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Support for London’s ‘cornered’ shops

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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.

Notes for editors:

The embargoed report,Cornered shops: Small shops and the planning system is attached:

<<10-07-28-Final draft small shops-EMBARGOED.pdf>>

2. Jenny Jones AM, Deputy Chair of the Planning and Housing Committee, is available for interview.

3. London lost more than 7,000 independent shops between 2001 and 2007 and the loss has been compounded further by the recession, markedly changing the capital’s local shopping centres. Without more protection in the planning system, local neighbourhoods will continue to lose valuable local resources that provide people with convenient access to the goods and services they need on a day-to-day basis. Local shops are central to reducing car use and creating sustainable neighbourhoods, and provide wider social and economic benefits: over 50 per cent of the turnover of independent retailers goes back into the local community, compared to just 5 per cent from supermarkets.

4. The focus of the report is those “local” centres, the smaller neighbourhood and local parades that provide convenient access to goods and services that are needed on a day-to-day basis, especially those that are accessible on foot, and also serve as a focus for a local neighbourhood.

5. 78 per cent of independent shops said the biggest pressure they face comes from competition from supermarkets. London Chamber of Commerce, London Small Shops Survey, 2007.

6. For example, Royal Borough of Kensington and Chelsea, and the London boroughs of Richmond, Harrow, Hammersmith and Fulham, Brent, Camden, Islington, Hackney, Redbridge, Bexley, and Lewisham.

7. There is now an opportunity to influence this debate in relation to small shops planning policy at the highest level, as the new Government has indicated its intention to amend the Order.

8. The Committee’s report will support the Assembly’s contribution to policy development as part of the London Plan review process. The Assembly participated in the London Plan Examination in Public (EiP) on a number of matters, including the formal discussion on Policy 4.9 – Small shops – on 13 July 2010. See the Committee’s Full written submission to the London Plan EiP on Matter 4F: Retailing (small shops).

9. There is now an opportunity to influence this debate in relation to small shops planning policy at the highest level, as the new Government has indicated its intention to amend the Use Classes Order.

10. The report will be considered for formal agreement at the Committee’s meeting on 13 October 2010.

11. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

For more details, please contact Dana Gavin in the Assembly Media Office on 020 7983 4603/4283. For out of hours media enquiries please call 0207 983 4000 and ask for the Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison

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Support for London’s ‘cornered’ shops