The battle lines have been drawn. On one side are Friends of the Earth, local community groups and small independent retailers. They accuse Tesco et al of: browbeating local authorities with "legalised bungs" (aka planning gains); submitting planning applications for extensions or changes of use after permission has been granted; and demanding restrictive clauses in planning consents to prevent rivals developing nearby sites. On the other side are the multiples, pleading their case for a more relaxed planning regime. Some claim there's now an embargo on out-of-town development. But who will win the planning war?
There is all to play for. The Competition Commission is expected to tackle whether competition issues should be considered when planning applications are decided in its emerging-thinking document due shortly.
At the same time, Kate Barker, the Treasury adviser who has been reviewing the planning regime since the spring, was due to publish her final report on whether the current regime restricts competition and the growth of the economy as The Grocer went to press. Her findings could form the basis of a planning White Paper next year.
Planning was also mentioned in the Queen's Speech. And in his pre-Budget speech next Wednesday, the Chancellor could well give his verdict on controversial proposals for a planning gain supplement, through which any increase in value generated by a planning consent would be taxed.
With so much at stake, the tactics of both sides have become increasingly aggressive. For Tesco and Asda in particular, FoE and its friends seem to have come off better in recent skirmishes. Last week, a proposal was rejected before it had even made it to planning application stage. Councillors in Darlington voted against Tesco's plans to develop land there after a public consultation exercise in which 78% of residents opposed the retailer's plans.
And at the beginning of last month, the Planning Inspectorate alluded to an FoE report about a Tesco Extra in nearby Burnage when rejecting Tesco's application to develop a large store next to Stretford Leisure Centre in Trafford, Manchester.
"Although Tesco has predicted an impact of 0.39% with regard to small and local neighbourhood centres, it is an average figure and does not reflect what may happen to the very small centres to any useful degree," said the inspectorate. "What is persuasive, however, is the evidence produced by interested persons on the effects of the opening of a Tesco Extra store in Burnage."
Needless to say, neither Tesco nor Asda is happy with FoE's growing influence. "I wonder whether they've ever made a positive contribution to any debate," says a disgruntled source close to Tesco. "FoE is misleading and misrepresenting people all the time. They're not interested in a sensible debate at all."
Accusations of strategic landbanking are hardly fair when it takes as long as it does to secure planning consent, he argues. "Sometimes it can take five years to obtain a planning consent - that's not good for anyone."
Asda takes a similar line. But it concedes the restrictive nature of the planning regime has forced retailers to extreme measures. "There's lots of skulduggery going on. There's no suggestion Tesco has broken the law but there's an element of gaming," says a spokesman.
The needs test, by which planners assess whether a community requires additional retail outlets, should be abolished in favour of a competition test that would allow unrepresented names to enter the market, he suggests. "If you put Waitrose, M&S, Whole Foods Market into towns that don't have them, everyone would raise their game and customers would get extra choice," he says. "Clearly, there's a pretty weighty argument of consumers lacking choice. Only 35% of towns and urban areas have four multiple retailers. In rural areas it's only 20%."
The supermarkets are not the only ones irked by FoE's aggressive tactics. The assertion everything in the regime favours the supermarkets is totally misleading, says John Stockdale, retail specialist at planning consultants CgMs.
"Our advice to big retail clients is they have a less than 50% chance of success with any out-of-town application," he says.
"FoE seems to carry an enormous amount of weight when it comes to being able to generate inquiries. It's extraordinary when so much of its evidence is based on hearsay."
Predictably, FoE remains unapologetic. "The future of retail in the town centres is dictated by Tesco and Asda," says its supermarkets campaigner Sandra Bell. "Reform of the planning gain system is needed. It would be better if the money went into more central pots and was not used as a local bribe. That gives Tesco and other supermarkets too much sway. It gives them an unfair advantage over small chains and independent stores."
FoE, which is soon to publish an update of its Calling the Shots report detailing alleged abuses of the planning regime by the supermarkets, wants the government to tighten Planning Policy Statement Six governing town centre development.
Barker's suggestion the planning regime is so restrictive it is slowing the economy's growth is misguided, says Bell. "There's a complete misconception that all out-of-town development has come to a halt."
