High Streets At Risk?

Out-of-town shopping areas could be putting traditional high streets at risk unless proposed changes to plan rules are scrapped according to MPs.

Ministers are looking to replace the ‘need test’, which aims to prevent excessive retail park or supermarket development. But the communities select committee wants it retained in order to stop town centres being damaged.

However, John Healey is a communities Minister, and says that changes will mean “greater safeguards for the high street, not less.”

The Association of Convenience Stores has also welcomed the MPs’ report.

The needs test was created after many complaints that smaller shops were being damaged by chains developing larger stores.

Out With The Old, In With The New

The test forces planning committees to address whether the local community needs the proposed superstore or not.

But, in 2005, a review of planning regulations found that the test was having negative effects such a the restriction of competition and consumer choice, and therefore the government announced plans to scrap the plan two years ago.

Now, it wants to introduce a broader ‘impact assessment’ in its place.

The cross-party Commons report says it is not convinced that the test will have adverse effects: “On the contrary, we have heard from representatives of developers, of local planning groups, that it is serving a useful – some say essential – function.”

Mixed Views

The MPs also believe that the timing of the change could make its effect even worse. It concludes that: “In the current economic climate, the removal of the need test would present unnecessary risks to town centres.”

On the other hand, Mr Healey believes the needs test is “dysfunctional” and that the new system would allow us to “protect the vibrancy of town centres by requiring developers to carry out assessments into key factors including retail diversity, consumer spending, loss of trade and job creation.”

“The government is helping small shops and other high street retailers manage their business rates with £2 billion rate relief support next year and from next month they will be able to spend this year’s inflation increase over the next two years.

“Special waivers for local planning applications are also helping small businesses during this difficult time,” he added.

What Do You Think?

A good idea or a bad one? I now the time for change or, given the current economic climate, could this make things worse? We would love to know your thoughts and opinions. Leave your comments here.