The Portas Review: the sector reacts

Reaction to the Portas review has been flooding in since the TV retail guru published her recommendations this morning. Click here to read our news story on the review, and here for Planning editor Richard Garlick’s verdict. Read on for the planning sector’s response to the review’s contents.

UPDATE The Planning Officers Society has issued its response to the review. On the plans to introduce secretary of state “exceptional sign off” for all new out-of-town developments and require all large new developments to have an “affordable shops” quota, spokesman John Silvester said: “The secretary of state already has intervention powers if they choose to use them; what would be wrong, in my view, is a blanket approach to requiring the SoS to determine all such proposals. Such powers need to be used as and when appropriate.” The full POS response is available here.

Bob Robinson, Chairman, DPP said: “The vision underpinning Mary Portas’ review is spot on. The core issue she recognises is that town centres can’t operate as they were 20 years ago; retailers and customers’ expectations have moved on and reinvention and differentiation is important. Simply stopping all out of centre development, which is popular with customers, is not the solution and would do nothing to stem the trend to on-line retailing which is perhaps the real threat to traditional town centres.

“It is the detail of the Review however that lets it down. It also demonstrates a lack of market understanding on Ms Portas’ behalf. Whilst the concept of ‘town teams’ is a good one in principle, town centre property is of course under disparate ownerships, with all landlords having different priorities. Whilst local landlords may be amendable to the co-operative approach she proposes within this wider town team idea, the larger funds have a mandate to maximise the returns for their investors, so the suggestion of letting their stores in centres to independent retailers at below market rents is fundamentally misguided as an idea unless they are also to benefit financially from an uplift in the wider centre.

“Her proposals for specific neighbourhood plans for town centres also suggest limited knowledge of the recently approved Localism Act 2011 which restricts duplication of such plans within any defined area. Her suggestion that the Secretary of State ought to have the final say on approval of planning applications for out of centre retail development also runs contrary this Act and would tend to reinforce the ‘one size fits all’ approach that Ms Portas reportedly sees as part of the problem.

“This report is strong in terms of vision, which is where Mary Portas’ strengths lie. However, much more consideration of how this vision is to be carried forward in practice is needed.”

Chris Goddard, senior director and head of planning development and regeneration at GVA, said: “The report does nothing to address the viability issues which face town centre developments, and a strengthening of the wording of the NPPF misses the real issue. Government needs to respond with a workable solution that can unlock the town and city centre pipeline in order to provide retailers with the right kind of space.”

“The recommendation for the secretary of state’s ‘exceptional sign off’ for out of town development appears on the face of it to go against the presumption in favour of development in the draft NPPF, and does nothing to tackle the reasons why town centre retail led schemes are stalling.”

Adam Pyrke, Head of Retail Planning at Colliers International commented: “Many of our town centres are unsuited to modern retailer requirements.  Shops are simply too small.  All too often it is not possible to create larger units because of the strength of the conservation lobby.  Unless there is a more commercial approach to reconfiguring shop sizes in our town centres, they will continue to struggle to fight out of centre competition.

“In order to have a chance of competing against retail channels such as internet and shopping channels, our town centres have to offer something different.  Certainly the regulatory and tax climate needs to be eased to relax the burden on shopkeepers, and convenient and cheap parking needs to be made available, but this in itself is unlikely to allow town centres to compete effectively.  Instead they need to build upon their strengths and turn themselves into desirable places to visit for social purposes and not just shopping destinations.

“It is important to understand that not all town centres fulfil the same function or serve a similar local market.  Larger centres provide a broader choice and serve a much larger geographic region, with people from further away perhaps visiting on a less regular basis.  In between they visit local and smaller town centre offering a lesser range of goods, and more focus towards meeting day-to-day shopping needs.  In response to rising costs, retailers are reducing the number of outlets they have which means whereas in the past they may have been represented in both the larger and smaller centres, in the future they will only have a presence in the larger ones.  Whilst this will suit our major shopping destinations, it is a challenge for our smaller towns to address.

