Urban Supermarkets (Planning)

Greg Hands Excerpts

Monday 13th September 2010 Commons Chamber

[Greg Hands (Chelsea and Fulham) (Con)]

I am grateful for the opportunity to raise in the short time available this evening the issue of planning regulations for urban supermarkets and convenience stores. There has been quite a lot of interest in these issues, both in this House and outside, so let me start by saying what I hope this debate will not be about. First, it is not about making a general attack on the growth of supermarkets and their power in this country, which I am sure is a matter of fascination but would probably take us beyond the time available. Nor is this debate about saying that we have too many supermarkets, although my constituency might have more than any other. According to The Daily Telegraph, in January 2007 Bicester was called “Tesco Town” because it had six outlets, yet one street alone in my constituency—Fulham road—has more than 10 branches of Tesco.

Nor is this debate about the important role that small shops and a diversified retail base can have. I support, for example, the Evening Standard campaign on that issue, although it should also be recognised that there are parts of the world, such as Fulham, that suffer from not having a high street with the chain stores that one might expect. I am also careful not to prescribe too much Government interference in this area. I take the view that, after all, there would not be 10 Tescos on Fulham road in my constituency if there was no customer demand for them. Tesco and the other supermarkets are, after all, successful private sector enterprises that study and understand their customers effectively.

This debate is about empowering local authorities to defend residents who face the immediate consequences of an urban supermarket or convenience store setting up nearby, next door or, at worst, below them. There is currently no planning classification for supermarkets or similar outlets: they are classified as A1, like any other retail shop. Many urban local supermarkets—if not the great majority—have been set up on the premises of other retail outlets, for which they do not require planning permission. Furthermore, planning permission is not generally required for converting many other premises into urban supermarkets. I shall illustrate that phenomenon in due course, but it can include conversion from pubs, cafés, banks or building societies, estate agents’ offices, and so on. Pretty much any customer-focused premises can be converted into a supermarket. Such changes are generally viewed as permitted development in the planning system.

The problem is one that I have been aware of for the past 12 years, since being elected for the first time as a councillor in the urban area of Hammersmith and Fulham. As it happens, 1998 was the same year that the very first Sainsbury’s Local supermarket was established, on Fulham Palace road, in what was part of my constituency before this year’s boundary changes. It was a first, and that model of urban supermarket has now been rolled out by Sainsbury’s, Tesco and others, with huge success. It has met customer demand in urban areas—not least from the likes of me, as I do not have a car. Before this debate, Sainsbury’s provided me with figures which show that, since that first Sainsbury’s Local opened on Fulham Palace road, a further 334 Sainsbury’s Local convenience stores have opened in the UK. No one doubts that it has been a huge success.

A number of voices have been raised to try to change or tighten the planning rules. For example, as recently as July 2010, the London Assembly published its report, “Cornered shops: London’s small shops and the planning system”, which recommended dividing the A1 class into supermarkets on the one hand, and—broadly speaking—all other retail units on the other. The Assembly felt that that would allow local authorities to control the proliferation of supermarkets.

My objective is rather different. It is not arbitrarily to restrict the number of such outlets, but to allow local authorities to ensure that the new store either has no negative impact on nearby residents or at least reduces it. In other words, the planning system, through local authorities, would nudge the supermarket companies into changing their behaviour, becoming better neighbours, and reducing noise and other environmental impacts. To put it more simply, they would be able to get their change of use if they installed noise abatement measures, especially in relation to refrigeration units, if they restricted delivery times to after 7 am or 8 am, if they ensured that no alcohol was served after 10 pm, and so on.

[Rosie Cooper (West Lancashire) (Lab)]

I thank the hon. Gentleman for giving way. When he gives that gentle nudge to the supermarkets, will he bear in mind the fact that, in the run-up to Christmas, they often install floodlit marquees containing refrigerated units? They do not worry about local authority planning regulations because the marquees are removed after 28 days, when Christmas has passed, and that is how long it would take to do anything about them. Supermarkets do this regularly, and it causes great annoyance and disturbance to local residents.

[Greg Hands]

I thank the hon. Lady for that intervention, and I am sure that the Minister will wish to respond to her point. It sounds as though such temporary structures would require planning permission, but I am not intimately familiar with that. We do not have a lot of space to erect temporary marquees in Chelsea and Fulham, but they sound as though they should be covered by existing regulations.

My objective is to ensure that the planning system works for local people, particularly those finding themselves living near, next to or above a supermarket. I do not want local authorities to micro-manage retail frontages, flying in the face of customer demand, but I do want supermarkets to try to become better neighbours. Let me illustrate that with four examples from my constituency.

The first involves a success story. In 1998, I worked closely with residents on Parsons Green lane who had bought flats in a new development called The Square, which was above proposed retail premises. I was told later that the residents had been informed, during the process of buying their flats, that there was to be an antiques store below them. As one might expect, however, given that the development was opposite Parsons Green tube station—some would say that it was almost inevitable—it turned out not to be an antiques store but a branch of Budgens. Working closely with the council, however, we managed to get restrictions put in place, and Budgens effectively floated the ceiling—I believe that that is the terminology—by putting in new acoustic protection for the benefit of the residents above. That was possible only because it was a new build and the local authority was able, because it had to grant full planning permission, to impose such a restriction, with which the supermarket had to comply.

