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Main Findings

• In terms of the overall effectiveness of NPPG 8, the policy is generally clear, but a number of aspects require to be updated, refreshed or additional guidance published.
• There is scope for a higher profile for town and other centres by defining them as "urban centres" in Scotland, linked to other areas of central government activities such as the Cities Review and policies guiding development towards competitive places. Future Scottish Planning Policy guidance should define the attributes which would qualify an urban centre for designation.
• Future policy should seek to promote town centres as efficient, competitive and innovative locations and increase activity accordingly. This might include a stronger requirement for town centre strategies and vitality/viability studies and annual bids as part of a 'Town Centre Improvement Fund'.
• The sequential approach is a sound basis for future policy, but should be improved with guidance on location and development issues needs e.g. linkages between edge of centre sites and established centres; and the need for more resource commitment to enable identification and pre-testing of appropriate sites.
• There is a need for best practice guidance on site development issues with a clearer focus on site assembly and a register and review of potential retail sites in town centres. Streamlining of compulsory purchase and other procedures should also be examined.
• There is continued use of the private car for shopping, mostly at off-peak times. The research recommends a more positive policy acceptance of controlled car use for shopping, linked with renewed investment in public transport modes in urban areas and an investigation into car park charging policy in different retail locations.
• Future national guidance should be supported by advice on the appropriate context for the use of quantitative and qualitative assessments and impact appraisals. It should not include a "first test" of retail need before a proposal can progress.
• A new Scottish Census of Distribution would be the best way of improving data on the retail/commercial sector in Scotland.
• There is a need to avoid an over rigorous national policy context and allow flexibility at the local and especially rural levels.

Methodology

• Desk research consisted of an extensive literature review, an assessment of retail statistical data, and reviews of sample policies, planning decisions and general transport issues. Household surveys collected information on general shopping patterns. Discussion groups, interviews, and a public and private sector questionnaire focused on specific areas of NPPG8 policy.
• Six central issues were identified from the original brief . These are summarised below, along with the Study Team's findings on policy implications.

Issue 1: General Retail Trends and Changes in Scotland

• The findings point to a strong and dynamic retail sector in Scotland. The Scottish planning system can expect further change in the future. Survey data showed however a high level of negative reaction to retail change over the last five years. This does not accord with the original, positive aims of NPPG8 and the study team suggests that fresh catalysts are needed in the planning system to promote town centre and other retail opportunities. This need to re-energise retail planning leads to the suggestion of an annual Town Centre Improvement Fund, which might be distributed to sustainable centres that have been subject to careful town centre strategy and vitality/viability appraisals. This could reflect the vigour that has resulted from the integrated transport fund.
• The need was highlighted for the retail sector to have a higher policy profile at national level, particularly in relation to urban centres for retailing and mixed uses. Constant monitoring and updating of statistical sources will be required to measure levels of new retail and mixed-use floorspace. In particular, future monitoring should cover a range of locations, including traditional town centres and more decentralised locations.
• Regular monitoring of shoppers' views is also needed. The study recommends an annual national survey with a carefully selected urban and rural sample. This data could be gathered by the Executive but made available to other policy makers and developers for the assessment of retail proposals.
• In the context of new retail formats, new locations and national policies which promote competitive place it would be appropriate to broaden the scope of future retail based policy. Perhaps future SPP guidance might concentrate on "urban centres" as the focus for our communities, with a new policy which covers not only retail but various other aspects of strong centres in urban areas which display qualitative benefits, whether it be by way of a strong retail, leisure, office, transport hub or other infrastructure, commercial, civic and business functions. This broader reach of policy would refresh the definition of "centres" and seek a wider agenda for high quality urban places, which sustain energy efficient, convenient, healthy and vibrant life styles.
• Finally, accessibility is key and the study has highlighted the continued use of the private car for access to convenience and comparison goods shopping, mainly at off peak times. In terms of the need to improve public transport in urban areas, centrally located transport interchanges which complement mixed use development might usefully be promoted.

