Local Development Framework Evidence Base

Economic Assessment and Employment Land Study

EXECUTIVE SUMMARY

Introduction

1. This report assesses the supply of employment land in the Borough of Shrewsbury and Atcham in Shropshire. It has been carried out on behalf of Shrewsbury and Atcham Borough Council (SABC) and has been commissioned to provide robust evidence to underpin and inform the Local Development Framework, 2004-2021.

2. There are three main elements to the study:

• An assessment of the Borough's economy that will inform the amount, location and type of employment land required to facilitate its development and growth.

• A review of the current portfolio of employment land.

• Recommendations on the future allocation of employment land to maintain the Borough's economic growth.

Methodology

1. There has been a very close working relationship with SABC throughout the study, with liaison and guidance at every stage. It has included a review of strategic planning policy, extensive consultation with a range of stakeholders in the private and public sectors. These have included SABC, Shropshire County Council, Advantage West Midlands, local businesses and property market stakeholders. The study's findings have also been tested at a stakeholders' workshop.

Findings

1. The Borough has an insular property market, where in general, industrial need outweighs office, and Shrewsbury dominates. Requirements are for the smaller end up to: 93 sqm offices; 465 sqm industrial; 0.5 ha land plots.

2. There is a strong service sector based on a large public sector administrative function.

3. Shrewsbury's workforce has a high skill level and is well placed to capitalise on the modern knowledge economy, especially given the town's growing entrepreneurial culture.

4. There is limited inward investment that is down to poor prominence, a peripheral location and a lack of distinctive identity.

5. A property market bottleneck that built up in the 1980/90s has been released by SCC servicing land at Oxon Business Park, Shrewsbury Business Park and Battlefield. Consequently there has been very high development activity over the last five to six years. It is anticipated that this activity will continue for another five to six years (if the economy stays on track) and is based on local, expanding companies relocating to modern, more efficient properties.

6. The Borough's existing supply is reasonably well suited to need, it is concentrated in Shrewsbury, offers a range of industrial and office sites including those in accessible, greenfield locations that are attractive to modern business. There is also no shortage of most types and sizes of property, except perhaps for managed workspace and small starter workshops. However, there is a lack of good land options in rural areas and a lack of small, freehold development plots for owner occupiers throughout the Borough.

7. Although there is an estimated supply of 72 ha of employment land at 1^st April 2004, it is considered that there is a shortage of land to meet needs to 2021. Although land remains undeveloped, much of it is committed, with a large proportion of the prime opportunities having been sold by SCC to developers or occupiers. Furthermore, land is tied up in the Shropshire Food Enterprise Park, which is a regional opportunity and not for general use, although this does provide a land offer to draw in high quality inward investment to the Borough.

8. It is estimated that the Borough requires an additional 34 ha of employment land to be identified for the period to 2021. In advance of the partial review of the Regional Spatial Strategy, this is based upon current (and previous) Structure Plan allowances and strategy direction; Shrewsbury's strategic, regional role; historic take-up rates; commercial, market-led judgment and includes a non-implementation allowance to provide for range and choice.

Recommendations

1. Allocate an additional 34 ha of employment land in sustainable locations. A phased release would appear appropriate in order to not 'flood' the land market, suggesting that SABC take a 'plan-monitor-manage' approach.

2. If possible extend employment land allocations around existing employment areas in Shrewsbury, in the north east (13.0 ha); to the south east (5.0 ha); in the north (1.5 ha); and in the north west (6.0 ha). Provide additional light industrial land to the south of Shrewsbury (5.0 ha). Ensure that a proportion of land is available as freehold plots for owner occupier SMEs. For the rural areas, allocate 0.5 ha in the Rural Regeneration Zone, and support modest extensions of Leaton, Condover and Atcham Industrial Estates, say 1.0 ha each

3. Continue to promote rural buildings conversion for employment use and reconsider planning policies to encourage this further.

4. Reassess planning policy with regards town centre office/retail and residential uses to consider how development can be managed and controlled to ensure the town centre does not lose its commercial role. Also consider how to promote improved, modern or refurbished, office space in the centre. In the same way, reconsider the support for important employment generators such as the quasi-retail and health sectors.

5. Continue to promote Shrewsbury and its benefits to inward investors. There is probably a need to redouble efforts and ensure an effective partnership approach is carried out, utilising key partners, SCC and AWM. This is closely related to the successful promotion of clusters and entrepreneurial development. Lobby to extend the M54 technology corridor into Shrewsbury to support this