The draft revision paper follows the commitment in the Planning White Paper to review the current approach in PPS6 to assessing the impact of proposals outside town centres in a way which would maintain a strong focus on the 'town centre first' policy and which would promote competition and improve consumer choice.

Launching the consultation in a keynote speech at the Royal Town Planning Institute Annual Convention, communities secretary Hazel Blears said town centres are central to our communities and said she was committed to helping to defend their future and that of the independents: "We need a policy which provides the right degree of protection for smaller retailers who are facing very challenging trading conditions and increased levels of competition," she said. "I am keen to see this stronger PPS6 working for town centres. It is imperative that we support them during the challenging times they are facing. "

Key changes proposed by the draft revisions include the introduction of a tougher 'impact test' which will give councils an enhanced tool to prevent large developments that put small shops and town centres at risk. Using this test, councils will be compelled to examine more economic, social and environmental factors including retail diversity, consumer spending, loss of trade, impact on town centre investment, scope for regeneration and job creation to ensure town centres are protected against harmful development.

The revised policy also proposes the removal of the 'need test', which is considered a 'blunt instrument' which has 'unintentionally stifled diversity and consumer choice'. The Competition Commission's suggestion that a 'competition' test be introduced into the planning system has not been adopted in these proposals.

Ian Anderson, head of retail planning at CB Richard Ellis, believes the draft revisions refine the 'town centres first' policy approach rather than make significant policy changes. "Although the 'need' test is dead, Local Planning Authorities are still required to 'assess need/capacity in planning for the accommodation of growth'," he says. "Guidance on the new tougher 'impact test' will be published separately. Such guidance will need to provide a transparent and logical approach to assessing impact. However, the draft revisions at present suggest a potentially complex minefield, with refusal justified where there is likely to be 'significant adverse impact' (no doubt to be defined in the courts) but that where there is still 'some, but a lower impact', additional factors such as the contribution to regeneration and claw back, can provide grounds to approve a proposal."

The BCSC welcomed the Government's continuing commitment to its 'town centres first' approach and its intention to ensure that there is a more thorough assessment of proposed new retail development locations. It considers that the new approach builds on, and could strengthen, the assessment of out-of-centre retail developments.

Michael Green, BCSC chief executive, said: "The revised PPS6 demonstrates that the Government is serious about encouraging town centre schemes and is not relaxing its rigorous approach to assessing the need for out-of-town centres. We are pleased that after two years of policy uncertainty, the revised PPS6 will restore the confidence of both investors and developers in town centre development." The consultation ends on 3 October 2008.

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