The Royal Town Planning Institute (RTPI), the representative body for over 20,000 town planners, is asking the government to rethink its proposals on carrying out "needs testing" on commercial properties.

The institute has pinpointed the practice of 'land banking', a development stunting exercise where land is bought purely to sell on for profit, as "not being used for public good."

The Institute's call is in response to a proposed shakeup in a review by the Competition Commission of planning regulations that will make it easier for shopping retailers to open new stores. Part of these new government proposals includes scrapping the "needs test", which many supermarket chains argue is a barrier to competition and has led to unfair domination of districts by different large chains creating for example "Tesco Towns". The government is presently looking at the proposals, but many believe much of the recommendations are aimed primarily at Tescos and its growth throughout the UK.

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Rynd Smith, Director of Policy and Communications at the RTPI, said: "The needs test has a long history of successfully protecting our town centers. There is no need to ditch the needs test. Good planning is about taking an overview of what makes a place attractive, accessible, sustainable and even loved."

The planning institute has identified alternatives to the proposed policy such as addressing the role of restrictive covenants and other private agreements that remove the potential for competing land uses, for example supermarket chains selling land in a town centre, yet restricting the use of that land by a competitor. They also suggest introducing a non-development land tax and new anti competition or anti-trust legislation.

The institute further states it believes land banking by private companies has become a serious issue for the Competition Commission’s review, and the Government in trying to build 3 million new homes. The proposals are also worrying smaller retailers who believe the new freedoms, which could be enjoyed by the major UK retailers, could put further pressure on family owned stores and smaller chains.

(DW/JM)