Draft Regulation 18 Sandwell Local Plan

(2) 9. Sandwell's Centres

Introduction

9.1 The purpose of Sandwell's centres policies is to help secure the investment, jobs and regeneration needed to create a mature, balanced and well-functioning network of centres where residents shop, work, live and spend their leisure time.

9.2 Concentrating development in centres that are highly accessible by a variety of sustainable means of transport contributes towards planning priorities such as health and wellbeing and addressing climate change.

9.3 Delivering a vital and viable network of centres will contribute significantly towards meeting the current and future service needs of Sandwell's residents, particularly through serving future housing and employment growth, as well as providing a unique opportunity to improve the quality and experience of the built environment.

9.4 Centres are crucial to the delivery of Strategic Objective 15.

Sandwell's Centres

9.5 Sandwell's centres are evolving and are subject to ongoing challenges as the focus shifts from their primary retail function to other activities such as leisure, commercial, residential, community services, health, local facilities and further education and civic uses.

9.6 It is a priority for Sandwell Council to maintain and enhance centres appropriate to their scale, role, and function enabling them to underpin the vital role they play in contributing to the economic growth, character and identity of the Borough.

9.7 West Bromwich is the strategic centre of Sandwell and provides the focus for higher-order and sub-regional retail, office, leisure, cultural and service activities. It is supported and balanced by the network of town, district and local centres, which offer complementary uses including meeting the day-to-day needs of local communities, particularly for convenience (food) shopping.

9.8 It is recognised that the repurposing / diversification of centres needs to be delivered, to ensure their ongoing vitality and viability and secure their future regeneration. Policy SCE1 sets out the overall priorities and strategy for Sandwell's centres. It defines the hierarchy of centres and sets out, where subject to planning control, appropriate uses, requirements and links to other relevant policies.

9.9 This policy establishes that the strategic approach to future growth identified in Policy SDS1, the specific levels of housing and employment growth identified in Policies SHO1 and SEC1, and the allocations identified on the Policies Map (site allocations), should have their needs met in the first instance by the existing network of centres. It also emphasises a flexible approach to format and scale to maximise use of town centre or edge-of-centre sites.

Justification

9.10 The challenges facing consumers, businesses and town centres continue to intensify and the scale of the post-pandemic rebound is uncertain given inflationary pressures. Households are faced with rapidly rising inflation, energy price increases, higher interest and mortgage rates and the prevailing global economic situation.

9.11 A 'cost of living crisis' has emerged, which will have significant adverse impacts on the least affluent households. This will spark recessionary behaviours such as weaker spending and softer confidence. Rising prices are eroding the real value of wages and reducing living standards.

9.12 Forecasts are for a 'flatlining' of convenience spend up to 2040, and a modest growth in comparison spend over the same period of 2.9% per annum^[152], significantly reduced from the long-term trend of 5.1% (Black Country Centres Study 2021).

9.13 These challenging economic conditions and the growth in online sales continues to have a significant and permanent impact on consumer shopping and spending behaviour. This is seen against a backdrop of weakened demand for retail property, high vacancy levels and a significant fall in new retail-led development in centres across the UK.

9.14 There has been a significant move towards hybrid working. This impacts on the demand for office floorspace, resulting in increased levels of vacancies for offices in centres. There are related adverse effects for the service-led element of centres provision who rely in part on trade from office-based workers.

9.15 With close to one-fifth of shopping centre units standing vacant, there is an oversupply of retail space in many UK locations; the consensus is that somewhere between 20 - 40% of UK retail space may ultimately need to be redeveloped or repurposed^[153].

9.16 Changes to permitted development rights (PDRs) and the Use Classes Order also have potentially significant implications for the planning, management and development of centres.

9.17 There is therefore a need to consider the repurposing of existing vacant and under-utilised commercial floorspace in Sandwell, especially in retail and office provision, with the aim of generating a wider mix of uses in town centres and making up for the loss of economic activity caused by the fall in demand in those markets.

9.18 Residential development will form a significant part of this new approach, which will bolster the vitality and viability of the remaining retail units. This is especially relevant in Sandwell, where there is a significant shortage of residential land. Other uses in centres such as education, health and community use will also be able to exploit their excellent sustainable transport links.

9.19 Uses with intergenerational provision, green space and a variety of leisure activities will play a key part in the path to recovery and in attracting footfall back to centres and high streets. Centres in the future will require curation to enable them to continue to thrive and accommodate inclusive social and spatial interaction.

9.20 Due to the more limited retail spending power available to centres, it is necessary to direct suitable uses to the existing network of centres as they will be well-placed to serve future development, consistent with national guidance. It is also important to protect centres from edge-of-centre development that would reduce their financial capacity beyond already constrained limits, to safeguard their vitality and viability.

