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Supermarkets and the Planning System
Understanding the planning system
Every new development for a supermarket needs planning permission and the developer/ supermarket must submit a planning application to the relevant local authority. This application must be made public by the local authority and you will have the opportunity to make your case against the development. It may seem complex and intimidating but getting to grips with the ins and outs of the planning process and challenging the supermarkets through this process may be your best chance to win your campaign. See the local campaigns section for examples of campaign groups who have won this battle.
The new English planning system came into force in April 2004. The Friends of the Earth guide, 'A local campaigner's guide to the new local planning system' (January 2005) will help you to understand this new system and their briefing 'How to oppose a supermarket planning application' (September 2005) provides a step by step guide to taking on the supermarkets through the planning process (see Resources section).
The planning systems in Wales, Northern Ireland and Scotland are different. Contact Friends of the Earth campaigner Naomi Luhde-Thompson in the FOE Cymru office and Deborah McLaughlin in the FOE Northern Ireland office for more information on planning in Wales and Northern Ireland respectively. For planning issues in Scotland contact local campaigner Alistair Livingston 01556 504937 (or messages on 01556 502487) AlistairLiv(at)aol.com from the Castle Douglas campaign (for more info see local campaigns directory).
Curbing the growth of out-of-town supermarkets
The damage created by the growth of out-of-town retailing to town centres, the local economy and the countryside was recognised by the Conservative Government in 1993 when it introduced Planning Policy Guidance Note 13 on Transport (PPG13) which required the consideration of locally accessible shops in planning decisions.[52] At the same time, Planning Policy Guidance Note 6 on Town Centres and Retail Development (PPG6) was revised to protect town centres against out-of-town developments, and then revised again in 1996. Local authorities were advised to use a 'sequential approach', and to only grant planning permission for out-of-town sites where there were no viable alternatives firstly in the town and secondly on the edge-of-town. The new Planning Policy Statement 6: Planning for Town Centres (PPS6) (2005), which relaces PPG6, retains the sequential approach.[53]
Whilst the revised planning guidance has not prevented new supermarket development, there has been a sharp decline in new planning approvals for out-of-town superstores,[54] with most retail development forced to move to brownfield sites in town centres or to edge-of-town centre sites. But the big supermarkets have substantial reserves of land in anticipation of development opportunities should the government weaken its opposition to out-of-town development.[55]
The supermarkets' response
With planning controls putting a stop to further out-of-town sprawl, the supermarkets moved back into market towns and the local high streets of large connurbations with a vengeance. The number of Tesco stores increased from 568 in 2000 to 2,365 in 2005. Tesco says that stores in market towns now form the core of its business,[56] and both Tesco and Sainsburys have shifted part of their expansion programmes to focus on smaller format inner city stores such as Tesco ‘Metro’ and Sainsbury’s ‘Central’ and petrol forecourt shops (Tesco Express/Esso, Sainsburys Local/Shell). Sainsburys Local and Tesco Express/Extra are also beginning to replace neighbourhood convenience stores. Following the acquisition of T&S; stores and Adminstore in 2002 and 2004 respectively, Tesco now has 5% of the convenience store market.[57] Analysts expect that to increase sharply over the next few years.
Asda continues to favour big out-of-town sheds, and is still lobbying for changes to planning policy, because it is here that the supermarkets really make their money. Out-of-town superstores allow the corporations to focus on sales of large non-food items, economies of scale and acres of free car parking space, which give them an enormous advantage over city centre stores.
Trawling the planning legislation, Asda found a loophole that has allowed it to double the size of some of its existing stores by building a mezzanine level within the store, significantly increasing sales space, without planning permission. Asda had planned to build a total of 40 mezzanine floors in its existing stores, but this loophole is set to close with new legislation requiring supermarkets to obtain planning permission for increases in retail floorspace of 200m2 or more. Temporarily thwarted in its plans to build bigger stores and out of town sheds and massively losing market share to Tesco, Asda has recently shifted the direction of its expansion programme and is about to enter the convenience store market for the first time with plans to open discount mini-supermarkets which will directly compete with Tesco Metro stores.[58]
The UK government and planning legislation
The big supermarket chains clearly have the ear of Government who show no sign of breaking the power of the supermarkets. This is partly to do with the supermarket culture within New Labour: Lord Sainsbury, government minister and major New Labour financier, is thought to have successfully lobbied the government to soften its line on supermarket development. Furthermore, as former Blair advisers such as Lucy Neville-Rolfe, Philip Gould and David North pass seamlessly between the Cabinet Office and Tesco it is fairly likely that the supermarkets are heavily influencing government policy in many areas, not least the relaxation of planning controls.[59]
It is also to do with direct lobbying. In July 2005, Asda representatives visited the Deputy Prime Minister's office, No 10 and the Treasury to urge the government to change the test used by competition authorities so that it can open up new space to compete directly with Tesco. Asda is pushing for the 'adequate provision' test to be replaced with an 'adequate competition' test to overturn the 'first mover advantage' which has effectively meant that only one superstore is permitted in an area and no more.[60]
At its heart, New Labour embraces neo-liberalism, an ideology that sees planning legislation as anti-competitive, in that it stops companies from doing what they want to do and adds costs. This is the reason why new planning policy is a slimmed down and faster procedure.
