improving shopping access for people living in deprived neighbourhoods

NATIONAL STRATEGY FOR NEIGHOURHOOD RENEWAL

IMPROVING SHOPPING ACCESSFOR PEOPLE LIVING IN DEPRIVED

NEIGHBOURHOODS

A PAPER FOR DISCUSSION

POLICY ACTION TEAM: 13DEPARTMENT OF HEALTH

PAT 13: IMPROVING SHOPPING ACCESS FOR PEOPLE LIVING INDEPRIVED NEIGHBOURHOODS

Foreword from Yvette Cooper, Parliamentary Under Secretary for Public Health

Neighbourhood renewal is about putting the heart back into communities. It’s not justabout bricks and mortar. It’s about the people who live there and enabling them to livetheir lives in a way which most people take for granted. It’s about generating a sense ofbelonging to and being part of a community. Vibrant local shops can play a vital part inthis process.

Thriving local shops can provide employment for local residents and a pathway intonew skills and training opportunities, can reduce crime and can improve health byproviding a range of quality goods, including food, at affordable prices. These cover thefour key outcomes we want to achieve from our neighbourhood renewal strategy. Theyare also key determinants of health as described in our health strategy “Saving Lives:Our Healthier Nation”. If we are to make any headway in meeting the challengingtargets we have set ourselves in the four priority areas of cancer, coronary heart diseaseand strokes, accidents and mental health, we have to tackle social exclusion and make iteasier for people living in poor neighbourhoods to make healthy lifestyle choices if theywish.

I would like to thank Policy Action Team 13 for their hard work in producing this reportwhich I am pleased to introduce and issue for discussion. Improving shopping access forpeople living in deprived neighbourhoods is an area that Government has notendeavoured to address corporately before. We are breaking new ground. While wehave drawn on a wide range of expertise both inside and outside Whitehall, we nowwant to gather more views on our proposals.

The problems encountered by some neighbourhoods in accessing retail services arediverse and complex and we have suggested some imaginative and innovative ways oftackling them. Our report underlines the need for locally developed strategies in whichall stakeholders, including the community, play a full part in the process and takeownership. We also recognise that if they are to be sustainable over time, responses toimproving shopping access have to be commercially viable in the long term. So, insome places, communities may decide that a healthy living centre is the mostappropriate focus for collective action to address the issues, as well as givingopportunities, for example, to increase access to retail services through the internet, orto develop strategies to enable better access to fruit and vegetables. In others, making iteasier for small retailers starting up in deprived neighbourhoods to get loans may be theway forward.

The report doesn’t pretend to provide all the answers to improving shopping access indeprived neighbourhoods. It contains many recommendations on which your views arenow sought. We hope to prompt discussion and widen the debate. We are inviting you,therefore, to put forward your views, comments and suggestions by 14th January 2000.These will then be gathered together, considered and the results will be fed into thenational strategy on neighbourhood renewal as it develops over the next few months.

YVETTE COOPER

PAT 13: IMPROVING SHOPPING ACCESS FOR PEOPLE LIVING INDEPRIVED NEIGHBOURHOODS

It would be helpful if you could bear the following questions in mind in putting togetheryour comments and response.

• Do you agree with the thrust of the report? Why? If you don’t agree, how would youhave tackled this issue differently?

• Are there any areas that you think should have been covered within the five topicswhich have not? What are they?

• Are there too many recommendations? In each of the five topic areas, which fiverecommendations would you rank highest/of most importance? Are there otheractions that you think we have missed? What are they and why do think they wouldbe successful?

• What other areas, aside form the five themes discussed in the report, do you thinkneeds considering? How do you think this could be done?

• Are there any areas you would like to be involved in following up this report?

The Executive Summary draws out what the PAT considered to be the key genericissues and actions. The main body of the report also contains many additionalrecommendations related to specific issues. These are listed altogether after theexecutive summary. The PAT’s responses to two public consultation exercises – one onthe charging levy for the Foods Standards Agency and the other on the Small BusinessService – can be found at Annex 12 and 13 respectively.

Please feel free to photocopy the report and pass it on to anyone else you think wouldwant to comment.

Please send your comments/response by 14th January 2000 to the PAT 13 Secretary,Room 634, Wellington House, 135 – 155 Waterloo Road, London, SE1 8UG.

PAT 13: IMPROVING SHOPPING ACCESS

CONTENTS PAGE

EXECUTIVE SUMMARY 1

PROPOSED ACTION POINTS AND RECOMMENDATIONS 13

I INTRODUCTION 22

II TERMS OF REFERENCE 22

III APPROACH 23

Further work 24Community based and community run initiatives 25Multiple retailers 25

IV DEFINITION AND PROBLEM ANALYSIS INCLUDING 26

• A community’s perspective 26• A small retailer’s perspective 27• Research base 29• MORI Poll 29• Common themes which emerged 30• Difficult issues 31

V REVERSING THE TREND 32

VI THE GOAL 32

VII THE KEY ELEMENTS TO ACHIEVING OUR GOAL 33

A: A local retail strategy 33

B: Proactive planning – this is discussed under proactive planning 36and regeneration;

C: Crime reduction and the fear of crime; 42• Retail crime 43• Crime reduction and fear of crime 47

D: Improving business support for small retailers; 51• Business skills 51• Access to finance 54

E: Easing business burdens on small retailers. 55• Easing fiscal burdens 55• Regulatory burdens 59

VIII NEXT STEPS 61

IX MONITORING THE IMPACT OF IMPROVING SHOPPING ACCESS 62

X RESEARCH 64

INDEX OF ANNEXES

Annex 1 – PAT 13 Membership 66 Annex 2 – Mapping Groups Membership 67 Annex 3 - Community based and community run initiatives 69 Annex 4 - Private Sector support – case studies 72

Annex 5 - Community development and involvement 75

Annex 6 – Coventry City Council’s ‘Area Co-ordination’ Initiative 77

Annex 7 – Business in the Community 79

Annex 8 – What skills and knowledge do small retail businesses need? 80

Annex 9 – Public sector support for small businesses 81

Annex 10 – Private sector support 89

Annex 11 –The National Micro Retail Organisation 90

Annex 12 – PAT 13 response to the consultation on the proposals for a levy 92scheme for the Food Standards Agency

Annex 13 – PAT 13 response to the consultation on the Small Business Service 94

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PAT 13: IMPROVING SHOPPING ACCESS

EXECUTIVE SUMMARY

I INTRODUCTION

1.1 Improving the neighbourhood in which people live, both in the physicalsense, and also by reducing the fear of crime, can increase the sense ofcommunity. It can also have a major effect on well being and a beneficialimpact on the physical and mental health of those who live there. Healthyneighbourhoods is featured as one of the settings for work flowing from theforthcoming “Our Healthier Nation” White Paper. Our work on improvingshopping access can be seen as expanding and complementing this work andso improve the quality of life and the health and wellbeing of people living indeprived neighbourhoods.

1.2 The strong principles underlying this report on improving shopping access arethe need for local communities to be consulted, involved and listened to indefining and meeting their needs. The need for an evidence based approach,drawing on best practice examples provided by technical experts, is also vital.

1.3 We have, therefore, built our report around the two main principles which weconsider critical to improving shopping access in deprived neighbourhoods:-

• the need for locally-developed strategies, with the local communityplaying a full part in the process and working together with local retailers;and

• the need to produce solutions that are commercially viable in the longterm, building on good practice.

1.4 Our report, of which this is the executive summary, represents the ideas putforward during PAT 13 discussions with a wide range of stakeholders. It isintended as a discussion document on which we wish to receive comments,views and ideas that can be fed into our continuing work and contribute to theintegrated strategy on neighbourhood renewal.

II THE CURRENT POSITION

2.1 The majority of shops that traditionally served those living in deprivedneighbourhoods were small, independent, convenience type stores. While thenumber of superstores in this country has increased from 457 in 1986 to 1102by 19971, some eight independent shops disappeared everyday between 1986and 1996. The number of independent stores has declined by almost 40% inthe eleven years between 1986 and 19972. For people on low income,shopping journeys by car and the average distance travelled to shops hasincreased.

1 The Impact of Large Foodstores on Market Towns and District centres DETR 19982 Nielson Market Research, May 1998

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2.2 Many of these small, convenience shops closed down because they were notcommercially viable. While the factors are complex and vary from oneneighbourhood to another, we have identified three main reasonsundermining the commercial viability of small independent stores operatingin deprived neighbourhoods. These are:-

• falling and low local demand – where there is a shop, people often don’twant to use it and, those that can take their spending power elsewhere, do;

• crime and the threat of crime – unsightly security measures and threat ofpersonal safety put customers off using local shops; and

• competition – lack of local competition from alternative localconvenience stores sometimes leads to overpricing and provides noincentive for improving quality resulting in the provision of poor qualitygoods.

2.3 The cumulative negative effect of these factors, and others such as poortransport, bootlegging etc., can result in what has become an all too familiarsight. The once vibrant local shopping centres or neighbourhood stores thatprovided a safe place for the local community to meet and access a range ofservices to meet their everyday needs have mostly disappeared. Boarded upsmall shops on street corners or in small neighbourhood parades, with onlythe locals knowing which are open for business and which are not, remain.And only people left with no other choice shop there.

2.4 Those from minority communities who run small shops, in particular, can bethe focus for a considerable amount of crime. Even minor incidents can beexpensive and stressful if repeated frequently – squirting superglue into locksis just one example. Also there are examples of serious, destructive,expensive and frightening episodes3. It’s hardly surprising, therefore, thatmany shops close and their traders leave. Those that remain often struggle tosurvive and provide a service of variable quality, a limited range of goods andprices sometimes a good deal higher than most supermarkets. Inneighbourhoods where car ownership is low and public transport inadequate,many families have no choice but to use these shops.

2.5 Most of the bigger retailers we spoke to said that the size of theneighbourhood we were focusing on, around 3,000 to 4,000 households, wastoo small to sustain commercially one of their supermarkets. Populationdensity was generally too low, servicing access was often inadequate andthere was generally insufficient customer parking space to attract significantcustom from outside the neighbourhood. Nevertheless, all the major retailerswe spoke to expressed a willingness to contribute expertise. More details canbe found in the main report.

3 Crime and Racial Harassment in Asian-run Small Shops: the scope for prevention. Crime PreventionUnit: Paper 15

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III REVERSING THE TREND

3.1 From our work so far, we have concluded that the current trends inneighbourhood retailing can be reversed. Using the very latest informationand technology, neighbourhood stores have increased their turnover by asmuch as 40% with no capital outlay. This was simply by putting the rightproduct in the right place and giving it the right amount of selling space. Incontrolled tests, where the store had been refitted as well, sales increasedfrom £700 to £10,000, £4000 to £20,000 per week4.

3.2 Take, for example, a community of 4,000 households, with a total averageweekly spend of £275,000 (i.e. on average £66 per week). They need spendonly 10% of this at the local shop, and its turnover would be £27,500 perweek, over £1m a year - a healthy business. This data5 suggests that smallcommunities can sustain small stores if they sell the right goods and aresupported locally.

IV THE GOAL

4.1 Based on the initial discussions we have had with communities, retailers andtheir representatives, we set ourselves the following goal:-

to support the provision of accessible retail opportunities which:-

• respond to locally identified needs in an integrated way;• provide a range of quality goods at affordable prices;• offer facilities which are vibrant, viable and sustainable.

4.2 Our report concentrates on the key factors affecting the viability of localretailing and action that can be taken to make our goal a reality. We now seekto widen the debate and would be grateful for more views and ideas.

V THE KEY ELEMENTS NEEDED TO ACHIEVE OUR GOAL

5.1 Our report is based on the need for local communities to be consulted, involvedand listened to in defining and meeting their needs. The key elements toachieving our goal, which are considered in more detail in the followingsections, are:-

A: a local retail strategy;B: proactive planning;C: crime reduction and the fear of crime;D: improving business support for small retailers;E: easing business burdens on small retailers.

4 Mace Blueprint for Success 19985 Community Owned Retailing 1999

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A. A local retail strategy

The Problem

6.1 There is no established practice of developing a retail strategy when localregeneration strategies or plans are constructed; consequently, there is nosingle person, organisation or body responsible for pulling together the viewsand needs of local key stakeholders (including the retailers themselves) sothat retail needs can be planned and implemented successfully at the locallevel.

The way forward

6.2 Working with appropriate agencies, communities should be given supportand encouraged to develop their strategy for improving access to shops andservices in their neighbourhood.

6.3 One mechanism for delivering a retail strategy would be through thedevelopment and establishment of local retail forums as part of theneighbourhood management package that PAT 4 is currently considering.Such forums would enable communities and key stakeholders, including localtraders and landlords, to work in partnership to:-

• audit the current local retail provision, identify local assets, includinglong term vacant properties, overlaps and gaps; use tried and testedretailing industry models to assess demand;

• develop and agree a local strategy for improving access to shops andservices, in the context of district, town, city and regional wide plansand in the context of achieving a longer term health gain as described inthe forthcoming white paper “Our Healthier Nation”;

• work together to implement, monitor and review the strategy.

6.4 It will be important that landlords, whether they are the LA, housingagencies, private sector organisations or individuals, are all part of thedevelopment of the strategy and all sign up to it.

ACTION 1: (pages 33-34)

We recommend that the work of PAT 4 in developing models for neighbourhoodmanagement should explore the potential of local retail forums in developing localretail strategies at the neighbourhood level. PAT 4 should also consider how theselocal forums might link with other agencies to input into the development of retailstrategies as part of authority-wide community plans. There are links here with PAT17: Joining it up locally.

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A Practical Example of one Potential Way Forward

Community Owned Retailing (COR) uses an approach similar to that describedabove. It has been developed by Toby Peters, with the support of Booker, Businessin the Community, Mace, William Reed Publishing and nine manufacturers. It aimsto:-

“provide the community with a range of healthy food, products and services, whichare tailored to their needs and can be stocked economically, when they are requiredfrom an accessible, well presented and hygienic store (or stores) giving friendlyservice at a cost to the consumer which is seen to be offering value.”

COR is community driven. The neighbourhood stores are community owned and runby the community on a commercial basis (including properly salaried staff). Theprofits are re-invested back into the community. Marketing, training and funding arethe three core elements. A market analysis is a crucial element in assessing theviability of a vibrant and sustainable new store. This forms the basis of the businessplan.

COR includes the potential for the longer term health benefits that form the heart ofthe Government’s health strategy as well. Its aim is to promote access to those foodswhich form part of a healthy and balanced diet e.g. pasta, low fat dairy products andfruit and vegetables. The first pilot store was opened recently in Longley, Sheffieldby David Blunkett, the local MP, and Tessa Jowell, the Minister for Public Health.

Next Steps

The Department of Health has asked for more work to be done on the feasibility ofrolling out this programme further, with a view to making development fundsavailable. (More details on pages 41-42)

B Proactive planning

The problem

7.1 We found:-

• hollow consultation: too often communities are consulted about the futurepattern of shopping facilities in their neighbourhood but are not listenedtoo, their views not acted upon; often it appears that consultation is notintegrated with discussions with local retailers and a commonunderstanding of the constraints and drivers for successful retailing is notdeveloped;

• reactive planning: planning has for too long been about controllingdevelopment rather than actively promoting local retail centres orimproving access for local communities to a range of everyday needs;

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• low quality local shops: where local centres exist or smallneighbourhood shops remain, too often they provide a service of variablequality, from premises in various states of repair, and planners andretailers fail to take advantage of the opportunity for retail centres to actas a focal point in the neighbourhood where people can meet for a chat.

The way forward

7.2 The thrust of the Social Exclusion Unit’s work is that solutions need to workwith the grain of local community needs as viewed by residents. Werecommend that the principles of any future planning strategy should :-

• be proactive, rather than reactive;• strengthen local centres within urban centres rather than weaken

them;• work with communities within their existing structures, however

informal, to develop locally generated solutions;• take account of social needs and recognise the value of community

meeting places;• capitalise on the local authority’s role as an enabler.

7.3 Following these principles will foster and underpin the provision of local shopsand services and limit the growth of out-of-centre retail developments in locationsthat are relatively inaccessible without a car. It is more consistent with otherGovernment health and environmental objectives which encourage less use of the carand encourage more use of other forms of transport such as walking, cycling andpublic transport.

ACTION 2: (pages 36 –37)

We recommend that as part of the Urban White Paper, the Government should setout a more proactive approach to planning for community needs at the local level,including retailing. This should then be followed up by a planning policy guidancenote from DETR based on the principles outlined at 7.2 above.

C Crime reduction and the fear of crime

The problem

8.1 There are two aspects to neighbourhood crime. Firstly, retail crime itself, andsecondly, crime and the fear of crime within the neighbourhood. Both shouldbe taken into account in developing a local retail strategy.

8.2 Crime and the fear of crime, particularly perceived or actual threats topersonal safety, can negatively impact on the number of people circulatingaround the neighbourhood. This may limit the amount of passing trade thatthe store might otherwise capture. Poor quality environments due tovandalism or graffiti also inhibit a vibrant shopping area and may also deterlocal people from using the local shops as a community gathering placewhere they can meet for a chat.

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8.3 There is a high level of repeat victimisation, particularly amongst Asian andother minority communities traders, it can impact negatively both on personalsafety and the individual’s willingness to trade in that area, and on theviability of a retail outlet by increasing overheads beyond what the businesscan sustain.

8.4 Retail crime, for example shop theft, is often the first criminal experience ofyoung people and could provide the gateway into more serious crime anddisorder offences. There are obvious linkages here with the work of PAT 12on disaffected young people, who may wish to consider this further.

The way forward

8.5 Reducing retail crime should be taken more seriously. More resources shouldbe invested in targeting the crime and disorder problems of deprivedneighbourhoods in order to make them a more attractive place for retailinvestment. The new audits and strategies being drawn up by the local crimeand disorder partnerships provide the right local mechanism.

8.6 There is also extensive applied experience on successful crime prevention andsecurity measures that can assist retailers but there has been little attempt topromote and help them adopt these. More work could be done to promotegreater awareness of these measures among small retailers, particularly thoseoperating in deprived neighbourhoods.


Because of the disproportionate impact crime has on the local retailing environmentand neighbourhoods as a whole, we recommend that:-

• much higher priority should be given to tackling neighbourhood retail crime: theHome Office should ensure that the initiatives taken under the £250m crimereduction programme and the CCTV schemes to be introduced under the £150minitiative announced recently in the Budget, should be strongly targeted ondeprived neighbourhoods and that effective monitoring mechanisms are put inplace to ensure that this happens;

• the Retail Crime Reduction Action Team (RCRAT) should be asked to:-

Ø champion the overall drive to reduce retail crime in poor neighbourhoods usingmodels of best practice as a lever for change;

Ø discuss with Trade Associations how to ensure that small retailers – in particular,those outside trade bodies and local networks - receive simple, targeted andunderstandable advice and support on crime reduction measures or how to dealwith it (i.e. on how to implement effectively the advice they have received).

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D Improving business support for small retailers

9.1 There are two issues to improving business support. These are improving:-(i) business skills; and(ii) access to finance.

D(i) Business skills

The problem

9.2 Small neighbourhood retailers operating on tight margins need skill tosurvive but often do not have the resource timewise to seek the expertise theyneed. Where they do not belong to the symbol groups such as Mace, Londis,Spar, Co-operative Wholesale Society (CWS), expertise is often badlysignposted, not in one place, not designed specifically to meet their needs oris given or formulated by someone who knows little about the sector. Smallretailers often have different needs from most small businesses.

The way forward

9.3 Small independent retailers need a very tailored business support mechanism.Symbol groups provide it but for traders who choose to remain independent,this does not exist at the moment. Further research is needed to explore whythis is the case. Support should ideally:-

• be provided at the premises;

• given by someone who has the confidence of local retailers and anunderstanding of the specific retailing, local and cultural needs and cantap into appropriate sources of help and advice;

• recognise that sustainability is often more important to small retailers andtheir customers than expansion; and

• linked to a mechanism which facilitates communications between thelocal, regional and national level.


The proposed Small Business Service (SBS), announced in the March Budget, mayprovide the appropriate structure for this tailored support mechanism and we wouldlike the opportunity to contribute to that thinking6. If, following the consultation, theSBS does not prove to be the appropriate structure, an alternative support mechanismneeds to be developed. The model that we have considered is that of a NationalMicro Retailing Organisation. This would be:-• independent of government; and• designed specifically to meet the needs of small retailers (as described above).

6 Since finalising this discussion paper, PAT 13 has responded to the consultation exercise on the SBSand a copy of it’s response can be found at Annex 13.