9.21 Therefore, a locally-set threshold for requiring an impact test has been identified. An impact test is needed to assess whether a proposed shop or retail outlet would have a negative impact on the vitality and viability of an existing centre; for example, where edge-of-centre or out-of-centre supermarkets are proposed. An impact test will be required for any premises at the edge of, or outside, a current town centre where the new development would be more than 280 m², or where extensions to an existing shop in that type of location is proposed, where the total development would then be over 280m².

9.22 Strong justification will be needed for out-of-centre or edge-of-centre provision, with most centre-type development being rearrangements of existing floorspace, redevelopment of existing sites and extensions to existing provision.

(1) Table 10 – Sandwell's Hierarchy of Centres

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Non-E Class Uses in Town Centres

9.23 Changes to the Use Classes Order and to permitted development rights will see centres fundamentally change from having a retail focus to a genuine mix of uses. This policy seeks to restrict non-E Class developments in town centres where they would have a deleterious effect.

Justification

9.24 The Centres Study and Addenda show that centres need to function as much more than a retail destination, providing a large range of services, facilities, employment and experiences for residents in an accessible location.

9.25 Changes to the NPPF, the Use Classes Order and to permitted development (PD) rights mean centres will be much more dynamic places, reacting faster than before to market forces, fulfilling different roles in the same building and potentially performing different roles / functions throughout the day.

9.26 Additional dwellings in the high street, supporting the economy and enabling sustainable travel, will be a positive result and will contribute towards the rejuvenation of these central areas. At the same time, control over development in the centres should recognise the need to retain active frontages where possible and the significant retail function of centres in any proposed mix of uses. Therefore, control over Non-E Class development in centres is required i.e., to prevent unacceptable clusters of Non-E Class development.

9.27 Centres in the future will require curation to enable them to continue to thrive and accommodate inclusive social and spatial interaction (Black Country Centres Study 2021 paragraph 2.48).

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Town Centres (Tier-Two centres)

9.28 Sandwell's Tier-Two centres, as identified in Table 10, are Bearwood, Blackheath, Cape Hill, Cradley Heath, Great Bridge, Oldbury and Wednesbury.

9.29 They are a distinctive and valued part of Sandwell's character and will help to meet local and wider needs in the most accessible and sustainable way. This policy supports the important local function provided by Tier-Two Centres, particularly convenience retail provision, and their future diversification and regeneration of town centres.

Justification

9.30 Sandwell's network of town centres (Tier-Two centres) performs an important role. The food (convenience) shopping function will be protected and supported, especially as these uses help anchor the retail offer of the wider centres and encourage linked trips, and thereby help ensure the vitality and viability of centres.

9.31 The Black Country Centres Study health check identified little capacity for these centres to support additional retail floorspace. The priority is for future housing and employment growth in Sandwell to be served by the existing network of centres, providing the opportunity to support the network of Tier-Two centres (as set out in Table 10).

9.32 There is, therefore, a need for strategic interventions to enable centres to diversify further to ensure their future vitality and viability.

9.33 Projects should reflect the distinctiveness of town centres, for example the heritage focus of Wednesbury, the civic function of Oldbury, or the specialist retail role of Cape Hill. These can inform funding initiatives such as the Future High Street Fund, Levelling Up Fund, or other initiatives.

9.34 Edge and / or out-of-centre proposals (as defined in Policy SCE6) must meet all relevant requirements to protect centres from the impacts of any inappropriate edge or out-of-centre proposals and ensure their vitality and viability.

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District and Local Centres (Tier-Three centres)

9.35 This policy protects and supports the large network of centres that provide day-to-day convenience shopping and local service needs.

Justification

9.36 The network of district and local centres is crucial to serving the local needs of Sandwell's communities in the most sustainable way. Existing centres are dependent on smaller supermarkets and / or convenience stores to anchor their retail offer.

9.37 The priority is for housing and employment allocations to be served by the existing network of centres, providing the opportunity to support the network of Tier-Three centres (Policy SCE1, Table 10). Edge-of-centre and out-of-centre proposals must meet the relevant requirements of Policy SCE6 to protect centres from the impacts of any inappropriate edge- or out-of-centre proposals and ensure their vitality and viability.

9.38 The Local Plan has adjusted local centre boundaries, designated new local centres, and removed local centres from the network and hierarchy. New local centres identified in this way become part of the network of Tier-Three centres in the hierarchy (SCE1, Table 8) and are subject to relevant policies.

