Director General said there were questions raised by the proposed plans that Johnson had not yet answered.

Robertson said: ‘With businesses already facing some of the toughest conditions in decades, an obligation to provide units at below-market rents could further undermine retail investment by making some developments unviable.

'The Mayor could help more retailers by turning his Business Summit words into action and tackling accessibility, transport and disorder while encouraging the Government to offer more effective business rates reductions to smaller retailers, without imposing extra burdens on the rest.'