David Cameron today proposed tax breaks for small shops in recognition of the special contribution they make to communities.

The Conservative leader highlighted the importance of local and specialised stores in an echo of the Evening Standard's campaign to Save Our Small Shops.

He confirmed Tory pledges to increase the protection given to small shops from the planning system but extended those pledges by promising to look at how the burden of taxation and red tape could be reduced to help independent shops survive.

"The personal and specialised offer from independent retailers - combined with their tendency to be more involved in community activities, to be plugged into local social networks or to support local suppliers - means that they should be treated differently," he declared.

Mr Cameron said this marked a shift in policy which could have wider applications whereby social, as well as monetary, value would be taken into account. As part of the plan he also proposed sparing post offices and cottage hospitals from closure. On the question of small shops, Mr Cameron added: "They should be considered to compete with larger chains not just on economic terms, such as price or the range of goods or services available but also on their social value.

"If small independent shops have a greater social value than chains or larger shops, then it makes sense for them to benefit not only from the 'needs test' in planning law but also from an advantageous tax and regulatory regime which tips the balance back in their favour against the larger retailers.

"This new approach is part of a bigger picture. The next Conservative government will attempt to develop a measure of social value that will inform our policy-making when in power.

"When making decisions, ministers will take account not just of economic efficiency but also social efficiency."

He admitted that the idea of putting a value on social worth was difficult but said it had worked in the field of environmental policy.

"If Britain is serious about strengthening society then we need a government that understands and values it," Mr Cameron said.

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