Use Classes Order should be changed to protect high streets, recommends report

London Councils, which comprises all 32 London boroughs and the City of London, issued a report yesterday (33-page / 986KB PDF) in which it said that the capital currently has almost 7,000 empty shops, costing the London economy £350 million in lost trade and earnings.

The report said that town centres and high streets were at risk of not meeting the needs of local residents because planning regulations restrict the power of councils to encourage balanced local economies, including a lack of control on the spread of shops such as pawnbrokers and bookmakers.

Under existing rules, such shops are placed in the same use class as professional and financial services. This means that when a bank or building society closes, a betting shop or a payday lender can open up in those premises without permission from the local authority. The Councils recommended that such shops should be removed from use class A2 to a 'sui generis' class of their own.

The report also called for the Government to reconsider its decision not to grant exemption to the London boroughs that asked to be removed from the recent permitted development rights which allow offices to be converted to homes without planning permission.

"The removal of boroughs’ ability to require planning permission for these types of use change is likely to have a detrimental rather than positive impact on local economic growth. And while there is a recognition that some previously commercial areas in and around high streets are no longer viable for business, the ability for these to become residential should be left to the discretion of the local planning authority and not national policy," the report said.

The Councils also recommended that the Mayor of London should work with London boroughs to ensure that publicly held land is developed to meet local and regional priorities and that the Greater London Authority should consider new approaches to joint working with boroughs on public realm improvements.

“The study’s findings highlight the need for the radical devolution of power and resources to councils to help businesses adapt to a changed consumer environment," said London Councils head of economy, culture and tourism Dianna Neal in a statement.

“The government could halt further decline by devolving powers to councils to support high streets, such as the ability to stop the damaging spread of betting shops, payday lenders and fried food outlets,” she said.

Earlier this year, Labour leader Ed Milliband revealed plans by the party for a change of rules to allow councils to place betting shops and payday lenders into a new 'umbrella' use class.