Issue 2: Defining centres, their use, mix and status

• How to define important centres in the hierarchy and assess their appropriate use, mix and status was central to the discussion groups, interviews and questionnaires in the study. Most respondents considered that for centres to be accorded an important status in future development plans they must have key credentials, including fashion/mainstream retailing, public transport hubs, car parking, civic spaces, tourist attractions, food/drink establishments, financial/professional services outlets and leisure venues. There was less support for including DIY, carpet and garden retailing and the private sector was less supportive of large-scale convenience goods facilities.
• The definition of centres would also depend upon the multi-locational pattern of centres emerging throughout the larger urban areas in Scotland. NPPG8 protects the primacy of the "town centre". However, evidence suggests that other locations are increasingly providing commercial, transport and other activities and these should not be ignored in future policies.
• According status or importance in terms of policy will be the next step in assessing a new hierarchy in each urban area. Emerging centres in new locations should only be accorded a status on the basis of a criteria assessment of strength in terms of facilities. This will require an audit of centres and locations as part of the development plan process. This kind of audit is likely to rely upon recent national guidance that areas for high-density mixed-use development close to transport nodes will be appropriate for sustainable development.
• In terms of the definition of town centres, the study team identified concerns in relation to the following issues:- town centre management, preparation/promotion of town centre strategies, identification of town centre sites, promoting an efficient and competitive retail sector and supporting design quality. There was also felt to be lack of clarity in defining the edge of centre, and respondents suggested that this needed to be defined on the basis of physical aspects and vitality/viability indicators.
• The study found a low level of activity in the preparation of town centre strategies and vitality and viability studies across Scotland. NPPG 8 notes that failure to improve town centres will make them vulnerable to competitive challenges. The research concludes that this lack of activity is not tenable. If authorities wish to strengthen the focus on sustainable centres, they will have to commit greater resources to town centre improvement, put forward viable development options and develop a monitoring database on vitality and viability measures.

Issue 3: Sequential Approach

• Overall, the study found that the sequential approach was a sound basis for continued planning policy decisions. However, the key issue was defining a "comfortable walking distance" between the established centre and the edge of centre. Respondents were not in favour of specific dimensional measurements between a proposed site and the centre. Most supported further guidance based upon place linkages between the site and the town centre, the degree of comfort, attraction of the linkage and the presence of obstacles or distractions between the locations.
• Respondents considered that primary/secondary shopping frontages, key areas of activity and public transport facilities help to define the appropriate area of the town centre. However, there was also strong support for the definition of further areas adjacent to the main town centre where, subject to access, land availability and scheme viability, the planning authority could accept future development on a sequential basis.
• It was also felt that sequential sites, once accepted as part of a centre, should be free of retail impact testing. A number of respondents had concerns about the unnecessary use of resources to test the impact of a town centre extension when the physical location in itself had already been accepted as beneficial to the centre as a whole. Many felt that planning authorities should increase the level of site pre-testing before development proposals come forward, rather than post-testing the sequential approach once developers have tabled a scheme.
• The sequential approach appraisal also raised concerns about the word-for-word repetition of policy at national, strategic and local level. It was suggested that the basic elements of sequential policy could be stated at national level and simply referred to in local plans, etc.

• There does not seem to be a high level of concern about larger format retail being disaggregated, to fit into smaller sites in town centres. Indeed, the study has found evidence in appeal decisions and other sources that Scotland might be more tolerant of large retail formats, where these can bring locational and consumer advantages. On the other hand, the sequential approach seems to have encouraged the reintroduction of smaller convenience outlets in city centres. The study concludes that one implication is the need to employ the appropriate restrictive conditions on retail goods and retail format, in order to balance a policy in favour of town centre location for mainstream retailing, with the possible benefits of bulky goods formats in decentralised locations.

• Finally, the study noted that the continued application of the sequential approach would have an effect upon urban density in the future. Continual growth in retail and commercial developments in central positions will raise questions of how this can be accommodated in centres which have already seen significant redevelopment and expansion. An outward spread of centres will, in time evolve to show an increased density (by height and mass) and this might start to present urban design challenges, particularly in areas of strong heritage control.

Issue 4: Support for New Development

• This issue is a follow up to the questions raised on the definition of centres and the sequential approach. The study found some key implications for policy in terms of support for new development and site viability issues. One finding was the need for future guidance to require planning authorities to undertake a sequential approach in advance of development proposals, rather than retrospectively. Site viability issues suggest that an increased level of skill and resource needs to be applied at the development plan preparation stage, including systematic site searches and assessments of land viability issues.
• A related finding was the need for best practice guidance on site-development issues. This would cover the preparation and implementation of town centre strategies, the identification of sites in consultation with development and investment interests and a more precise approach to site assembly, in particular using a "back to back" approach where a planning authority might front a proposal then passing the detailed phases over to a development interest. Furthermore, there could be more detailed reference to the use of compulsory purchase in site assembly and this could involve a possible review of Section 189 of the Principal Planning Act in Scotland to provide for a simplified compulsory purchase process.

