Healey: Protecting small shops and boosting town centres

Published	29 December 2009

An overhaul of the planning system that will give Town Halls the tools they need to boost business growth and provide new safeguards for town centres and local markets was published today by Housing and Planning Minister John Healey, on a visit to Doncaster town centre and market with markets Minister Rosie Winterton.

Planning policy has long supported town centres, but after extensive consultation, John Healey has today published new advice for Town Hall planners that replaces previous guidelines, cutting the guidance from 137 pages down to 32.

The new Planning Policy Statement 4 combines town centre and economic development policy into a single streamlined statement that supports sustainable economic growth, protects local markets and small shops and will help councils make the decisions to help speed up economic recovery in our towns and rural communities.

The revised guidelines keep the important 'sequential test' for town planners, which requires the most central town centre sites to be developed first for shops, leisure and offices rather than out of town sites that lure high street shoppers away.

A tougher 'impact test' is also being introduced, replacing the dysfunctional 'needs test', which will now give councils better controls over big developments that put small shops and town centres at risk. Using this test, development that could harm town centres will be assessed against key factors including climate change, impact on the high street, consumer choice, consumer spending and jobs.

John Healey said:

"At this time of year when we shop in the New Year sales, we appreciate our town centres more than ever as the vibrant hearts of our communities. 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.

"As the country moves towards economic recovery, the government is putting in place new protections for local shops at the heart of communities as many high streets have been hit hard by a double whammy of the downturn and out-of-town retail parks.

"By strengthening the hand of local councils we are giving them the expert tools they need to put the viability and vitality of town centres first in difficult market conditions. 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.

"We are helping councils plan for the recovery, so they can make the right long term, local decisions that generate growth and prosperity for the community."

Local Government Minister Rosie Winterton said:

"Yorkshire has a great market heritage and Doncaster, where we are today, is one of the biggest and finest markets in the North that has been around since the thirteenth century.

"Markets like this all over the country have had a tough time recently with competition from out of town supermarkets and discount stores but they are a vital part of the local economy creating jobs, attracting more people to town centres and providing good value fresh produce.

"As the Government's champion for traditional markets I am delighted that this new economic planning policy will make it easier for town halls to protect and enhance existing markets as part of their vision for the town centre."

Matthew Taylor MP, who produced the Taylor Review into rural housing and economies said:

"The new economic planning guidance (PPS4) implements significant recommendations of the 'Taylor Review' (Living Working Countryside). This is a major simplification of economic planning policy, gives strong support for traditional market town centres, and clear backing for appropriate economic developments that sustain small rural communities.

"In the past too many villages have seen their local economy whither and die - in the new PPS4 there is now firm support for rural businesses, shops and other facilities that sustain rural employment and services.

"In the name of protection, too many rural villages have ceased to be living, working communities as economic opportunities have been over-curtailed - that should no longer be the case. I hope every rural planning authority will respond to this new guidance, recognising that the key to protecting a sustainable countryside is also maintaining thriving rural communities with vibrant local services and businesses."

Specifically the revised Planning Policy Statement 4 (PPS4):

reinforces the 'town centres first' policy and ensures the planning system promotes the vitality, viability and the unique character of town centres
promotes consumer choice and retail diversity
keeps the important 'sequential test' that requires developers to seek the most central sites first
removes the dysfunctional 'needs test' which can unintentionally stifle diversity and consumer choice in town. In some cases new shops in town centres were ruled out because out of town developments, such as big supermarkets, already provided that function.
creates a new tougher 'impact test' that assesses economic, social and environmental criteria so councils can better assess the impacts on the town centre. It tests whether impact is positive or negative on climate change, town centre consumer choice and retail diversity; investment and town centre trade and gives councils powers to cap the size of big retail developments where this is justified.
Requires local authorities to plan positively for sustainable economic growth
Requires local authorities to make markets an integral part of the vision for their town centres, enhancing existing markets and, where appropriate, re-introducing or creating new ones.
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.

Notes to editors

1. The consultation ran for 12 weeks and attracted nearly 500 responses, summaries of which can be seen here: www.communities.gov.uk/publications/planningandbuilding/pps4summaryresponses. The new Planning Policy Statement is available at: www.communities.gov.uk/publications/planningandbuilding/planningpolicystatement4

Planning Policy Statement 4 (PPS4): Planning for sustainable economic growth brings together all of the Government's key planning policies relating to the economy in both urban and rural areas into one single PPS. The key features of the final policy, are:

Regions and local authorities should plan to achieve sustainable economic growth through flexible and pro-active policies aimed at supporting the start up and growth of businesses, attracting inward investment and increasing employment, particularly in deprived areas. Need to ensure a good supply of land, in the right place at the right time which meets the needs of different types of business by facilitating economic growth policies which are responsive to economic change
Maintaining strong 'town centres first' policy which directs new retail, leisure and office development into our town centres. The consultation responses supported this approach, and given the tough trading conditions our high streets are experiencing, its vital that the planning system does all that it can to protect the vitality and viability of our town centres.
Recognising the need to protect local services and rural economies - we are committed to protecting village shops and services like pubs by being clear that Councils should consider the importance of such services to their local communities. This might involve protecting existing facilities and responding positively to proposals to convert shops where this will improve their viability.
Rural areas have an important contribution to make to national and regional economies. We agree with Matthew Taylor that rural communities need to plan for change in the face of new economic, environmental and demographic pressures as much as urban areas. We are committed to ensuring that economic growth and a high quality environment are achieved together.
Making planning policies clearer, more concise, more businesslike and easier to use. We need to do everything we can to streamline the planning system to ensure it is not an obstacle to economic recovery. So while it strengthens our successful policies on matters such as safeguarding town centres, and stands firm on the importance of design quality and sustainability, this PPS is substantially shorter than its predecessor statements. The majority of respondents to the consultation supported the proposed structure of the draft policy.

2. The competition test is not included in PPS4. The Competition Commission investigation into the supply of groceries in the UK market published its latest report in October 2009. A key recommendation of the report was that Government should introduce a 'competition test' into the planning system requiring local authorities to assess planning applications for new grocery floorspace 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 proposal shortly, but today's confirmation of PPS4 provides strong protection for town centres and will reassure town centre managers and independent retailers up and down the country.

3. PPS4 emphasises the need for local authorities to consider consumer choice in respect to both plan making and determining planning applications. In terms of plan making, PPS4 requires local authorities to plan for a range of shopping, leisure, tourism and cultural services in terms of the range of goods and stores that are available to consumers, and identify sites for varying uses and store types, having regard to consumer choice and promoting competition.

4. Streamlining planning policy should not impose any extra costs, and there is potential for real cost savings in the medium to long term by presenting policies for economic development in an integrated way, particularly in terms of speedier and better quality plan-making and decision taking in respect to planning applications.