There are also good macro economic reasons for the government not to break the power of the supermarkets – the competition between Tesco and Asda keeps prices and hence inflation down. This may be good for economic stability, but at what cost!
National planning policy continues to support major retail development
'I know that the big retailers can put pressure on local stores, and we have to be aware of this, but which is worse: the major retailers leaving the towns completely or having the big retailers trading downtown, bringing in more money and more people into the town centre as a whole.'
John Prescott, Deputy Prime Minister[61] Perhaps as a result of supermarket lobbying power, and despite mounting evidence, the present government does not fully acknowledge that large stores can be equally damaging to the vibrancy and diversity of a retail centre, whether the stores are in-town, out-of-town or on the edge-of-town centres. The national planning policy guidance for retail development, Planning Policy Statement 6 (PPS6), continues to actively support edge-of-centre large scale development, specifically requiring local authorities to identify sites for the provision of large format stores on the edge-of-town centres, on the basis that larger stores 'may deliver benefits for consumers'.[62] As town centre development sites of a suitable size for large format stores become fewer and fewer, then proposals for edge-of-centre development become increasingly likely. PPS6 also permits development on out-of-town sites where no other suitable sites are available. A national policy supporting such large scale developments will make it that much harder for local authorities to resist proposals for these stores, despite community concerns about their likely impact. PPS6 also calls for the 'managed decline' of retail areas that can't be sustained. Although it is a deeply flawed document, Planning Policy Statement 6: Planning for Town Centres (2005) does acknowledge the potential for problems where there are new major retail developments and requires the local planning authority to support development which enhances the vitality and viability of town centres (particularly market towns and villages) and to assess the impact of building a new store on the surrounding village and district centres.
Putting pressure on local councils
'These guys are professionals and are in for the long haul. They have plenty of experience from around the country in winning planning permission – from PR campaigns in the local press to planning experts and expensive lawyers. What can we, a bunch of amateurs, do to stop them?'
Charles C, a local anti-supermarket campaigner in Shaftesbury, Dorset
Supermarkets plan their 'campaigns' well in advance - purchasing sites in prime locations, approaching council officials and doing deals, and running well-orchestrated media campaigns in the local press. Only once the site is secured and agreements have been made with planning officials (often involving the purchase of council land), will planning be sought.[63]
The big supermarkets also have the resources to play a very long game to get what they want. A determined local campaign group have been fighting for 9 years against Tesco's proposals for development in Sheringham, North Norfolk.
On paper, there are grounds for local authorities to refuse permission for a new supermarket, but they may be reluctant to do so if they think the supermarket will appeal, after all the resources at the disposal of the big supermarkets are many times greater than those of the local council.
In Sheringham although the proposed development was originally refused planning permission by an area planning committee, it was approved by the full committee in 2004, after Tesco threatened to go to appeal and claim costs from the council if the application was refused. As John Sweeney, leader of North Norfolk District Council put it,
'They are too big and powerful for us. If we try and deny them, they will appeal, and we cannot afford to fight a planning appeal and lose. If they got costs it could bankrupt us.'[64]
However the council subsequently caved in to local pressure and, in the light of revised government guidelines, commissioned an independent report which condemned Tesco's proposed development and in September 2005 the council unanimously voted against the scheme.[65]
In Stockport, a Tesco has already been built that is nearly 2,000m2 bigger than originally planned. Tesco has applied to the council for retrospective planning permission for the extra floorspace which it insists is only for storage. But 217 local traders have signed a petition urging the council to serve an enforcement notice on Tesco, meaning the store will go back to its original size. Steve Parfett of Parfett's Cash and Carry, who says the extra space is the equivalent of 19 independent shops insists,
'What Tesco has done is outrageous. No one else would get away with it. If I had done something like this, the council would be down on me like a tonne of bricks. Its one rule for us and another for Tesco who rely on their fire power, nuisance value and the fact that the council would be wary to issue an enforcement order in case Tesco appealed and the Council lost and costs were awarded against them.'[66]
In Gerrards Cross, Buckinghamshire, locals waged a five-year campaign against a Tesco store. Despite massive opposition, the store eventually got permission after Tesco's appeal was given approval by John Prescott, the Deputy Prime Minister, after a planning inquiry. Before it had even been built, Tesco have applied to extend the floor area by 40%. 'It is absolutely cynical,' says Peter Hardy, leader of South Buckinghamshire district council, 'they get an application that is just about acceptable and then bring in plans for something that was never envisaged.'[67] In a further twist to the story, Tesco's plans are now hanging in the balance after a controversial rail tunnel, being moved to accommodate Tesco's building plans, collapsed. Local resident, Gail Clarke said:
'When I heard that no one was hurt in the collapse I did a merry jig. Tesco’s reputation will be in tatters after this fiasco, and they deserve all the flak they get.'[68]
Planning gain – Legitimate bribery!