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D(ii) Access to finance

The problem

9.4 As well as lack of business skills referred to above, post code intolerance andperception of “bad risk” make accessing sources of finance for new shops, orimproving existing ones, notoriously difficult for the aspirant or existingtrader in deprived neighbourhoods.

9.5 Access to special funding is also limited. For example, the Small LoansGuarantee Scheme excludes retailing activities. While capital grants toimprove the physical structure of shop units is often available throughregeneration programmes, access to start up funding towards shop fitting andstock is not permissible under current rules because of potential displacementeffects on existing traders.

The way forward

9.6 It is encouraging, therefore, to see business support tailored to meet minoritycommunities needs, such as the HSBC South Asian Banking scheme. Similarfacilities for other small retailers should be explored.

9.7 Access to funding would be that much easier if applications from smallretailers were based on sound business plans which demonstrated theirpotential for long term commercial sustainability and also indicated thepositive impact it would have on the neighbourhood. The business supportservices suggested above provide the obvious means to assist them in this.

ACTION 5: (pages 54 – 55)

As the Small Loans Guarantee Scheme excludes retailing activities, following ourreport and in discussion with PAT 3, which is also addressing support for smallbusinesses, together with DTI, further consideration should be given to:-

• establishing a targeted, ring–fenced scheme to guarantee loans enabling retailingservices of social strategic importance to start up.

E Easing business burdens on small retailers

10.1 There are two aspects to easing business burdens. these are:-

(i) fiscal burdens, such as taxes, rates and rents; and

(ii) regulatory burdens.

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E(i) Fiscal burdens (e.g. rents, rates and tax)

The problem

10.2 Small retailers trading in deprived neighbourhoods work at extremely tightmargins. This does not present a very attractive commercial environment forthem to remain in or for new traders to enter. Easing the fiscal burdens, suchas rents, rates and tax, on small businesses operating in these areas mayprovide the incentives needed to keep and improve the quality of provisionalready there and attract new investment in.

The way forward

10.3 There is potential for the use of fiscal incentives, possibly limited to withinregeneration programmes, to encourage local commercial activity to helpcreate an attractive investment environment for new traders to move in.

10.4 Within the timescale of this report, we have not had time to explore thissufficiently, especially assessing programmes in Europe and the UnitedStates. Nevertheless, we strongly support the work which DETR is currentlyundertaking which may result in a change in primary legislation givingprogressive and mandatory business rate relief to small businesses. This wouldavoid the need to develop a new business rate relief scheme specifically aimedat helping retail outlets in deprived neighbourhoods.


More work should be undertaken on assessing the benefits and effectiveness ofproviding fiscal incentives, such as rate, rent and tax relief, linking into the UrbanTaskforce report, the Urban White Paper and the European Commission’s WhitePaper on Commerce. Pending the outcome of DETR’s rate review, it should clarify whethera “community store” could be eligible for discretionary relief.

E(ii) Regulatory Burdens

The problem

10.5 We have heard time and again about the impact which new regulationsimpose on small retailers. Whilst they understand the necessity of suchregulation in protecting their staff and their customers, the cost of compliancewith regulation can be particularly and disproportionately burdensome.Rarely does the advice on implementation of the regulation come in alanguage that is easy to understand or is co-ordinated in way which makes itaccessible. The needs of the small retailers are inherently different to those ofsmall businesses and currently there is no voice to champion their lot.

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The way forward

10.6 There is no question of exempting small retailers from regulations relating to,for example, product safety, hygiene and the health and safety of staff andcustomers. However, there are circumstances in which exemptions might beappropriate given their disproportionate impact on small retailers and theother protections in place. The Better Regulation Task Force report onConsumer Affairs identifies the exemptions available under the Unit Pricingdirective as a case in point.

10.7 Small retailers might also benefit from differential regulatory requirements inareas, such as VAT and accounting and audit arrangements. It is essentialpolicy-makers have clear guidance on the need to take account of smallerbusinesses and that there are arrangements in place to ensure this ishappening.


We recommend that the consultation on role of the new Small Business Serviceshould explore this further. It should seek the views on where this responsibilityshould most appropriately rest, involving the Regulatory Impact Unit. It may be thata single person in either organisation should have responsibility for assessing thecumulative effect of regulation on small retailers. Whatever the outcome, werecommend that, at the very least, advice to small retailers on implementingregulations should be:-

• clear;• understandable to a lay person; and• formulated in way which is accessible to those it is meant to reach.

We also recommend that the remit of the Small Business Service should also covercommunity based enterprises. Again, this links in with the work of PAT 3 and alsoPAT 16.

VI NEXT STEPS

11.1 There are no quick fixes for improving shopping access for people living inpoor neighbourhoods. All the recommendations identified in this summarycan, however, be taken forward in the short term. All will contribute to easingthe problems that exist. The cumulative effect of implementing all or numberof these recommendations will begin to reverse the trend in neighbourhoodretailing. This report should now form the basis of a general discussion, theresults of which can be fed into the development of the national strategy thatthe Social Exclusion Unit will be producing at the end of the year.

11.2 This report is not the end of our work. It is very much the beginning of aprocess that could have a significant impact in tackling the problems which

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some people on low income face in accessing shops which provide a choiceand variety of goods at affordable prices.

ACTION 8 (page 61)

This is a core element of people’s day to day living which has not previously beenaddressed corporately by Government. In the context of developing a nationalstrategy for neighbourhood renewal, the establishment of a neighbourhood retailingtaskforce to champion the voice of neighbourhood retailing at a local, regional andnational level should be considered. It would aim to bring together all the localagendas on neighbourhood retailing and would also provide a link with the proposedlocal retail forums by disseminating, for example, models of good practice and newinnovative approaches to retailing. It would also provide the opportunity to look atcommon and generic issues shared with other service providers at the local level e.g.providing a mix of services to increase footfall.

In the meantime, we recommend either PAT 13 continue its work or that a“caretaker” group is put in place to steer forward the input from this group into thenational strategy and advise on the interpretation of the outcome of the consultation.

PAT 13: Improving shopping access for people living in deprived neighbourhoods

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PROPOSED ACTIONS AND RECOMMENDATIONS

LOCAL RETAIL STRATEGY

ACTION 1 (pages 33-34)


PLANNING


We recommend that as part of the Urban White Paper, the Government should setout a more proactive approach to planning for community needs at the local level,including retailing. This should then be followed up by a planning policy guidancenote from DETR.

R1. The references to proactive planning in the Urban White paper and thesubsequent PPG should based on the principles outlined below:-

• improvements in local shopping access, based on local communitygenerated solutions, should be identified as a core issue for localregeneration funding;

• a more proactive approach should be taken in the regeneration of localcentres in deprived neighbourhoods, using neighbourhood planningprocesses, such as “planning for real”, to help articulate the community'svision and devise a strategy for achieving improved access to shoppingand services;

• planners should be encouraged to work at a neighbourhood level withcommunities to identify local service needs and to take forward thoseplans with their local economic development teams to identify and marketcommercially viable retail sites within the neighbourhood;

• where appropriate, a range of services, which aim to meet everydayneeds, should be grouped together to build up local centres e.g. a healthcentre and pharmacy, and an outlet which provides access to cash;

• local authorities should discourage the provision of new stores over 1,000square metres gross floorspace outside named major centres in theirdevelopment plans;

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• local authorities should be more flexible in permitting "mixed use" ofpremises to facilitate existing non-shop facilities providing "shopping"and shops to provide other services (already possible without permission);and

• local authorities should actively promote flats over shops and change ofuse of shops, where appropriate, to make existing local centres becomemore viable. DETR, working with +the property profession and insuranceindustry, should review the options for lease arrangements and marketawareness, and put in place a strategy with local government and others,to promote increased residential use above retail premises in deprivedneighbourhoods areas (and elsewhere). Retailers wishing to find outmore should be able to receive information that is consistent and easilyavailable. (Page 37)

R2. We also recommend that local authorities should work with the grain of localcommunity needs as viewed by residents and should endeavour to workwithin their existing structures, however, informal. The Local GovernmentAssociation and/or the Local Government Management Board should refineand promote good practice on developing effective listening mechanisms e.g.using the work from the Rowntree Foundation and dissemination of goodpractice, such as setting up Community Teams in poor neighbourhoods(Coventry approach- see Annex 6). (Pages 37-38)

Putting Planning Gain to Social Use

R3. We recommend that DETR should explore the potential for (and ifappropriate issue guidance on) using agreements under Section 106 of theTown and Country Act 1990 to support investment in provision for localretailing and other services within deprived neighbourhoods conditional oncommunity input planning such provision. (Page 39)

Regeneration

R4. We recommend that efforts should be made where possible to both recruitand procure locally. Value for money should assess the social benefits to thelocal economy as well as the price, when awarding contracts through thecompetitive tendering process using funds from regeneration programmes.(Page 39)

Redevelopment Agency

R5. We recommend that consideration should be given to establishing an agencywhich would be resourced to refurbish/refit those shops in poor condition indeprived neighbourhoods which otherwise would not attract privateinvestment. Once they became going concerns, they could be sold to recoupthe initial capital investment. This could be based on the English Partnershipmodel of community development funds/managers and may form part of thefunction of Regional Development Agencies. The development of community

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owned retailing in Knowle West, Bristol, involving English Partnerships, mayalso prove be a useful model to follow. (Page 40)

Development Trust

R6. We recommend that DETR provide good practice guidance on howcommunity development trusts can contribute to improving shopping accessin deprived neighbourhoods. (Page 41)

CRIME REDUCTION AND FEAR OF CRIME







Retail Crime

R7. We recommend that as part of the drive to identify and encourage goodpractice, there should be:-

• wider piloting of radio links and other technology such as CCTV with thepotential benefits being disseminated throughout the retail sector; NDCPathfinders may wish to consider such a pilot to evaluate its effectivenessat the neighbourhood level. (Page 46)

Crime reduction and the fear of crime

R8. We recommend that:-

• the Association of Chief Police Officers (ACPO) should be asked toclarify how racial incidents affecting businesses (criminal damage and

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other offences) are treated/recorded compared to those affecting theperson (assault, threatening behaviour and so on). This is important asbusiness crime or criminal damage may be a pre-cursor to personalattack and abuse; and

• working with the British Retail Consortium and other organisations,further attempts should be made to target appropriate advice at thosebusinesses at greatest risk of repeat victimisation. (page 49)

R9. We recommend that the Small Business and Crime Initiative project shouldbe revisited to assess its longer term benefits and to identify best practice.(Page 50)


• the Business Crime Check (BCC) project exists to collate good practice inretail/business crime prevention, including current policing initiativesand disseminate to interested parties. Further consideration should begiven on how to best collate business crime statistics/repeat victimisation(particularly racial incidents) and what remedial action needs to betaken. However, the BCC is funded by the private sector for a limitedperiod and there may be a need to address how funding of the schemecould be made more permanent;

• revised guidance should encourage partnerships to consider issuesconnected with neighbourhood shopping areas. (Page 50)

IMPROVING BUSINESS SUPPORT FOR SMALL RETAILERS



7 Since finalising this discussion paper, PAT 13 has responded to the consultation exercise on the SBSand a copy of it’s response can be found at Annex 13.

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ACTION 5: (pages 54 – 55)



Business Skills

R11. We recommend that, as an interim measure, but which would be takenforward in the long-term by the NMRO, Government departments should beencouraged to provide “one to one” guidance to small businesses (includingretailers). For example, along the lines of the system provided by theDepartment of Social Security (free hotline phone number for both employersand employees). (Page 54)

R12. We recommend that feeding into the “Best Value” initiative, LocalAuthorities should be encouraged to provide co-ordinated advice (such as aninformation pack) designed specifically to meet the needs of small retailingbusinesses. For example, providing advice on health and safety, planning,waste control and trading standards. (Page 54)

R13. We recommend the revision of national education and training to supportsmall shops - expand the pioneering work of Co-operative Wholesale Society(CWS) and Mace by encouraging local business training and education bythe practitioners themselves for dissemination through trade organisationsand colleges, universities and TECs to give high degrees of support for smallshops. (Page 54)

EASING BUSINESS BURDENS ON SMALL RETAILERS

Easing fiscal burdens


More work should be undertaken on assessing the benefits and effectiveness ofproviding fiscal incentives, such as rate, rent and tax relief, linking into the UrbanTaskforce report, the Urban White Paper and the European Commission’s WhitePaper on Commerce. Pending the outcome of DETR’s rate review, it should clarify whethera “community store” could be eligible for discretionary relief.

R14. We recommend:-

• that early research is undertaken into the feasibility of using a package offiscal measures to encourage new small shops into poor neighbourhoods andexisting ones to stay e.g. rate holidays to encourage business start ups,

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granting rate and/or rent tapers for new businesses, linking rents toprofitability.

• there is a need to explore whether the compulsory purchase order (CPO)powers need to be simplified to encourage more Local Authorities whereappropriate to buy the properties in deprived neighbourhoods, from theowners who leave them vacant, in order to ensure that they are brought backinto use. Funding for purchase could come from regeneration programmes orimmediate resale to a prospective operator (i.e. a back-to-back sale).

• Local Authorities with the LGA should encourage landlords to take a moreactive role in supporting the development of retail services in an area e.g.using UK experience of local authority landlords in supporting start-up shops,rent flexibilities could be offered, the provision of business advice and thefacility for information to flow between the shopkeepers.

• Local Authorities should use their role as landlord to regulate the tenant mix

and, where necessary, let properties at below market rate to maintain a goodmix of tenants in the area. (Page 59)

Easing regulatory burdens


We recommend that the consultation on role of the new Small Business Serviceshould explore this further. It should seek the views on where this responsibilityshould most appropriately rest, involving the Regulatory Impact Unit. It may be thata single person in either organisation should have responsibility for assessing thecumulative effect of regulation on small retailers. Whatever the outcome, werecommend that, at the very least, advice to small retailers on implementingregulations should be:-

• clear;• understandable to a lay person; and• formulated in way which is accessible to those it is meant to reach.


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NEXT STEPS

ACTION 8: (page 61)



MONITORING THE IMPACT OF IMPROVING SHOPPING ACCESS

R15. We recommend the development of a questionnaire which could be usedthrough targeted surveys to establish a baseline and, repeated over time, tomeasure the trends and test the effectiveness of interventions in improvingshopping access for people living in deprived neighbourhoods. (Page 62)

R16. We recommend that Local Authorities and Health Authorities should jointlyconduct Health Impact Assessments on retail provision and plans as a meansof monitoring the effectiveness of such interventions on improving the healthof the community and its impact on reducing health inequalities. (Page 63)

RESEARCH

Planning and regeneration

R17. We recommend that the following research be undertaken. (Page 64)

i. Mapping

Regeneration programmes should include an audit of current provision andusage, including an assessment of community needs/views resulting in thedevelopment of a strategy to provide a viable and accessible shop. Researchmay be needed to identify how regeneration audits of current local provisioncan best be conducted. Research is already underway in both academic andcommunity settings to develop mapping indices of access to shops based on anumber of variables.

ii. Assessing effectiveness of measures to improving the viability oflocal facilities

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Assessing measures for retaining or capturing sufficient trade to make localfacilities viable, including improvements to local centres8.

iii. Assessing the feasibility of creating "enterprise areas" in poorneighbourhoods:

Assessing the feasibility of identifying areas within deprived neighbourhoodswhich would enjoy greater planning freedom, incentives and reduced rentsand rates to encourage a full range of outlets to provide everyday needswithin the housing area or local centre.

iv. International experience:

A review of how the issue is addressed in other countries, especially Europeand North America.

v. Flats over shops

Research should be commissioned to investigate and quantify the benefits, orotherwise, of increasing residential occupation above shops (and othercommercial premises) for crime reduction and increased viability of the retailunits.

Crime reduction and the threat of crime. R18. New Deal for Communities (NDC) Pathfinders, as potential testbeds for

experimenting with new ideas, may wish to consider the following:-

• NDC Pathfinders may wish to consider the levels of crime against smallbusinesses and, where repeat victimisation is a problem, develop a strategyto combat it together with an enhanced awareness programme to illustratethe full impact of retail crime for the sustainability of the local community.Should any Pathfinders wish to develop this, we recommend that they:-

• examine the best way to promote links between local businesses andresidents on crime matters facilitated by Housing Associations,residents associations, caretakers, or others - this may link in withother work being undertaken on Neighbourhood Wardens (PAT 6).

• consider piloting work on sector-based policing, supported by localtraders (possibly in the West Midlands).

research should be commissioned to investigate and quantify the benefits, orotherwise, of increasing residential occupation above shops (and othercommercial premises) for crime reduction.

8 The National Pharmaceutical Association is interested in collaborating in any research on the criticalmass of local centres and in particular on the role of the pharmacy as an anchor to sustaining otherretail outlets sited within a local centre in deprived neighbourhoods.

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more evaluations are needed of the effectiveness of police offices and similarfacilities; NDC Pathfinders may wish to consider establishing locally-basedpolice shops as part of shared community services. (Page 65)

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I INTRODUCTION

1.1 Improving the neighbourhood in which people live, both in the physicalsense, and also by reducing the fear of crime, can increase the sense ofcommunity. It can also have a major effect on well being and a beneficialimpact on the physical and mental health of those who live there. Healthyneighbourhoods is featured as one of the settings for work flowing from theforthcoming “Our Healthier Nation” White Paper. Our work on improvingshopping access can be seen as expanding and complementing this work andso improve the quality of life and the health and wellbeing of people living indeprived neighbourhoods.

II TERMS OF REFERENCE

2.1 The Department of Health has been leading the Policy Action Team onimproving access to retail services in deprived neighbourhoods. Its goal is todevelop a strategy to increase access to shopping for people in poorneighbourhoods and to report by April 1999.

2.2 Its terms of reference are:-

• to identify best practice and innovative approaches to improving shoppingaccess for people in poor neighbourhoods.

2.3 Within this, it should give consideration to race and ethnic minority issues,consider how to maximise the contribution of communities themselves andproduce clear recommendations for follow-up work.

2.4 Specifically, this should cover:-

• ways of promoting existing good practice, e.g. subsidising estate-run foodcooperatives, providing own-brand goods for small shops, usingdiscounting to encourage healthy eating, offering home shopping orspecial buses, or linking small retail outlets to public sector facilities suchas health centres;

• options for encouraging small and large retailers to return toneighbourhoods where shops have disappeared. This work wouldexamine the scope for new kinds of franchise, the potential role of a rangeof different types of outlet, for example, post offices and pharmacies, thelinks between new retail investment and crime reduction strategies, andthe scope for using local planning and rent policies to supportneighbourhood shopping centres.

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III APPROACH

3.1 PAT 13 initially recruited 21 members, plus the Chair and Secretariat fromthe Department of Health (DH). The membership of the Team was drawnwidely to capture as much expertise as possible whilst maintaining a group ofa reasonable and workable size. Ten members initially appointed were fromoutside Whitehall Departments whilst the others were civil servants. The listof members can be found at Annex 1.

3.2 The strong principles underlying this report on improving shopping access arethe need for local communities to be consulted, involved and listened to indefining and meeting their needs. The need for an evidence based approach,drawing on best practice examples provided by technical experts, is also vital.

3.3 We have, therefore, built our report around the two main principles which weconsider critical to improving shopping access in deprived neighbourhoods:-

• the need for locally-developed strategies, with the local communityplaying a full part in the process and working together with local retailers;and

• the need to produce solutions that are commercially viable in the longterm, building on good practice.

3.4 In the time available, the Team agreed that it should identify and focus itsactivity on a particular sector within the retail industry and whilst trying notto inhibit innovation in terms of delivery goods and services within deprivedneighbourhoods, discussions at initial meetings focused on two questions :-

“shops to the people?”

“people to the shops?”

3.5 As a result of these discussions, it was agreed that as the main aim of theneighbourhood renewal strategy was to enable deprived neighbourhoods tobe more like everywhere else, then both questions needed to be considered.However, most of the team felt that a positive signal towards achieving thiswas the return of shops to the neighbourhood or an improvement in those thatwere already there. The majority of our proposals, therefore, concentrate onimproving neighbourhood retailing, such as through convenience stores ordelivery points within the community to facilitate improved shopping access.This report, therefore, focuses more on the second strand of our terms ofreference than on the first.

3.6 Five fairly clear themes that impacted on improving neighbourhood retailingwere identified. It was decided, therefore, to establish Mapping Groups toexplore these in further detail and for them to report back to the PAT. Themapping groups were:-

• crime and community security;

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• business burdens;• business acumen;• planning, regeneration and transport; and• community responsive initiatives.

3.7 The membership of the mapping groups extended outside PAT 13 and tried todraw in as much relevant expertise and consult as widely as was possible inthe short time they had available. A list of the membership of the mappinggroups can be found at Annex 2. We subsequently recruited three membersfrom the Mapping Groups onto the full PAT. We would like to thankeveryone who has made the time to contribute to the work of this PAT and itsmapping groups, often working to extremely tight deadlines.

