Markets in decline due to 'poor planning' by councils

Traditional markets are in decline due to poor planning by councils, a committee of MPs have said.

The struggle faced by markets across Britain, from antique stalls to farmers' markets, is eroding community cohesion and damaging local economies, the Communities and Local Government (CLG) Committee warned.

Planning decisions have "sidelined" markets and councils should appoint "market champions" at a senior level to ensure that policies complement, rather than hinder, markets.

The cross-party committee also found there was a "lack of clarity" within central government as to who has overall responsibility for markets.

The CLG Department should be the first point of contact for industry and local authorities, it recommended.

In a report released today - Market Failure?: Can the Traditional Market Survive? - the committee said some markets continued to thrive but "the number in decline appears to be greater than the number that are more than holding their own".

The most significant reason for this was increased competition from supermarkets, cheap retail outlets and the internet.

But the decline was also due to a series of "local authority and industry own goals" with a failure to invest to ensure that markets meet customer expectations.

Councils should explore how markets can act in sympathy with the wider town centre and local communities, the committee said.

Labour MP Phyllis Starkey, committee chair, said successful markets delivered "diverse benefits" to Britain's towns.

She said: "Economic benefits are perhaps the most obvious, but the social value of markets and the community cohesion they encourage are equally important."

Ms Starkey added: "Planning guidance should reflect all the contributions that markets can make to town centres.

"CLG should lead an inter-departmental working group that can ensure all departments use markets to deliver wider objectives such as job creation, support for small business, value for money, healthy eating, increased footfall in our town centres, a stronger social focus and more robust community character."

A national survey of retail markets in 2005 found there were more than 1,150 markets in the UK with more than 46,000 market traders.

A CLG spokeswoman said: "Markets are very important to our communities, the vitality of town centres and to the wider economy.

"That's why the Government is promoting their role and use through its planning policy for town centres, encouraging councils to retain existing or create new markets.

"Recent guidance issued to councils on strengthening town centres also recognises the importance of markets in building for recovery and stimulating local economies.

"We welcome the report's recognition of these positive steps, and will look closely at the committee's recommendations for further measures to support markets."