Developing the economy

Finally after 15 years, the government has commenced its revision of the antiquated PPG4, ‘Industrial, commercial development and small firms’ (DoE, 1992). In December 2007, the Department for Communities and Local Government issued the Consultation Paper on a new Planning Policy Statement 4: ‘Planning for Sustainable Economic Development’. For planners, economic development specialists and developers with an interest in employment land, it is a relief to see the government at last is giving some policy attention to business and industrial development needs despite its obsession with planning for housing growth.

The key question is whether or not the consultation paper points towards policy guidance which will assist in the provision of sufficient, good quality sites and premises for business, industrial and warehousing development. Despite being suspiciously brief and hardly the work of 15 years research, the consultation paper does at least emphasise the importance of taking a positive, and by implication, more proactive approach to planning for economic development. Whether this is merely hollow spin remains to be seen.

In attempting to promote a positive approach, the consultation paper stresses that regional planning bodies and local planning authorities should plan to encourage economic growth and that proposals for economic development should be considered favourably. Moreover, it highlights that when local authorities consider proposals, development should normally be approved where it is in accordance with the plan. It calls for a good range of sites to be identified in plans for economic development which translates into a range of opportunities being provided for job creation by large and small firms. This implies that a reasonable degree of choice and flexibility should be reflected by plan allocations and safeguarded employment sties.

In light of some recent planning appeals which have seen inherently good employment sites lost to meet short-term housing targets, it is welcomed that local authorities are now being asked to take account of longer term benefits (and costs).

One of the most repeated themes of the draft PPS4 relates to the requirement for a strong and up-to-date evidence base. Indeed, the multi-faceted role of the evidence base features in a range of circumstances including:

- Understanding both existing business needs and likely changes in the market;
- Informing estimates of future demand for employment land;
- Assessing the potential needs of new or emerging sectors;
- Determining the implications of economic or technological changes; and
- Consideration of development proposals which do not have the specific support of plan policies.

The central role of a comprehensive evidence base promoted by the consultation paper is reinforced by the Treasury’s recent review of sub-national economic development and regeneration: this proposed a statutory requirement for upper tier local authorities to prepare economic assessments and/or strategies for their areas. Whilst this is good news for consultants, the key challenge for local authorities will be to demonstrate that the evidence base is sufficiently sound to support policy proposals.

One of the key shortfalls of the draft PPS4 relates to the issue of how the land-use planning system should address employment generating activities which fall outside the traditional B use class categories. Whilst the paper defines economic development as including development such as retail, leisure, specialist waste facilities and energy production, it does not provide any guidance on how these uses should be incorporated into economic and employment-related land-use policies.

The other critical gap in the draft PPS is the lack of guidance given to the role of employment generating activities in mixed-use development proposals. Increasingly, local planning authorities will be encouraging mixed-use proposals for a range of sites, many of which are likely to include existing employment land allocations. Without guidance on how employment uses can best be incorporated into plan-led mixed use designations and proposals, there remains the danger that business and industrial activities will be marginalised and pushed towards a shrinking bank of sites and locations.

Richard Coburn
Principal Consultant
Atkins
richard.coburn@atkinsglobal.com

The opinions expressed above are those of the author and do not represent the views of Aktins Consultants Ltd or their clients.