Exclusive: Retailers’ doubts over Big Society

The Government’s Localism Bill will hand more control over planning decisions to local communities, including giving residents and councillors the power to call local referendums on new supermarkets or housing developments.

Ministers say the legislation will revolutionise the planning system, overturn decades of central government control and “lay the foundations for the Big Society”.

But Yorkshire retailers Asda and Morrisons, which are expected to create thousands of new jobs this year, have questioned the reforms. Andy Clarke, chief executive of Asda, said that localism has “major implications for a business like ours”.

“This is a real challenge for business,” he said. “Our store managers will have to spend more time participating in local decision-making but also have to get on with the job of retailing.”

A spokesman for Asda added: “The danger of having a myriad of different local approaches to interpretation and enforcement is the complexity that that entails. National operators like ourselves drive efficiencies through consistency.”

Leeds-based Asda plans to create 7,500 new jobs this year, many of which will come from new store openings. Bradford-based Morrisons, meanwhile, plans to create a further 6,000 jobs.

David Scott, head of policy at Morrisons, said: “The Localism Bill is based on sound objectives but it must not be used to stifle business growth and job creation. That is the challenge for local communities, with whom we will continue to work to give residents the shopping experience they want.” Industry sources said localism could act as a break on investment and job creation by creating further hurdles in the planning process.

The sources added: “We are also worried that we will see a raft of local regulations that are costly for business to implement and that will, in some instances, be stealth taxes eventually leading to higher prices for customers.”

The British Retail Consortium said businesses want predictable outcomes to plan investment and achieve growth.

Stephen Robertson, director general, said: “Inevitably, a national company will take major decisions about its future at board level. That’s the effective and efficient way to do it. So they need certainty and consistency over, say, business rates.

“A mass of conflicting local policies, each of which could develop in a range of different directions, would make that process harder, while subjecting multiple retailers to a myriad of different tax or enforcement regimes would impose extra costs.

“We wholeheartedly support the aims of localism. But the legislation needs to be introduced in a form that supports retail growth.”

The Bill is currently going through Parliament’s committee stage, which allows for amendments to be considered.

In response to the comments from retailers, a spokesman for the Department of Communities and Local Government said: “Giving people greater ownership of planning will transform community attitudes to development, particularly if neighbourhoods benefit directly from growth.

“Locally grounded planning provides the certainty and confidence businesses need to take forward their plans for growth.

“Authorities and neighbourhoods will be offered incentives to have plans that support growth and councils and communities will be rewarded for delivering the new businesses and homes the country needs.”