Further work

3.8 The terms of reference for the PAT, as set out on page 73 of the SEU’sreport, asked the team to consider two areas of interest: ways of promotingwhat were seen as existing good practice and how to encourage small andlarge retailers to return to neighbourhoods. This report and the work of thePAT has focused largely on the second of these. This is in part because thePAT concluded that a more strategic approach was needed to achieve thevision identified by the team and, on their own, the examples listed as ‘goodpractice’ were not a sustainable means to achieving the goal set for the PAT.The PAT nevertheless did consider to a lesser or greater extent all the ideaslisted and reference to this is made in the relevant sections of the report andin the annexes. However we acknowledge that within the broader frameworknow set by the PAT further work is needed on some of these issues.

Transport links

3.9 Transport is a critical factor to improving shopping access. Often publictransport servicing deprived neighbourhoods is poor, car ownership low andpeople on low incomes have to rely on minicabs or taxis to get them to andfrom the nearest supermarket. However, we have not explored these issues inany detail given the time available to us and this is an area for future work.The Department of Transport, Environment and Region’s white paper on anintegrated transport9 points to the need for local authorities to work andexplore with local operators ways in which public transport services can beimproved, not only to help those from deprived neighbourhoods to betteraccess employment opportunities but also to improve access to other goodsand services, including shops. We feel it is important that the IntegratedLocal Transport Directorate in DETR play a full and active part in futurediscussions and work in this area.

9 A New Deal for Transport: Better Change for Everyone” DETR 1988

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Community based and community run initiatives

“Our volunteers are too tired to run a food co-op!”

3.10 The Mapping Group on community responsive initiatives explored in somedetail projects which communities themselves develop and run to improveshopping access. These are often a last ditch response to providing food ataffordable prices, including fresh fruit and vegetables, for some communitiesand we recognise the valuable role they play in meeting these needs. Annex 3provides more details of these initiatives. Community run projects have avaluable role in improving access to services, can increase the confidenceand skills of the those running them as well as providing a mechanism forlocal communities to form partnerships and work with different agencies.However, we do not consider that they should be seen as a long termsolution. Our vision is for them to compliment existing provision, althoughwe realise that currently this is far from reality in some places.

Multiple retailers

3.11 Most of the bigger retailers we spoke to said that the size of theneighbourhood we were focusing on, around 3,000 to 4,000 households, wastoo small to commercially sustain one of their conventional supermarkets.Population density was generally too low, servicing access was ofteninadequate and there was generally insufficient customer parking space toattract significant custom from outside the neighbourhood. Nevertheless, allthe major retailers we spoke to expressed a willingness to contributeexpertise. Examples of private sector initiatives can be found at Annex 4.This describes, amongst others, the new £20m Asda store superstore inHulme that we visited earlier this year. The store is the anchor of the HulmeHigh Street redevelopment that aims to attract new retail, leisure and businessdevelopments. Another retailer, Somerfield, is developing a delivery schemewhich will be tailored to meet the needs of people living in deprivedneighbourhoods and is hoping to pilot it through one of the New Deal forCommunities (NDC) Pathfinders. There may, therefore, be scope for doingmore work with the bigger retailers on, for example, mentoring.

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IV DEFINITION AND PROBLEM ANALYSIS

From a community perspective

“We need the shops back we had years ago”

A community located about a mile outside a major city centre established aCommunity Council in the late 1960’s. Its mission is to ensure that residents have avoice at all levels in identifying and responding to all issues that directly affect thewhole community.

But over the last 20 years:• housing redevelopment programmes have meant that the size of the population

has dropped dramatically by 65% - from over 17,000 residents to about 6,000;• unemployment has more than doubled – from about 20% in 1971 to over 45% in

1991.

This had a devastating effect on the local community. Shops and services began toclose. The Community Council managed to save two health clinics from closure;successfully fought for good housing schemes; and set up a community economicdevelopment trust to tackle unemployment. But shopping and service provisionremains very poor.

Today there is no bank or cashpoint; the chemist and the post office are small andstruggling, and the butcher and fruit and vegetable shops have long gone. With

• 86% of households in the area without a car; and• over 23% of residents suffering from limiting long term illness.

the community desperately needs

• shops within walking distance;• a variety of affordable, accessible, quality food and retail services.

Attempts to persuade a large retailer to locate a store on the edge of the area wereunsuccessful. Although the retailer was sympathetic to the community’s needs, andthe site was available for redevelopment, located on an extremely busy bus route andwithin easy access of other communities, its reasons for not siting a store were:-

• the population did not have sufficient spending power;• the site and the car parking space was too small in comparison to their standard

stores.

The clear message from this community is that they need to have back what theyhave lost - easy access to a choice of retail services with goods at affordable prices.The big question is

“Who is doing what to whom, why and who’s listening to the communities thesedecisions affect?”

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From a small retailer’s perspective

4.1 Government (national and local) needs to better understand the widereconomic importance of small retailers as the linchpin of a sustainablebusiness base in deprived neighbourhoods. By providing, for example,employment opportunities (part-time jobs in particular), they have a positiveimpact on the quality of life of people living in these communities and send apositive signal of restored confidence. And this also has a positive effect onthose sectors that supply them – wholesalers and cash and carries in theconvenience store sector. Local post offices are of particular importance.

4.2 Many small retailers have fewer than 5 employees (they may even have none)with their business occupying floorspace of less than 300ft2 . These tradersare:-

• the most likely source of supply of shops and services to those living indeprived neighbourhoods;

• operating in probably one of the most competitive sectors, often with barelysustainable profit margins; and

• in a sector which has been declining for many years.

4.3 Small retailers are operating in probably one of the most competitive sectors,often with barely sustainable profit margins (around 1%) and with a mountainof issues (economy, legislation and the fickleness of today’s consumer) tocope with, many of which are outside their control. As a consequence manyretailers work 15 hours a day, 7 days a week.

4.4 The majority of shops that traditionally served those living in deprivedneighbourhoods were small, independent, convenience type stores. And thesehave been declining for years. While the number of superstores in thiscountry has increased from 457 in 1986 to 1102 by 199710, some eightindependent shops disappeared everyday between 1986 and 1996. Thenumber of independent stores has declined by almost 40% in the eleven yearsbetween 1986 and 199711. For people on low income, shopping journeys bycar and the average distance travelled to shops has increased.

4.5 Asian retailers dominate the independent sector. Over 75% of all conveniencestore and off-trade outlets in the UK are Asian owned and managed. Thisfigure rises to 95% within the M25 boundary12. Many of these stores areunaffiliated and few belong to any representative body, often preferring tobecome involved in self-help community networks. As these owners retire (ordie), it is unlikely that the next generation will wish to retain thesebusinesses.

10 The Impact of Large Foodstores on Market Towns and District centres DETR 199811 Nielson Market Research, May 199812 Asian Trader

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CASE STUDY - THE EXPERIENCE OF A SMALL RETAILER

The reality of operating in an inner city area of Leicester

This is an example of a small business entrepreneur struggling to survive financially.Others have to cope with threats to their lives, as crime rates soar against propertyand persons.

“Two weeks ago a group of forty youths attempted to gang raid my parents’ shop,during the same week a shopkeeper a few hundred yards down the road was attackedwith an iron bar. After identifying the culprits to the Police, he was further attackedand stabbed five times near the armpit”.

“Our car has its windows broken, tyres slashed, and car aerial damaged at least sixtimes a year by aggrieved persons.”

The legislative framework in which micro-enterprise operates, such as the CriminalJustice System, offers them no hope of redress or protection. If the people who havecommitted a crime against them are arrested, the criminals ‘send’ their friends tothreaten them if the shop owner goes to court.

Competition

4.6 The opening of large multiples have decimated many small shops. A focus onprice competitiveness has lead to margins falling. The prices in largewholesalers for goods are often under-cut by the large multiples. In manycases the person on the street can buy goods cheaper from these multiplesthan the shopkeeper can from the wholesalers.

4.7 Competition will become increasingly intense in areas where there issustainable potential. This includes: out-of-centre supermarkets, shops atpetrol stations, additional services provided by milkmen, home delivery, freebuses provided by supermarkets, and electronic shopping. These pressurestogether with the plethora of regulations are growing rapidly and will posemore threats to the survival of many small retailers.

4.8 The issue of quality i.e. customer service, the creation of a ‘nice’ shopfrontage and the right ambience leading to an improvement in turnover,becomes of secondary importance. For example, a tin of tomatoes in a wellknown store costs 9 pence to the retail customer, at half the cost that it isavailable to the retailer from the wholesalers.

4.9 The small independent retailer in this environment needs to ask the keyquestions.

• Why do I want to go into business?• What are the main concerns?• Is there any real prospect of making a viable income?

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Regulation

4.10 The barriers to entry into retailing are low. There are virtually no restrictionson entry or exit and very few formal requirements (except access to capital).For certain products such as firearms, pharmaceuticals, alcohol and food,extensive licensing and registration does prevail. There is, however, aplethora of horizontal regulations (European, National and Local) whichretailers must conform to in areas such as employment, obligations to theconsumer under sales of goods legislation, and standards on pricing andhygiene, particularly when fresh food is on sale.

4.11 Beyond these, anyone can open a shop with minimal training andqualifications, with no control over the quality of service they provide.

Research base

4.12 We commissioned the Health Education Authority (HEA) to:-

• conduct a scan of the research literature on improving access to retailservices in poor neighbourhoods;

• identify existing work and good practice on initiatives, particularly foodprojects using the food and low income database;

• identify key researchers in the field and share experience, knowledgeabout research, best practice and innovative approaches to tackling poorshopping access in deprived neighbourhoods.

4.13 The report can be found on the SEU website. Its main finding was that thereis marked paucity of good quality research in this area. Nevertheless, wefound the recent research undertaken by the Business School at NottinghamUniversity “Neighbourhood Shopping in the Millennium” and the BusinessSchool at Durham University “The Future of Neighbourhood Retailing”extremely valuable and in fact some of the developments which their researchsuggests have been recommended in this report.

MORI Poll

4.14 We also commissioned MORI to undertake a survey of the shopping patternsof low income groups to try and discover:-

• where they shopped most frequently;• what they bought;• how much they spent; and• how they travelled there.

4.15 We asked them to:-

• examine the options towards their present shopping facilities;• why they used such shops;• how satisfied they were with them; and

30

• what their priorities were for improvement.

4.16 We also wanted to know:-

• what barriers, if any, prevented people on low incomes from shopping atmore ideal facilities; and

• more about general issues which concerned low income customers.

4.17 503 adults over the age of 16 were interviewed face to face in their ownhomes. They were from social classes D and E in 88 sampling points acrossthe country. The key findings can be obtained from the Secretariat on request.

4.18 The results of the survey did not match what we had heard on our visits, orthe views of the communities we had heard about. Of those interviewed in theMORI survey, there were generally high levels of satisfaction with theircurrent shopping facilities, and recognition that there had been improvementin their shopping facilities over the last ten years. Despite this level ofsatisfaction, respondents did consider that there was room for improvement.Low prices and a wider range of goods available were picked out as areaswhere improvements could be made. Those barriers to better shopping accesswhich did exist were identified as mainly of physical access e.g. distance, theneed to own a car or lack of public transport or prohibitive cost.

4.19 Further work is clearly needed on how best to capture the views of localresidents on shopping provision and the day to day problems which peopleliving on low incomes face in areas where provision is limited and of a poorquality. The MORI survey has demonstrated that different survey methodsneed to be developed and used to gain the views of more isolated groupsliving in deprived neighbourhoods. Nevertheless, it is reassuring to see thatgenerally those interviewed in the MORI survey expressed high levels ofsatisfaction with their current shopping facilities.

4.20 Most of the information about the communities themselves, their needs andwishes came, therefore, from the PAT members and our visits. It becameapparent quite early on that all communities were different in terms of theproblems they faced and there were, therefore, no template solutions toresolve them. What seemed more appropriate was to develop a range ofapproaches that could be used in different areas and mechanisms fordisseminating good practice across the country.

Common themes which emerged

4.21 Common themes emerging from the PAT’s analysis of the issues were thatcommunities in deprived neighbourhoods where access to shops was aproblem wanted:-

• choice;• access; and• affordability.

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4.22 Common themes emerging in terms of retaining and improving existing retailservices and/or attracting new businesses into these areas were explored bythe mapping groups. These were:-

• crime and community security;• business burdens;• business acumen;• planning, regeneration and transport; and• community responsive initiatives.

Difficult issues

4.23 We have identified a number of issues that are difficult to resolve. We havefound no easy solutions and suspect that the response and suitable provisionwill vary from one neighbourhood to the next. All impact on retail serviceswithin an area and we consider that the cumulative impact of cracking anumber of these may begin to create an environment that is more attractive tocommercial investment and/or sustainable trading enterprises. We have foundelements of good practice and we may need to think more profoundly abouthow we deliver essential services at the neighbourhood level. Further pilotingof initiatives such as community owned retailing, perhaps using those NDCPathfinders with an interest in this area as test beds, will provide moreevidence of good practice.

4.24 Some of these difficult issues are:-

• reconciling/balancing community aspirations with commercial viability;

• balancing special support e.g. fiscal reliefs against unfair competition anddisplacement factors;

• what to do about the likely decline in the number of Asian retailers giventhe demographic and aspirational factors within that community;

• turning the perceptions of the media to cover positive news stories of poorneighbourhoods rather than perpetuating an often ill founded and outdated understanding of the crime and community safety problems withinthese areas; and

• tackling neighbourhood retail crime effectively without leaving thevictim[s] in fear of reprisals/victimisation.

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V REVERSING THE TREND

5.1 From our work so far, we have concluded that the current trends inneighbourhood retailing which were discussed on page 23 can be reversed.The PAT was given evidence that using the very latest information andtechnology, neighbourhood stores have increased their turnover by as muchas 40% with no capital outlay. This was simply by putting the right product inthe right place and giving it the right amount of selling space. In controlledtests, where the store had been refitted as well, sales increased from £700 to£10,000, £4000 to £20,000 per week13.

5.2 Work has shown that small neighbourhoods can sustain small stores if theysell the right goods and are supported locally. Take, for example, acommunity of 4,000 households, with a total average weekly spend of£275,000 (i.e. on average £66 per week). They need spend only 10% of thisat the local shop, and its turnover would be £27,500 per week, over £1m ayear - a healthy business.

VI THE GOAL

6.1 Based on initial discussions with communities, retailers and theirrepresentatives, we set ourselves the following goal:-

to support the provision of accessible retail opportunities which:-

• respond to locally identified needs in an integrated way;• provide a range of quality goods at affordable prices;• offer facilities which are vibrant, viable and sustainable.

6.2 Our report concentrates on the key factors affecting the viability of localretailing and the action that can be taken to make our goal a reality. We nowseek to widen the debate and would be grateful for more views and ideas.

13 Mace Blueprint for Success 1998

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VII THE KEY ELEMENTS NEEDED TO ACHIEVE OUR GOAL

7.1 As previously stressed, this report is based on the need for local communitiesto be consulted, involved and listened to in defining and meeting their needs.One of our mapping groups explored this in more detail and a summary of itsfindings and recommendations can be found at Annex 5.

7.2 The key elements to achieving our goal, which are considered in more detailin the following sections, are:-

A: a local retail strategy;B: proactive planning – this is discussed under planning and

regeneration;C: crime reduction and the fear of crime;D: improving business support for small retailers;E: easing business burdens on small retailers.

A. A local retail strategy

The Problem

A1. There is no established practice of developing a retail strategy when localregeneration strategies or plans are constructed; consequently, there is nosingle person, organisation or body responsible for pulling together the viewsand needs of local key stakeholders (including the retailers themselves) sothat retail needs can be planned and implemented successfully at the locallevel.

The way forward

A2. Working with appropriate agencies, communities should be given supportand encouraged to develop their strategy for improving access to shops andservices in their neighbourhood.

A3. One mechanism for delivering a retail strategy would be through thedevelopment and establishment of local retail forums as part of theneighbourhood management package that PAT 4 is currently considering.Such forums would enable communities and key stakeholders, including localtraders and landlords, to work in partnership to:-

• audit the current local retail provision, identify local assets, including longterm vacant properties, overlaps and gaps; use tried and tested retailingindustry models to assess demand;

• develop and agree a local strategy for improving access to shops andservices, in the context of district, town, city and regional wide plans and inthe context of achieving a longer term health gain as described in theforthcoming white paper “Our Healthier Nation”;

• work together to implement, monitor and review the strategy.

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A4. It will be important that landlords, whether they are the local authorities,housing agencies, private sector organisations or individuals, are all part ofthe development of the strategy and all sign up to it.

ACTION 1:


A neighbourhood retail forum

A5. Two estates were visited located in a large conurbation; each illustrated indifferent ways the need for a local retail strategy.

Area A - The need for an audit of local retail services.

This area had

• benefited from a major estate regeneration programme, several tower blocks hadbeen refurbished, and local community services including a nursery, communitycentre and health centre were now conveniently grouped within the estate;

• no shops actually on the estate although there was a small convenience store verynearby;

• local consultation revealed a need for retails units and two were underconstruction;

• larger retailers providing a home delivery service within the area.

It was not clear whether:-

• local residents used the local store or their levels of satisfaction with the service itprovided;

• the local trader had had the opportunity to contribute to the consultation on localshopping provision;

• the likely impact of the multiple retailers home delivery service had beenassessed in considering the commercial viability of new shops/units; and

• there were other retail services easily accessible nearby.

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A local audit of current provision would provide an informed basis on which acommunity consultation, including the local retailers, could take. It could identifycurrent assets and the various options for consideration. This could be furtherinformed by utilising models similar to those used by the retail sector, to assesslikely demand and spend of the local population. The end product, working inpartnership with the key stakeholders, would be an agreed local retail strategy. Aneighbourhood or local retail forum, linking into the neighbourhood managementmodel, may provide one mechanism for taking this forward.

Area B

This area had recently been refurbished and was a pleasant square, with colourfulfacades and seating. It had:-• some empty shops,• a café which was still trading although threatened with closure since the

workmen from the recent building work had now left;• a community centre in one corner with banners outside; and• a hairdressers, which offered low cost hairdressing to senior citizens on

Mondays.

Other than this, there was not much activity in the square. The local tenants officesaid:-• the empty shops were being let as fast food outlets and for what they considered

to be other ‘non-essential’ services;• the lack of competition resulted in a poor offering at the convenience store - poor

choice of food, few fresh items and it was generally expensive to shop there;• the local weekly market a few streets away was threatened with closure;• new services should supplement those already in the neighbourhood;• they had not been consulted about local needs before the shops were let.

Were the model of a neighbourhood retail forum model applied to this situation, thepossible scenario might be:-

• the above information is pooled and shared with key stakeholders; and

• a common understanding is developed and so a broader and more informed viewcan be taken about priorities for future local retail developments.

The local authority, as one of the key stakeholders, would probably haverepresentation from various departments on the forum. In this case, the localauthority is the Landlord and is therefore responsible for letting the empty shops.Currently, the department responsible for lettings has no dialogue with the localcommunity and so no account is taken of their needs when the empty shops are let.

The local authority is also responsible for allowing local markets to trade.Representation on the neighbourhood forum from the relevant local authority

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department would allow some debate with other key stakeholders, such as the localcommunity and other retailers, as to whether it was feasible and desirable to relocateinto the square the local market threatened with closure. This might increase localactivity and so increase the overall level of trade in the square.

B. Proactive planning and regeneration

Planning

Current policy

B1. The planning system has facilitated the centralisation of shopping in large,out-of-centre foodstores, which has accelerated the decline of local shops.These superstores have widened the range of goods and services theyprovide, progressively including more local services, such as chemists andpost offices, thereby reducing the number of such outlets in local centres. Asa result local centres have become fragile and are contracting.

B2. The planning system should not obstruct or hinder the provision of shoppingon or close to housing estates, but neither does it actively seek to help,encourage or facilitate such provision. Nor does it seek to create a more levelplaying field when competing with large new stores, whether in or outsideexisting centres.

The problem

B3. We found:-

• hollow consultation: too often communities are consulted about the futurepattern of shopping facilities in their neighbourhood but are not listenedtoo, their views not acted upon; often it appears that consultation is notintegrated with discussions with local retailers and a commonunderstanding of the constraints and drivers for successful retailing is notdeveloped;

• reactive planning: planning has for too long been about controllingdevelopment rather than actively promoting local retail centres orimproving access for local communities to a range of everyday needs;

• low quality local shops: where local centres exist or small neighbourhoodshops remain, too often they provide a service of variable quality, frompremises in various states of repair, and planners and retailers fail to takeadvantage of the opportunity for retail centres to act as a focal point in theneighbourhood where people can meet and pass the time of day.

