The Planning White Paper issued in May this year is the strongest indication yet that the Government is embracing the need for economic development as a factor to be taken into account when determining planning applications. The implications for retailers are significant.

The existing 'needs test', which requires applicants to demonstrate the need for any retail proposals outside town centres, is described in the White Paper as a blunt instrument which can have the unintended effect of restricting competition and limiting consumer choice.

The White Paper says that the Government now has two clear objectives for town centres: to support current and prospective town centre investment; but also to ensure that the planning system promotes competition and improves consumer choice, and does not unduly or disproportionately constrain the market.

The Government will therefore review the current approach to assessing the impact of retail and leisure proposals outside town centres. A new test will be introduced which promotes competition and improves consumer choice.

Local plans should acknowledge out of town locations where retail development will not have a detrimental impact on existing town centres.

These specific changes are set within a general context where planning "has a clear role in setting a positive framework which enables sustainable development to happen" and where local authorities "must pay full regard to the economic … benefits of sustainable new development."

The Government will be developing new guidance on these matters, working with the retail industry and other important stakeholders, and taking into account the conclusions of the Competition Commission's inquiry into the groceries market. Any changes will be finalised by Spring 2008.

All those involved in retail development will welcome both the pace and the content of these reforms.

Against this, retailers should also be aware that the White Paper is proposing much higher environmental standards for retail development. Retail outlets are specifically identified as being easily able to be built to a zero carbon specification. So while it may soon become easier to secure approval of new retail development in principle, developers will need to be ready for ever-higher standards to be placed on the environmental performance of their buildings.

The content of this article does not constitute specific legal advice and should not be relied upon as such.  Specific advice should be sought about your specific circumstances.