Small retailers, too, are anxious. about the possibility of a relaxation of PPS6. "We are concerned by the school of thought that plays to the idea that planning is a nuisance and gets in the way of the economy - as the big four have been arguing to the Commission," says a spokesman for the ACS. "We don't believe that's true. We're absolutely clear the worst thing that could happen for competition is a weakening of the existing restrictions. Tesco's dominance is a symptom of the problem rather than the cause."
Others are more concerned about the government's proposal to introduce a planning gain supplement. "Everyone with a stake in development has been very vocal in their opposition," says Paul Browne, head of property and planning at the BRC. "It's likely to delay and, in some cases, deter retail development of brownfield sites that are already typically most costly to develop."
He is confident Barker will consider the economic implications of the current regime. However, he questions how effectively any changes would be enforced by under-resourced and often poorly skilled planning authorities. PPS6 only came in last year and has already placed a massive burden, he points out. "There's a requirement for councils to be more proactive in how they plan for retail growth. There's more stuff coming out in terms of guidance."
The irony is that the supermarkets, too, are being asked to do a lot more - planning gain cuts both ways after all - and they're being asked it on behalf of the very communities now on the attack. Whether their concerns or those of the pressure groups have more sway over government should begin to become clearer over the next few weeks.The people versus Tesco
The Grocer has seen one of the letters submitted by Friends of the Earth to the Competition Commission, attacking supermarket extensions. Schemes under fire include:
Tesco Ruthin, Denbighshire: FoE argues Tesco opened a 2,745m2 store in August and a week later submitted an application to expand the store to 4,126m2 store. The application was refused in October.
Tesco Brighouse Road, Queensbury, West Yorkshire. Planning permissions were granted for food stores of 1,394m2 and 3,251m2, but Tesco submitted a planning application in July 2005 for a 5,519m2 scheme as well as a petrol station. The decision is still pending.
Asda Pwllheli, Gwynedd. Planning permission was granted in 2002 for a Safeway. In it was a condition restricting the size of the store to protect the "vitality and viability of the town centre". In 2005, Asda acquired the site and submitted an application to increase the retail floorspace by 26%. Permission was granted and the store opened in October 2006.
Tesco Carlisle, Cumbria. In 2002, outline permission was granted for a 3,715m2 store. In 2005, before work had commenced, Tesco submitted an application to increase the floorspace by 78%. The city council rejected the application in August 2005 and an appeal is pending.
There is all to play for. The Competition Commission is expected to tackle whether competition issues should be considered when planning applications are decided in its emerging-thinking document due shortly.
At the same time, Kate Barker, the Treasury adviser who has been reviewing the planning regime since the spring, was due to publish her final report on whether the current regime restricts competition and the growth of the economy as The Grocer went to press. Her findings could form the basis of a planning White Paper next year.
Planning was also mentioned in the Queen's Speech. And in his pre-Budget speech next Wednesday, the Chancellor could well give his verdict on controversial proposals for a planning gain supplement, through which any increase in value generated by a planning consent would be taxed.
With so much at stake, the tactics of both sides have become increasingly aggressive. For Tesco and Asda in particular, FoE and its friends seem to have come off better in recent skirmishes. Last week, a proposal was rejected before it had even made it to planning application stage. Councillors in Darlington voted against Tesco's plans to develop land there after a public consultation exercise in which 78% of residents opposed the retailer's plans.
And at the beginning of last month, the Planning Inspectorate alluded to an FoE report about a Tesco Extra in nearby Burnage when rejecting Tesco's application to develop a large store next to Stretford Leisure Centre in Trafford, Manchester.
"Although Tesco has predicted an impact of 0.39% with regard to small and local neighbourhood centres, it is an average figure and does not reflect what may happen to the very small centres to any useful degree," said the inspectorate. "What is persuasive, however, is the evidence produced by interested persons on the effects of the opening of a Tesco Extra store in Burnage."
Needless to say, neither Tesco nor Asda is happy with FoE's growing influence. "I wonder whether they've ever made a positive contribution to any debate," says a disgruntled source close to Tesco. "FoE is misleading and misrepresenting people all the time. They're not interested in a sensible debate at all."
Accusations of strategic landbanking are hardly fair when it takes as long as it does to secure planning consent, he argues. "Sometimes it can take five years to obtain a planning consent - that's not good for anyone."
