An appeal lodged by UK supermarket group Tesco looks set to stall the implementation of proposals to establish a competition test for supermarket planning applications.
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The proposals, put forward by the UK’s Competition Commission (CC) following last year’s inquiry into the grocery retail sector, would give local authorities the power to deny planning permission to supermarkets based on competition in the area.
The appeal hearing is due to begin next week and will examine evidence from a number of sources, including fellow retailers Asda and Marks and Spencer.
Even if Tesco’s appeal is unsuccessful, it is likely the protracted appeals process will mean that the proposal will not be implemented until next autumn, at the earliest.
A spokesperson for the competition watchdog told just-food that it is currently focused on winning the appeal. However, this is not to say that the CC has not considered issues surrounding implementation.
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By GlobalData“We don’t have the power to change planning regulations, so we aren’t in control of implementation. We would be pass the recommendation on to the relevant government department, who would then decide whether or not to implement, conduct their own review and have an appropriate consultation period,” the spokesperson said.
The CC told just-food that the competition watchdog discussed how the proposal might best be implemented with the Department for Communities and Local Government – the body responsible for planning regulations – at a pre-trial meeting last week.
If Tesco’s appeal fails, the change would likely be pushed through as an amendment to the existing General Permitted Development Order, the CC said.
Legislative changes to the planning regime can be passed twice a year – in April and October.
“April is probably a non-starter… but it isn’t impossible that we will hit the October date,” the spokesperson said.
Although the competition test for planning applications has been held up, the CC said that it has made progress with the other measures it proposed, including an end to restrictive covenants and exclusivity deals.
“We are in the middle of formal consultations on the other measures,” the spokesperson said.