The way forward

B4. Planning could, however, play a much more positive action and proactiverole to strengthen local shopping centres by:

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• assessing the coverage of local centres, identifying deficiencies in accessto shops and services;

• working closely with the local communities to identify their needs,deficiencies in provision and what types of provision need to be added tolocal centres;

• agreeing with the local community a vision for the development of thelocal centre

• adopting and actively pursuing policies to:-

v encourage private investment in the centre;v influence the location of Council and other public services;v improve the centre through an action plan, using planning,

regeneration and highways powers;v encourage economic development, including the support for small

businesses;

• actively seeking potential providers of key services that are missing to fillin key gaps in provision.

ACTION 2

We recommend that as part of the Urban White Paper, the Government should setout a more proactive approach to planning for community needs at the local level,including retailing. This should then be followed up by a planning policy guidancenote (PPG) from DETR.

R1. The references to proactive planning in the Urban White paper and thesubsequent PPG should based on the principles outlined below:-

• improvements in local shopping access, based on local communitygenerated solutions, should be identified as a core issue for localregeneration funding;

• a more proactive approach should be taken in the regeneration of localcentres in deprived neighbourhoods, using neighbourhood planningprocesses, such as “planning for real”, to help articulate the community'svision and devise a strategy for achieving improved access to shoppingand services;

• planners should be encouraged to work at a neighbourhood level withcommunities to identify local service needs and to take forward thoseplans with their local economic development teams to identify and marketcommercially viable retail sites within the neighbourhood;

• where appropriate, a range of services, which aim to meet everydayneeds, should be grouped together to build up local centres e.g. a healthcentre and pharmacy, and an outlet which provides access to cash;

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• local authorities should discourage the provision of new stores over 1,000square metres gross floorspace outside named major centres in theirdevelopment plans;

• local authorities should be more flexible in permitting "mixed use" ofpremises to facilitate existing non-shop facilities providing "shopping"and shops to provide other services (already possible without permission);and

• local authorities should actively promote flats over shops and change ofuse of shops, where appropriate, to make existing local centres becomemore viable. DETR, working with the property profession and insuranceindustry, should review the options for lease arrangements and marketawareness, and put in place a strategy with local government and others,to promote increased residential use above retail premises in deprivedneighbourhoods areas (and elsewhere). Retailers wishing to find outmore should be able to receive information that is consistent and easilyavailable.

R2. We also recommend that local authorities should work with the grain of localcommunity needs as viewed by residents and should endeavour to workwithin their existing structures, however, informal. The Local GovernmentAssociation and/or the Local Government Management Board should refineand promote good practice on developing effective listening mechanisms e.g.using the work from the Rowntree Foundation and dissemination of goodpractice, such as setting up Community Teams in poor neighbourhoods(Coventry approach- see Annex 6).

Putting Planning Gain to Social Use

Current policy

B5. Section 106 of the Town and Country Planning Act 1990 allows for what isknown as "planning gain". This enables local planning authorities to require"benefits" from developers of particular sites. The section allows localauthorities to extract some social benefit from new developments.

Problem B6. In practice, these usually relate to site-based, physical requirements, such as

pedestrian access, a roundabout, traffic calming measures and so on. Forlarger sites, planning gain might include community facilities, such as acrèche or meeting rooms. On occasions, there are more imaginative forms ofplanning gain such as a developer in Docklands donating £1m to acommunity fund. This social use of planning gain tends not to be popular as itcan be contested by the developer.

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The way forward B7. Putting it into a new “social” context would provide a mechanism whereby

local communities could define and vocalise their perception and preferencesof planning gain rather than others (often living outside the area) imposingtheir notion of how the local community or environment could benefit.

R3. We recommend that DETR should explore the potential for (and if

appropriate issue guidance on) using agreements under Section 106 of theTown and Country Act 1990 to support investment in provision for localretailing and other services within deprived neighbourhoods conditional oncommunity input planning such provision.

Regeneration

B8. There are two aspects of regeneration we think are worth mentioning. Theseare:-(i) interpretation of competitive rules(ii) the need for a small redevelopment agency.

Interpretation of competitive rules

Current policy

B9. The current competitive tendering rules which operate in local governmentmeans that regeneration agencies need to demonstrate value for money insecuring contracts where these are funded using public monies.

Problem

B10. The usual interpretation of the most competitively priced tender is that it isthe cheapest. However, account is rarely taken of the regenerationopportunities and the support for the local economy which awarding thecontract to a local provider might bring.

The way forward

B11. We consider that the present tendering rules cut across the thrust ofregeneration initiatives. Whilst a local provider may not necessarily providethe cheapest priced tender, it may have added value to the local economy ifawarded the contract. Whilst we would not wish to provide an opportunity tohike up prices, we nevertheless consider that how “value for money” isdefined in these circumstances should be revisited. It should address theadded economic value to a locality which recycling of regeneration fundsmay bring by awarding contracts funded through regeneration programmes tolocal businesses and so boost the local economy in which the regenerationprogramme is based.

R4. We recommend that efforts should be made where possible to both recruitand procure locally. Value for money should assess the social benefits to the

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local economy as well as the price, when awarding contracts through thecompetitive tendering process using funds from regeneration programmes.

Redevelopment agency

Problem

B12. The condition of the shop premises in some neighbourhoods is so poor that itis unlikely to attract any private investment even if a package of fiscalincentives were in place to make the prospect more appealing.

Way forward

B13. Consideration should be given to establishing an agency that would beresourced to promote the provision of good quality premises by refurbishingor redeveloping shops in a poor state of repair where the community hadidentified such an opportunity. The agency could act in a similar capacity asEnglish Partnerships but concentrate only on small scale projects, or could bewithin English Partnerships or the Regional Development Agencies. TheAgency would be charged with proactively providing suitable modern(ised)shop premises where the community had identified a need but no commercialdeveloper was prepared to invest or where gap funding was required to makethe investment attractive to the market. It would have streamlinedcompulsory purchase powers in areas identified as priority neighbourhoodshopping areas. In partnership with organisations such as Community OwnedRetailing (COR), the Agency would promote a viable community store andonce the shop had become commercially viable, the premises could be sold asan ongoing investment and the initial outlay recycled.

R5. We recommend that consideration should be given to establishing an agencywhich would be resourced to refurbish/refit those shops in poor condition indeprived neighbourhoods which otherwise would not attract privateinvestment. Once they became going concerns, they could be sold to recoupthe initial capital investment. This could be based on the English Partnershipmodel of community development funds/managers and may form part of thefunction of Regional Development Agencies. The development of communityowned retailing in Knowle West, Bristol, involving English Partnerships, mayalso prove be a useful model to follow.

POTENTIAL MODELS

Community-led, Community-owned: Development Trust

B14. This will involve all sectors - public, private and community sectors -working as a partnership to create a development trust as a vehicle fordeveloping community owned facilities, whether a supermarket, street marketand/or community transport to ensure access to goods and services forresidents. Examples include community-owned and run supermarkets on orclose to the housing estates such as those in Robin Hood Close, St Annes,

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Nottingham, Knowle West in Bristol and the one below in Longley inSheffield.

R6. We recommend that DETR provide good practice guidance on howcommunity development trusts can contribute to improving shopping accessin deprived neighbourhoods.

The Community Owned Retailing project

B15. Community Owned Retailing (COR) has been developed by Toby Peters,with the support of Booker, Business in the Community (see Annex 7), Mace,William Reed Publishing and nine manufacturers. It aims to:-

“provide the community with a range of healthy food, products and services,which are tailored to their needs and can be stocked economically, when theyare required from an accessible, well presented and hygienic store (or stores)giving friendly service at a cost to the consumer which is seen to be offeringvalue.”

B16. The objective of the COR project is to unite the grocery industry in a singleregeneration scheme which will re-introduce contemporary and commerciallyviable neighbourhood stores (cafés, service providers where appropriate)back into the fabric of our society. Food-based businesses will be built asintegral elements of the community. Store profits will be re-invested in eachcommunity.

B17. This programme will succeed because it:-

• is community drive;• is committed to standards, training and innovation;• provides reciprocal reward; and• recognises the potential of the community.

Summary of key elements

B18. Targeting – COR recognises the purchasing differences between differentcommunities and enables each neighbourhood store to identify and respond tothe needs and opportunities of its neighbourhood.

B19. Training - every store team will know how to provide the community with arange of products and services, tailored to their needs, when they are requiredat a cost to the consumer which is seen to be offering value. An industrysecondment/mentoring scheme is proposed as part of the full programme.

B20. Funding - every store team will have the funding to create a well-presentedhygienic environment. This will be supplied as interest free loans from anindustry fund.

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COR - A Practical Example of one Potential Way Forward

COR is community driven. The neighbourhood stores are community owned and runby the community on a commercial basis (including properly salaried staff). Theprofits are re-invested back into the community. Marketing, training and funding arethe three core elements. A market analysis is a crucial element in assessing theviability of a vibrant and sustainable new store. This forms the basis of the businessplan. Annex 5 provides more details.

COR includes the potential for the longer term health benefits that form the heart ofthe Government’s health strategy as well. Its aim is to promote access to those foodswhich form part of a healthy and balanced diet e.g. pasta, low fat dairy products andfruit and vegetables. The first pilot store was opened recently in Longley, Sheffieldby David Blunkett, the local MP, and Tessa Jowell, the Minister for Public Health.

Next Steps

The Department of Health has asked for more work to be done on the feasibility ofrolling out this programme further, with a view to making development fundsavailable. A number of New Deal for Communities Pathfinder areas have expressedan interest in pursuing this in their areas.

C. Crime reduction and the fear of crime

Current policy

C1. Until recently, business crime was treated as a matter for those partiesdirectly involved, and not the wider community. This is changing, mostnoticeably for town and city centres, where town centre management hasbrought about, with retail encouragement, a more holistic approach to crimereduction. The benefits of this can be seen in data set out in the British RetailConsortium (BRC) annual Retail Crime Survey14 as losses across the sectorhave been reduced, with higher spending on crime prevention. At a locallevel, this is paying off with many town centres and city centres witnessingreductions in many categories of crime.

C2. The new Crime and Disorder Act (CDA) provides a framework for crimereduction throughout the community. It places a clear legal obligation onlocal authorities and the police jointly to develop and implement a strategyfor tackling crime and disorder. The Act provides for partnership with thepolice authority, probation committee and voluntary and business interests,amongst others. The first stage of this process is the development of localstrategies and these were due for completion by April 1999. The informationgathered will be helpful in deciding on the scope and direction of any futureaction.

14 BRC Retail Crime Survey 1998

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The problem

C3. There are two aspects to neighbourhood crime. Firstly, retail crime itself, andsecondly, crime and the fear of crime within the neighbourhood. Both shouldbe taken into account in developing a local retail strategy.

C4. Crime and the fear of crime, particularly perceived or actual threats topersonal safety, can negatively impact on the number of people circulatingaround the neighbourhood. This may limit the amount of passing trade thatthe store might otherwise capture. Poor quality environments due tovandalism or graffiti also inhibit a vibrant shopping area and may also deterlocal people from using the local shops as a community gathering placewhere they can meet for a chat.

C5. There is a high level of repeat victimisation, particularly amongst Asian andother minority communities traders, it can impact negatively both on personalsafety and the individual’s willingness to trade in that area, and on theviability of a retail outlet by increasing overheads beyond what the businesscan sustain.

(i) Retail crime

Problem

C6. Crime is a factor in restricting the potential for new investment andmaintaining existing traders in deprived neighbourhoods. For example, ashop already borderline in trading terms may be pushed over the edge by anyone of the following:-

• high customer theft;• criminal damage;• threatened or real violence;• chronic victimisation.

C7. This is particularly the case with violence and racial abuse. Business start-upsare also vulnerable given the major impact of non-budgeted costs in the firstyear of trading.

C8. A major problem for traders in excluded areas (and possibly other smallbusinesses) is isolation from sources of advice, whether fellow traders,police, local council or others. Isolation, along with operating at tightmargins, may mean that traders invest in inappropriate security equipment,are unable to share common problems (disorder, minor criminal damage)which may, in turn, accentuate the fear of physical attack, especially at shopclosing time or if the shop is open long-hours.

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Case study

An owner of a chain of convenience stores contacted the police about chronicvictimisation in several stores, and one shop in particular. Crimes including:-• ram-raids;• attacks on staff;• interference with deliveries; and• arsonamongst others, were experienced.

Staff morale declined, and dissatisfaction with police performance rose.

In one year:-• 300 incidents were recorded,• many others going unreported, and• neighbouring police divisions unable to exchange basic information about

incidents and patterns.

However, since the retailer’s approach to the police:-

• considerable advances have been made;• a partnership has emerged with far better understanding of the problems and

solutions, including targeting of persistent offenders;• this has been supported by crime prevention equipment, staff training, and the

deployment of a team of 4 police officers based in a local community centre;• the local community has been engaged, with probation officers, magistrates,

ethnic minorities and schools involved;• targeting of offenders means that resources can be used more effectively; and• the retailer is empowered to take remedial action - exclusion orders are served on

all those charged.

More work needs to be done on witness support (to combat fear of reprisals) and onkeeping victims up to date with progress during an on-going investigation andafterwards when the case goes to court. However, a business under threat of closurehas been saved, with benefits for the community as a whole, and much strongerengagement by the police in local community issues.

The way forward

C9. Traders, even when in close proximity to another, often feel isolated when anincident is taking place or when challenging a suspected offender. This senseof isolation is experienced when the store is located in town centre shoppingdevelopments and high streets but perhaps is more acutely felt by the singlehanded or sole trader in a deprived neighbourhood. More towns and cities inthis country are using radio links and close circuit television (CCTV) toreduce this problem. Research is needed to evaluate the effectiveness of retailradio-links and other similar measures, but initial feedback from those

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retailers operating existing schemes, and from the police, has been positivewith up to 33% reductions in crime.

C10. There is also a growing use of remote-monitoring using CCTV equipmentand images relayed via the telephone system. This can lessen concerns aboutexposure to crime when the business is closed. Certain larger retailers areusing this technology and some useful information is emerging. This may bea useful approach for traders in poor neighbourhoods, perhaps located in aparade of shops linked to a housing development. In such locations, arelatively simple (and inexpensive) system, with direct links to the police,might help boost confidence and reduce the threat, (particularly when wordgot around) of likely offenders.

C11. The retail sector has done more work than other sectors on crime prevention.The Retail Crime Reduction Action Team (RCRAT), chaired by KeithCameron (Board Director of Arcadia Group PLC, and of BRC), was set up in1998 by the then, Home Office Minister, Alun Michael, to promote an action-oriented approach to retail crime reduction. The Team draws on expertisefrom the retail sector, police, local government and other interests. RCRATproduced a guide to retail issues and community crime reductionpartnerships, launched by Paul Boateng, the new Minister, in January 199915.And, up until now, it has focused on getting information to local councils andpolice commanders to assist in the preparation of local crime audits andstrategy.

C12. Retail crime, for example shop theft, is often the first criminal experience ofyoung people and could provide the gateway into more serious crime anddisorder offences. There are obvious linkages here with the work of PAT 12on disaffected young people, who may wish to consider this further.

C13. Reducing retail crime should be taken more seriously. More resources shouldbe invested in targeting the crime and disorder problems of deprivedneighbourhoods in order to make them a more attractive place for retailinvestment. The new audits and strategies being drawn up by the local crimeand disorder partnerships provide the right local mechanism.

ACTION 3:-



15 Community Crime Reduction Partnerships – The Retail Contribution 1998 Published by the HomeOffice

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R7. We recommend that as part of the drive to identify and encourage goodpractice, there should be:-

• wider piloting of radio links and other technology such as CCTV with thepotential benefits being disseminated throughout the retail sector; NDCPathfinders may wish to consider such a pilot to evaluate its effectivenessat the neighbourhood level.

Case study: Housing above shops

Work undertaken by Sheffield Hallam University and the Empty Homes Agency,and published by the Joseph Rowntree Foundation, 16 examined the relationshipbetween housing over shops and retail crime. It found that there:-

• was little contact between shopkeepers, residents and Housing Associations (orother bodies) on crime issues;

• was the potential to exploit living accommodation above premises, but fears overincreased risk (on the part of occupiers and owners) and the attitude of insurers,were hindering progress; and

• a lack of statistical information about any positive link between housing andretail crime, and much information is of a perceptive and anecdotal nature -35%of the residents surveyed had reported an incident – usually to the police and45% of those living above shops thought it offered a safer environment (mostlysingle adults and childless couples 19-44 years old).

The views of property owners, occupiers and managers were mixed.• Fears tend to focus on the type of tenant and control over successor tenants, and

increased risk from crime resulting from access to the premises.• Property managers also saw benefits, as did some owners when comparing the

risk with that of an empty property.Insurers had a stranger attitude – they recognised the risks associated with emptyproperty, but often refused to grant insurance for premises occupied by tenants whoare unemployed, on benefit, or with no housing history. Alternatively, the premiumswere much higher.

16 ‘The safety and security implications of housing over shops.’ Sheffield Hallam University and theEmpty Homes Agency: Housing Research 203, February 1997. Published by the Joseph RowntreeFoundation

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• There is a need to stimulate regular contact between residents and localbusinesses on crime issues;

• the negative perceptions concerning property letting and insuring need to beovercome;

• the relationship between increased habitation and retail (and other commercial)crime needs to be explored in greater depth; and,

• there seems to be some confusion over the forms of tenancy agreement on offerand the insurance risk.

(ii) Crime reduction and the fear of crime

The problem

C14. The information about crime patterns illustrates the need for better qualitydata and better analysis of it. 4% of victims suffer 40% of crime, 2,000neighbourhoods account for 75% of reported crime, 6% of offenders accountfor 60% of detected crime, and so on.

The way forward

C15. Measures to tackle crime must come from, and be owned by, the localcommunity. This is the core essence of the Crime and Disorder Act. The trueimpact of retail crime on the wider community needs to be better appreciatedby those who live locally. Increased crime can force up prices, reduce choiceand blight the whole community by making it less attractive to invest.Residents should be encouraged to view crime as something on which theycan have a positive impact. However, there is often a fear of intimidation oractual violence should they be seen as police informers, and although theCDA addresses this issue, real action needs to be taken to build confidence.This is a wider issue than retail crime, but better local surveillance shouldhelp to reduce the level of crime experienced by local traders.

C16. Better data analysis would enable visible patrols and other resources to betargeted towards likely offenders, locations and crime types. Police patrolscould be directed to coincide with periods of greatest risk from both crimeand disorder. Better targeting of resources should be a by-product of theCrime and Disorder Act analysis required in all areas. A good compromisebetween patrolling or just responding to incidents from a central station mightbe the use of police ‘offices’ or mini-stations located in local centres,sometimes sharing premises with other services. These could provide a readysource of advice and ensure that officers are aware of local issues. The use ofpolice stations was critically examined by the Audit Commission in a recentreport “Action Stations: Improving the management of the police estate.” Itconsidered this issue in detail and made recommendations for improvementwhere necessary. This links in with other policy action teams considering, forexample, neighbourhood management (PAT 4), neighbourhood wardens(PAT 6) and anti-social behaviour (PAT 8).

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C17. As a backdrop to changes in the approach to community safety and the role ofthe police, we reviewed recent work carried out by the Audit Commissioninto community safety. 17 It reinforces the need for a partnership approach totackling crime. The Audit Commission supports the view that fear of crimeand disorder makes life miserable for many people in the community, coststhe UK around £50 billion per year and concludes that many crimeprevention strategies have not been effective in reducing crime.

C18. The impact of negative reporting in the media, which tends to highlightcrime, but measures to combat crime are seldom given equal prominence, is adifficult area and there does not appear to be a ready-made solution. Effortsneed to be made to establish good working links with the local press to ensurethat good news stories of reduction in crime, neighbourhood watch etc. arereported and not merely negative, stigmatising reports.

C19. Local police commanders (who can be expected to build up a good workingrelationship with the local press) should aim to work with councillors andothers with a community role, and put across positive aspects of thecommunity. Such relationships have been reinforced by the requirements ofthe Crime and Disorder Act (CDA). Success in bringing down the overallnumber of incidents (if applicable) particularly of street crime, which tends tofuel the fear of crime, should be put across.

C20. Combating chronic victimisation, where one or more businesses (orindividuals) face repeated crime, sometimes violent in nature, and oftenracially motivated must be a priority for police divisional commanders andtheir officers (see the case study below on the SBCI research). Repeatincidents must be better recorded and anti-crime measures discussed with thevictim. Racially motivated incidents are usually subject to special procedures.

