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London Small Shops Study 2010

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London Small Shops Study 2010 Greater London Authority LONDON SMALL SHOPS STUDY 2010 Final Report June 2010 ROGER TYM & PARTNERS Fairfax House 15 Fulwood Place London WC1V 6HU t (020) 7831 2711 f (020) 7831 7653 e [email protected] w www.tymconsult.com This document is formatted for double-sided printing. P2022 CONTENTS EXECUTIVE SUMMARY ........................................................................................... I-IX 1 INTRODUCTION .......................................................................................................... 1 Purpose of the study ....................................................................................................... 1 The brief ......................................................................................................................... 1 This report ...................................................................................................................... 2 2 POLICY CONTEXT ...................................................................................................... 3 Introduction ..................................................................................................................... 3 Planning Policy Statement 1: Delivering Sustainable Development (PPS1) ................... 3 Planning Policy Statement 4: Sustainable Economic Development (PPS4) ................... 3 Draft Replacement London Plan ..................................................................................... 5 Responses to Submission Draft – summary .................................................................... 6 3 THE “SMALL SHOPS” ISSUE..................................................................................... 10 Introduction ................................................................................................................... 10 What is a “small shop”? ................................................................................................ 10 The benefits of small shops .......................................................................................... 11 Trends .......................................................................................................................... 12 Outlook / recession ....................................................................................................... 14 Potential measures to support small shops .................................................................. 15 Summary ...................................................................................................................... 18 4 SMALL, AFFORDABLE SHOP PROVISION IN LONDON ........................................... 20 Introduction ................................................................................................................... 20 Conclusions .................................................................................................................. 32 5 FOUR CENTRES : CASE STUDIES ........................................................................... 33 Detailed assessment of four centres using Goad plans ................................................ 33 Conclusions .................................................................................................................. 42 6 PLANNING SCENARIOS – SIX CASE STUDIES ........................................................ 44 Introduction ................................................................................................................... 44 1. Kidbrooke Development Area, Kidbrooke (LB Greenwich) ..................................... 44 2. Wards Corner, Seven Sisters (LB Haringey) .......................................................... 45 3. Elephant & Castle (LB Southwark) ........................................................................ 49 4. Westfield, Shepherd’s Bush (LB Hammersmith & Fulham) .................................... 50 5. Tesco Highams Park (LB Waltham Forest) ............................................................ 52 6. St. Martins Courtyard, Covent Garden (LB Camden) ............................................. 54 Summary ...................................................................................................................... 56 7 AFFORDABILITY ISSUES .......................................................................................... 57 What are the key factors in determining rents? ............................................................ 57 What is an affordable level of rent in London? .............................................................. 58 How does affordability affect retailing in London? ........................................................ 59 Policy implications ........................................................................................................ 60 Conclusions .................................................................................................................. 60 8 CONSIDERATION OF POLICY ISSUES .................................................................... 61 Introduction ................................................................................................................... 61 The principle ................................................................................................................. 61 Purpose ........................................................................................................................ 61 Context ......................................................................................................................... 61 Application .................................................................................................................... 62 Thresholds .................................................................................................................... 62 Definitions ..................................................................................................................... 63 Unintended effects? ...................................................................................................... 63 Viability ......................................................................................................................... 64 Guidance to boroughs .................................................................................................. 64 9 OBLIGATIONS ISSUES ............................................................................................. 66 Introduction ................................................................................................................... 66 EU State Aid rules ........................................................................................................ 66 Circular 05/2005 ........................................................................................................... 66 CIL Regulations ............................................................................................................ 67 Relating the tests to the policy ...................................................................................... 67 (a) Prescribing the nature of the development to achieve planning objectives ............. 67 (b) Mitigation ................................................................................................................ 68 (c) Compensating for loss or damage caused by a development ................................ 68 Types of Obligation ....................................................................................................... 68 Implementation issues .................................................................................................. 69 10 TOWARDS A POLICY FRAMEWORK FOR BOROUGHS .......................................... 73 11 CONCLUSIONS AND RECOMMENDATIONS ............................................................ 77 Conclusions .................................................................................................................. 77 Recommended policy changes ..................................................................................... 79 APPENDICES Appendix 1: Sample centres – key indicators and Z scores London Small Shops Final Report EXECUTIVE SUMMARY Introduction 1. This study is related to Policy 4.9: Small Shops in the Draft Replacement London Plan, which states that “In considering proposals for large retail developments, the Mayor will seek contributions through planning obligations where appropriate, feasible and viable, to support the provision of affordable shop units suitable for small or independent retailers”. The policy has given rise to a large number of representations. 2. The key objectives of this study are: . To provide a broad quantification of small shop provision in London, identifying any gaps and opportunities . To explore whether and how small shops can be supported through the planning system including the scope of planners to use Section 106 agreements. To provide an independent assessment of the impact of the small shops policy on large new retail development and its role in addressing consumer demand, especially in terms of affordability. Policy context 3. Planning Policy Statement 1: Delivering Sustainable Development (PPS1, 2005) states that suitable locations should be provided for retail development and that retail (and other developments that attract large numbers of people) should be focused in town centres. 4. Planning Policy Statement 4: Sustainable Economic Development (PPS4, 2009) requires an appropriate evidence base
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