That was a rare success, however, and I am afraid to say that other residents have had much less happy experiences in recent years. Let me first detail the case of the Salisbury Tavern on Sherbrooke road in Fulham. To my certain knowledge, it had been a public house for decades. It became a rather successful gastro-pub in about 2001, but in recent years the population of Fulham has changed. It has aged a little and become more family-oriented, and many of the gastro-pubs have been closing. So, after many decades, the Salisbury Tavern closed down. Tesco appeared from nowhere, and before anyone really had time to react, it was approved in April 2010 to convert the premises.

Permitted development rules allowed a change of use from class A4 to class A1. Some small planning permissions were needed, for illuminated signage, the installation of an ATM and an air-conditioning unit. However, we should note that, as far as I could tell, they were not needed for the inevitable refrigeration units that were going to be installed or for the restrictions on opening hours, delivery times and so forth. When it comes to things that really impact on neighbours, the council had few, if any, powers in this case. The local community around Dawes road hope that Tesco will be a good neighbour, but there does not appear to be anything pushing it in that direction.

The third example takes us back to Fulham road. It is not the opening of the 11th Tesco there; permission has been sought to convert in order to create another Sainsbury’s Local. The three existing retail units—an A3, A2 and an A1 class—are to be converted to create one single A1 premises, a Sainsbury’s Local. The council tells me that that constitutes permitted development and does not require planning permission. There are some smaller ancillary applications related to the installation of an ATM, some illuminated signage and some machine plant, for example. I shall probably object to them, but I am not hopeful of any real success because the grounds on which I would like to object are unlikely to be taken into account. If the new Sainsbury’s at the North End road is anything to go by, it will have a dramatic impact on its neighbours above, alongside and in the immediate vicinity.

Finally, I want to illustrate this phenomenon with reference to the misery that the Heap family has faced on North End road over the past five or six years. The Heaps are tenants of the Notting Hill housing trust, and I know them to be quiet, clean-living, working people who take great pride in their home. They are not wealthy by any stretch of the imagination. Until 2004 or 2005, the retail premises below them had for a considerable period been used as a bed shop. We all know that such retail outlets have been going out of fashion, as people tend to buy at Ikea or purchase on the internet. Almost inevitably, the bed shop in the centre of Fulham closed down and Sainsbury came along and opened a Sainsbury’s Local. I could be wrong, but I do not believe that any planning permission was needed, except for the ancillary features such as the ATM and some signage. No planning application was necessary for the considerable refrigeration units put in or for the new goods lift, which makes a lot of noise at rather inconvenient hours of the day.

This should begin to illustrate why I believe supermarkets are different from other retail or A1 uses. Refrigeration units can and do have huge impacts in terms of noise, especially in Victorian buildings. The same goes for industrial lifts, delivery palettes, daily early morning deliveries, again with refrigeration—in this case, the units in the lorries. The impact on the Heaps’ quality of life has been devastating. Unlike in the Budgens example I cited earlier, Sainsbury was not obliged to do anything to design in noise abatement at the converted premises.

Throughout, Sainsbury has treated the Heaps, the Notting Hill housing trust and me with a mixture of foot dragging and obfuscation. In my eight years as the Heaps’ local councillor and then my five and a half years as their MP, I have had perhaps half a dozen site meetings with Sainsbury—quite a lot for an individual item of MP casework. Every time, small, incremental improvements are promised by Sainsbury, but only some are delivered and they are often reversed, as with the installation of acoustical flooring. Staff are told to be more respectful, but it rarely lasts. Senior management occasionally respond to e-mails from me, but almost never to those from the Heaps. I have called the office of Justin King himself on a number of occasions, chasing up responses, as has Notting Hill—but it has similarly had no real response. To be fair, Sainsbury is now promising what appear to be better improvements, but only as a result of my securing this debate tonight. Miraculously, it appears to have sprung into action and answered many of my requests over the summer.

To conclude, the Minister will know better than me what overall approach our new coalition Government are taking towards supermarkets, in respect of planning and of competition matters, which I have not dwelled on tonight. Certainly, the below-cost selling of alcohol is attracting attention. I think that the time has come to try to effect a new classification in the planning rules for supermarkets or to allow tighter local authority controls over changes in classification so that additional resident-friendly conditions might be able to be applied. In that sense, I might agree with the London Assembly, although I think we are approaching the problem from rather different angles.

I appreciate that this throws up some issues of definition—for example, what actually constitutes a supermarket or a convenience store, which is obviously vital when planning regulations are being designed. The key definition for me might include the use of large-scale refrigeration. By requiring supermarkets to get planning permission, we empower local authorities—and thereby local communities—to secure improvements and environmental changes that will improve lives in the immediate vicinity.

I start as someone who is not naturally hostile to expanding private enterprises, such as supermarkets, which are seeking to meet customer demand. However, urban convenience stores, and Sainsbury’s in particular, need to do much better in their communities. I urge the Minister to take another look at the matter, and I look forward to his response.