By . Matt Chorley, Mailonline Political Editor . PUBLISHED: . 11:04 EST, 5 August 2013 . | . UPDATED: . 11:32 EST, 5 August 2013 . Furious town hall leaders have accused ministers of risking ‘real and permanent damage’ to Britain’s high streets by suggesting empty shops be turned into homes, . Councils said the idea floated by Tory Nick Boles would lead some shopping hubs ‘being shut down forever’. The minister suggested that the high street is dead, and instead of trying to revive boarded up shops planning rules should be eased to allow them to be turned into houses. Empty shop on high streets, such as here in Margate, one of Mary Portas's 12 pilot towns, could be converted into affordable homes (file photo) The radical proposal from planning minister Mr Boles risked contradicting efforts by retail guru Mary Portas, who was hired by David Cameron to find a way of reviving dying town centres. As a result of her report some £1.2million of taxpayer money was shared out between 12 towns for initiatives to inject new life into their traditional shopping high streets. But Mr Boles suggested that internet shopping and changes in lifestyles and working patterns meant the traditional town centre was a thing of the past. 'We want to encourage local councils to . concentrate retail activity into the prime shopping streets in the heart . of their town centres and adopt a more relaxed approach to under-used . retail frontages,’ he said. Planning Minister Nick Boles said councils need to think 'creatively' about how to revive flagging High Streets . Local authorities would be given more freedom to convert shops into housing, with retail concentrated on one or two ‘prime streets’ to end the ‘long straggly shopping streets heading out of town’ But the idea was condemned by the Local Government Association, which accused Mr Boles of acting to kill off the high street altogether. Mike Jones, chairman of the LGA’s environment and housing board, said: ‘Councils are working locally to improve high streets. ‘This national intervention could undermine that and lead to some shopping hubs being shut down forever with residents and businesses left powerless to raise an objection. This could drain the life from our high streets. ‘Instead of risking real and permanent damage by imposing this on the whole country, government should trust local areas to decide for themselves where relaxing planning rules would be beneficial.’ He warned that the stripping away of planning rules will ‘undermine people’s right to have a say on significant changes to their local neighbourhoods and high streets’. Portas's key recommendations, which . included cutting business rates and putting a brake on new shopping . centres, have both been rejected. Mr Boles said that planners most respond 'creatively' to shifts in the way today's consumers shop. Allowing redundant shops to be converted into homes could ease pressure on greenfield sites for residential developments. Retail consultant Mary Portas became a Government advisor on how to rescue the High Street, but many of her key recommendations have been ignored . The planning minister said: 'People' s shopping habits are changing very fast as a result of the rise in internet shopping and changes in lifestyles and working patterns . 'We need to think creatively about how to help town centres thrive in this new era. 'We want to encourage local councils to concentrate retail activity into the prime shopping streets in the heart of their town centres and adopt a more relaxed approach to under-used retail frontages.'Ms Portas expressed concern that councils would choose the 'easy option' of turning units into housing and said that losing the high street would be 'one of the greatest social crimes in our country.' Mr Boles also indicated that councils are to be encouraged to allow farmers to convert old agricultural buildings into homes. 'We want to make the best use of existing buildings in the countryside to meet the desperate need for affordable housing in rural communities,' he said. 'The more redundant barns that can be converted into homes for young families, the more we can protect green fields from development.' Earlier this week, a Chocalatier forced by soaring costs to shut his flagship shop warned that the British high street is almost dead. Simon Dunn, whose store was in Chancellor George Osborne’s constituency, says small businesses are being forced out as their profits are squeezed. He was left with £100 for himself ‘in . a good week’ after paying rent, business rates and wages, leading him . to warn: ‘Before long all that will be left on the British high street . is Tesco, Costa and charity shops – it’s just impossible for people like . me to keep our heads above the water.’ ‘I’m afraid independent traders on the high street just don’t have a chance these days in this tough current economic climate. ‘My . shop was in George Osborne’s constituency [Tatton]. He ought to know . the importance of independent businesses and try to do something to help . us. It’s the rising cost of everything that is affecting business . owners like me. ‘The sad part of it is that we’re not . the only business that’s having to do this. It’s a national problem . that is affecting every high street. 'On . a good week we were left with £100-a-week profit and it was just not . worth it. There seems to be no incentive to operate as an independent on . the high street these days. Chocolatier Simon Dunn warned that the High Street is nearly dead following the closure of his flagship shop in Wilmslow, Cheshire . ‘I have to turn over a certain amount just to keep moving, but if I go over that amount suddenly I find myself in a position where I can be taxed more. It’s as though business owners are punished for being successful.’ He will now concentrate on the business’s online operation. Ms Portas condemned the Government over a decision to allow Tesco to build a vast new supermarket on the seafront at Margate, one of her pilot towns, in June and accused the Government of 'paying lip service' to the idea of regenerating high streets. She has become an outspoken champion of . small retailers and fought to try and revive town centres ravaged by the . impact of large supermarkets. However, she has effectively been . overruled by the equally combative Eric Pickles, the Secretary for . communities and local government, who has approved the Margate scheme. The . new Tesco, which had been fought by local residents and traders, will . be a massive 82,000 square feet and sit on what is a key site on the . seafront. Councils will be urged to concentrate shops into a main retail area and convert empty units into homes (file photo) The news will confirm suspicions that . the original decision to hire Portas was more of a publicity stunt than a . genuine attempt to help struggling high streets. In April, Ms Portas accused the . former Tesco boss, Sir Terry Leahy, of talking ‘crap’ when he described . the rise of supermarkets as progress. She . said: ‘That's absolutely crap. What happens is that 50p of every pound . is spent on food. 'If you take that off the high street and put it into a . 40,000ft out-of-town store and you provide free parking and everything . under one roof, then you start to take away not only the food shops, but . also the chemist, the fashion shops, the butcher… you start to displace . the whole high street.’ A Treasury spokesman said: ‘Small businesses are the backbone of the British economy. ‘We know for many that times have been tough. The Government has focused what help we can give on small businesses.’ Small businesses have been hit by a double whammy of punishing business rates and a persistent reluctance from banks to lend to them, writes Matt Chorley, MailOnline's Political Editor. The economic recovery has continued since the start of the year - growth hit 0.6 per cent the three months to June, double the rate seen in the first quarter. But even with more customers willing to spend, many small firms are struggling to make ends meet. Latest figures show banks cut back lending to small business in 80 per cent of the country's 120 postcodes from 2011 to 2012. Only 22 towns and cities saw lending increase, despite government pressure on the banks to increase funding for struggling companies. Business Secretary Vince Cable said it was 'frustrating'. At the same time business rates charges imposed by councils on company premises wipe out a growing slice of any profits. The Federation of Small Business found one in 14 companies now spend more on business rates than on rent. With another rise in rates due in September, it is feared more companies could go bust.
Nick Boles said council should concentrate shops in 'prime' locations .
But Local Government Association warned it would cause 'real damage'
£1.2m was given to 12 towns to help high streets but many are struggling .
Key advice from retail guru Mary Portas's report have been ignored .
By . Matt Chorley, Mailonline Political Editor . PUBLISHED: . 11:04 EST, 5 August 2013 . | . UPDATED: . 11:32 EST, 5 August 2013 . Furious town hall leaders have accused ministers of risking ‘real and permanent damage’ to Britain’s high streets by suggesting empty shops be turned into homes, . Councils said the idea floated by Tory Nick Boles would lead some shopping hubs ‘being shut down forever’. The minister suggested that the high street is dead, and instead of trying to revive boarded up shops planning rules should be eased to allow them to be turned into houses. Empty shop on high streets, such as here in Margate, one of Mary Portas's 12 pilot towns, could be converted into affordable homes (file photo) The radical proposal from planning minister Mr Boles risked contradicting efforts by retail guru Mary Portas, who was hired by David Cameron to find a way of reviving dying town centres. As a result of her report some £1.2million of taxpayer money was shared out between 12 towns for initiatives to inject new life into their traditional shopping high streets. But Mr Boles suggested that internet shopping and changes in lifestyles and working patterns meant the traditional town centre was a thing of the past. 'We want to encourage local councils to . concentrate retail activity into the prime shopping streets in the heart . of their town centres and adopt a more relaxed approach to under-used . retail frontages,’ he said. Planning Minister Nick Boles said councils need to think 'creatively' about how to revive flagging High Streets . Local authorities would be given more freedom to convert shops into housing, with retail concentrated on one or two ‘prime streets’ to end the ‘long straggly shopping streets heading out of town’ But the idea was condemned by the Local Government Association, which accused Mr Boles of acting to kill off the high street altogether. Mike Jones, chairman of the LGA’s environment and housing board, said: ‘Councils are working locally to improve high streets. ‘This national intervention could undermine that and lead to some shopping hubs being shut down forever with residents and businesses left powerless to raise an objection. This could drain the life from our high streets. ‘Instead of risking real and permanent damage by imposing this on the whole country, government should trust local areas to decide for themselves where relaxing planning rules would be beneficial.’ He warned that the stripping away of planning rules will ‘undermine people’s right to have a say on significant changes to their local neighbourhoods and high streets’. Portas's key recommendations, which . included cutting business rates and putting a brake on new shopping . centres, have both been rejected. Mr Boles said that planners most respond 'creatively' to shifts in the way today's consumers shop. Allowing redundant shops to be converted into homes could ease pressure on greenfield sites for residential developments. Retail consultant Mary Portas became a Government advisor on how to rescue the High Street, but many of her key recommendations have been ignored . The planning minister said: 'People' s shopping habits are changing very fast as a result of the rise in internet shopping and changes in lifestyles and working patterns . 