“It is essential to understand the function which a town centre does, and potentially can, fulfil in devising a strategy for its future development.  Colliers International has advised on town centres as diverse as Twickenham, Scunthorpe, Paisley and Welwyn Garden City through its Colliers Catalyst service looking to marry together specialist expertise on retailing and retailers with our destination consulting experience in order to devise strategies which allow centres to create a distinct character and thereby distinguish themselves from other centres.   Every centre is different and the appropriate strategy needs to understand and build on this.  Whilst Mary places emphasis on markets, which is one of the means of doing this, it is important not to overlook simply providing the right size unit to meet local demand.”

Mark Williams, Senior Director in DTZ’s UK and continental shopping centre investment team and executive board member of the BCSC (British Council of Shopping Centres) said: “It is especially pleasing that Mary Portas has recognised the need to support Local Authorities in forcing owners of town centre assets that are failing to meet the needs of the community to either invest in them to make them desirable shopping destinations or sell them on to another owner who is prepared to do so.

“Owners unable to invest because they do not have the funds should not be allowed to sit on their investment and do nothing as this is contributing to the problems town centre developments are facing. For the good of the high street, the message to owners has to be ‘move forwards or move out’. Local Authorities have the powers through the Compulsory Purchase Order process to do this, and the solvent private sector is supportive.”

Peter Box, Chairman of the Local Government Association’s Economy and Transport Board said: “Councils have long recognised that our high streets need an urgent revamp, which is why the Local Government Association called for councils to have the power to take over empty shops and use them to provide services such as training centres, libraries or youth clubs, while tenants were found. Councils are keen to shape town centres as social and community, as well as vibrant shopping hubs.

“While some of the report’s recommendations are positive, such as an increased role for businesses and cracking down on the number of new betting shops, the LGA is extremely concerned that removing regulations around market stalls will result in rogue traders taking advantage of cash strapped families and flooding the market with dangerous and counterfeit goods.

“Councils play a crucial role in growing local economies and improving high streets, and need to be suitably consulted if they are to achieve this. The LGA wants to ensure that any decisions take on board the knowledge of councils, protect their ability to respond to local circumstances, and target the anti-social behaviour, such as littering, metal theft and graffiti which is too often seen on our high streets.”

Beth Struthers from BNP Paribas Real Estate retail team said: “The Town Team concept is a good one and should work similar to a Tenant’s Association in a shopping centre, but who will pay for this? The Government? Local Authorities? Landlords? Retailers? This needs more careful thought.”

“It is essential to ease the business rates burden for small and independent traders to encourage investment. However, Local Authorities should also provide a better service in assisting small retailers if they are paying Rates. We agree that Local Authorities should use their discretionary powers to give business rate concessions to new local businesses. But we must also get rid of the red tape and simplify the process to speed up such concessions.’

“High town centre parking charges do need addressing but so do the ease of access and in town congestion which also dissuades people from going to town in the first place.”

Darina Kerr, partner with national law firm Dundas & Wilson said: “Mary Portas has identified that High Streets must be “vibrant places that people choose to visit. They must be destinations.”

“In that one comment she has struck the nail on the head. The only problem is that this nail may the final nail in the coffin for Britain’s High Streets.

“Shopping habits have changed. This Christmas, canny consumers are asking not only “can I buy this?” but “can I buy this cheaper online?” For many, the High Street is not an option. Too expensive. Not convenient. And, as storms batter Britain this Christmas, wouldn’t you want to shop somewhere indoors which is safe and dry and warm?

“Today, the High Street must compete with shopping centres and out-of-town retail. But are Mary’s recommendations the solution to the High Street problems or an attempt to mimic ideas we already know?”

Peter Drummond, British Council of Shopping Centres president and chief executive at architects BDP said: “Mary Portas’ review has pushed the key issue of our town centres into the limelight. BCSC is committed to keeping the momentum and excitement surrounding the report going into 2012, and the delivery of Mary’s recommendations should now be a key priority for Government. We must not let our town centres fail, but they also need to move with the times.

“As Mary said this morning, each town centre needs to find its niche and become a destination that people have a reason to visit. This means full partnership from all stakeholders in a community, including businesses, local authorities and crucially, customers themselves.

“A strong commitment to town centres in the planning system is vital so that investment is delivered to the heart of communities, and we’re delighted to see our own position on the NPPF mirrored in the report.