Issue 5: Retail Deprivation

Overall, the study found that Scotland has a strong, dynamic and prolific retail sector which produces numerous development proposals in both town centre and out of centre locations. Therefore, as a whole, Scotland does not present evidence of retail deprivation in terms of a shortage of activity in the pipeline. However, the study did conclude that a key issue is the proximity and accessibility of retail facilities for the shopping population. It was suggested that a more precise analysis of the geo-demographic implications of retail provision would be appropriate.

Issue 6: Retail Assessment Methodology and Data Sources

• The study concluded that data sources could be improved at the national level, ideally through a Scottish Census of Distribution. Although modern data agencies can provide population and expenditure data, there is still a need for more accurate floorspace and shopping survey information. There continues to be a need to employ retail assessment techniques to measure overall capacity and the impacts of proposals. However, there is no evidence of a requirement to place an initial test of need in front of retail proposals. This has attracted much debate south of the border, but legal and other sources in Scotland suggest that general appraisals of retail capacity and impact are sufficient for retail appraisal.
• Overall, the key findings on retail assessment were to refer again to the need for a clear definition of centres of importance in the retail hierarchy, the need for better data sources, possibly using a national resource, such as the Centre for the Study of Retailing in Scotland, and the need to update guidance on retail capacity and the actual implications of impact, particularly through measures of retail quality.

General Conclusions

• In terms of the urgency for review, the study team conclude that refinements are appropriate within the next 12 months and, from 12 to 36 months, a review of NPPG8, to create a new SPP addressing issues raised in this study. NPPG8 was felt to be generally clear and instructive. Qualitative/quantitative deficiencies, urban design, town centre strategy, and site development issues were highlighted as needing further development. The secondary section of NPPG8 (a typology of retail formats) was felt to be unnecessary. The aim of the review should be to produce a new, shorter SPP with more focused supplemental planning advice notes. The new SPP should build in more flexibility, particularly for rural areas.

Strategic Recommendations for the Scottish Executive

Strategic Recommendation 1: Introduce a New Approach to "Urban Centres"

The Scottish Executive should introduce a new approach to "urban centres". This should raise the profile of town and other centres in government policy, redefine town centres in the future to be sustainable, accessible and viable urban locations and new guidance should present a list of credentials which qualify a centre to be one of importance in future planning policy.

Strategic Recommendation 2: Launch a New Profile to Promote Town Centre Initiatives

• The study team recommends the launch of a new profile to promote town centre initiatives. The new aspect involved in this recommendation is some form of annual round of bidding for central funds, in order to secure investment in appropriate development sites, town centre extensions, transport improvements, environmental enhancement and other initiatives. It is suggested that this idea could be worked in conjunction with the Scottish Executive Cities Review and also current discussions regarding Business Improvement Districts.

Strategic Recommendation 3: Improve Guidance on Sequential Sites

• Policy on sequential sites should be improved, with guidance on location and site development issues. This could be more specific in terms of appropriate linkages between new sites and existing centres, to promote a "pre-test" of various sites before developments come forward and to promote more detailed site development guidance.
• There is a need for best practice guidance on the preparation and promotion of town centre strategies, vitality/viability indicators and the identification/assembly of town centre sites. In addition, some respondents have highlighted the need to promote design quality, improve the public realm and promote good practice on town centre management.

Strategic Recommendation 4: Reappraise Key Trends/Patterns for Transport for Shopping

• Transport for shopping should be reappraised. Key trends should be identified through updated household shopping and leisure survey information. From this, different patterns of accessibility and transport facilities should be assessed, with a view to complementing future policy on shopping centres.

Strategic Recommendation 5: Advice Note on Retail Assessment Data

• There should be a clearer focus on retail appraisals in future policy. This could include a background advice note on retail assessment techniques and data sources.

Strategic Recommendation 6: Short and Long Term Changes to NPPG8

• Short term (next 12 months); actions to clarify the sequential approach, promotion of town centre strategies, focus the appropriate context for retail assessment methodology and improved vitality and viability monitoring.
• Medium term (12 to 36 months); actions to introduce a shorter format SPP with a different approach to "urban centres", incentives to improve and promote town centres, a fresh approach to transport accessibility including private car use, a less stringent "criteria checklist" approach and deletion of the specific forms of development typology.