'We need to think creatively about how to help town centres thrive in this new era. 'We want to encourage local councils to concentrate retail activity into the prime shopping streets in the heart of their town centres and adopt a more relaxed approach to under-used retail frontages.'Ms Portas expressed concern that councils would choose the 'easy option' of turning units into housing and said that losing the high street would be 'one of the greatest social crimes in our country.' Mr Boles also indicated that councils are to be encouraged to allow farmers to convert old agricultural buildings into homes. 'We want to make the best use of existing buildings in the countryside to meet the desperate need for affordable housing in rural communities,' he said. 'The more redundant barns that can be converted into homes for young families, the more we can protect green fields from development.' Earlier this week, a Chocalatier forced by soaring costs to shut his flagship shop warned that the British high street is almost dead. Simon Dunn, whose store was in Chancellor George Osborne’s constituency, says small businesses are being forced out as their profits are squeezed. He was left with £100 for himself ‘in . a good week’ after paying rent, business rates and wages, leading him . to warn: ‘Before long all that will be left on the British high street . is Tesco, Costa and charity shops – it’s just impossible for people like . me to keep our heads above the water.’ ‘I’m afraid independent traders on the high street just don’t have a chance these days in this tough current economic climate. ‘My . shop was in George Osborne’s constituency [Tatton]. He ought to know . the importance of independent businesses and try to do something to help . us. It’s the rising cost of everything that is affecting business . owners like me. ‘The sad part of it is that we’re not . the only business that’s having to do this. It’s a national problem . that is affecting every high street. 'On . a good week we were left with £100-a-week profit and it was just not . worth it. There seems to be no incentive to operate as an independent on . the high street these days. Chocolatier Simon Dunn warned that the High Street is nearly dead following the closure of his flagship shop in Wilmslow, Cheshire . ‘I have to turn over a certain amount just to keep moving, but if I go over that amount suddenly I find myself in a position where I can be taxed more. It’s as though business owners are punished for being successful.’ He will now concentrate on the business’s online operation. Ms Portas condemned the Government over a decision to allow Tesco to build a vast new supermarket on the seafront at Margate, one of her pilot towns, in June and accused the Government of 'paying lip service' to the idea of regenerating high streets. She has become an outspoken champion of . small retailers and fought to try and revive town centres ravaged by the . impact of large supermarkets. However, she has effectively been . overruled by the equally combative Eric Pickles, the Secretary for . communities and local government, who has approved the Margate scheme. The . new Tesco, which had been fought by local residents and traders, will . be a massive 82,000 square feet and sit on what is a key site on the . seafront. Councils will be urged to concentrate shops into a main retail area and convert empty units into homes (file photo) The news will confirm suspicions that . the original decision to hire Portas was more of a publicity stunt than a . genuine attempt to help struggling high streets. In April, Ms Portas accused the . former Tesco boss, Sir Terry Leahy, of talking ‘crap’ when he described . the rise of supermarkets as progress. She . said: ‘That's absolutely crap. What happens is that 50p of every pound . is spent on food. 'If you take that off the high street and put it into a . 40,000ft out-of-town store and you provide free parking and everything . under one roof, then you start to take away not only the food shops, but . also the chemist, the fashion shops, the butcher… you start to displace . the whole high street.’ A Treasury spokesman said: ‘Small businesses are the backbone of the British economy. ‘We know for many that times have been tough. The Government has focused what help we can give on small businesses.’ Small businesses have been hit by a double whammy of punishing business rates and a persistent reluctance from banks to lend to them, writes Matt Chorley, MailOnline's Political Editor. The economic recovery has continued since the start of the year - growth hit 0.6 per cent the three months to June, double the rate seen in the first quarter. But even with more customers willing to spend, many small firms are struggling to make ends meet. Latest figures show banks cut back lending to small business in 80 per cent of the country's 120 postcodes from 2011 to 2012. Only 22 towns and cities saw lending increase, despite government pressure on the banks to increase funding for struggling companies. Business Secretary Vince Cable said it was 'frustrating'. At the same time business rates charges imposed by councils on company premises wipe out a growing slice of any profits. The Federation of Small Business found one in 14 companies now spend more on business rates than on rent. With another rise in rates due in September, it is feared more companies could go bust.
risking ‘real and permanent damage’ to Britain’s in Margate, one of Mary Portas's 12 pilot towns, retail guru Mary Portas, who was hired by David said. Planning Minister Nick Boles said councils idea was condemned by the Local Government neighbourhoods and high streets’. Portas's key many of her key recommendations have been ignored a . genuine attempt to help struggling high