CITY COUNCIL

Name of Committee : Policy and Strategy

Date of Meeting : 29 April 2008

Title of Report : Consultation on National Planning Framework 2

Lead Officer : Dr Margaret Bochel

Author of Report : Gary Purves (52) 3326  [email protected]

Other Involvement : BAA, ACSEF (Manager), (Director)

Consultation undertaken with : City Solicitor City Chamberlain Head of Planning and Policy for Services to Adults Head of Economic and Environmental Sustainability Head of Community Planning and Regeneration Director of Resources Management Head of Planning Policy & Environment ( Council) Development Management Manager Councillor Dean Councillor Stewart Councillor Cassie Councillor Cormie

Summary of Report

The first National Planning Framework for (NPF) was published in 2002. The Scottish Government published a draft document on 8 February 2008 which will replace the original version and is open for consultation until 15 April 2008. This report reviews the draft with particular focus on what it says about the future development of Aberdeen and the wider city region, setting out the Council’s proposed response to the consultation. The Council has approval from the Scottish Government to submit its response following consideration by the Policy and Strategy Committee on 29th April.

Recommendations

1. That the Committee note the content of this report and agree to forward it to the Scottish Government (along with any points raised at Committee by way of a covering letter) as the response of the Council to its consultation exercise. 2. Aberdeen City Council write to the Scottish Government to put forward the case for the AWPR, the developments covered by the Aberdeen Airport Masterplan and the Aberdeen Scheme, the Aberdeen-Inverness railway line improvements and the upgrading of the A96 as developments which would appropriately be classified as national developments in the national planning framework. Links to the Community Plan and to Vibrant, Dynamic & Forward Looking

The National Planning Framework (NPF2) will need to be taken into account in future land use planning in the North East and therefore impact on both structure and local development plans. It will impact on a range of land use planning and infrastructure issues, as well as giving the Scottish Government’s view as to how Aberdeen and the wider North East should develop in the period to 2030. It should help to deliver the land use elements of change highlighted in both the community plan and ‘Vibrant, Dynamic and Forward Looking’.

Implementation

This report will be forwarded to the Scottish Government as the response of the Council to the consultation, along with any points raised at Committee by way of a covering letter. The final version of NPF2 will impact on future Scottish Government investment decisions and will have to be taken into account by future development plans for Aberdeen and the wider city region.

Resource Implications

People : There are no staffing implications arising from this report

Finance : There are no direct financial implications arising from this report. NPF2 will, however, impact on future Scottish Government investment decisions. It is therefore important that major infrastructure projects are included in NPF2. Systems & Technology : There are no systems and technology implications arising from this report.

Property : There are no property implications arising from this report.

Other Equipment : There are no equipment implications arising from this report.

Other : None

Other Implications

Health & Safety : There are no health and safety implications arising as a direct consequence of the contents of this report.

Risk Management : There could be a risk to the delivery of major projects that are considered by Aberdeen City Council to be key strategic developments which are of national significance if they are not included within NPF2. National developments that are included in NPF2 are effectively given outline planning permission status (their need has been established). Projects that are not identified in NPF2 may experience a more drawn- out and uncertain process in terms of gaining consent.

Human Rights/ Equalities/Diversity : Extensive consultation by the Scottish Government should ensure that any such implications are highlighted. Equalities Impact : Assessment The NPF is the spatial expression of established policies which will have been subject to Equality Impact Assessment as part of their development. Projects designated as national developments will be subject to distinct planning procedures. Planning Regulations are currently being reviewed and are subject to Equality Impact Assessment as part of that process.

Sustainability : Promoting sustainable development was one of the key objectives of the first National Planning Framework and there is a statutory requirement that subsequent Frameworks should contribute to sustainable development. The Scottish Government will publish further planning guidance on sustainable development later this year.

Environmental : An objective of the Scottish Government is to improve the natural and built environment and the sustainable use and enjoyment of it. The NPF will provide a land-use focus for this and the Government’s other main objectives.

Social : NPF2 states that the Government is committed to reducing regional disparities, ensuring that growth benefits the whole of society and that communities undergoing regeneration enjoy good access to the opportunities being created.

Economic : The NPF aims to take forward the spatial aspects of the Government Economic Strategy, such as the commitment to achieving sustainable economic growth.

Construction : The NPF2 contains 9 specific “national” developments, one of which is located in the North East (grid reinforcements to support renewable energy developments).

