EMPLOYMENT

18th March 2005

REPORT

Consideration was given to a report of the Planning Policy Manager on the progress of the Local Plan Review in respect of economic and employment issues. The Planning Policy Officer drew the Group's attention to the key findings of the Employment Land Study and apologised for the omission of Appendix 1. He agreed to circulate the Consultant's full recommendations to the Group.

The Group considered in detail the Key Issues Paper responses on employment and discussed a number of issues including the Rail Freight Transfer Facility at Harlescott.

Question 3.1

Officer response

The objectives identified in the Borough Local Plan are largely endorsed as being relevent to the current economic circusmtances of the Borough with a few key exceptions. The exceptions are quite rightly linked to the need to review current economic circusmtances and the suitability and viability of the existing employment land supply. The recently commissioned Employment Land Study addresses this requirement and the consultants conclusions and recommendations address many of the issues which arise from this requirement. The principal issue is the need to evaluate the continuing commercial suitability and viabilty of protected employment sites to determine whether to endorse these designations or to release the sites for redevelopment e.g. residential use or to simply de-allocate them in the LDF. The consultants address this issue in their recommendations directing that whilst the majoirity of sites remain viable, certain sites merit further evaluation in the LDF process and this recommendation is endorsed by officers.

Responses to the Key Issues Report raise further issues relating to the promotion of town centre employment uses, an achievable scale of inward investment and an appropriate balance between sub-regional sites capable of accommodating inward investment and local sites capable of accommodating new businesses, and the expansion and relocation of local enterprises. These issues are highlighted by the consultants and endorsed by officers. In identifying a suitable portfolio of emplopyment land it will be necessary to balance land for inward investment with land for local development, identify an element of brownfield land in the employment portfolio and ensure that general development principles are adequately addressed in planning policy particularly in rural locations and in relation to the heriatge assets of the Borough.

A further issues has been raised in relation to sustainable transport which relates in part to the transport of commercial freight with particular emphais on rail freight transport. This issue has been addressed in the Borough Local Plan through a designated site along the Shrewsbury Crewe rail line at Harlescott and the continued designation of this site is currently being explored with Shropshire County Council

Question 3.2

Officer response

As indicated by these comments, the allocation of brownfield employment sites in the portfolio of employment land for the LDF is appropriate this reflects the need to apply a sequential approach to the selection of development land and to the need to create a sustainable pattern of development.

In the main, brownfield sites identified for redevelopment are more likely to come forward for other uses especially to meet the exacting requirements for brownfield residential development in RPG11 (i.e. 59% in Shropshire) and the recommended provision for this Borough (i.e. between 50% - 75% as recommended by LPAG 13/12/04) to compensate for the limitations on the brownfield land resource across Shropshire.

However, as indicated by respondents to the key Issues Report, brownfield sites will be identified that are better suited to employment development including redundant employment sites and buildings that could be redeveloped for modern, sustainable business accommodation in Shrewsbury and the rural villages.

The use of brownfield land for employment development is also endorsed because this will help to reduce the scale of greenfield employment development with implications for the landscape and ecological assets of the Borough. It would also provide a more economically viable development option for more severely contaminated brownfield sites as employment land has less demanding requirements for remediation than other uses. The allocation of brownfield sites within the empoymetn land portfolio will also broaden the range of employment opportunites and pernmit a wider range of investors to enter the employment land market.

Question 3.3

Officer response

The opinions expressed by the respondents to the Key Issues Report are reflected in the key findings of the consultants in the Employment Land Study i.e. that there are few, if any gaps in the overall provision of employment land in the Borough. The consultants do identify key areas that need to be addressed through the LDF including the need to provide sites that will deliver small to medium sized industrial and office units, the need to address the imblance in the current geographical distribution of employment opportunites, the need to promote further town centre employment opportunities, the need to bring froward freehold development sites, the need to promote suitable rural buildings for conversion and to identify new employment land to create new investment opportunities.

