Yesterday the long awaited Mary Portas Review into the state of our high streets was published. Please click here for a copy of the Review.

The key recommendations include:

  • High streets should run like businesses - Portas proposes the implementation of "Town Teams" (made up of key landlords, shopkeepers, council representatives with knowledge of planning and development, MPs, local businesses and residents) to plan and manage high streets, so that they run like a shopping centre notwithstanding fragmentation of ownership.

  • Landlords should also be involved in planning and strategic decisions by being given the opportunity to contribute to their Business Improvement District.

  • Local Authorities should use their discretionary powers under the Localism Act to give business rate concessions to new local businesses - Central Government should establish a league table to reveal who is giving the most relief.

  • The restrictive aspects of the "Use Class" system should be addressed - in particular, a change of use to or from D2 leisure use should not require a planning application. At the same time, betting shops should have a separate Use Class of their own, in order to limit the number of betting shops.

  • There should be an explicit presumption in favour of town centre development in the National Planning Policy Framework - Portas considers that the NPPF should be more precise to ensure that existing 'town centre first' policy is not weakened. Portas also suggests expanding the existing referral and Secretary of State call-in powers to give the Secretary of State an 'exceptional sign off' for all new out-of-town development above a defined size threshold, notwithstanding that only 1 in 146 out-of-centre development applications have been called-in since 2008.

  • All new large developments should have an "affordable shops" quota
  • - for smaller retail units to support local innovation and retailers.

  • Landlords should promote the Lease Code and support the use of alternative lease structures - Portas states that in the current economic climate the upward only rent review can no longer be a broad brush solution. Landlords should increase awareness and availability of different types of leases such as turnover-based rent reviews. They should also look to increase the availability of monthly rather than quarterly in advance payment terms. Further, "Town Teams" should be empowered to intervene in disputes, to ensure that properties remain occupied.

  • Banks who own empty property should either administer these assets well or be required to sell - Portas states that local groups should be encouraged to use the new Community Right to Buy under the Localism Act.

  • Local Authorities should make more use of Compulsory Purchase Orders - to encourage the redevelopment of key retail space. New super-BIDs should also be given compulsory purchase powers.

  • Local Authorities should be able to make "Empty Shop Management Orders" - New powers should be introduced for Local Authorities to enter and upgrade properties where landlords are negligent which are less costly and time-consuming than CPOs.

Many of the recommendations relating to planning and CPO already exist in current law and policy but are only being utilised in limited circumstances and a key thrust of the report seems to be to encourage local authorities and other stakeholders to use these to greater effect. Portas' 28 recommendations are initial ideas only, and the next step will be for Government to respond in the Spring then take forward some of the recommendations into policy. Landlords, occupiers and developers alike will need to look out for both the Government's response and the content of the NPPF when it is published in final form.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 14/12/11.