Changes to planning laws 'would damage small shops'

Under changes due to be unveiled in the new year, ministers are expected to alter the rules restricting the creation of out-of-town shopping centres.

The Government insists that it wants merely to simplify planning laws, but campaigners and retailers say the effect could be disastrous.

They claim the proposals, which would get rid of the requirement for major supermarkets to prove there is a "need" for a new outoftown shopping centre, would lead to more "mega-stores" and less choice for consumers.

They want ministers to include a presumption against such centres in the new planning laws, claiming this would ensure further development takes place only in exceptional circumstances, and would also help protect small shops.

Groups opposing the changes include Friends of the Earth, the Campaign to Protect Rural England and the Association of Convenience Stores.

Sandra Bell, supermarkets campaigner for Friends of the Earth, said: "We are at a turning point for high streets and town centres.

"The Government needs to introduce rules to restrict out-of-town development and promote real choice of local independent shops to meet everyday needs." Tom Oliver, head of rural policy for the Campaign to Protect Rural England, said: "By encouraging more edge-of-town and outoftown stores, the Government is set to increase car-based shopping trips at a time when it claims that tackling climate change is a priority."

The Association of Convenience Stores said more giant retail outlets would hit local shops.

The proposed changes were set out in a White Paper published in May and final proposals are due by the spring.

The key reform is a plan to scrap the current "needs" test, which ministers claim is a "blunt instrument" that can have unintended consequences.

It would be merged with the existing "impact" test, which is meant to measure the effect that a new out-of-town store would have on a town centre.

Ministers claim the amended impact test would ensure small shops and town centres were protected.

They insist they are committed to protecting both.

The Government's proposals follow a report by the Competition Commission which said more outof-town stores were needed to promote competition between supermarkets.