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New PPS4: Planning for Sustainable Economic Growth

24 March 2010

At the end of 2009 the Government issued Planning Policy Statement 4 (PPS4), bringing together all key national planning policies for England relating to economic development - this includes most forms of development other than housing.

It replaces PPS6 (Planning for Town Centres) and the older Planning Policy Guidance Note 4 (Industrial and Commercial Development and Small Firms).

PPS4 does not bring as radical a change to the planning policy framework for town centre uses as some had feared. The importance of securing the future vitality and viability of town centres is emphasised by the retention of the 'sequential' test. This requires developers to consider appropriate town and city centre sites first, followed by edge of centre locations and finally out of town sites.

Despite lobbying by some of the major supermarkets, PPS4 does not contain a 'competition' test which would prevent rival retailers opening stores where their competitors already have a large presence. The Government will consider this issue separately and consult on it.

However, where this current policy does depart from previous guidance is the abolition of the 'needs' test at the planning application stage. The need for development will now be assessed earlier in the planning process when local and regional planning policies are being produced.

The needs test at application stage is replaced with an 'impact' test which considers the impact of a scheme on the surrounding area. A proposed scheme will need to be assessed against a range of factors including its effect on:

Concern had been expressed during the consultation process that the new 'impact' test could lead to the return of the sort of out of town development which local planning authorities had fought hard to resist under previous policy guidance. However, the retention of the sequential test and the need to clear the hurdles of the impact test is likely to allay these fears.

Further, development for a main town centre use which does not comply with current planning policies will be refused where it is likely to lead to 'significant adverse impacts' unless other positive impacts can be demonstrated and other material considerations weigh in favour of development. This could include, for example, regeneration and employment benefits.

Nevertheless, there is some encouragement for larger format retailers looking to develop in edge of centre locations where it has tried but failed to accommodate its business within the town centre despite the use of store layouts or formats departing from its usual business model.

By way of further assistance to developers and local planning authorities in relation to these issues, on the release of PPS4 the Government published further guidance, Planning for Town Centres. This aims to help those involved in preparing or reviewing need, impact and sequential site assessments.

In practical terms, one of the main issues arising from the application of the new guidance is the lack of flexibility that this will allow developers and local planning authorities to respond to changing economic circumstances.

Further, the lack of adequate or updated planning policies incorporating the requirements of the new guidance could ultimately lead to more appeals. As such, it will be extremely important that local planning authorities have the resources they need to administer PPS4 effectively.

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Tim Willis

Associate
T: 03700 86 4095
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E: tim.willis@shoosmiths.co.uk