Signature : Main Considerations:

1.1 In February 2008 the Scottish Government published the document ‘National Planning Framework for Scotland 2: Discussion Draft’. This document differs from the National Planning Framework for Scotland published in April 2004, as it is statutory. The Planning etc. (Scotland) Act 2006 places a duty on Ministers to prepare the Framework with the objective of contributing to sustainable development and to review it every 5 years. The Planning etc. (Scotland) Act 2006 also requires both strategic development plans and local development plans to take the NPF into account.

1.2 The document provides a platform for national discussion on the type of country Scotland should be by 2030, and will play a key role in co-ordinating spatial policies and integrating and aligning strategic investment priorities, to support the Government’s main aim of promoting sustainable economic growth.

1.3 The NPF2 outlines major contemporary challenges including global competition, climate change and resource depletion. The major drivers of change needed to address these are outlined below:

• Investment in transport. It is important to link cities in Scotland to each other, to the rest of the UK and to highlight the connection to Scandinavia, the Baltic, Europe and the rest of the world. Scotland must have towns and cities that are vibrant and dynamic to live in, have good connections to other cities within Scotland, Europe and the world, which will ensure a good quality of life and environment, and will attract business, tourism and people to live and work here.

• Housing is vital to Scotland’s growth. More houses need to be built to attract people to Scotland, and affordable housing is critical. It is important that developments are compact and mixed-use, built to a high standard and are sustainable, with adequate provision of physical and social infrastructure.

• There is a large emphasis on stewardship of nature and natural resources. These are seen as an important economic resource. Firstly as a link to Scotland’s heritage and therefore a tourist attraction. Secondly, by harnessing natural resources for clean energy production Scotland can export surplus energy to other countries, along with reducing CO2 output and Scotland’s impact on climate change.

• There is an emphasis on the decentralisation of decision making and ensuring community ownership and locally led initiatives on energy production.

2.0 Differences between NPF1 and NPF2

2.1 NPF1 was prepared within the context of Scotland as a whole experiencing a falling population due to low birth rates and out-migration. NPF2 states that Scotland’s population has actually increased by 38,500 since the publication of NPF1, with higher birth rates and in-migration, particularly from Eastern Europe, reversing the earlier trend.

2.2 NPF1 was criticised for not being specific in detailing where opportunities for renewable energy development will be located. NPF2 outlines that renewable energy production will be best placed close to rural communities. The East Coast of Scotland is deemed best for offshore wind capability and is identified as diversifying into new technologies including Carbon Capture. 2.3 The Development Strategy between NPF1 and NPF2 also differs. NPF2 includes many of the same main elements as NPF1 but in addition, NPF2 also includes: • Supporting strong, sustainable growth for the benefit of all parts of Scotland; • Promoting development which helps to reduce Scotland’s carbon footprint and facilitates adaptation to climate change; • Supporting sustainable growth in the rural economy; • Conserving and enhancing Scotland’s distinctive natural and cultural heritage; • Encouraging a sufficient supply of homes that are affordable in places where people want to live.

2.4 ‘National Developments’ are identified in NPF2 as a consequence of the provisions of the Planning etc. (Scotland) Act 2006. The Annex of NPF2 discusses each of the 9 national developments in detail and outlines an action programme for each. NPF2 states that projects designated as national developments will still require to secure planing permission, but Ministers may intervene at any stage of the process to ensure that decisions are made expeditiously. Designation in the national planning framework is the mechanism for establishing the need for these projects. Any subsequent examination of detailed planning implications, whether by a session of a public inquiry or a hearing, will therefore be concerned with matters such as siting, design and the mitigation of environmental impacts, not the principle of the development.

3.0 The role of Aberdeen within NPF2

3.1 Aberdeen’s role within the NPF2 is that of an energy centre, both of traditional energy sources such as oil and gas, and of new renewable energies. Paragraph 43 states that “full employment, high incomes and good urban and rural environments combine to provide a good quality of life for much of the population in the city and the surrounding region.” Aberdeen is also seen as a tourist gateway, but not as a destination in its own right. These roles are represented in NPF1. Aberdeen’s links to research and development, with the Universities and in the oil and gas sector, are highlighted more in NPF2.