Asda takes a similar line. But it concedes the restrictive nature of the planning regime has forced retailers to extreme measures. "There's lots of skulduggery going on. There's no suggestion Tesco has broken the law but there's an element of gaming," says a spokesman.
The needs test, by which planners assess whether a community requires additional retail outlets, should be abolished in favour of a competition test that would allow unrepresented names to enter the market, he suggests. "If you put Waitrose, M&S, Whole Foods Market into towns that don't have them, everyone would raise their game and customers would get extra choice," he says. "Clearly, there's a pretty weighty argument of consumers lacking choice. Only 35% of towns and urban areas have four multiple retailers. In rural areas it's only 20%."
The supermarkets are not the only ones irked by FoE's aggressive tactics. The assertion everything in the regime favours the supermarkets is totally misleading, says John Stockdale, retail specialist at planning consultants CgMs.
"Our advice to big retail clients is they have a less than 50% chance of success with any out-of-town application," he says.
"FoE seems to carry an enormous amount of weight when it comes to being able to generate inquiries. It's extraordinary when so much of its evidence is based on hearsay."
Predictably, FoE remains unapologetic. "The future of retail in the town centres is dictated by Tesco and Asda," says its supermarkets campaigner Sandra Bell. "Reform of the planning gain system is needed. It would be better if the money went into more central pots and was not used as a local bribe. That gives Tesco and other supermarkets too much sway. It gives them an unfair advantage over small chains and independent stores."
FoE, which is soon to publish an update of its Calling the Shots report detailing alleged abuses of the planning regime by the supermarkets, wants the government to tighten Planning Policy Statement Six governing town centre development.
Barker's suggestion the planning regime is so restrictive it is slowing the economy's growth is misguided, says Bell. "There's a complete misconception that all out-of-town development has come to a halt."
Small retailers, too, are anxious. about the possibility of a relaxation of PPS6. "We are concerned by the school of thought that plays to the idea that planning is a nuisance and gets in the way of the economy - as the big four have been arguing to the Commission," says a spokesman for the ACS. "We don't believe that's true. We're absolutely clear the worst thing that could happen for competition is a weakening of the existing restrictions. Tesco's dominance is a symptom of the problem rather than the cause."
Others are more concerned about the government's proposal to introduce a planning gain supplement. "Everyone with a stake in development has been very vocal in their opposition," says Paul Browne, head of property and planning at the BRC. "It's likely to delay and, in some cases, deter retail development of brownfield sites that are already typically most costly to develop."
He is confident Barker will consider the economic implications of the current regime. However, he questions how effectively any changes would be enforced by under-resourced and often poorly skilled planning authorities. PPS6 only came in last year and has already placed a massive burden, he points out. "There's a requirement for councils to be more proactive in how they plan for retail growth. There's more stuff coming out in terms of guidance."
The irony is that the supermarkets, too, are being asked to do a lot more - planning gain cuts both ways after all - and they're being asked it on behalf of the very communities now on the attack. Whether their concerns or those of the pressure groups have more sway over government should begin to become clearer over the next few weeks.The people versus Tesco
The Grocer has seen one of the letters submitted by Friends of the Earth to the Competition Commission, attacking supermarket extensions. Schemes under fire include:
Tesco Ruthin, Denbighshire: FoE argues Tesco opened a 2,745m2 store in August and a week later submitted an application to expand the store to 4,126m2 store. The application was refused in October.
Tesco Brighouse Road, Queensbury, West Yorkshire. Planning permissions were granted for food stores of 1,394m2 and 3,251m2, but Tesco submitted a planning application in July 2005 for a 5,519m2 scheme as well as a petrol station. The decision is still pending.
Asda Pwllheli, Gwynedd. Planning permission was granted in 2002 for a Safeway. In it was a condition restricting the size of the store to protect the "vitality and viability of the town centre". In 2005, Asda acquired the site and submitted an application to increase the retail floorspace by 26%. Permission was granted and the store opened in October 2006.
Tesco Carlisle, Cumbria. In 2002, outline permission was granted for a 3,715m2 store. In 2005, before work had commenced, Tesco submitted an application to increase the floorspace by 78%. The city council rejected the application in August 2005 and an appeal is pending.
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