A new retail watchdog is needed to stop supermarkets abusing the planning system and putting unfair pressure on suppliers and independent traders, MPs will argue tomorrow.

In a hard-hitting report into the future of the High Street, the All-Party Parliamentary Small Shops Group will argue that the absence of a retail regulator favours the big four supermarkets.

Small, independent shops across Sussex are hoping the Government will use this opportunity to go head-to-head with giants such as Tesco, Sainsbury's, Morrisons and Asda.

The introduction of a new independent "retail tsar" will be resisted by the supermarkets which control a staggering 75 per cent of the £80 billion grocery market.

But there are signs the Government is prepared to intervene to stop supermarkets building even more stores and squeeze out even more independent businesses, which are closing at a rate of 2,000 a year.

The all-party group is expected to recommend a tax on supermarket car parks and stiff penalties for stores that exceed the planning permission granted by councils.

The stinging report - called High Street Britain 2015 - is also expected to advocate giving local authorities more funds to help them fight costly planning appeals mounted by the retail giants.

Trevor Freeman, chairman of the Brighton and Hove branch of the Federation of Small Businesses, said the financial clout of the supermarkets had virtually killed off the independent shop.

He said local authorities lacked the resources to pursue appeals over planning applications, a factor which gave retail monoliths an unfair advantage over their smaller competitors.

He added: "The supermarkets built stores on the outskirts of town which encouraged people to get in their car and drive to the shops which left a vacuum in the town and city centres.

"Smaller shops were unable to compete and went out of business. Now you are seeing the big retailers move back into the town and city centres with smaller stores.

"Lifestyles have changed so much that people want everything under one roof.

"The smaller shops have to get their act together over online shopping and work to improve their service."

Tony Mernagh, chief exexcutive of the Business Forum Brighton and Hove, said: "Supermarkets have never been more popular with consumers and the vast majority do not give too much thought to the effect their dominance is having on the High Street.

"The playing field has a steep pitch and the independents are at the wrong end."

Mr Mernagh said the supermarkets had the financial clout to appeal planning decisions as well as enjoy enormous buying power and an unfair rents and rates system.

He added: "Anything the Government does to level the playing field is a step in the right direction."

Lucy Neville-Rolfe, Tesco's director of public affairs, said: "We feel the consumer would be the loser if the Government regulated supermarkets. There have been two recent investigations and they found supermarkets acted in the consumers' interests."

Tuesday, February 14, 2006