C21. There is a need for better police data on repeat offences, and business crimein particular, with more effective dissemination of best practice. Policeprocedures should ensure that repeat victimisation of businesses, especiallythose operated/staffed by members of ethnic minorities, are tracked andremedial action taken at an early stage. Improved data will also help toidentify any correlation between repeat victimisation and racially motivatedcrime.

C22. Local police managers must also be sensitive to picking up repeat problemsand to offer advice. In areas where there is a high incidence of traders fromethnic minorities, this must be a priority. Local crime audits/strategies offerthe potential to put in place a well-planned set of measures to combat suchproblems since they will almost certainly highlight ‘lower level’ disorderissues which plague local communities such as graffiti, minor criminaldamage, general anti-social behaviour) and which are resource-intensive todeal with piecemeal. Larger retail businesses have been offering genericadvice to smaller traders for some time but take up has been poor. Local

17 Safety in Numbers: Promoting Community Safety. ISBN 1 86240 131 4 The Audit Commission.February 1999

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delivery of such advice, via Chambers or TECs, may be preferable to anational initiative.

C23. There is a need to highlight the business case in support of measures toreduce crime so that traders can see that they can make a difference with thesupport of the police and other agencies. The fact that a busy shop means thatthere are more people in the vicinity of the shop may act as deterrent to crimeas well increasing people’s sense of personal security. A concerted effort isneeded to get the message across, while at the same time exploding the myththat all measures to improve security are expensive to install and maintain.


• the Association of Chief Police Officers (ACPO) should be asked toclarify how racial incidents affecting businesses (criminal damage andother offences) are treated/recorded compared to those affecting theperson (assault, threatening behaviour and so on). This is important asbusiness crime or criminal damage may be a pre-cursor to personalattack and abuse; and

• working with the British Retail Consortium and other organisations,further attempts should be made to target appropriate advice at thosebusinesses at greatest risk of repeat victimisation.

Focused local initiatives can reduce crime: the Leicester experience

The Small Business and Crime Initiative (SBCI)18 focused on the major problemsassociated with repeat and chronic victimisation in areas primarily served by smallretail businesses and which were ethnically diverse. It focused on two areas ofLeicester: Belgrave (predominantly Asian in population make-up), and the West End(culturally and ethnically mixed).

Both areas have a significant number of longerterm residents and a transient studentpopulation. About 1,400 businesses were covered in total, all of which weresurveyed (with follow-up action if required).

This initial exercise confirmed that• businesses are more vulnerable to crime across a wider range of offence

categories (than residential premises);• commercial crime is unevenly distributed;• repeat victimisation was a significant problem.

Based on this survey, the team focused on• businesses suffering chronic victimisation (10 or more incidents a year);• those victims of commercial burglary; and• those firms facing frequent incidents of customer theft, abuse and fraud.

18 Business as Usual: An Evaluation of the Small Business and Crime Initiative, Police ResearchSeries Paper 35, Home Office 1998

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The project, which was resource-intensive, aimed to contact and advise businesseswith chronic victimisation, dealing also with further referrals from the police.

• 17% of businesses suffered 69% of all reported incidents.

Improved systems for rapid referral of burglary victims were developed, with advicegiven on reducing repeat incidents and measures to aid detection where repeatincidents were expected.

Finally, advice packs were made available to businesses experiencing customer theftand fraud. This was complemented by encouraging the setting up of co-operatingbusiness groups where clusters faced similar problems. A multi-agency advisorygroup dealt with any implementation problems. Commercial burglary problems weremonitored through regular police data on local rates and trends.

The evaluation (in September 1997) identified a number of positive developments:-

• Commercial crime overall fell substantially (-33%): all crime rates mirrored this,except customer theft. Criminal damage also fell.

• The rate of non-domestic burglary fell at around twice the rate (-41%) in thetarget areas when compared to the remainder of the force area.

• Problems of chronic victimisation tend to migrate to neighbouring premises: thistrend could be pre-empted.

• Increased awareness of the crime risk within a small area can yield crimereductions.

• Further research is needed to examine what switches a business on to and offfrom high levels of repeat victimisation.

• While the benefits of intervention for chronically affected businesses requiresfurther evaluation, the targeted approach, while resource-costly, provides betterinformation about incidents and a quick response to reduce risks.

• Neighbouring police beats benefited from this improvement.• Police systems for recording incidents and tracking repeat cases were developed:

these are essential to allow quick and targeted response.• Reported crime is a fraction (perhaps only 40%) of the total number of offences

being committed (the British Crime Survey supports this view).• The project team was able to intervene and suggest equipment and other

measures, with funding to purchase, or match fund, items. This helped overcomebusiness reluctance to purchase security equipment.

R9. We recommend that the Small Business and Crime Initiative project shouldbe revisited to assess its longer term benefits and to identify best practice.


• the Business Crime Check (BCC) project exists to collate good practice inretail/business crime prevention, including current policing initiativesand disseminate to interested parties. Further consideration should begiven on how to best collate business crime statistics/repeat victimisation

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(particularly racial incidents) and what remedial action needs to betaken. However, the BCC is funded by the private sector for a limitedperiod and there may be a need to address how funding of the schemecould be made more permanent;

• revised guidance should encourage partnerships to consider issuesconnected with neighbourhood shopping areas.

D. Improving Business Support For Small Retailers

D1. There are two aspects to this. These are improving:-

(i) business skills; and(ii) access to finance.

(i) Business Skills

Current policy

D2. The Government is firmly committed to stimulating the creation,competitiveness and growth of new and small businesses.

D3. The key principles underlying the government’s approach include:-

• fostering an enterprise culture that encourages innovators and risk takers;

• providing and maintaining a supportive economic and social environment;

• identifying and removing barriers to growth; and

• providing high quality business support for firms at all stages of theirdevelopment.

D4. However, the effectiveness of Government support (both direct and indirect)varies hugely across the country. It is as variable as the capabilities of theprovider who delivers the assistance and the willingness of retailers to seekout and grasp the opportunities from it. There is also a deep cynicism of theeffectiveness of support from ‘men in grey suits’ many of whom areconnected to bureaucratic organisations. Small retailers are much more likelyto seek, and accept advice from their family, peers and those they trust havingdeveloped a constructive relationship. Any mechanism not taking account ofthese needs is likely to be ignored.

D5. There is also some misunderstanding surrounding what it is appropriate forthe Government and other support agencies to do because of resourcepressures, dangers of displacement through intervention, and indeed what isappropriate for government action.

D6. The thrust of any business advice organisation is to encourage the micro-enterprise entrepreneur to move away from firefighting and encourage the

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survival and development of the business. However, one of the majorcriticisms of the current advice on offer, is that it is remote; locatedphysically away from the modus operandi of many small businesses. Theadvice too, is often remote in terms of its content, as it is tailored to meet theneeds of larger businesses (10 employees or more)and is not adapted to suitthe micro-enterprise.

D7. To bring about a shift in Government priorities there would need to beconvincing evidence of the potential economic/quality of life benefits thatwould be achieved. Furthermore it would require action and commitmentfrom those supplying, or intending to supply, retailing services. In order tobring these changes about an effective partnership of central and localgovernment, Chambers of Commerce, umbrella bodies for Business Links(BL’s), Training and Enterprise Councils (TECs) and organisations such astrade bodies and the National Training Organisations (NTO) would benecessary.

The way forward

D8. Survival will depend on consummate marketing skills and excellent customerservice, together with strategic stock control, display and the ability todiversify rapidly. Small retailers will need to help spread best practicethrough the exchange of views and ideas, and find out how best they canserve their local population. They will also need to develop close partnershipswith their local economic units at Town Halls to ensure their needs andconcerns are expressed and taken into consideration. The table at Annex 8highlights the diverse range of issues which need to be addressed by anindependent person wanting to set up a small retail outlet.

D9. There is a range of support available to small retailers from both the publicand private sectors, including representative organisations (Annexes 8 and 9).However research identified that, with the exception of help from symbolgroups, such as Spar and Londis, and banks, (in the case of the provision offinance to non-Asian retailers), independent neighbourhood stores receivelittle practical or managerial support beyond members of their own family19.Some retailers believe that government assistance should meet that gap,while others recognise the need to improve their own offering andperformance. Many neighbourhood retailers feel there is little future for theirbusiness and few expect it to be carried on by the next generation of theirfamily.

D10. Small independent retailers want ‘one stop’ advice provided at a local level,at their premises by those who understand the retailers’ problems. Despite theeffectiveness of the schemes and systems currently provided by existingagencies (public and private) positive action is needed to establish moreeffective local mechanisms. Annex 8 and 9 provide details of some of thesupport currently available from a wide variety of organisations..

19 The Future of the Neighbourhood Store, Durham University Business School 1998

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D11. We have concluded that the micro retail sector needs a strategically managedGovernment policy, which takes a holistic approach to the sector and whichenables policy concerns and developments to be articulated on a more equalfooting.

D12. Small retailers need a very tailored support mechanism. This does not exist atthe moment. Key factors are:-

• the support should be provided at the premises initially;

• the provider must have a deep understanding of the specific retailing andcultural needs and be able to tap into appropriate sources of help; and

• sustainability mechanisms to be established at a local level such asretailing focused networks (including wholesalers, police, LocalAuthorities and other facilitators) to ensure longer term support.

D13. The importance of local support cannot be overemphasised but this needs tobe linked to a mechanism which enables knowledge of success stories (alsoexamples of what has not been successful to ensure the same mistakes are notrepeated) to filter up through regions to a national level. The function of acentral focal point would be to collate and disseminate information. Also, touse the accumulated knowledge to identify generic support requirements suchas user friendly guidance on national regulations and initiatives and what theymean for the small retailer. Broader issues such as training needs and theimpact of proposed legislation could also be addressed by this central focalpoint.

D14. There may be many ways of meeting this need but consideration of a supportmechanism for the micro retailing sector addressing the key factorshighlighted above is recommended. This proposed structure is similar to thatprovided by the National Association of Citizen Advice Bureau’s and CitizenAdvice Bureau’s. A more detailed mechanism has been identified for aNational Micro Retailing Organisation (NMRO) (see Annex 11) whichhighlights the need for a partnership approach at all levels and it isrecommended that this is considered.

D15. The model mapped out in Annex 11 is very much a skeleton of how theproposed NMRO could operate. A number of assumptions are made about themake-up of the body, and quite clearly it would need the support of (anddemand from) small retailers if it were to succeed.

D16. It may be that the recently announced Small Business Service could providethe appropriate structure but, if it cannot, then an alternative solution willneed to be found. The role and functions of the Small Business Service willbe canvassed in the consultation paper to be published shortly. This paperwill include scenarios of national, regional and local relationships to ensurethe delivery of coherent a high quality support services to all businesses.

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ACTION 4


R11. We recommend that, as an interim measure, but which would be takenforward in the long-term by the NMRO, Government departments should beencouraged to provide “one to one” guidance to small businesses (includingretailers). For example, along the lines of the system provided by theDepartment of Social Security (free hotline phone number for both employersand employees).

R12. We recommend that feeding into the “Best Value” initiative, LocalAuthorities should be encouraged to provide co-ordinated advice (such as aninformation pack) designed specifically to meet the needs of small retailingbusinesses. For example, providing advice on health and safety, planning,waste control and trading standards.

R13. We recommend the revision of national education and training to supportsmall shops - expand the pioneering work of Co-operative Wholesale Society(CWS) and Mace by encouraging local business training and education bythe practitioners themselves for dissemination through trade organisationsand colleges, universities and TECs to give high degrees of support for smallshops.

(ii) Access to finance

The problem

D17. As well as a lack of business skills referred to above, post code intoleranceand the perception of “bad risk” make accessing sources of finance for newshops, or improving existing ones, notoriously difficult for the aspirant orexisting trader in deprived neighbourhoods.

D18. Access to special funding is also limited. For example, the Small LoansGuarantee Scheme excludes retailing activities. While capital grants toimprove the physical structure of shop units is often available throughregeneration programmes, access to start up funding towards shop fittings

20 Since finalising this discussion paper, PAT 13 has responded to the consultation exercise on theSBS and a copy of it’s response can be found at Annex 13.

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and stock is not permissible under current rules because of potentialdisplacement effects on existing traders.

The way forward

D19. It is encouraging, therefore, to see business support tailored to meet minoritycommunities needs, such as the HSBC South Asian Banking scheme. Similarfacilities for other small retailers should be explored.

D20. Access to funding would be that much easier if applications from smallretailers were based on sound business plans which demonstrated theirpotential for long term commercial sustainability and also indicated thepositive impact it would have on the neighbourhood. The business supportservices suggested above provide the obvious means to assist them in this.

ACTION 5:



D21. We would suggest that as a condition of guaranteeing a loan, each new businessstart up would have to demonstrate in its business plan, its potential for longterm sustainability and the positive impact it would have on the neighbourhood.

E. Easing business burdens on small retailers

E1. There are two aspects to this. These are:-

(i) fiscal burdens, such as taxes, rates and rents; and

(ii) regulatory burdens.

(i) Easing fiscal burdens

Problem

E2. Small retailers trading in deprived neighbourhoods work at extremely tightmargins. This does not present a very attractive commercial environment forthem to remain in or for new traders to enter. Easing the fiscal burdens, suchas rents, rates and tax, on small businesses operating in these areas mayprovide the incentives needed to keep and improve the quality of provisionalready there and attract new investment in.

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Current policy

E3. Business rates are a tax on the occupation of non-domestic property. Allbusiness and non-domestic property (including that occupied by localauthorities) is liable for rates unless specifically exempted.

E4. Many retail units in poor neighbourhoods are empty, suggesting a low marketrental value and lack of demand. Properties in these areas may be owned by thelocal authority, private landlords or in some cases a housing association orregeneration partnership. Local authority landlords have an obligation to securebest value which often means getting the highest rent possible for a property andclearly private landlords will also share this, although they may also beinterested in maintaining the capital value of the property for accountingpurposes. In both these cases, therefore, landlords may be seeking to rent theproperty out at a higher rent than a shopkeeper is willing to pay. Housingassociations, Housing Action Trusts and regeneration partnerships may be morewilling to charge lower rent in order to contribute to the regeneration of thearea.

The way forward

E5. We support the DETR’s Business Rate Review, one element of which isconsidering whether small businesses (turnover of less than £100,000) shouldbe given progressive mandatory relief on business rates. This was announced inthe Modernising Local Government White Paper (July 1998) and would covershops in deprived areas.

E6. Rate holidays have been used to encourage business start ups as part ofregeneration programmes in the USA and in France. In the UK, properties inEnterprise Zones had 100% business rate relief. Regeneration funding could beused (with consent of the Secretary of State for DETR and the Treasury) toprovide business rate holidays if it resulted in buildings being brought intoeffective use and/or contributed to economic development in the area (HousingGrants, Construction and Regeneration Act 1996, section 126). Granting ratetapers for new businesses are a possible variant on rate holidays.

E7. A fundamental problem with recommending business rate relief as a way tosustain shops in deprived areas is that rents and hence rates are often very low.Therefore the value of any relief offered may be very low and hence have littleimpact. We have also heard that lowering rates can result in rents being hikedup. However, we still believe that rates relief could be an effective part of abroader package of measures to encourage small shops into poorneighbourhoods and consider that it should be explored further. Even if therelief is small, granting it could give important signals about the Governmentand local authorities’ commitment to these areas and to the people who live inthem.

E8. Landlords could be encouraged to take a more active role in supporting thedevelopment of retail services in an area We have explored the followingscenarios.

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Local authority Landlords

In practical terms, local authority landlords could take a more active role by:-• accepting lower rents;• giving rent holidays; or• offering advice in order to bring shops into any neighbourhood and so benefit the

area as a whole.

There are precedents for local authority landlords offering rent flexibilities. There usedto be many examples of retail units owned by local authorities whose aim was tosupport start-up shops. Key features were:-• tapered rents;• the provision of business advice; and• the facility for information to flow between the shopkeepers.

Few of these remain today and part of the explanation for this may well be due topressures on local authority finances.

Another example of where a local authority could take a more active role is in offeringlower rents to ensure “a good tenant mix” as the Royal Borough of Kensington andChelsea has done. Although the approach of Kensington and Chelsea may not seemimmediately transferable to areas where there is little demand for retail outlets, it doesdemonstrate that Local Authorities can still let properties at a rate below what isregarded as best value. Ensuring diversity of retail provision should also fit with thecommunity’s vision and providing lower rents may well help to realise their vision oflocal shopping access.

Private Landlords

Some private landlords charge tenants a base rent plus a percentage of turnover. This :-• gives both landlord and tenant an interest in the business doing well;• means the risk is more evenly shared between the two; and• provides a positive incentive for the landlord to take an interest in the physical

upkeep of the property.

This approach has been taken here in the UK e.g. at railway concourses, airports atfactory outlet centres and in villages. The key to the success seems to be:-

• well/properly constructed leases;• that roughly, the total rent paid by the tenant should not be more than 10% of

turnover as a higher percentage may threaten the viability of the store;• in deprived areas where retail properties are hard to let, it might be more appropriate

for the base rent to be zero, making the total rent purely related to turnover; or• where the shop was linked to a post office or pharmacy, the base rent could be some

fraction of their predictable income e.g. based on the number of transactions fromwhich they earn income from e.g. scripts dispensed.

Instead of granting rent relief, landlords could offer rent holidays to tenants who agreeto refit the premises. In practice this would mean:-

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• that the landlord subsidised the refurbishment of the property.

This could be particularly relevant in poor neighbourhoods where the upkeep of retailproperties is often very poor, and where the fittings are often unsuitable for today’sshopping. See also grants for refurbishment.

E9. Again, there are disadvantages with this approach, especially with a privatelandlord who may prove difficult to influence. However, the main drawbackfrom using rents as a lever is that they are generally low in poorneighbourhoods, and so rent holidays or tapers may not represent much of aconcession to retailers on their own. Grants may prove more effective inimproving properties. There may be a role for encouraging turnover based rentschemes, in order to encourage landlords to take a more active interest in thesuccess of the shop. However, we recognise the difficulty of this, especiallywhere the landlord is not the local authority.

E10. There are also other difficult issues in taking this approach. These are:-

• businesses that benefit from fiscal relief may not be sustainable once therelief is removed;

• granting fiscal relief to certain kinds of shops (i.e. those in deprived areas)could create significant definitional and competition problems; and

• the commercial viability of shops remains important - relief from fiscal orregulatory burdens may not be enough to make a shop profitable.

E11. Within the timescale of this report, we have not had time to explore thissufficiently, especially assessing programmes in Europe and the UnitedStates. Nevertheless, we strongly support the work which DETR is currentlyundertaking which may result in a change in primary legislation givingprogressive and mandatory business rate relief to small businesses. This wouldavoid the need to develop a new scheme specifically aimed at helping retailoutlets in deprived neighbourhoods.

ACTION 6:

More work should be undertaken on assessing the benefits and effectiveness ofproviding fiscal incentives, such as rate, rent and tax relief, linking into the UrbanTaskforce report, the Urban White Paper and the European Commission’s WhitePaper on Commerce. Pending the outcome of DETR’s rate review, it should clarifywhether a “community store” could be eligible for discretionary relief.

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R14. We therefore recommend:-

• that early research is undertaken into the feasibility of using a package offiscal measures to encourage new small shops into poor neighbourhoods andexisting ones to stay e.g. rate holidays to encourage business start ups,granting rate and/or rent tapers for new businesses, linking rents toprofitability.

• there is a need to explore whether the compulsory purchase order (CPO)powers need to be simplified to encourage more Local Authorities whereappropriate to buy the properties in deprived neighbourhoods, from theowners who leave them vacant, in order to ensure that they are brought backinto use. Funding for purchase could come from regeneration programmesor immediate resale to a prospective operator (i.e. a back-to-back sale).

• Local Authorities with the LGA should encourage landlords to take a moreactive role in supporting the development of retail services in an area e.g.using UK experience of local authority landlords in supporting start-upshops, rent flexibilities could be offered, the provision of business advice andthe facility for information to flow between the shopkeepers.

• Local Authorities should use their role as landlord to regulate the tenant mix

and, where necessary, let properties at below market rate to maintain a goodmix of tenants in the area.

(ii) Regulatory burdens

Problem

E12. We have heard time and again about the impact which new regulationsimpose on small retailers. Whilst they understand the necessity of suchregulation in protecting consumers and employees, the cost of compliancewith regulation can be particularly and disproportionately burdensome.