9.39 A new local centre has been designated on Hagley Road West (Hollybush). Its designation corrects an anomaly. This centre includes 37 commercial units providing convenience and comparison outlets, food outlets, financial services, grooming and health services, some of which are double fronted. Until comparatively recently it had no convenience offer. This has since changed, hence its eligibility for inclusion as a centre. It is located on the boundary between Sandwell and Birmingham City Council, with further commercial units in Birmingham; functionally it is significantly larger than several existing Sandwell Tier-Three centres. It has been monitored annually for several years. The review of the Local Plan is the correct time to incorporate it into the hierarchy of centres. Another new centre, Abbey Road Local Centre, is proposed at the junction of Wigorn Road and Abbey Road, Smethwick. Its designation corrects an anomaly. This centre includes 24 commercial units providing a post office, comparison outlets, food outlets, grooming and health services, some of which are double fronted. It also has a long-standing convenience offer. Functionally, it is larger than several existing Sandwell Tier Three centres. The review of the Local Plan is the correct time to incorporate it into the Hierarchy of Centres.

9.40 The former Tier-Three centre located at the junction of Hagley Road and the A4123 (known as Hagley Road / Jonathans) has been removed from the Hierarchy of Centres as it no longer fulfils the function of a local centre, having lost most of its functions since it was first identified, including the key convenience aspect of its offer.

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Provision of Small-Scale Local Facilities not in Centres

9.41 The priority is for local service needs, including those generated from the residential and employment allocations in the SLP, to be met in the existing network of centres; this will help to ensure their vitality and viability. However, some small-scale provision may be justified in certain circumstances to meet local community needs.

9.42 This policy relates to proposals for small-scale local facilities for units of up to 280m² (gross) of floorspace and extensions (including internal floorspace increases such as the provision of mezzanine floors) where the proposed uplift in floorspace is up to 280m² (gross).

Justification

9.43 The existing network of centres plays a crucial role in serving the local needs of the Borough. Centres are dependent on smaller units, such as express supermarkets and convenience stores, to anchor their retail and service offer. It is therefore a priority to protect and support this approach. Local facilities are also provided in existing stand-alone locations and in small parades of shops. It is recognised that stand-alone provision can play a positive role in serving local communities, particularly where it offers social infrastructure.

9.44 It applies to new development, changes of use and variations of conditions, including:

1. proposals related to petrol filling stations and drive-through facilities;
2. proposals for ancillary uses under Policy SEC3;
3. where the potential for an element of on-site provision of new local facilities is identified, or in exceptional circumstances where such proposals are brought forward through speculative planning applications, (whereby the requirements of Policy SHO2 also must be met, particularly with respect to demonstrating high levels of accessibility by sustainable modes of transport).

9.45 For the purposes of applying the criteria, nearby centres include those centres whose catchment areas overlap with the catchment area of the proposal, with 400m being a safe, convenient walking distance.

9.46 For the purposes of applying the Impact Assessment, proposals that have unit sizes under 280m² (gross) but comprise several units where the total floorspace of the proposal exceeds 280m² (gross), and / or where the proposed uplift in floorspace of unit size(s) is under 280m² but would create unit(s) over 280m² (gross), will also have to meet the requirements of Policy SCE6. Proposals whose unit size(s) are over 280m² (gross) will have to meet the requirements of Policy SCE6.

9.47 280m² (gross) is the locally set threshold for undertaking impact tests on retail and leisure proposals as set out in national guidance in edge and out-of-centre locations. This threshold applies to:

• new development,
• changes of use,
• variations of conditions,
• extensions or increases to the floorspace of existing unit(s) (e.g., through increasing sales areas, mezzanine floors) that would create outlets with floorspace over 280m² (gross),
• and / or proposals whose unit sizes are under 280m² but the total floorspace of the proposal is over 280m² (gross).

9.48 This policy can contribute to achieving priorities such as promoting the health and well-being of local communities. In making planning decisions further guidance is set out in other Plan policies, such as those relating to hot food takeaways.

9.49 Where planning permission is granted, effective planning conditions and /or planning obligations will be required to support the regeneration strategy and minimise impacts. Conditions should include defining as specifically as possible:

1. the types and (sub)categories of uses that are acceptable;
2. the types of goods and service to be sold;
3. unit sizes and sales areas, including relating to mezzanine floors;
4. any proposed future sub-division of units; and
5. opening hours.

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(1) Edge of Centre and Out of Centre Development

9.50 The Sandwell Local Plan strategy requires most new development and investment to be focussed in centres. Therefore, robust justification will be required for any edge-of or out-of-centre schemes that could otherwise undermine the strategy for the regeneration of the Borough and adversely affect the vitality of existing centres.

9.51 This policy applies to proposals not in a centre (in edge and / or out-of-centre locations), which have a proposed floorspace of over 280m² (gross), as set out in Policy SCE1 and Table 10.