“An aspiration that more schemes not in accordance with local plans – and which may harm a town centre – are effectively ‘called in’ by the Secretary of State could be part of a solution, but we believe that the heart of the matter lies in proper social, environmental and economic assessments of any project’s impact, based on a robust town centres first mechanism.”

The British Property Federation has questioned the wisdom of giving the secretary of state “exceptional sign off” for new out-of-town schemes, and for all new developments to have an “affordable shops” quota.

BPF chief executive Liz Peace said: “We have to acknowledge that out of town shopping has some impact on trade in our town centres. As a society, however, we also want retail goods that are cheap and a sector that is efficient. Town Centre First is therefore supported in our sector as something which helps to guide that balance.

“However, for independent retailers to thrive they must be places where people wish to shop. Forcing landlords to offer reduced rent through affordable units is a sticking plaster over a much deeper problem. We will look at the tweaks Mary Portas is suggesting and will do so with an open mind, keen to support town centres, but also to protect UK retail competitiveness.”

Graeme Willis, senior rural policy campaigner at the Campaign to Protect Rural England (CPRE), says: “We welcome this report, which gives the government a perfect opportunity to make improvements to its proposed changes to planning policy.

“Portas makes it clear that it is not good enough to take a ‘laissez-faire’ approach to planning if we want to achieve the right kind of economic growth. This approach will lead to more out of town mega stores and supermarkets that suck the life out of town centres.”

Ian Wilson, National Trust head of government affairs, said: “In her independent review into the future of our high streets, Mary Portas makes 28 good recommendations that would help to reinvigorate our high streets.

“Mary has taken a common sense approach and it’s refreshing to see her direct references to the importance of community involvement and neighbourhood planning in ensuring our high streets do have a future.

“We particularly welcome her recommendation that there should be an explicit presumption in favour of town centre development in the wording of the National Planning Policy Framework.”

Baroness Jo Valentine, chief executive of business group London First, said: “Recognising that high streets need to adapt to meet changing customer expectations is a good step forward. One size does not fit all and for high streets to thrive alongside out of town and online offerings they need strong management at the local level and a good mix of uses. Providing greater planning flexibility and releasing units where there is over-provision will increase vibrancy and create demand for those shops that remain.”

Action for Market Towns chief executive Chris Wade said: “AMT welcomes the Portas review and is delighted to see that so many of the ideas that we submitted to support the development of more prosperous and diverse high streets have been included in Mary’s recommendations.

“The report recognises the unique importance to communities of town centres – and the need to intervene and re-invent them for the 21st Century. Its rhetoric about learning from, rather than blaming, multiple retailers is realistic and we are pleased to read of the recommendation for a more level playing field through planning regulations – which AMT has long called on the Government to adapt.”

Paul Jayson, a partner at law firm DLA Piper, said: “Of the 30 or so recommendations, at least half involve overhaul or changes in the law to facilitate. To some degree, this supports what is already happening with the Localism Act which is aimed at empowering communities. The review calls for a relaxation of use classes which would enable the high street to be more nimble footed and react quicker to changes in customer demand.

“Out of town shopping centres have always had the advantage of being acquired, zoned and developed by a single owner acting from a position of strength alongside a local authority. The high street, in contrast, is invariably in multiple ownership, fracturing common decision making. This reduces bargaining power against a local planning authority and builds in delay and diversity of interests and points of view. The review is keen to both hamper out of town developments and to innovate “Town Teams” to artificially create a more homogenous management team to compete with those in place in shopping centres.”

Dr Neil Bentley, CBI Deputy Director-General, said: “The Portas Review makes some sensible suggestions about how we can inject life back into town centres, including increased use of Business Improvement Districts and relaxing planning restrictions on the high street, in particular on change of use.

“More importantly, she recognises the growing burden business rates are placing on companies right across the country at a critical time.

“We need to make sure the UK remains attractive to investors, as it’s their decisions that will ultimately lead to regeneration of our town centres. Any changes to the planning and business rate regimes must therefore encourage investment in the broadest sense, and not just rob Peter to pay Paul.”

(Picture by Department for Business, Innovation and Skills)