Cameron pledges action to protect small traders

A special Tory commission set up to study threats to independent traders came back with a landmark report recommending action. In a major boost for the Evening Standard's Save Our Small Shops campaign, Mr Cameron personally endorsed the need to protect traditional small businesses.

Crucially, the commission opposes government moves to scrap the "needs test" that helps council planners oppose unwanted out-of-town superstores on the grounds that they are not necessary.

"We believe this is a serious mistake. We recommend that a Conservative government retain the needs test," the report said. It added that the existence of small shops was "under threat" and that councils should promote planning strategies that aim specifically to revitalise traditional town centres with a full range of specialist and smaller stores.

Mr Cameron showed his support for small shops by touring outlets in Marchmont Street, Regent's Park, where he bought some Italian beans from the Alara Whole Food store.

The Small Shops Commission was launched last October with a brief to investigate why specialist and independent retailers are being driven out by multinational chain stores and to recommend ways to halt the decline.

Chaired by Northampton South MP Brian Binley, its members include former trade minister John Redwood, Ribble Valley MP Nigel Evans - whose family runs a newsagent in south Wales - James Lowman, chief executive of the Association of Convenience Stores, and Lincolnshire Assistant Chief Constable Peter Davies.

It found that small retailers were under increasing pressure on several fronts, from rising tax and regulation to the growth of out-of-town malls and planning decisions that drove customers away from the high street.

"As a result, the existence of these small businesses is under threat," said the report. "The number of independent retailers is in rapid decline; some estimates suggest up to 2,000 small shops are closing every year.

"This poses very serious consequences for social inclusion, the environment, our quality of life and the diversity and attractiveness of our neighbourhoods."

The Conservatives blame Labour policies, saying the UK has gone from fourth to 19th in the league table of lowest EU corporate tax rates. Small business chiefs say 80 extra measures of red tape would be introduced this month alone - an increase of 12 per cent on last year.

Other services under threat include post offices, with about 4,000 having shut down since 1997 and another 2,500 facing the axe.

The commission recommended:

Promoting better town management through civic partnerships to make high-street vitality a bigger priority in planning decisions.

Encourage joint plans between councils and businesses to tackle retail crime and neighbourhood decline.

Protect the "needs test" which the commission says is "essential for the survival of small retailers in town centres and high streets".