One of these respondents has outlined a synopsis of the limitations of the existing employment land portfolio. In relation to the provision of large scale industrial and town centre office opportunities and the more 'unpleasant' commercial uses it is considered that the consultants recommendations address these issues in realtion to the identification of a suitable employment land portfolio.

The issue of quasi-retail uses and the provision of Trade Parks is an issue that reflects the broader advice in the LDF evidence base. On the one hand, the Retail Capacity Study identifies surplus spending capacity for the provision of bulky goods retailing. On the other hand, the Employment Land Study recognises the need to address the contribution to employment provision from quasi retail/commercial uses. To clarify the spatial implications of the opportunities identified in the LDF evidence base, the consultants recommend re-assessing the employment policies to consider identifying a broader range of acceptable employment uses in the Core Strategy.

In turn, this should help to indicate the range of employment sites required in the Borough and also whether further retail allocations will be required for inclusion in the Site Allocations Development Plan Document

Question 3.4

Officer response

In current Planning Policy Guidance Note 6 : Town Centres and Retail Developments the sequential approach to selecting sites for retail, entertainment, commercial leisure and commercial office uses indicates that such uses should locate in the town centre as the first preference. The current Borough Local Plan policy on commercial office uses (i.e. Policies EM5 and EM6) are based on the guidance in PPG6 and have had a degree of success in protecting and enhancing town centre office uses. However, there has been a degree of out-migration of office uses primarily to edge of centre locations which has been encouraged in part because the new edge of centre office locations are themsleves allocated for employment development in the Borough Local Plan.

The opinions expressed by the respondents to the Key Issues Report are reflected in the consultants key findings i.e. that town centre employment uses (especially commercial offices) are essential to the vitality and viability of the town centre economy. The consultants recommend that this issue should be addressed through a revision of current planning policy i.e. Policies EM5 and EM6 and this view is endorsed by officers. However, the respondents identify a range of further issues which planning policy will also need to address in promoting town centre office developments i.e. the scale of office uses that can be directed towards vacant floorspace within the town centre, the quality of town centre premises in relation to modern office requirements and the current parking restrictions on town centre office users. These issues need to be addressed if suitable and achievable policies on town centre office development are to be recommended for inclusion in the LDF.

Question 3.5

Officer response

The opinions of the respondents to the Key Issues Report are addressed by the consultants in the Employment Land Study in relation to the existing empoyment land supply. The consultants have recommended that most of the existing employment sites are still suitable and viable for employment use. However, the adverse opinions of the respondents in relation to the Poultry Unit, Ford are recognised and echoed by the consultants. This Authority also recognises the implications of recent amendments to PPG3 i.e. to consider employment land for redevelopment particularly for residential use. The Poultry Unit, Ford and repondents proposals to re-allocate existing employment sites will be given due consideration in the preparation of the Site Allocations Development Plan Document. This Authority will also reassess the range of accetpable land uses for employment sites in preparing policies for the Core Strategy. However, whilst this reassessment will address quasi-retail/commercial uses it should not include retail developments for convenience (i.e. food) or comparison (i.e. other goods) retailing.

Question 3.6

Officer response

The opinions expressed by the respondents to the Key Issues Report are reflected in the consultants key findings in the Employment Land Study. A clear distinction is made between diversification of the rural economy and farm diversification). The issue of diversification of the rural economy requires the LDF to assess and replenish the portfolio of employment land and buildings both in terms of new land allocations and in relation to policies to manage the conversion of rural building for industrial and commercial uses. The latter will also require policies to promote and manage the re-use of redundant farm land and buildings in support of individual farm enterprises as discussed under Question 3.7.

The consultants have identified the key requirements for re-structuring the rural employment land portfolio principally through planned extensions to existing sites particularly withih the Rural Regeneration Zone (south and west of Shrewsbury) and through the promotion of suitable building conversions both of which should be supported in the LDF. However, the consultants and respondents to the Key Issues Report identify a number of key issues still to be adressed i.e. financial limitations on infrastructure investment in new rural employment sites (possibly requiring public subsidy), the need to promote improvements to rural telecommunications infrastructure, the geographical distribution of new employment opportunities in relation to recognised local needs including areas of deprivation, higher unemployment rates, and the need to respond to demand for homeworking and to reduce economic commuting from villages.

