The Forum of Private Business is urging the Government to halt the decline of small shops in the UK, following a report warning that the majority of independent convenience stores, newsagents, off licences and other specialist retailers could disappear by 2015.

After consulting with the FPB and other organisations, the Conservative Party's Parliamentary Enterprise Group has published the initial findings of its Commission into Small Shops in the High Street.

The interim report said that the greater buying power of bigger retailers has allowed them to keep their prices low, undercutting many small shop owners.

Evidence from the Competition Commission, which is due to publish the final results of its own investigation into inequalities in the groceries market this month, shows that since 2000, sales in supermarkets have grown in real terms by 26 per cent, by 19 per cent in convenience stores, but specialist stores have experienced only a one per cent growth in sales.

"The Conservative Parliamentary Enterprise Group's findings add even more weight to the argument that the Government must do more to support smaller retailers, or face up to the prospect of creating ever more clone towns', or desolate high streets," said the FPB's Chief Executive, Phil Orford.

"We are concerned that some of the Competition Commission's proposed remedies have missed the point entirely. Increasing competition between rival supermarket chains, in order to drive down prices for consumers, is far from protecting smaller shops on the high street, many of which genuinely fear for their survival."

FPB member Mark Terrell has owned Regis Park Ltd, a small convenience store in Chippenham, for more than 20 years.

"If the supermarkets are allowed to use their buying power from their superstores to gain better prices for the goods they sell via their convenience stores, then there has to be a cross-over between the two markets," he said.

As part of its initial recommendations, the Competition Commission proposed a retail ombudsman to oversee the sector, and enforce a revamped supermarket code of practice.

David Cameron, leader of the Conservative Party, said: "Small shops are the lifeblood of local economies and provide a lifeline to local residents - and their survival is vital." He encouraged local councils to use their clout to keep small shops open.

The group also raised concerns about increasing crime against businesses, the growing burdens of tax and regulation, local planning barriers and land use issues. It considered the environmental and social impact of large, often out-of-town supermarkets, such as the tendency towards consumers' heavy car use and increasing economic exclusion within communities.

The FPB is urging it to place the plight of small shops, rather than increasing competition between rival supermarkets, at the heart of its imminent report.

7:30am Thursday 15th May 2008

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