Rules to replace the town centre “needs test” on applications for out-of-town supermarkets are set to be announced this month.

Sources close to the situation say the government plans to set out planning guidance for town centres in PPS6. It is thought likely to outline details of a broader “impact test” to replace the present system, which assesses if areas have sufficient retail outlets before permitting stores that are out of town.

The guidance has been delayed to incorporate interim findings of the Competition Commission's inquiry into supermarkets, published last week.

The commission floated the idea of a supermarket “competition test”, which is likely to be included in the plans.

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