E13. The particular regulatory burdens highlighted by small retailers are outlinedbelow. In addition to the actual level of burden on small businesses, there is aclear perception that regulations impose significant costs. This may be deterringsome entrepreneurs from setting up shops. Therefore, there may be an argumentfor relaxing some regulations to help lessen this perception, even if the actualfinancial benefit for businesses is small. There is also an issue with allregulatory burdens about how “small stores” are defined - often individualshops do not know whether they are going to be exempt from a particular pieceof regulation because of the lack of a consistent definition of “small store”.These burdens include:-

• the minimum wage;• packaging waste regulations;• the Food Standards Agency;• unit pricing;• Health and Safety regulations; and

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• transferring licences.

E14. Rarely does the advice on implementation of the regulation come in alanguage that is easy to understand or is co-ordinated in a way which makes itaccessible. The needs of the small retailers are inherently different to those ofsmall businesses and currently there is no voice to champion their lot.

The way forward

E15. There is no question of exempting small retailers from regulations relating to,for example, product safety, hygiene and the health and safety of staff andcustomers. However, there are circumstances in which exemptions might beappropriate given their disproportionate impact on small retailers and theother protections in place. The Better Regulation Task Force report onConsumer Affairs identifies the exemptions available under the Unit Pricingdirective as a case in point.

E16. Small retailers might also benefit from differential regulatory requirements inareas, such as VAT and accounting and audit arrangements. It is essentialpolicy-makers have clear guidance on the need to take account of smallerbusinesses and that there are arrangements in place to ensure this ishappening. The proportionate cost of complying with these regulations ishigher for small stores and there may be an argument for allocating this burdenmore evenly across different sizes of stores.

E17. Relieving an individual fiscal or regulatory burden will not have a significantimpact on the commercial viability of shops in deprived neighbourhoods.However, a package of reliefs may be helpful in enhancing viability of shops inthese areas.

ACTION 7:

We recommend that the consultation on the role of the new Small Business Serviceshould explore regulatory burdens on small retailers further. It should seek the viewson where this responsibility should most appropriately rest, involving the RegulatoryImpact Unit. It may be that a single person in either organisation should haveresponsibility for assessing the cumulative effect of regulation on small retailers.Whatever the outcome, we recommend that, at the very least, advice to smallretailers on implementing regulations should be:-

• clear;

• understandable to a lay person; and

• formulated in way which is accessible to those it is meant to reach.


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E18. While we would not argue that relieving an individual fiscal or regulatoryburden would have a significant impact on the commercial viability of shops indeprived neighbourhoods, we nevertheless consider that a package of reliefsmay be helpful in enhancing viability of shops in these areas. Even if themagnitude of an individual relief was not large, granting it may send helpfulsignals about the Government and/or local authority’s commitment toincreasing shopping access in deprived neighbourhoods. Granting any kind ofrelief for shops in deprived neighbourhoods would involve complicatedcompetition and definitional issues and this is why research in this area wouldbe helpful.

VIII NEXT STEPS

8.1 There are no quick fixes for improving shopping access for people living inpoor neighbourhoods. All the action points identified in this summary can,however, be taken forward in the short term. All will contribute to easing theproblems that exist. The cumulative effect of implementing all or a number ofthese recommendations will begin to reverse the trend in neighbourhoodretailing. This report should now form the basis of a general discussion, theresults of which can be fed into the development of the national strategy thatthe Social Exclusion Unit will be producing at the end of the year.

8.2 This report is not the end of our work. It is very much the beginning of aprocess that could have a significant impact in tackling the problems thatsome people on low income face in accessing shops which provide a choiceand variety of goods at affordable prices.

ACTION 8



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IX MONITORING THE IMPACT OF IMPROVING SHOPPINGACCESS

9.1 Our experience so far suggests that there is a mismatch between the results ofsurveys e.g. the survey we commissioned from MORI on the shopping habitsof people on low incomes, and the everyday experiences of people living indeprived neighbourhoods whom we have met. For example, our MORIsurvey did not reveal any great dissatisfaction amongst those questionedabout their local shopping facilities. And yet time and again on our visitsresidents have told us and shown us how difficult it is for them to access arange of quality goods at affordable prices. As we have said earlier, moreresearch needs to be undertaken to resolve this apparent discrepancy.

9.2 Whilst recognising that some communities may feel they are suffering fromsurvey fatigue, we consider that the only way to collect reliable informationis through a specially developed questionnaire to be used in theseneighbourhoods. Postal surveys or on the street interviews could be used.Using information from these, indicators could then be extrapolated whichcould be used to measure the impact of any initiative to improve shoppingaccess in that area. Work in developing health impact assessments could alsobe fed into this and could, for example, develop an indicator for improvingshopping access across all deprived neighbourhoods where this was aparticular problem to provide comparative information.

R15. We recommend the development of a questionnaire which could be usedthrough targeted surveys to establish a baseline and, repeated over time, tomeasure the trends and test the effectiveness of interventions in improvingshopping access for people living in deprived neighbourhoods.

9.3 Health impact assessments are another way of measuring the impact that newpolicies or interventions have on local communities. These are currentlybeing developed and it is hoped that some will be piloted through NDCPathfinders. Dr Donald Acheson has advocated health inequality impactassessments, not only to track improvements locally and nationally but alsoto measure the effect in terms of the narrowing the health gap between thebetter off and the worse off. As part of this, and to encourage and these twoagencies to work in partnership to tackle health inequalities, Health andLocal Authorities could work together:-

• to scrutinise all shopping planning proposals;

• to produce annual indices of shopping access in the medium to longerterm - research is currently underway to create a method of assessingshopping access e.g. by North Thames Regional Office / London Schoolof Hygiene and Tropical Medicine in North West London, and the EastLondon and City Health Authority and by SUSTAIN and three LocalAuthorities developing community mapping techniques.

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R16. We recommend therefore that Local Authorities and Health Authoritiesshould jointly conduct Health Impact Assessments on retail provision andplans as a means of monitoring the effectiveness of such interventions onimproving the health of the community and its impact on reducing healthinequalities.

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X RESEARCH

Planning and regeneration

R17. We recommend that the following research be undertaken.

i. Mapping

Regeneration programmes should include an audit of current provision andusage, including an assessment of community needs/views resulting in thedevelopment of a strategy to provide a viable and accessible shop. Researchmay be needed to identify how regeneration audits of current local provisioncan best be conducted. Research is already underway in both academic andcommunity settings to develop mapping indices of access to shops based on anumber of variables.

ii. Assessing effectiveness of measures to improving the viability oflocal facilities

Assessing measures for retaining or capturing sufficient trade to make localfacilities viable, including improvements to local centres21.

iii. Assessing the feasibility of creating "enterprise areas" in poorneighbourhoods:

Assessing the feasibility of identifying areas within deprived neighbourhoodswhich would enjoy greater planning freedom, incentives and reduced rentsand rates to encourage a full range of outlets to provide everyday needswithin the housing area or local centre.

iv. International experience:

A review of how the issue is addressed in other countries, especially Europeand North America.

v. Flats over shops

Research should be commissioned to investigate and quantify the benefits, orotherwise, of increasing residential occupation above shops (and othercommercial premises) for crime reduction and increased viability of the retailunits.

21 The National Pharmaceutical Association is interested in collaborating in any research on thecritical mass of local centres and in particular on the role of the pharmacy as an anchor to sustainingother retail outlets sited within a local centre in deprived neighbourhoods.

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Crime reduction and the threat of crime. R18. New Deal for Communities (NDC) Pathfinders, as potential testbeds for

experimenting with new ideas, may wish to consider the following:-

• NDC Pathfinders may wish to consider the levels of crime against smallbusinesses and, where repeat victimisation is a problem, develop a strategyto combat it together with an enhanced awareness programme to illustratethe full impact of retail crime for the sustainability of the local community.Should any Pathfinders wish to develop this, we recommend that they:-

• examine the best way to promote links between local businessesand residents on crime matters facilitated by HousingAssociations, residents associations, caretakers, or others - thismay link in with other work being undertaken on NeighbourhoodWardens (PAT 6).

• consider piloting work on sector-based policing, supported bylocal traders (possibly in the West Midlands).

• research should be commissioned to investigate and quantify the benefits,or otherwise, of increasing residential occupation above shops (and othercommercial premises) for crime reduction.

• more evaluations are needed of the effectiveness of police offices andsimilar facilities; NDC Pathfinders may wish to consider establishinglocally-based police shops as part of shared community services.

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Annex 1

POLICY ACTION TEAM 13: SHOPS

Champion Minister: Tessa Jowell MP succeeded by Yvette Cooper MP (October1999)

Chair

Dr Eileen Rubery DH

Team members

Tim Lang - Centre for Food Policy, Thames Valley University (TVU)Michele Sadler - Institute of Grocery Distribution (IGD)Mark Bradshaw - Director of Operational Resources, British Retail Consortium(BRC)Marilyn Taylor - Director, Orient RegenerationJeni Bremner - Local Government Association (LCA)Andy Dexter - DVL Smith LtdGeoff Steeley - Chair of Research Group of National Retail Planning Forum (NRPF)Rachel Flowers - Principal Health Development Officer Coventry City CouncilJane Corbett - Resident/community workerPatsy Paterson – Resident/community workerBallu Patel - Small Business representativeJane Atkinson – First PremiseToby Peters – Community Owned Retailing (COR)Trevor Dixon – Association of Convenience Stores (ACS)

Departmental members

Liz Walton – Social Exclusion Unit (SEU)Dr Brendan Yates - South West Regional Office (SWRO)Helen Steele Health Promotion – Department of Health (DH)Don Stewart Northern and Yorks Regional Government OfficeMichael Bach – Department of Environment, Transport and the Regions (DETR)Ann Taggart – Treasury (HMT)Jackie Westlake – Home Office (HO)John Fuller – Department for Education and Employment (DfEE)Lesley Forsdike - Department of Trade and Industry (DTI)Cliff Newman – Department of Social Security (DSS)Jane Rabagliati – Ministry Agriculture, Fisheries and Food (MAFF)Dr Elizabeth Smales – Department of Health (DH)

Secretariat

Heather White – Department of Health (DH)

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Annex 2PAT 13: MEMBERSHIP OF THE MAPPING GROUPS

Crime and Community Safety - lead by British Retail Consortium (BRC) andHome Office (HO)

Mark Bradshaw - BRCJackie Westlake Home Office Crime Prevention AgencyBarry Webb Research Officer - HOSupt Keith Bristow West Midlands PoliceDiana Sampson – Local Government Association (LGA)Keith Cameron Chair – Retail Crime Reduction Action Team (RCRAT) - papersonlyAssistant Chief Constable David Swift of the Association of Chief Police Officers(ACPO) - papers only

Burdens - Lead by Local Government Association (LGA) and Treasury (HMT)

Jeni Bremner - LGAAnn Taggart - HMTJames Lowman Association of Convenience Stores (ACS)Mark Barnet – Department of Environment, Transport and the Regions (DETR)Alistair Dryer - British Retail Consortium (BRC)David Maddison LGAJane Atkinson First Premise

Planning/regeneration/transport - Lead by National Retail Planning Forum(NPRF) and the Department of Environment, Transport and the Regions (DETR)

Geoff Steeley - NPRFMichael Bach - DETRJane Atkinson First PremiseAnn Carter Boots secondee to DETRRachel Flowers Coventry City CouncilGeorge Nicholson - NPRF

Business acumen - Lead by Ballu Patel and Department of Trade and Industry (DTI)

Ballu PatelLesley Forsdike - DTITrevor Dixon Association of Convenience StoresAntonia Evans KPMGNaina Patel Community Consultant

Community responsive initiatives - Lead by Prof Tim Lang and DH

Prof. Tim Lang – Thames Valley University (TVU)Heather White – Department of Health (DH)Rachel Flowers Community Development Officer & PAT 13 member

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Jane Corbett West Everton Community Council & PAT 13 memberMarilyn Taylor Orient Regeneration & PAT 13 memberLiz Walton – Social Exclusion Unit (SEU)Michelle Sadler Institute of Grocery Distribution (IGD) & PAT 13 memberHelen Steele DH & PAT 13 memberIan McDonald Co-operative Wholesale Society (CWS)Jane Atkinson First PremiseToby Peters Community Owned RetailingLucy Gillie National Food Alliance (NFA) now SustainMichelle Harrison Henley CentreMartin Carraher TVU

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Annex 3 COMMUNITY BASED AND COMMUNITY RUN INITIATIVES

Community initiatives can be short-lived and face difficulties in long-termsurvival22. Also, there is a real danger that low income communities are trying tomeet the gaps that statutory bodies, business and professionals have failed to bridgethemselves, such as provision of fresh fruit and vegetables or solving inequalities inhealth. Examples of where communities can be strengthened to improve access to servicesinclude: • provision of community supported services such as crèche provision, sitting

circles for carers with dependants etc. and to organise the community's voice tobe more effectively heard;

• provision of multi-disciplinary team support to community development workersto counter the risk of their isolation;

• encouragement of neighbourhood management schemes to include links toisolated areas within town centre management schemes and as appropriate inSingle Regeneration Budget bids and New Deal for Communities initiatives;

• support for the development and continual support of community shops, food co-operatives, community mini-bus schemes (e.g. grants such as those availablefrom the National Lottery Charities Board for groups tackling poverty and lack ofaccess to services); support must be sustained not just in the form of ‘start-up’;

• community based research to examine all available buildings and existingservices to assess their potential to help address the problem;

• consultation about shopping and services access to be included in all existingmethods of community consultation and existing community partnership schemessuch as SRB programmes, tenants associations, groups representing people withdisabilities, carers groups etc.

• Health Improvement Plans, Healthy Living Centres and Health Action Zonesshould all try to help pilot and evaluate the development of local retailingservices. This would be particularly relevant given the current policy interest inthe linking of social exclusion with a lack of ‘social capital’23. There is a need fora systematic programme of research to gauge the impact of poor shopping accesson local health inequality.

• utilisation of other services e.g. meals-on-wheels services to provide otherdeliveries to those isolated at home.

22 McGlone et al 199923 Giddens 1998

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Innovative experiences and relevant experiments

Community shopping: USA.

Work in the USA demonstrates that neighbourhood stores or businesses that developa community perspective -alongside business issues of labour, security and volumeare more likely to succeed24 . (By contrast, in Europe, policy, where it has existed,has tended to promote diversity of shopping formats.) The argument is that there is amutual interest for business in helping develop community perspectives. Consultingwith and involving the community should be part of good management principles.Local government pro-active responses are also related to the success ofneighbourhood stores in helping tackle issues of crime and safety. The LocalInitiatives Support Corporation (LISC) puts together a variety of communitybusinesses (LISC 1999), such as a supermarket, an optical store and a playground setup in Harlem using Community Development Corporations (CDCs). Pioneering partnerships.

It is essential for local shops, of whatever nature, to be run on the principle ofcombining community relationships with good business practice. One study ofneighbourhood stores concluded that businesses could fail due to lacking either(Pickering, Greene and Cockerill 1998). One national partnership of retailer,wholesaler, community support is funding three local retail experiments in lowincome areas which should help create vital new learning (Peters 1998, see pages 41-42 of main report and Annex 7). In West London, a system of Professionals in theCommunity (PiC) has been set up under which companies provide expertise tocommunity groups. This could be a model for supporting fledgling or ailing smallshops to tap into appropriate expertise (WLL 1999). There is also experience in StAnnes in Nottingham of using community technical aid.

These partnerships could be further explored with a view to being used as futuremodels of good practice.

Loyalty cards as a means of local business support.

The use of ‘shop local’ loyalty cards can promote local, diverse shopping and buildbetter shop-community liaison. Loyalty schemes are a way of helping not just onebusiness or organisation but a whole neighbourhood to be economically viable. TheNew Economics Foundation is currently building up a dossier of case studies onworking community enterprises, such as the Leominster loyalty scheme, which issuggesting remarkable gains when communities are put more in control of localshops (NEF 1999). The New Economics Foundation has set up a Centre forParticipation to collate such data.

Research into the impact of local area loyalty card schemes (rather than those ofthe big retailers) on improving shopping access in deprived neighbourhoods could

24 O'Connor & Abell 1992

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be explored. NDC Pathfinders may wish to consider whether piloting and evaluatingsuch schemes would fit in with their development plans.New co-operatives learning from the old: the Co-operative Wholesale Society(CWS) experience.

CWS pioneered a model of how a large retail business can help foster smallcommunity businesses and develop them out of the community voluntaristic 'mode'and into a more viable, mainstream retail provision. Since the early 1990s, the CWShas developed structural links with the new generation of small, local co-operativesin Scotland (many of them food co-operatives), enabling them to build on the olderco-operative movement's experience of retailing, management skills andcommitment to the community. CWS calls this the Dual Approach, providing a linkbetween commerce and community. This approach is supported by the experience ofmany food and low income projects (Webster 1999). In particular, the CWS hasoffered the new co-ops:

• access to its distribution and support services, including a stocking loan;and, in return

• it expects them to support internationally agreed co-operative principles andhave a business plan (CWS 1999).

A dual approach of commercial and community activity can, therefore, work infavour of community and business alike. However, it is less clear how sustainablethese are in poor neighbourhoods.

Further exploration should be given to whether this approach, and the communityshopping partnerships in the USA, can successfully be applied in poorneighbourhoods where local communities express the wish for community based andcommunity run, retailing.

Community Centre: Ordering and Collection Point:

Teleshopping - ordering by lnternet combined with "home delivery" - is alreadyoffered by some supermarket operators. All the retailers we have spoken to offeringthis service are willing to deliver to single points within communities at minimumcharges. Somerfield is developing a home delivery scheme tailored to meet the needsof people living in deprived neighbourhoods. Several experiments have involved acommunal ordering point which could then double as a collection point. This couldbe a "shop"or the pub (scope for paying in cash and trader using credit/accountfacilities) or a community centre, providing the meeting place role formerly playedby the local shop or pub, combined with sponsored baskets on wheels.

NDC pathfinders may wish to pilot this as a means of improving shopping accesswithin their neighbourhoods.

Background paper taken from the Community Responsive Initiative Mapping GroupReport February 1999

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Annex 4PRIVATE SECTOR SUPPORT - CASE STUDIES

Regenerating Hulme

In an example of extending mainstream business development into a deprivedneighbourhood in need of improved shopping access, ASDA opened a new £20million superstore in Hulme, Manchester on 2 March 1998. Over 300 jobs have beencreated and the local community has a much needed amenity.

The site lies in a densely populated area of Manchester that has suffered from anegative reputation and, in the past, there was a lack of quality food provision. Thestore is the “anchor” in a development where it is planned to have many newshopping units, all on the site of the former shopping centre.

The store forms part of the Hulme High Street project, a district centreredevelopment which embraces retail, leisure and business space along with newhousing. The scheme is a partnership initiative between AMEC Developments, theMoss Side and Hulme Partnership and the City Council with ASDA as the firstcompany to commit itself to the project, which is being strategically developed inaccordance to an urban master plan.

Once the commitment had been made to move into Hulme, ASDA wanted to ensurethat it was the local community who benefited directly from the employmentopportunities on offer. A series of information days were arranged and a localrecruitment centre was set up to give people direct access to information about therange of career opportunities. Ninety per cent of the 320 colleagues were recruitedfrom the local area and 90% of these colleagues were unemployed before they wererecruited.

The Hulme store is a state-of-the-art store that, as well as serving the localcommunity, attracts shoppers from adjacent districts of South Manchester and,increasingly, commuters travelling home from the city centre. It has 26 checkoutsand 580 free car parking spaces, and offers a ranges of products in addition to food.

One of the most satisfying aspects of the Hulme project for ASDA was thepartnership approach adopted by all those involved, with public and private sectorsand business and community groups working together, with the common aim ofbreathing new life into Hulme in order to take the area into the new millennium withrenewed confidence.

The S.A.V.E Scheme (Sainsbury's Assisting Village Enterprises)

Background

The S.A.V.E scheme is the first of its kind in the UK and basically was born out of aresponse to the needs of struggling village shops that exist throughout the country.ViRSA (a charity concerned with the ever decreasing lack of shops and post offices)approached Sainsburys some years ago to see whether they would allow them tostock their own label, but at the time, it was not something the company felt

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appropriate. However Sainsburys did recognise the issue and continued to supportthe good work that ViRSA were doing by supporting them through charitable funds.

When ViRSA reapproached Sainsburys in 1998, times had moved on and aftercarrying out extensive market research relating to the launch of the convenience storeconcept “Sainsbury’s Local” it was clear that customers wanted increased access toSainsbury’s products in their immediate community.

The Trial

It was launched in August as a trail in various locations around the UK fromScotland to Somerset. Each launch (8 shops in all) attracted huge media attentionboth locally and nationally to the surprise of the shopkeepers involved. The trial hasbeen extremely successful and the enquiries from other interested shopkeepers hascontinued to date. The reason for the success of the trial is perhaps due to thesimplicity of the operation.

