Johnson is proposing that new retail developments should include space reserved for independent business, which would pay lower rents than multiples.
Small shops are an emotive subject in the capital, encouraged by an excellent campaign by the Evening Standard. Innovative independents are the lifeblood of retail and are deservedly enjoying a renaissance in London as middle class shoppers become increasingly concerned about provenance and quality of service.
But Johnson’s plan is populist politics at its worst. For a start, it is full of pitfalls. How do you determine what a small independent retailer is? How do you set the rental differential? What type of independent retailers would be included?
It’s not just the practicalities that don’t work though, it’s the principle. If developers have to subsidise rents for their smaller tenants, ultimately it will be the other tenants – the multiple retailers – that will be expected to make up the shortfall in rental income by paying higher rents.
It’s an idea that goes against every principle of a free market economy and another sign that today’s Conservative Party lacks an understanding of the needs of big business. The appalling market conditions – both for retailers trying to sell their products and developers trying to let space – means the plan is a non-starter in today’s market anyway.
If Boris really wants to help small shops, there’s plenty he can do without daft plans like this. The biggest issue affecting small high street stores is parking, as unnecessary restrictions and barely used bus lanes prevent motorists stopping by to shop. If the new Mayor wants to do his bit to help the vitality of London’s independent retail scene, he could do a lot worse than painting over a few yellow lines.
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