User Mix Policy Statement

Permitted Uses – Management Policy Statement

A. Introduction

Traders in the new Blackburn Market occupy their stalls under Lease agreements and each agreement contains a permitted-use clause i.e. description of the type of products that can be sold upon that stall. The number of agreements for similar products upon the market is closely controlled by the Management Board as it is their intention to ensure all traders have an equal opportunity to secure a livelihood by trading upon the market. Action will be taken by Markets Management to remedy breaches of any lease terms, including the permitted-use clauses and the management regulations.

Traders can appeal to the management if they consider there is a breach of the permitted-use for any stall within the Market. The disputes resolution and grievance procedures are explained in section C.

This policy statement has been prepared to explain:

• The reasons for implementing a “Permitted-use” policy.
• How the management will apply that policy.
• How Traders can change between permitted uses.
• The procedure to resolve any appeals or disputes.
• The classification of permitted uses within the Market.

B. Reasons for the Permitted-Use Policy

b.1 To maintain a balance of trades

Control is exercised over the number of traders on the market and the range of products they are allowed to sell in order to give all traders an equal trading opportunity. It is applied to prevent the market becoming reliant upon a limited number of traders or a restricted range of produce, and to maintain a balance of trades. No single trader or type of produce will be allowed to dominate the market and the primary concern is to maintain variety of offer. The permitted use is the primary consideration and the size of the trader’s business or the length of time for which they have stood on the market is a secondary consideration.

b.2 To encourage comparison-shopping, impulse-purchasing and healthy competition          

Maintaining variety of offer on the market is essential to encourage comparison-shopping between stalls. More shoppers will attend the market if they know they can “shop around” i.e compare prices and quality between stalls between stalls. Numbers are therefore regulated to encourage healthy competition between traders and to ensure they can maintain a reasonable profit margin on their goods whilst offering good quality. Different numbers of traders are permitted for different uses. 

High levels of footfall create sales opportunities for all traders but a market that has become dominated by a single product line becomes a “destination venue”, catering for shoppers attending to buy only that specific product. It does not offer impulse purchase opportunities for other traders, so the User-Mix policy is applied to maintain variety of offer for the benefit of all traders.

b.3 To encourage new product lines onto the market   

Some desirable uses are hard to attract onto a market and the Management Board reserves the right to offer time-limited exclusivity or other incentives to encourage unrepresented lines to establish themselves. Exclusivity for a permitted-use is contrary to the principle of comparison-shopping but to encourage new lines the Council recognizes that under exceptional circumstances time-limited exclusivity may be necessary for new lines if their introduction is consistent with increasing the variety of offer. Currently un-represented lines may be given preferential treatment.

b.4 To encourage traders to expand and diversify their businesses

For the market to have a sustainable future traders are encouraged to re-invest in and develop their businesses. The permitted-use policy is applied to encourage traders to improve the quality and range of product and to encourage start-up ventures wishing to establish themselves on the market by buying-into into existing businesses.

b.5 To encourage employment creation and foster social-inclusion

The management recognises the valuable role that small-scale businesses on the market play in encouraging self-reliant enterprise, social inclusion and the employment of part-time workers, disabled and other disadvantaged groups.  The permitted use policy is applied to ensure an appropriate supply of pitches is available for businesses promoting such objectives; including charities.

b.6 To allow traders to change between products and introduce new lines          

Over time the range of permitted uses and their numbers will alter as demand from shoppers changes. Some product lines may become uneconomic so the wording of the permitted use clause for a stall may become unduly restrictive. It is always open to a trader to apply for a change of permitted use. The policy is applied sympathetically if traders need to introduce un-represented lines to maintain the viability of their business but traders are expected to produce supporting evidence.

Applications for a change of permitted use into an already-existing line represented elsewhere on the market are given particularly careful consideration. The permitted use policy is applied in the knowledge that comparison-shopping between competing traders increases footfall to the benefit of the whole market, but that the change from a use may result in a reduction of the variety on the market and a consequent loss of attractiveness to impulse-purchasers. Under such circumstances traders are expected to produce compelling evidence that the existing permitted-use is unviable.

Changing to a different permitted-use merely to increase profit levels for that business is not sufficient justification for a change. Instead the Council may open this opportunity to all, including established traders, to increase occupancy of the market. An application is likely to be rejected if it results in the loss of a unique use upon the Market i.e. a reduction in the market’s variety, and increased competition between traders is not considered sufficient grounds for a change of permitted use per se.

Permitted use classes are generic and grouped by class to encourage traders to introduce new lines. The tendency to over-specify permitted lines is resisted. Changes in permitted lines within the class do not require approval but the introduction of any new lines is always subject to management approval.  Traders are encouraged to seek out new lines and diversify into as many lines as possible within their permitted use class but the management’s determination as to what represents a change requiring consent remains absolute.

c.2 Advertising of available pitches

Vacant stalls are openly advertised to all interested parties (including persons not represented on the market) with a specified deadline for proposals and for a decision. Lettings are by private treaty rather than by tender and the management reserve the right not to accept the highest or indeed any offer.  When considering competing offers the management will have regard to all factors, not just the financial terms e.g. credible but unproven proposals likely to encourage greater diversity of offer and footfall on the market.

In the event of applications of equal merit from both an existing and a new trader preference will be given to the existing trader.

Vacant stalls are publicised as widely as possible with the permitted use specified. The location, size, rental, occupational agreement, permitted use, any special conditions and the closing date for offers are stated in the publicity and all applicants are assured of confidentiality. 

Although applications are invited on the basis of a specified user other uses are considered upon their individual merits and applicants invited to put forward alternative proposals.  A list of “use classes” is provided for guidance purposes only and is not prescriptive.

The Council’s decision is made within 7 days of the closing date and all applicants notified of the outcome. Financial offers above and beyond the advertised terms are not considered.

c.3 Applications for a change of permitted use

Applications for a change of permitted use to an existing stall must be made in writing to the Market Manager describing the proposed lines to be sold. Applications are kept strictly confidential and a written decision and reasons for that decision are given by the Market Manager within 14 days. The flow chart is used as guidance.

c.4 Appeals procedure

In the event the applicant feels aggrieved with the Market Manager’s decision then an appeal may be made in writing to the Council’s Head of Markets service within 7 days of the initial decision. This must clearly state the grounds for the appeal and if reasonable grounds are given then the appellant is offered the option of submitting written representations or having a personal hearing (supported by whatever evidence or representation he / she wishes to present) with the Head of Service or their nominee within 28 days. This process is treated in the strictest confidence. A written decision on this appeal is then made within a further 14 days and this final decision is binding.

c.5 Grievance procedure

The same process applies to any appeal by a trader against an alleged breach of a permitted-use or any other complaint against another trader, except that the other party is notified in full of the allegation and given equal rights of representation in front of the appellant, the Market Manager and the Head of Service. In the event that the management finds the allegation proven then the management regulations are applied. If the allegations are found to be overtly malicious then the occupational agreement of the complainant may be revoked.

D. Conclusion

This policy statement forms part of the occupational agreement and management regulations under which traders stand upon the market. They are deemed to enter into their occupational agreements in full knowledge of same and the Council’s decision as to interpretation or determination of this document is absolute. The Council reserves the right to amend or substitute same in part or in whole at any time in the interests of the good estate management of the market.