9.52 The approach is intended to focus appropriate uses within the existing network of centres. Very limited existing and future capacity means that any growth not in centres can cause adverse impacts on them. This policy sets out robust requirements that will ensure that investment in centres is maximised and significant adverse impacts are prevented. The policy notes that certain existing local facilities that are not in a centre provide an important service to a local area and will wherever possible be protected.

Justification

9.53 The intention of Policy SCE6 is to ensure that investment is focused in centres, with the priority for the existing network of centres being to serve the Borough's needs, particularly with future growth identified in housing and employment allocations (Policy SCE1). Strong justification is therefore required for edge-of-centre and out-of-centre schemes that could otherwise undermine the strategy for the regeneration of Sandwell and instead help ensure the vitality of centres.

9.54 The Centres Study and its updates identifies little capacity to support additional retail floorspace, which means that proposals that lie outside centres are likely to adversely impact upon their vitality and viability. The regeneration strategy for centres is focussed on bringing vacant floorspace back into use, and a consolidated retail and leisure offer is essential to facilitate diversification, e.g., through encouraging linked trips. Centres are also dependent on units such as supermarkets and convenience stores to anchor their retail and service offer. It is therefore a priority to protect and support this approach.

9.55 Consequently, the impact of proposals for centre uses not located in centres are a cause for concern. There is a need for an appropriately robust policy approach to ensure all potential options to focus development in centres are thoroughly explored, and that those proposals are tested for their potential significant adverse impacts on existing centres. This is particularly the case for large-scale out-of-centre speculative retail and / or leisure proposals

9.56 Flexibility should be demonstrated when assessing potential in-centre locations, including in terms of specific types of goods and services and elements of the business models of proposals, such as 'drive through' facilities not necessarily needing to be outside a centre solely for vehicular access and circulation reasons.

9.57 It is important to ensure edge-of-centre proposals do not cause significant adverse impacts, particularly as they share catchment areas with in-centre provision. Edge-of-centre proposals should support regeneration through being well-integrated, particularly through direct pedestrian linkages complementing and enhancing adjacent in-centre provision.

9.58 Impact tests should be proportionate to the nature and scale of proposals; to assist with the determination of proposals they should include as a minimum the estimated turnover and trade draw from relevant centres of the proposal.

9.59 Where planning permission is granted, effective planning conditions and /or planning obligations will be required to support the regeneration strategy and minimise impacts. Conditions should include defining as specifically as possible:

1. the types and (sub)categories of uses that are acceptable;
2. the types of goods and service to be sold;
3. unit sizes and sales areas, including relating to mezzanine floors;
4. any proposed future sub-division of units; and
5. opening hours.

Definitions of in, edge and out-of-centre locations and town centre uses

9.60 To assist with applying relevant policies and national tests, the specific locations that are defined as being either in, edge-of or out-of-centre for various uses are defined as follows:

1. In-centre locations for appropriate uses^[156] are those defined in centres, such as primary shopping areas / retail core and centre boundaries and are subject to Policies SCE3 and SCE4.
2. Edge-of-centre locations for tier-one and tier-two centres are those locations defined by national guidance (currently within 300m of in-centre locations).
   1. For retail purposes, this is a location that is well-connected to, and up to 300 metres from, the primary shopping area.
   2. For all other main town centre uses, this will be a location within 300 metres of a town centre boundary.
   3. For office development, this includes locations outside the centre but within 500 metres of a public transport interchange.
3. Locations immediately adjoining the boundaries of tier-three centres are defined as edge-of-centre.
4. Out-of-centre locations are those locations neither in nor on the edge of a centre.
5. Proposals in edge and out-of-centre locations need to meet the requirements of Policy SCE6.

9.61 Main town centre uses are those uses and "sui generis" designations that should be directed to defined centres in the first instance and are subject to requirements set out in national guidance, such as:

1. the sequential test and impact assessments;
2. local policy (particularly Policies SCE1 - SCE6);
3. floorspace thresholds for undertaking the impact assessments set out in national guidance;
4. and relevant Local Plan policies (such as frontage policies).

9.62 Main town centre uses are set out in NPPF Annex 2:

1. retail development (including warehouse clubs and factory outlet centres);
2. leisure, entertainment and more intensive sport and recreation uses (including cinemas, restaurants, drive-through restaurants, bars and pubs, nightclubs, casinos, health and fitness centres, indoor bowling centres and bingo halls);
3. offices; and
4. arts, culture and tourism development (including theatres, museums, galleries and concert halls, hotels and conference facilities).

9.63 Additional uses are those uses that are highly compatible with main centre uses, such as banks, cafes and hot food takeaways.

9.64 Complementary uses are those uses well-placed to be provided in centres and where proposals for such uses to serve centres will be supported, such as residential and social infrastructure, i.e., health, education and community uses.

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