Question 3.7

Officer response

The key findings of the consultants in the Employment Land Study do not directly address either the isse of farm diversification or the opinions of the respondents to the Key Issues Report except in relation to the consultants general findings about promoting the rural economy of the Borough. This reflects the fact that farm diversification is in effect a 'niche' market within the rural economy and is concerned primarily with supporting small and medium farm enterprises to secure an adequate income from their land and building assets whilst the actual level of employment generated is directly related to the nature of the new activity and the current staffing levels of the farm enterprise. Therefore, whilst farm diversification is an important 'niche' element of the rural economy it may not be a realiable source of employment nor generate significant levels of new employment during the plan period.

Nevertheless, this Authority has sought to support farm diversification, farm shops and nurseries and open air markets (including 'Farmers Markets') in the Borough Local Plan and this policy support should be maintained in the LDF.

Question 3.8

Officer response

The current Borough Local Plan imposes the following requirements on the location of employment uses.

In Shrewsbury, large scale employment uses (including offices) are directed towards the designated employment sites, commercial office uses are directed towards the town centre and approriate small scale employment uses are permitted within residential areas within the town. The issue of town centre employment uses is addressed above under Question 3.4.

In the rural Borough, employment uses are directed towards established employment sites and settlements with services but building conversions are permitted in the countryside.

The consultants have indicated key spatial requirements for the allocation of employment land i.e. an urban:rural split at 85%:15% in favour of Shrewsbury, support for the expansion of established employment areas especially rural sites, the need for appropriate buildings for commercial conversion which could permit more widespread employment developments in the rural area and facilitate farm diversification.

However, the consultants have also identified key issues in relation to the provision of new employment sites in the rural Borough.

These are highlighted firstly, by the concerns about the viability of rural sites e.g. Poutlry Unit, Ford due to the financial costs of accessing and servicing remote sites and providing speculative employment units in the face of uncertain demand for floorspace. This would question whether it is advisable to promote employment development in remoter locations beyond the current policy support for building conversions.

It is secondly highlighted by the need for the LDF to deliver a suitable employment portfolio that identifies and supports development opportunities that achieve acceptable standards of sustainability. This requires the authority to achieve an acceptable balance between locating employment close to its potential labour supply without encouraging unneccessary journeys in relatively remote locations.

The issue of sustainbility has also been addressed in relation to Question 3.2, principally in relation to Shrewsbury, and the need to balance the requirement for peripheral greenfield sites with the use of brownfield employment sites in order to conserve the landscape and ecologogical assets around the fringe of Shrewsbury and other settlements.

Conclusions 

Shrewsbury has a healthy but inward looking economy with a good supply employment land well suited to local needs offering an adequate range and choice of industrial and office locations. This supply of land and buildings needs to be replenished with new sites to promote sub-regional and local development opportunities for investment in the commercial property market and employment creation.

Although, the local economy is mainly driven by local demand there are still opportunities for inward investment which should be exploited in partnership with other agencies (i.e. Destination Shrewsbury) and to broaden the range of land-ownerships in the employment market, especially in Shrewsbury. Despite the prevalence of low wages in the Borough, Shrewsbury has the capacity to exploit the knowledge based economy to improve the low wage base, through its skilled labour supply and entrepreneurial culture.

Established rural sites provide important local and sustainable employment opportunities. It is important to build on the strength of these established sites and the opportunities offered through building conversion both for general employment needs and farm diversification. The provision of new sites, whilst being desirable to increase the range of employment opportunities, require careful assessment of their suitability and viability for employment use.