Planning legislation recognises 'planning gain', where supermarkets offer to build infrastructure or new amenities for local councils in return for planning permission, as a legitimate sweetener offered by the supermarkets. These 'section 106 agreements', mainly intended to ameliorate the effect of the development through the construction of new roads, roundabouts and pedestrian crossings as well as leisure facilities (such as the new cricket pavilion built by Tesco in Shaftesbury), are obviously very attractive to cash-strapped local authorities.
In Sheringham, North Norfolk, Tesco initially secured an agreement with the council to relocate a community centre, fire station and a block of flats used for social housing.[69] And its not just in Sheringham that local authorities are bending over backwards to accommodate the supermarkets' development proposals on town centre sites, local councils around the country have traded away community facilities, memorial gardens, allotments, social housing and an old soldiers' club in order to facilitate supermarket development. In Hadleigh, Suffolk, Babergh district council has altered the district plan so that Tesco can build on a flood plain - directly against national policy.[70]
References[51] Nils Pratley and Julia Finch 'Shop Tactics ' [52] ODPM Planning Policy Guidance 13 (PPG13) www.odpm.gov.uk/index.asp?id=1147927 Viewed 8/11/05 [53] ODPM Planning Policy Statement 6 (PPS6)www.odpm.gov.uk/embedded_object.asp?id=1143821 Viewed 4/11/05 [54] Sustain (2000) ‘Battle in Store? A discussion of the social impacts of the major supermarkets’ Sustain [55] Colin Breed (2003) 'Checking out the Supermarkets II: Competition in Retailing' Liberal Democrats [56] Tesco 'Tesco and Market Towns' www.tesco.com/everylittlehelps/downloads/TescoCR_MarketTowns.pdf, viewed 3/3/05 [57] 'Store Chain to beat Spar' Sky Business News 12 December 2005 www.sky.com/skynews/article/0,,30400-13477577,00.html?f=rss Viewed 15/12/05 [58] Richard Fletcher 'Asda to Launch Smaller Stores to Take the Fight to Tesco' The Sunday Times 11 December 2005 www.timesonline.co.uk/article/0,,2095-1919963,00.html Viewed 15/12/05 [59] For more details on Tesco's influence on government see Corporate Watch 'Tesco: A Corporate Profile' 2004 www.corporatewatch.org.uk/?lid=252 Viewed 8/11/05 [60] Sarah Ryle 'Asda demands planning freedom to tackle Tesco' The Observer 17 July 2005 www.guardian.co.uk/supermarkets/story/0,12784,1530113,00.html Viewed 4/11/05 [61] Peter Hetherington 'Spread of out-of-town superstores halted, says Prescott' The Guardian 14 July 2005 www.guardian.co.uk/supermarkets/story/0,12784,1528179,00.html Viewed 4/11/05 [62] ODPM Planning Policy Statement 6 [63] Paul Brown 'Store Wars in the Shires' The Guardian 17 March 2005 http://society.guardian.co.uk/societyguardian/story/0,,1170415,00.html Vewed 28/3/05 [64] Paul Brown 'Secret deals with tesco cast shadow over town' The Guardian 22 January 2004 www.guardian.co.uk/uk_news/story/0,,1128386,00.html Viewed 28/3/05 [65] Paul Kingsnorth 'The Tesco Chain Store Massacre' The Ecologist May 2006 [66] Personal communication Steve Parfett 8 March 2005 [67] Nils Pratley and Julia Finch 'Shop Tactics ' [68] Lewis Smith 'Railway tunnel collapse will cost Tesco millions' The Times 2 July 2005 www.timesonline.co.uk/article/0,,2-1677419,00.html Viewed 4/11/05 [69] Paul Brown 'Secret deals with tesco cast shadow over town' [70] Ibid