How does it work?

The shopkeeper basically shops at the supermarket like any other customer, however,the store knows who they are and therefore will assist them in various ways, forexample, opening an extra till for the shopkeeper so they don’t have to queue.

The benefits for shopkeepers are they:-

• can order in bulk, both ordinary lines and promotion (i.e. buy one get one free); • not restricted to purchasing cases (something many other suppliers insist upon); • can buy in units from one to a dozen; • access to a wide range of ambient products, crucially including many products

which are not always available through wholesalers (Sainsbury’s balsamic vinegaror vintage champagne);

• receive extra reward points in excess of what ordinary customers receive (this

translates into money off purchases or other offers through the scheme); • can form a shopkeepers “club” which will give them a network.

Also • Sainsbury’s branded goods are very competitively priced and bear a strong

reputation for quality;

• in many cases the JS will be nearer than a wholesaler; • no obligation by shopkeeper to buy exclusively from Sainsbury’s, all existing or

future supplier relationships remain safe;

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• access (if they want) to marketing materials, merchandising advice and the hugeinfrastructure of Sainsburys for information and support.

What happens to the goods in the Village Shop?

It is up to the shopkeeper to decide how much they resell the products for. From thefeedback, customers do not price compare with supermarkets, and tend to use theirvillage shop for convenience rather than for a main shop.

Why does it work?

It’s simple, it is not difficult for the shopkeeper to operate, the customers tend to saywhat they want and do request other products. The shopkeeper can extend their rangewithout having to buy whole cases of product and can try out new products to see ifthey will sell. The Sainsburys name does attract people into the shop and thereforethis assists with the viability of the shop.

The Future

The trial is still being evaluated. However, the shopkeepers and Sainsbury’s are veryencouraged. At least 180 enquiries have been received from village shopkeepersinterested in the scheme.

Tesco Support for Small Retailers

South Norfolk Council operates a scheme to help village shops which Tesco havesupported. The aim was to provide practical help and advice in the form of amentoring scheme. A local store manager was selected to work with a number ofsmall shops in the district.

The store manager provided support in a variety of ways depending on the particularrequirements of the shop, including:-

• helping with skills such as merchandising and ranging of products in a shop whose position has since improved; • helping with the business plan and refurbishment to re-open a small shop which

has been closed for some years;

• sourcing of affordable second hand shelving; and • providing advice on security. The performance of those shops Tesco worked with has improved overall. Theexperience has been that practical assistance is of equal, if not greater, importance tofinancial assistance that is beyond the remit of this scheme. Tesco are now indiscussions with South Norfolk Council about how to continue their relationship inthe most practical and productive way.

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Annex 5COMMUNITY DEVELOPMENT AND INVOLVEMENT

Summary of current policy

Current policy on community responses to retailing issues are mainly covered by:-• the planning process – policy guidance (e.g. PPG6 Town Centres and Retail

Developments) which advises local planning authorities to consult whenpreparing district-wide Local Plans or Unitary Development Plans; and

• notifying/consulting on planning applications; and• community development programmes (in some areas).

Consultation is built into development plans at all stages. Others include:-• crime and policing ;• Local Agenda 21; and• Single Regeneration Plans.

In addition, movements such as the Healthy Cities Network have the language ofcommunity participation and involvement, but their practice has tended to fall intothe traditional trap of having to listen to organised voices e.g. through existingbodies,constituencies and lobbies, rather than engaging directly with the local community.

Past policy has given insufficient weight to equity in retail services and tocommunities living in poor neighbourhoods. There is a need to move beyond needsassessment, upon which service provision is planned, to processes which involvepeople in the decision-making process (Klein and New 1998). The New Deal forCommunities Pathfinder areas now provide the impetus for local regenerationprogrammes which are community owned and led. But these will operate only inseventeen areas. Our task must be to make proposals wider based.

Communities are often faced with making decisions about the provision of theservices within their locality usually to meet deadlines outside their control set byoutside agencies in order to secure funding for regeneration programmes. Thisreactive approach to community empowerment and participation does not enable allcommunities to take a strategic view or create a vision of how they wish to set anddrive the agenda for change. Empowered communities will forgo fundingopportunities in the short term to ensure that the strategy for change encompassesand embraces their community’s view, although this may create tensions with theircommercial and statutory partners. Quick fix solutions which do not havecommunity support may fail, whilst precluding support for other community-basedoptions.

Communities need listening too. While we would support more research to identifyefficient and effective methods of listening to communities, we recognise that thereis no standard model for this, each community is different. Often capitalising andstrengthening those informal structures which already exist within the communityrather than creating new ones, involving as many local people as possible worksbest. Recognition should also be given to what the community has already achieved

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rather than making the presumption that nothing has happened or will happen untilan outside agency comes in to turn the neighbourhood around.

Community empowerment does not come quickly. It takes years of development forboth the communities themselves and the various agencies – both commercial andstatutory – to recognise that they are equal partners. Part and parcel of this evolvingprocess is the role of the community development worker, yet they are usually thelowest paid and least powerful members of local teams. Their work is too oftenshort-term funded and marginal within local authority budgets and planning cycles.They are often managed by people who have neither a deep understanding nor anappreciation of their work. Nor are there any accredited training or qualifications inwhich they or aspiring community development workers can participate in.Community development is often tacked onto other objectives when it ought, onoccasions, to be the primary objective.

Conclusions:-

• more work could be done on drawing together examples of how communitieshave made their voice heard and listened to;

• steps could be taken to raise the profile of community development workers andwe have drawn this to the attention of the PAT 9 on community self-help;

• consideration could also be given to establishing accredited training coursesrewarded by recognised qualifications;

• Local Authorities could encourage local shopping initiatives that are developedin partnership with the local community, retailers, the economic developmentand enterprise agencies.

Background paper taken from the Community Responsive Initiative Mapping GroupReport February 1999

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Annex 6

COVENTRY CITY COUNCIL’S ‘AREA CO-ORDINATION’ INITIATIVE

Background

Originally a pilot in 1992 in one area of the City, an evaluation in 1994 led to theCouncil’s approval to replicate to other areas in the city on a permanent basis. Thepurpose was to develop and co-ordinate services in response to local needs. Theemphasis is on operational co-ordination and community involvement to ensure thatneeds influence mainstream service delivery and local regeneration initiatives.

This brief to be achieved through:

• An area focus as part of an anti poverty approach• Community consultation and participation• Local planning based on needs analysis• Partnership working with other agencies

How is the community involved?

Community participation is essential to area co-ordination. All areas are required tohave mechanisms for community involvement. These vary between areas andinclude:-• networks of residents groups,• community participation in issue based action groups; and• specific community development activities.

As the initiative develops, so does the relationship and trust between the communityand other partners. Area co-ordination strives to ensure that the communityunderstands how decisions that impact both on their community and their city aremade, including involving local people in these decisions. Over 100 people areactively involved in the planning and decision making processes. To enable this,specific work is being undertaken to develop confidence and assertiveness skillswithin communities.

All 6 areas produce area plans based on community consultation and describe themain issues and concerns facing local areas. These contain detailed actions todevelop, improve and co-ordinate services and facilities in each area. These actionsoften rely on a partnership approach, including contributions from several Councildepartments as well as other agencies, e.g. West Midlands Police, Health Services,The Chamber, Quality Careers Services, Employment Services, Coventry VoluntaryServices, schools, voluntary organisations and by the local community themselvesthrough tenants and residents groups, neighbourhood watch groups, local volunteersetc.

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How does it work?

Six priority areas were selected on the basis of deprivation indices. Each areaincludes ten to thirty thousand residents and in total they cover approximately halfthe city (total city population three hundred thousand).

Each area has a full time Area Co-ordinator and Administrative Assistant with asmall budget for office running costs and pump priming community initiatives. Allthe Area Co-ordinators are employed by the City Council and report to an Area Co-ordination Manager.

Each area also has an Area Co-ordination team comprised of officers from CouncilService Departments, other agencies, e.g. Police, Health Authorities, VoluntarySector, Private Sector and community representatives. All other financial resourceshave to be allocated from ‘mainstream budgets’ or attracted through external grants.

Front line staff, from the Council, the Health Authority, the Police, communityrepresentatives and individual residents in each area are on specific action groups.There are several action groups in each area focusing on a single theme (e.g. Under8’s, Environment, Employment and Training, Community Safety, Health etc.).

Within each area there is an Area Reference Group comprised of all the relevantWard Councillors and the Area Co-ordinator. This oversees the development andimplementation of the area plan and meets formally four times a year.

As the Area Plans are detailed with proposed outcomes based on communityconsultation and identified need, they have been instrumental in contributing tosuccessful bids for external funding (e.g. SRB £25m over three years etc).

Within the Council, Area Co-ordination fits into the Political Management structurethrough the Community Participation Policy Team. (Policy Teams are a form ofCouncil Committee). The Policy Team’s Chair is the ‘lead member for area co-ordination’.

At a corporate level, an area co-ordination implementation group brings togethersenior officers (second tier), who are responsible for encouraging service andorganisational responses to area co-ordination in all six areas. The model is onewhere area plans in the six areas influence and feed into service plans and theCoventry community plan as part of forming an integrated corporate planningprocess. This approach will extend over the next 2-3 years and will be closely linkedwith Coventry’s city-wide Community Plan.

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Annex 7BUSINESS IN THE COMMUNITY

Community investment must be positioned as a crucial tool to improve businesscompetitiveness. During the past ten years, Business in the Community (BITC) hassupported the economic and social regeneration of communities by raising thequality and extent of business involvement and by making that involvement a naturalpart of successful business practice. In 1997, BITC (membership includes 85% ofthe top FTSE 100) created the Principles of Corporate Community Investment(based on the EFQM Model of Excellence).

Its current mission is to inspire business to increase the quality and extent of theircontribution to social and economic regeneration by making corporate socialresponsibility an essential part of business excellence. It is currently developing theImpact on Society benchmarks to provide a focus for improving business practice onmeasuring and reporting. Shortlisted programmes for the 1999 Awards will in factreceive BQF Accreditation. The DTI is also producing a Databank of Best Practice.

Any programme that is looking to catalyse partnership with business, shouldconsider the benefit of using Business in the Community as the conduit. To this end,it is proposed within the COR project (if we create a central body) that a BusinessLeadership Team looking at access to local services be established as part ofEconomic Regeneration.

For further information website: bitc.org.uk

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Annex 8

WHAT SKILLS AND KNOWLEDGE DO SMALL RETAIL BUSINESSESNEED? The following table highlights the diverse range of issues that need to be addressedby an independent person wanting to set up a small retail outlet.

KNOWLEDGE/ADVICE NEEDED1. FINANCECapital Purchase of equipment

Purchase of property of leaseholdRevenues Basic Bills

Raw MaterialsStaffing Costs

2. LOCATIONEnvironment Find a safe environment for the hours of operationCompetition Find a viable location with little or no competition for

products being offered3. LEGALAccountants Obtain advice on VAT, Taxation, accounting process

and legal forms of tradingSolicitors Obtain advice on company format and trading termsInsurance Acquire insurance for the premises and for dealing with

the public and employees.4. LOCAL AUTHORITY

Health and SafetyPlanningRefuse CollectionGrants

5. SUPPORT NETWORKSBusiness Link Gateway Program

Personal Business AdvisorsNetwork with other businesses

Chambers of CommerceBanks Personal Business AdvisorsTrade Associations andother representative bodies6. OTHERSStaff Local, experiencedTraining Self needs - i.e. business acumen skillsMarketing Offering the product in a suitable manner7. RACISMLinks with the policeEffect methods to deal withperpetrators

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Annex 9PUBLIC SECTOR SUPPORT FOR SMALL BUSINESSES

DTI support to small and medium sized enterprises (SMEs)

The DTI is keen to spread best practice and improve the competitive performance ofSMEs. The following schemes apply to SMEs:

Connect for Better Business is a CD ROM-based awareness programme thatintroduces the concept of best practice through a series of interactive modules. It isfacilitated by a trained intermediary (such as a Business Link Personal BusinessAdviser) and can be used by groups and individuals.

United Kingdom Benchmarking Index - enables companies to measure where theystand against their competitors and have their strengths and weaknesses highlightedby being benchmarked through the UK Benchmarking Index (UKBI).

Inside UK Enterprise - is a visiting programme that enables SMEs to attend thepremises of host companies that are considered exemplars in different areas of bestpractice, to learn from their practical experiences.

Information Society Initiative Local Support Centres - are built on existing localactivities, in particular the Business Link Partnerships in England, Business Connectsin Wales and Local Enterprise companies in Scotland.

They provide independent, easily accessible advice and expertise on newtechnologies such as the Internet, video-conferencing and e-mail. Each centre offersservices that are appropriate to its locality.

Services provided include:-

• advice - direct, company specific information• consultancy - assessing the business case for information and communications

technologies• training - in house, through local colleges or private sector suppliers• access to equipment and demonstrations - giving SMEs the opportunity to gains

hands-on-experience of using World Wide Web, CD-ROM and other technologies• contacts - neutral forums for meeting people and sharing best practice• Internet/World Wide Web authoring services - help in preparing Web pages to

market your product and services• Signposting business - showing the range of support available at local level and

through the ISI Programme for Business• Millennium Compliance - awareness of the Year 2000 problem and millennium

bug training. (including DfEE Bug Buster Programme)

Pump-priming support of £100,000 per TEC/LEC/Business Connect area has beenprovided. The particular aim is to encourage collaborative ventures between localpartnerships and organisations to provide a dedicated service for business. The targetis for 80 Centres nationally.

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Business Links

Business Links are local partnerships of Training and Enterprise Councils (TECs),Chambers of Commerce, Local Enterprise Agencies, local authorities and otherbodies who offer assistance to SMEs.

There are currently 85 partnerships giving every business in England access to therange of services provided through over 240 individual outlets. There are similarorganisations in Scotland, Wales and Northern Ireland.

Information, advice and practical help is available to all businesses on the basis ofindividual need. Business Links are customer focused to meet the needs of the localeconomy, in terms of sector, gender and ethnicity.

Business Link offer advice and assistance to all businesses regardless of size orsector but are encouraged to concentrate on businesses with high growth potential.The recently published competitiveness White Paper “Our Competitive Future:Building the Knowledge Driven Economy” gave a commitment to improveassistance given to business start-ups by providing a new high quality advice servicetargeting 10,000 growth start-ups a year in England.

At the heart of the Business Links service are the Personal Business Advisers (PBAs)who provide independent affordable and long term help, if necessary over severalyears, for example PBAs may assist in the writing of a business strategy. Assistancein implementing such a plan may involve overcoming cultural, organisational andfinancial barriers. The PBA can also act a channel through which other expertresources from the Business Link partnerships can be accessed for example design,marketing, information technology, exporting.

The Post Office

The Post Office has an extensive network of 19, 000 outlets of which the vastmajority are co-located with a retail outlet (e.g. general store / newsagent). In ruraland deprived urban neighbourhoods their role can be particularly significant whereoften they are the main retail outlet. They can be pivotal in providing a range ofservices such as the distribution of benefit payments and the provision of financialservices to small retailers and the general public through the Girobank facility and inassociation with other banks. They can be the lynch-pin in sustaining local orneighbourhood centres - providing both retail services and access to cash for thoseliving there. Post offices, therefore, have the potential to generally increase theamount of trade of other shops located in their vicinity.

Both sides of the business benefit from shared overheads. The overall level ofviability is often such that if either side of the business under-performs the outlet islikely to close altogether. The retail side of the business if often critically dependenton the "footfall" that is generated by benefit recipients collecting benefits from thepost office counter and staying to make purchases from the retail side.

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Since the Post Office is often the most trusted 'brand' in the community,opportunities could be examined to strengthen the Post Office's role as both anetwork of small retailers and as providers of services to other small retailers.

Particularly now that the decision has been taken to press ahead with the Horizonproject, which will equip every post office throughout the network with a modern on-line IT platform by 2001, opportunities could include:-

• the provision of wider banking services in association with commercial banks;

• the installation of kiosks providing a range of information services aligned withthe Modernising Government initiative (e.g. information on benefit payments,timetables and local information).

Girobank

Girobank is the market leader in the provision of cash handling services to retailers,wholesalers and other business sectors. They process one pound in every four thatpasses through the nation's tills and in 1998 handled cash volumes worth a total of£77 billion25.

Formed in 1968, their size and experience has enabled them to establish a uniqueposition with small retailers through their links with the 19,000 post office network. Training and the Distributive National Training Organisation (DNTO)

The Department for Education and Employment (DfEE) take the lead on traininginitiatives. The lead national training organisation relevant to this sector is theDistributive National Training Organisation (DNTO), still in a formative stage.Relevant research to date is an interim report “Research on Strategies and modelsthat could work in Distributive Industries” (DfEE funded). The DNTO is trying toget SMEs together to discuss accessing computers to assist with training. The DNTOhas obtained ADAPT funding for “Adapting key Skills for the Millennium” targetedon the entire Distributive trades. More Information about ADAPT funding can befound in page 88.

The DNTO is the new unified body set up by the Distributive OccupationalStandards Council to address the industry’s vocational education, training,development and qualification needs, which extends to over four million people.

Its main goals include:-

• ensuring the development, review and implementation of national occupationalstandards, especially through NVQs and SVQs;

• promoting investment in people as central to competitive business performance;

25 Alliance & Leicester plc

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• assessing and responding to the education, training and development needs ofemployers and employees within the sector;

• communicating the sector’s training and education interests to the Governmentand other bodies and responding to national initiatives.

The DNTO works with the retail industry for all vocational education, trainingdevelopment and qualifications issues. It will also represent the views of the industryto the Government and non-governmental bodies, and has already started acting onthe New Deal issue.

Among their priorities will be the development of retail sector targets, the definitionof skills needs, and a review of the retail labour market.

The University for Industry

The University for Industry concept is at the heart of the Government’s vision forlifelong learning. It will be a new national distributed open and distance learningnetwork aimed at both individuals and businesses. Using modern information andcommunications technologies, it will broker high quality learning products andservices and make them available at home, in the workplace and at learning centrescountry-wide.

The UfI will have two strategic objectives:

• to stimulate demand for lifelong learning amongst businesses and individuals; and• to promote the availability of, and improve access to, relevant, high quality and

innovative learning opportunities through the use of information andcommunication technologies

UfI Ltd are responsible for developing and implementing the University for Industryconcept. Development documents, published in March 1999, set out its plansleading to national launch in Autumn 2000. The plans can be found on the UfIwebsite at www.ufiltd.co.uk. These plans identified a number the initial prioritiesincluding the distributive and retail trades sector.

A New approach to Learning

The UfI will exemplify new ways of working. By encouraging partnership andstimulating the market, it will bring together the public and private sectors to open upnew opportunities which meet the needs of potential learners.

UfI Ltd will:

• analyse the needs of the market and client groups;• drive demand for learning, through mass marketing and promotion;• provide and direct people to information, advice and guidance;• ensure the availability of high quality learning programmes;• commission new content to bridge gaps between supply and demand;• ensure the quality of products and services accessed through it.

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The UfI will not in general deliver its own learning materials or award its ownqualifications, but it will broker quality assured products from other organisations. Itwill also stimulate new markets and commission leading edge, multimedia basedproducts to fill gaps in provision.

By providing reliable and accessible information and advice, the UfI will provide asimple, clear route to learning opportunities.

Learning Direct, the national learning information helpline, was launched on 25February 1998. The helpline has helped over 740,000 callers (as at 12 July 1999)with free, high quality information and advice. Learning Direct is now theresponsibility of UfI Ltd. Its information service will continue to offercomprehensive, impartial, informative advice.

A number of development projects will test out aspects of the UfI model. A call forbids was made under the European Union’s ADAPT programme. Projects started inSeptember in 1998 and are expected to run up until December 2000. Early lessonsfrom these projects will be drawn out and fed into the University for Industrydevelopment process.

Local Authorities

Local Authorities (and Housing Action Teams) have a vital role in providing theappropriate infrastructure for sustainable retailing and long term support.

Case Study

The Waltham Forest Housing Action Trust (WFHAT) is charged with the completedemolition and rebuilding of 4, previously local authority, high rise-housing estatesin North East London. Total new stock will be approximately 1,500 units (mainlyhouses with gardens). There is no private development; all the new housing is forexisting tenants of the estates.

The four estates are geographically separated throughout the borough and thereforeeach sit within different local contexts, and face different issues of accessibility andcloseness to existing services. Located within an inner-city borough however, noneof the estates are more than a bus ride away from major supermarkets and shoppingareas.

