Ministers admit small shops are under threat

THOUSANDS of small shops are under threat as the country plunges towards recession, ministers admitted today.

The Government added that the "balance has tipped too far" against local stores in many town and city centres.

Communities minister Iain Wright was telling the Association of Convenience Stores today: "While the headlines concentrate on profits at the bigger retailers like Marks and Spencer, John Lewis or Tesco, smaller shops and retailers are equally feeling the pinch. We need to protect small retailers threatened by increased competition.

"The balance has tipped too far, creating high streets which are bland replicas of each other, dominated by big chains."

The Government is scrapping the "need test" which has limited the growth in superstores in some towns and cities and replacing it with an "impact test" which ministers claim will give councils greater powers to safeguard small shops.

Under new planning guidance, to be published early next year, town halls will be able to consider retail diversity. But critics fear the new rules will lead to many more superstores.