In the period to 2021, it is proposed that up to 100ha of new employment development be delivered in the Borough up to 2021. This should comprise a provisional target subject to the conclusion of the Partial Review of RPG11. This development should be satisfied from existing commitments of 74ha and new land allocations of 30ha. The new land should comprise an initial allocation in the emerging LDF to satisfy market demands with the remainder released through the subsequent reviews of the LDF.

The new allocation of 30ha should be in addition to sites reserved for strategic developments and the expansion of major employers. The new employment land should therefore identify a portfolio of land comprising sub-regional sites, good quality local sites and other local sites in accordance with RPG11.

The Authorities new employment land portfolio should address the:

• continued viability of existing sites (e.g. Poultry Unit, Ford),
• impact of the financial limitations of infrastructure investment on the delivery of new sites especially in rural locations
• need for an appropriate balance between sub-regional and local sites to support both inward investment and local enterprise
• need for start up / managed workshops which should be addressed through a feasibility study,
• need for a more balanced geographical distribution of land,
• need for freehold plots for self build employment land investors
• need to consider opportunities for employment sites along the potential route of the North West Relief Road,
• keep the employment land portfolio under review to maintain a minimum supply of 35ha of available employment land through a periodic review in accordance with government guidance on Employment Land Reviews (2004)

The Authority should re-assess the framework of policies for employment development to address:

• the range of acceptable uses to be permitted on employment sites e.g. quasi-retail/commercial uses but not food or consumer goods retailing,
• promoting suitable brownfield employment opportunities particularly within Shrewsbury,
• promoting town centre employment uses particularly for commercial offices which currently face particular policy restrictions i.e. parking within the guidance in PPG6 / Draft PPS6 on Town Centres and Retial Development,
• promoting a sustainable pattern of rural employment development by supporting the extension of existing employment sites and promoting building conversions,
• promoting the recovery and future prosperity of the agricultural economy through appropriate farm diversification schemes in relation to PPS7 : Sustainable Development in Rural Areas,
• satisfying general development principles to protect existing amenity and the ecological, landscape and heritage assets of the borough.

RESOLVED

That the following recommendations be noted for further consideration in the preparation of the Core Strategy and Site Allocations Development Plan Document to ensure good policy and practice in relation to the consultants' conclusions and recommendations and current and emerging Government guidance on delivering employment development, sustainable rural development and enhancing town centre vitality and viability through the planning system:

1. That the Employment Land Study and the consultants conclusions and recommendations be accepted as the basis for the preparation of the economic strategy of the Local Development Framework;

2. That a provisional employment development target of 100ha be identified for the period to 2021 subject to the outcome of the Partial Review of RPG11;

3. That a need for an additional 31ha of new employment land and buildings be identified in the Local Development Framework in addition to strategic land requirements for sub-regional projects and the expansion of major local employers and an appropriate allowance for a range, choice and potential non implementation of land;

4. That sufficient land in the Local Development Framework be allocated to satisfy market demands in the Borough with the remainder of the 31ha to be released on a phased basis through subsequent reviews of the Local Development Framework;

5. That new employment land and buildings be identified to provide an appropriate geographical distribution on the basis of an urban:rural split of 85%:15% in favour of Shrewsbury, to promote the development of urban brownfield sites, the expansion of established urban and rural sites, and the commercial conversion of buildings in Shrewsbury and its town centre, rural locations and for the purposes of farm diversification in relation to PPG7 Sustainable Development in Rural Areas;

6. That an appropriate geographical distribution of employment land and buildings be achieved within Shrewsbury and between rural villages and other countryside locations in accordance with guidance in PPG4 / PPS4 Industrial and Commercial Development and Small Firms;

7. That the framework of policies for employment development be re-assessed to address the range of acceptable uses to be permitted on employment sites;

8. That the framework of policies for employment development to promote town centre employment uses be re-assessed to promote the continued vitality and viability of Shrewsbury town centre in relation to PPG6 Town Centres and Retail Developments;

9. That an appropriate policy framework be provided to support the development of the employment land portfolio particularly to satisfy general development principles particularly to protect existing amenity and the ecological, landscape and heritage assets of the Borough.