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Should corner shops get planning protection?

New proposals being announced tomorrow could see corner shops getting protected status like they do in France.

This would make it harder for an owner to change the use of a corner shop in an attempt to bat off competition from large supermarkets and keep local shops trading.

While this emanates from the London Assembly, it’s likely to provoke debate across the whole of the UK, where some have suggested that high streets have been hindered by large retailers and out of town shopping centres.

Others have argued that if people loved their small shops so much, then their business would surely be enough to keep the businesses afloat.

Commenting on the proposals outlined below, Liz Peace, chief executive of the British Property Federation, said:

“The industry is committed to helping the government effectively deliver its localism agenda and we have always been very supportive of ensuring a mix of fascias on the high street. Allowing councils to dictate the mix of their central retail offering seems a very sensible way of ensuring communities can have the right mix of local shops. But we need to be realistic in that a new planning class won’t save unviable businesses. If locals really want to use their local shops and they provide good service, selling the right products, they will survive. A big part of that is making sure we don’t continue to pile tax burdens onto landlords and retailers at a time when many are already struggling.”

Notes to editors

Assembly calls for greater support for London’s ‘cornered’ shops

The Mayor should change his policies to give councils more ways to protect local shops from big retail developments, a report by the London Assembly says today.

‘Cornered shops’^[1] by the Assembly’s Planning and Housing Committee^[2] documents the drastic decline^[3] of neighbourhood shops^[4] in London, and calls for changes to local, regional and national planning policies – including the Use Classes Order - to offer them more protection.

Deputy Chair of the Planning and Housing Committee, Jenny Jones AM, said:

“People in residential areas need local shops that provide essential services that they can walk to.  They do not need rows of betting shops and internet cafes, or to have to travel to supermarkets by car.  

“The Mayor must lead on changing the planning system to empower boroughs to take back control of their high streets and protect local shops from further decline.”

Along with the economic downturn, the rise of the big supermarkets and their move into ‘local format’ stores, like ‘Tesco Metro’ and ‘Sainsbury’s Local’, has also contributed to the loss of smaller retailers: the big four supermarkets now account for three-quarters of the grocery market and around four in five independent shops say the biggest threat they face is supermarkets^[5].

The report calls on the Mayor to make changes to his London Plan to strengthen protection for local shops and give boroughs more power to resist or negotiate on planning applications from big retailers. 

It is crucial to protect essential shops like butchers and greengrocers and the Committee agrees with many London boroughs^[6] that it is time to revise the Use Classes Order.  Revision of the Order would give local authorities the power to stop essential shops changing to outlets like internet cafes and betting shops without planning permission^[7]. 

Specific recommendations

The Mayor should:

Lobby the Government to amend the Use Classes Order to sub-divide the existing A1 Class to separate essential “retail” shop uses such as grocers, bakers, butchers, greengrocers and newsagents from other more “service” based uses in order that planning permission is required to change between them.

Make it explicit in the London Plan that boroughs should make use of policies 7.1 and 2.15 to support local neighbourhood shops and their role as essential parts of the “lifetime neighbourhood”. 

Ensure any supplementary planning guidance on retail policy gives borough planning committees support in the London Plan to confront developments that would threaten the viability and diversity of small and local shopping centres.

By 2012, commission an impact analysis of existing “shop local” schemes from GLA Economics and make available its findings to boroughs, local shop owners and communities to make future “shop local campaigns” more effective. 

In London Plan Policy 4.9 or through the forthcoming Town Centre SPG, include guidance for local authorities to create a dedicated ‘town centre rejuvenation’ fund from Section 106 contributions they receive from large retail developments.  The fund could be managed by the local authority, but directed by a “Board” of local business people, residents and community groups who decide what improvements they would like to see provided the money went towards local centre rejuvenation.  The fund might be spent on removing litter or graffiti, planting streets, repairing or replacing pavements, installing benches.

Commission an impact analysis of PPS4 on small shops and local shopping centres from GLA Economics with a view to producing guidance to boroughs on implementing the sequential and impact tests.

London boroughs should:

Ensure their Local Development Frameworks contain policies that:

Apply specifically to supporting small shops and neighbourhood shopping centres. 

Identify them as “key local services” or “essential services” that are central to the concept of “lifetime neighbourhoods”. 

Restrict change of use so as to protect shops within walking distance of residential areas (e.g. 400m).

Protect small retail units from adverse impact from new retail development.

Reflect the need the need for local small shops to be easily accessible via a full range of sustainable modes of transport in order to ensure their continued viability.

For more information and all PR and media queries, please contact Andrew Teacher, Head of Media, on 020 7802 0113 or ateacher@bpf.org.uk.