WFHAT have implemented a comprehensive programme of community andeconomic development. One particular strand has been to encourage enterpriseamongst the tenants through provision of advice and support services to those tenantswith ideas for establishing businesses or becoming self employed. This service hasalso included the provision of low-cost loans, a service which was deemed essentialfor tenants who would find access to start-up capital more or less impossible as theypossessed no assets against which normal lending could be based.

WFHAT have also provided local shops as part of the redevelopment on each estate.There are 16 shop units in total, although 6 are double units. A policy of promotion

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for tenant-run businesses to establish in the shops has been promoted, with variedsuccess.

As would be expected, the shops which are located on busy, main roads are tradingmore successfully than those which are tucked away in side-streets (with theexception of an Indian Take-Away and a Fish & Chip shop on a remote estate wheretrading is doing well). Two general purpose stores are also trading well. All of theseexamples are tenant-run businesses where the WFHAT paid for the shop fit-outcosts, which will ultimately be reflected in rent levels (ownership of the shops maypass to WFHAT’s successor development trust, Orient Regeneration). A pharmacyestablished in one of the less busy side streets is struggling badly and WFHAT isfinding it difficult to let the remaining units there.

Northern Ireland: Wholesale & Retail Training Council: Master RetailerProgramme

The Wholesale & Retail Training Council in Northern Ireland currently provides awide range of services and has conducted significant research into the training needsof independent retailers, although not within deprived neighbourhoods.

Research identified that the majority of independent owner/managers interviewedhad little or no formal business qualifications and in the majority of cases, none orlittle exposure to formal business training. When asked their perception of the skillsthat they needed they often cited retail operations skills, organisation and planning,and people management. The key retail operational skills included financialmanagement, stock control, retail marketing, merchandising and display, andpromotions.

In light of this research the Wholesale & Retail Training Council developed apartnership with a number of Councils in Northern Ireland and the European SocialFund and developed a Master Retailer Programme which offers owners/managers theopportunity to attend a structured development programme which includes thefollowing outcomes:

Attending a series of management and staff training workshops;

Management Workshops

Business Planning The Retail Market PlaceRetail Marketing Stock ControlUse of Information Technology People ManagementPricing and Promotion Margin Analysis

Retail Skills Workshops

Customer Service Retail Selling SkillsMerchandising And Display Retail SecurityCommercial Awareness

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Also using a European Study to benchmark other retailers to:-

• complete an individual audit for their own business; • develop a three year business plan for their shop; and • measure the level of customer service offered in the business.

This programme is significantly funded by the Council and the European SocialFund (E.S.F) with the owner/manager paying approximately 20% towards the cost ofthe programme.

Experience to date has highlighted the need to closely monitor the transfer oflearning that occurs during these programmes. Therefore a significant amount ofindividual mentoring is incorporated, the purpose of which is to assist theowner/manager to implement what they have learnt from the programme and toprovide on-going advice and support, to reduce the potentially high drop out rate andto reduce the day to day pressure of running a small business. Other issues fromtraining were identified including car parking and traffic flows, business rates, newdevelopments, economic climate etc. In some areas retail focus groups comprisingsome of the participants on the training programme, have been established to dealwith these issues.

Background

In Northern Ireland there is no dedicated funding mechanism to assist retailers todevelop either themselves or their staff. Any support that the Wholesale & RetailTraining Council has managed to get has been on a project basis. The distributivesector in Northern Ireland employs over 16% of the working population andcontributes significantly to economic growth, therefore attention needs to be given tothe development of the independent retail sector, otherwise the uniqueness that theindependent retailers offer within many towns and villages could be lost.

European Commission

The retailing sector has been the subject of recent debate following publication of theEuropean Commission’s Green Paper in Commerce (1996). The subsequent WhitePaper was issued February 1999 with an action plan addressing four priority areas:-

• improving the use of policy instruments to assist commerce;• improving the administrative, legislative and financial environment;• strengthening competitiveness and promoting, entrepreneurship; and,• encouraging europeanisation and internationalisation.

In particular, the Commission is looking at Commerce in rural and less favouredurban areas (Action 11) to identify best practices for dissemination, replication andin application for structured funds.

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ADAPT

ADAPT is a Community Initiative funded through the European Social Fund (ESF),with a budget for the period 1995-9 of 307.6 million ECU in Great Britain.

Introduced in 1995, ADAPT supports innovative and trans-national projects. It hasfour interrelated objectives to:-

• accelerate the adaptation of the workforce to industrial change;• increase the competitiveness of industry, services and commerce;• prevent unemployment by developing the workforce through improving their

qualifications, their internal and external flexibility and ensuring greateroccupational mobility;

• anticipate and accelerate the development of new jobs and new activities,particularly labour-intensive ones - this includes exploiting the potential of SMEs(Small and Medium-sized Enterprises).

Target Groups

In Great Britain ADAPT supports projects which benefit one or more of the threefollowing target groups either directly, or through training and development of‘agents of change’ (such as trainers and company managers) who will go on toinfluence the ultimate beneficiary group :-

1. employees of SMEs threatened with redundancy;2. former employees of workers who have been laid off due to industrial

restructuring;3. workers who have involuntarily moved to part-time work and have the

potential to be employed in newly created jobs after retraining.

There is a particular emphasis on helping the workforce to meet the demands of theInformation Society.

Where projects target existing employees of SMEs, the beneficiaries must beemployees of firms with fewer than 250 employees. Priority will be given to projectstargeting companies which employ less than 50 employees. Where projects involvethe provision of training to individual employees, the beneficiaries must be employedby firms with fewer than 50 employees.

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Annex 10PRIVATE SECTOR SUPPORT

The Institute Of Grocery Distribution

The Institute of Grocery Distribution possesses a long track record of successfullyexecuting retail research projects with the UK and European grocery sector. Tworecent schemes to support retailers include:-

i) the Small Food Producers Support Initiative which provides guidance to smallproducers through the transfer of expertise from larger established companies; casestudies have been developed in key areas such as premises design, finance,franchising, human resource management, and marketing;

ii) the Convenience Tracking Programme (established 1996) to monitor thedevelopment of the small (less than 3,000 sq. ft) convenience store sector in the UK;with the support of over 60 retailers, wholesalers, suppliers and the Association ofConvenience Stores the programme aims to provide definitive benchmarkingstatistics for all involved in the UK convenience sector supply chain, and highlightopportunities to enable managers to make more profitable decisions.

The British Franchise Association

The British Franchise Association is working with Business Link in developingtraining support for small business (although not retail specific).

The National Pharmaceutical Association

The National Pharmaceutical Association (NPA) aims to protect and further thebusiness and professional interests of its members who are all owners of pharmaciesin the UK. It provides a wide range of business services to its members such asinsurance at favourable rates and legal advice.

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Annex 11

THE NATIONAL MICRO RETAILING ORGANISATION (NMRO)

Government Depts

NMRO

Regional NMRONNMRBO

Business Links

Regional NMRONNMRBO

Regional NMRO

City Wide / Country WideCity Wide / Country Wide City Wide / Country Wide

National

Centre Of Expertise

AcademicInstitutions

Ufi DNTO BLs

Small businesses

The model

The focus on business acumen will play a small part in the regeneration of estates,however targeted changes have to be instigated in the macro-economic and socialenvironment in which small businesses operate.

NMRO would aim to:-

• serve as a link between government departments and small businesses usinginformation from regional levels to influence and shape Government policy;

• serve as a policy advisor to Government in the formulation of small businesspolicy;

• provide an analysis of the impact of government macro-economic policy,financial legislation etc. on small and medium sized enterprises (SMEs), thereafterto advise and inform relevant government departments on its findings andrecommendations;

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• promote good practice and pioneer innovation at national and regional level;• commission and co-ordinate academic research on small businesses, and collate

existing studies on the sector;• be driven by and reflect the needs of small businesses;• provide a national/regional telephone advice service;• increase awareness/utilisation of information technology (IT); and• encourage the support of larger retailers/private sector organisations (for example

as provided by Tesco and Sainsburys - case study, Annex 10).

At a regional level, NMRO would:-

• provide advise and information on the impact of government legislation;• promote growth of the small business sector;• provide support, advice and training to the small business sector;• identify issues and trends within the small business sector on a regional level;• analyse the impact of regional developments which influence the development,

growth and sustainability of the small business;• ensure that this information regarding the small business sector is transmitted to

the NMRO; and• establish creative working partnerships with local organisations with a view to

developing and promoting economic and social regeneration on a regional level.

Finally, NMRO would need to ensure the correct level of administration at alocal level ...

The employment of an outreach business advisor purely for micro-enterprise can insome way address the imbalance. The advisor must posses interpersonal skills whichare based on a sound cultural understanding of the background of the entrepreneursand a knowledge of the environment in which they operate. He/she must work withother agencies in the locality of the micro-enterprise and have access to a competentand sensitive network of professionals who can advise the entrepreneur on his/herterms and needs.

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Annex 12

PAT 13 RESPONSE TO THE CONSULTATION ON THE PROPOSALS FORA LEVY SCHEME FOR THE FOOD STANDARDS AGENCY

M Bush Esq.MAFF/DH Joint Food Safety and Standards GroupRoom 404 Ergon Housec/o Nobel House17 Smith SquareLondonSW1P 3JR 23 March 1999

Dear Mr Bush

THE FOOD STANDARDS AGENCY: RESPONSE TO THECONSULTATION ON THE PROPOSALS FOR A LEVY SCHEME

I am the Chair of the Social Exclusion Unit’s Policy Action Team on improvingshopping access (PAT 13). Briefly, this Policy Action Team (PAT) was establishedin September 1998 and is due to report to the Social Exclusion Unit at the end ofApril this year. Its remit is to investigate ways of improving access to retail servicesin deprived neighbourhoods. Our membership is drawn widely from experts bothinside and outside Whitehall.

Several members of PAT 13 have registered an interest in responding to theconsultation paper which proposes a flat rate levy as a means of recovering some ofthe costs associated with the establishment and running costs of the new FoodStandards Agency (FSA). They are concerned about the possible impact which alevy of the kind proposed will have on access to foods which make up a healthy andbalanced diet for those living in deprived neighbourhoods and this is discussed ingreater detail below. Also they wish, to draw your attention for the need to includean extensive survey of small food retailers outside the bounds of the recognised tradeassociations in the consultation programme.

Several members of PAT 13 are concerned that the imposition of the proposed levywill further accelerate an already rapidly declining sector within the food retailindustry, which has had a negative effect on the ability of those who live in deprivedneighbourhoods to access a range of foods at affordable prices. A flat rate levy onthose stores which traditionally service these areas – the small independent foodretail sector – will further compound this problem. Small food retailers operate in ahighly competitive market, to very tight margins. The proposed levy of £90 may beconsidered sufficiently small and not affect the viability of businesses when takingthe retailing sector as a whole. However, in deprived neighbourhoods, with barelyviable businesses, it could simply prove too much for them to bear. The fact that thelevy is a flat rate, irrespective of size or turnover, begs the question of whether

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through the introduction of a graduated levy, the burden placed on small businessescould be reduced or even removed altogether.

Some of the PAT 13 members are also concerned about the proposed exemptions forretailers stocking pre-packed food, such as chocolate and crisps. This may act as adisincentive to retailers providing a range of foods from which their customers couldmake healthy choices as, under the proposed arrangements, this would attract thelevy. Whilst we welcome the Government’s willingness to consider the scope forfurther exemptions to the levy and its concern to keep the basis for the exemptions assimple as possible, our members, nevertheless, believe that the case for exemptingfood retailers in deprived neighbourhoods is strong. One way in which an element offlexibility could be introduced might be to give local authorities the power to exemptoutlets from the levy in areas which are recognised as needing support.

Members of PAT13 have been struck by the difficulties faced by small retailers,particularly food retailers, trading in deprived neighbourhoods. In our experience,these traders are least likely to be represented by recognised trade associations and,therefore, feel that they do not have a voice at the national level. For example, eventhough the charging proposals are for a flat rate across the whole sector, smallretailers are concerned that, in reality, this will not translate to an equal voice orequal weight will being given to their views and that the large multiples will continueto dominate the debate on food retailing.

As part of our remit, we have been considering innovative forms of retailing/deliveryin deprived neighbourhoods, including not for profit initiatives such as communityfood co-operatives, community run shops, box delivery schemes and others, such asinternet ordering/delivery points. The consultation paper inextricably linksregistration of food retailing premises with the proposed levy. Some of theinnovative initiatives outlined above, many of which are already struggling tosurvive, will clearly flounder if they have to bear an additional financial burden.Some will clearly not get off the ground if, for example, a library which also servesas an internet ordering and delivery point for food would be subject to the charge.We would welcome your reassurance that these community led, not for profit andinnovative initiatives will not be subject to the levy.

I hope that this provides a useful perspective on how we view the implications of theproposed levy on the work which is being taken forward by PAT 13 on improvingshopping access in deprived neighbourhoods. We would be happy to participate orcontribute to the development of a more refined charging regime which may help tobring our respective agendas closer together.

Dr Eileen RuberyChairPAT 13- Improving Shopping Access

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Annex 13

PAT 13 RESPONSE TO CONSULTATION ON SMALL BUSINESS SERVICE

Wally Ford EsqEnterprise UnitRoom 525Department for Trade and Industry1 Victoria StreetLondonSW1H OET 1 October 1999

Dear Mr Ford

THE SMALL BUSINESS SERVICE: A PUBLIC CONSULTATION

I am the Chair of the Social Exclusion Unit’s Policy Action Team on improvingshopping access in deprived neighbourhoods (PAT 13). Briefly, this Policy ActionTeam (PAT) was established in September 1998 and, all being well, its report is dueto be published soon as a discussion paper. Its remit is to investigate ways ofimproving access to retail services in deprived neighbourhoods. Our membership isdrawn widely from experts both inside and outside Whitehall.

I have enclosed the executive summary from our report. As you will see, PAT 13identified five key elements to improving shopping access in deprivedneighbourhoods. One of these elements was business support including improvingaccess to business skills for micro retailers serving poor neighbourhoods. Itconcluded that there is a need for a tailored support mechanism for micro retailersand made a clear recommendation in this respect (Action 4). It is against thisbackground and within this context that PAT 13 sees the SBS as having the potentialto play a key role in nurturing and supporting small, local retailers; their views areconveyed below. If you would find it helpful to meet me with members from PAT 13to explore our concerns, please do not hesitate to get in touch.

Overall, we welcome the concept of a Small Business Service. One of the maincriticisms we have encountered in the work which PAT 13 has been leading onimproving shopping access in poor neighbourhoods, is the patchy support, adviceand understanding that Business Links offers to small and micro businessesparticularly those in the retailing sector. The establishment of the SBS provides theopportunity to build on the lessons learnt from the Business Links experience.

It is important to realise that the needs and aspirations of micro retailers are quitedifferent from those of the ‘small business’ sector. That is why in our forthcomingreport we recommend the establishment of a National Micro Retailing Organisationif the SBS does not deliver on this score. Our experience of the majority of micro

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retailers is that currently they are looking to make a living rather than to expand theirbusinesses. They generally want to maintain a sustainable retail outlet that willprovide sufficient income for themselves and their family and provide a service tothe community of which the family forms a part. In our view, to be effective infilling the gap PAT 13 has identified in the support available to the small retailer, theSBS will have to offer a set of focused services that are sympathetic with the aimsand aspirations of the micro retailing sector.

In view of the points made above, we do have some concerns about what is proposedin the consultation paper for the SBS. Our primary concern is that the brief of theSBS as described in the consultation document is too broad. The experience of ourmembers with Business Links suggests that it will be difficult for one agency to cancater for all businesses - from a 250 person IT-related company through to a familyowned store or cottage industry bakery or plumbers. The business advisers will needto be experienced in the business sector that they are providing advice to and thisshould be explicit in any franchise specification. Our experience of local retailing isthat, to date, advice has been from people who often do not understand it. Forexample, members report that advisers have said communities are too small tosupport local stores because, to them, a store means a Sainsbury or Tescosupermarket not a Mace or Spar neighbourhood shop.

There should also be greater clarity about the meaning of “small business”. Forexample, the executive summary suggests that a small business is one whichemploys up to 250 people whereas later the consultation document talks of a micro-business encompassing those which employ from 10 to 200 people. Our concernscentre largely around those which employ 1 – 10 people. Introducing ranges ratherthan strict definitions e.g. businesses which employ 1-10 people, 11-50 people and51 to 250 or whatever, may not only convey a deeper understanding of the sector butmay also instil more confidence in those likely to use the SBS that it knows andunderstands the types of business it has been set up to serve.

However, it is not only the diversity of businesses in terms of the number of people itemploys which is important to recognise, but also the different sorts of activity whichthese businesses wish to undertake. Small businesses have completely differentobjectives, values, legislative issues, etc (i.e. IT companies want to go public andrealise the capital value, independent retailers want a steady income). We consider itimportant, therefore, that the range of businesses and the types of services that are tobe included within the remit of the SBS, such as the micro-retailing sector, areclearly defined at the outset and not left to the Chief Executive to decide onceappointed.

We are also disappointed that, despite the Secretary of State for Trade and Industry’sreference to small businesses being an important source of innovation, this does notseem to be reflected in the setting up of the SBS. Some of our members feel that thesuggestions put forward in the consultation document are lacking in innovation anddo not offer anything new aside from a Chief Executive of a new agency who willenjoy some interaction with Ministers. Having the Chief Executive at the heart ofGovernment is a positive step; but to have credibility, it will be vital that the jobspecification for the Chief Executive includes an absolute requirement for hands onexperience of the small business sector, in particular, the micro retailing sector.

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We are concerned that the SBS will continue to use the Business Link network eventhough the consultation document admits that this has failed small businesses in thepast. If the majority of Business Links have not interacted with small businesses inthe past, how will it be able to undergo the necessary “cultural” changes in order tomeet the needs of the small businesses particularly those employing 10 or lesspeople? To be effective, we consider that it should take on people with experience ofthe sector and should not attempt to recycle the present staff, the majority of whomhave relatively little experience of working in the small business sector.

Furthermore, our understanding is that most Business Link “Boards” are made up ofrepresentatives of bigger statutory and private sector organisations such as localauthorities or large corporations. Small business tends to be underrepresented. Wewould, of course, expect the situation to be quite different with the SBS, and cannotstressed too strongly that representation from the sector itself at Board level is vital.

It is also important that the cost element of the SBS is addressed so that chargingdoes not become a barrier for small business as already noted by the Secretary ofState for Trade and Industry in his foreword. Those businesses who most need andwould most benefit from the advice (i.e. business start-ups) are, in our experience,least likely to be able to afford SBS advice. Moreover, unless the SBS get the rightpeople, by the time small businesses can afford the advice, they will know more thanthe SBS adviser.

We welcome the idea of an Enterprise Council. However, it already appears that realsmall businesses will be in the minority. Our view is that the “professional” positionholders, such as chamber of commerce, trade bodies etc., should form a panel withwhich the Enterprise Council can liase and seek its advice as it sees fit. This wouldthen enable the membership of the Council itself to genuinely be representative ofsmall businesses. We would also like to see a fair and transparent process for theseappointments.

In terms of small business development in deprived neighbourhoods, it is importantto recognise that while SBS funding will be an important element in economicregeneration, it can form a vital link within regeneration strategies in terms ofdelivering wider improvements such as in health, in the environment and inimproving social cohesion. Local partnerships, for example between the local retailerand the community it serves, form a vital part of economic regeneration and the SBSfranchisee must understand and work with these dynamics.

There is also a need to ensure that strategies for business support and training areintegrated at the national, regional and local level. The proposals in the consultationdocument suggest a purely advisory role for the RDA’s. We would recommend amore active one. RDA’s are, in a unique position to provide strategic policy directionand recognise the links between enterprise policy and skills/training provision at theregional level. They will also strongly influence European funding for BusinessSupport in their regions. At the local level, the strategy should integrate business

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support activity with the skills and life long learning agendas of the proposedLearning and Skills Council.

There needs to be a strong input from local businesses into those elements ofbusiness support funded by the DTI. There is a danger that the establishment of anational SBS could lead to a system driven from the centre as currently it is unclearwhat the remit of the proposed local user panels will be and how the panels willmake involvement by local business any more attractive.

Finally, we consider that the SBS should develop an advisory role to smallbusinesses, i.e. a sort of “One Stop Shop” on Government Regulations. It is the timeit takes to find all the different information a small business needs that slows downthe economic growth of some these businesses.

I hope this provides a useful perspective of the views of various members of PAT 13on the SBS. Finally, can I emphasise again that I would, of course, be happy to meetand discuss any of these comments with you if that would be contribute and helpfurther develop the thinking around the SBS.

Dr Eileen RuberyChairPAT 13: Improving Shopping Access

improving shopping access for people living in deprived neighbourhoods

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