A new report from the Competition Commission on supermarket dominance could put the Government's place-shaping policy under threat. At the heart of the policy is the use of planning to develop sustainable communities with the revival of run-down town centres a key ingredient. However, interim findings from the commission on the groceries market included recommendations in direct conflict with this. It suggested planning authorities should ‘not put up barriers' to out-of-town development, if it limited competition. It stated: ‘The planning system for retail development acts as a barrier to entry or expansion by limiting construction of new stores on out-of-centre or edge-of-centre sites.' A DCLG spokesman said: ‘What the commission is saying is there should only be a barrier to out-of-town development if it's proved there will be an adverse impact on town centres. ‘What we have committed to looking at is whether planning policy can be changed to ensure it not only continues to protect town centres but doesn't restrict competition.'
