Over Taylor Biggs

In July 2008, the Mayor of London issued a Report entitled Planning for a better London.  This outlined the general approach the Mayor would take in carrying out his planning functions, setting out the major challenges facing Town and Country Planning in London, describing some of the detailed policies and initiatives that the Mayor would pursue and, finally, explaining in detail the changes to be made to the London Plan and other policy guidance to put this planning approach into effect.

One of the new Mayor's priorities is to help ensure a diverse and dynamic retail sector.  Retail trade is regarded as a strength in all parts of the capital, which the Mayor wants to continue and, in particular, to offer initiatives to make the most of London's network of town centres. 

This is likely to extend to development of Business Improvement Districts and to encourage working partnerships.  One of the more controversial proposals is a plan to use Section 106 Agreements to require developers to make provision for affordable small shop units in major retail schemes.

There has been criticism of this proposal, particularly from the British Property Federation, which believes it could harm the independent retailers the measure is aimed to assist.  There is criticism that this should be left to individual Boroughs that already have powers to deliver affordable business space by means of Section 106 provision.  The Mayor's proposals do not make clear the extent of "small" and "affordable" in his proposals, a point picked up particularly by the British Retail Consortium.

In the business sector, subsidised rents can lead to unfair competition and potentially liable to drive small businesses away from an area competing with those that have preferential terms.  There are concerns that this could also bring into play European legislation regarding state aid.

It is difficult for developers to measure what benefits small retailers would bring to a large development.  Even if rents are pushed lower, service charge and other occupancy costs may be higher in a new retail scheme.

The British Property Federation has suggested that if the Mayor is eager to promote Business Improvement Districts, provision should be made within the District for small units to create more space and to set lower rents.  This, it is believed, will offer retailers the opportunity to seek small space at lower prices.

The British Retail Consortium has called for more clarity in the detailed proposals concerning "independent" and "small", pointing out that many large chains operate by franchising.  Whilst the company or brand name may be national, the business itself may be independent.  The BRC also asks the Mayor to concentrate on issues of accessibility, transport and disorder and to consider effective reductions in business rates for smaller retailers, without imposing additional burdens on others.