3.2 Aberdeen is described as an energy centre and as the oil capital of Europe. NPF2 states that the Airport and heliport are set up to cater for this role and Aberdeen’s harbours and ports are also referred to as they handle a significant tonnage of oil products. However, NPF2 also recognises that traditional sectors of the economy are under pressure and employment in the oil and gas sector is projected to decline. Aberdeen’s highly skilled workforce is strengthening Aberdeen’s role as an energy centre by diversifying into new technologies, including renewable energy and carbon capture.

3.3 The highly skilled workforce of Aberdeen is complemented by a relatively large concentration of university based research and development activity. The University of Aberdeen is working in conjunction with various other Universities and certain Scottish NHS trusts on the world’s first translational medical project. Also, an opportunity has been identified to develop knowledge economy links down the Aberdeen-Newcastle corridor, based on expertise associated with the energy and offshore industry and the universities of Aberdeen, Dundee, St. Andrews, Edinburgh and Newcastle.

3.4 There is reference to reducing the journey times between Aberdeen and Newcastle, between Aberdeen and the Central Belt (by 25-30 minutes) and bringing Aberdeen and Inverness closer together with the aim of strengthening the economic relationships between the city regions. The NPF2 also states that the completion of the Aberdeen Western Peripheral Route in 2012 will relieve congestion in Aberdeen city centre and improve connectivity between the North East and the Central Belt.

3.5 Oil and gas continues to make a significant contribution to Scotland’s economy. Aberdeen has a key role as a driver of economic activity and NPF2 states that it is essential that it be well connected to Edinburgh and Glasgow, the wider region and the rest of the world. Reducing journey times between Aberdeen and the Central Belt will help to support Aberdeen’s role as an energy centre.

3.6 Aberdeen is beginning to develop a role as a major tourism gateway and Aberdeen Airport is described as having an important international gateway function with links to Scandinavia and the North Atlantic.

3.7 Tourism also plays a role in the future of Aberdeen. Aberdeen has to pursue further opportunities in leisure and recreation and the North East corridor provides opportunities for recreation, leisure and tourism. The UK currently accounts for 83% of tourism trips to Scotland. 87% of overseas visitors to Scotland arrive in the UK by air and 62% of UK visitors to Scotland come by car. By improving cross border rail and road links, and by bringing Scotland within three hours of major English cities, the economic benefits of tourism can be spread more widely.

4.0 National Developments

4.1 The Planning etc. (Scotland) Act 2006 creates a category of developments to be known as ‘national developments’. It is proposed that these, which are defined or identified in the NPF, would undergo streamlined procedures where the need for the development would not be open to debate, it having been determined through its inclusion in the NPF. The Act states that if the National Planning Framework designates a project as a national development it must contain a statement by Scottish Ministers of their reasons for considering that there is a need for that development.

4.2 The Cabinet Secretary for Finance and Sustainable Growth set out what the Ministers would take into account in designating national developments in a statement to Parliament on 13 September 2007. Projects which may be designated as national developments were identified as those which: • Make a significant contribution to Scotland’s sustainable economic development; • Strengthen Scotland’s links with the rest of the world; • Deliver strategic improvements in internal connectivity; • Make a significant contribution to the achievement of climate change, renewable energy or waste management targets; • Are essential elements of a programme of investment in national infrastructure; or • Raise strategic issues of more than regional importance (projects that impact on more than one city region, for example).

4.3 The Scottish Government has identified the following nine projects as national developments in the draft NPF2: 1. Replacement Forth Crossing 2. Edinburgh Airport enhancement 3. Glasgow Airport enhancement 4. Grangemouth Freight Hub 5. Rosyth International Container Terminal 6. Scapa Flow Container Transhipment facility 7. Grid reinforcements to support renewable energy developments 8. Glasgow Strategic Drainage Scheme 9. 2014 Commonwealth Games facilities.

4.4 The action programme for NPF2 will specify how, when and by whom national developments will be taken forward. The Monitoring Report for NPF2 will report on the progress in delivering national developments. Appendix 1 to this report consists of an extract from NPF2, which shows the spatial distribution of the national developments contained within the draft. This map illustrates that “Grid Reinforcements to support renewable energy developments” is the only national development within the North East.

4.5 In early 2007 a number of projects were suggested for the North East as candidate national developments. Representations were made in relation to the AWPR, Aberdeen Airport Masterplan, the Aberdeen CrossRail Scheme, Carbon Sequestration Project, improvements to the Aberdeen - Inverness railway line and the upgrading of the A96. However, none of these suggestions has been taken forward in the draft framework – although some have been highlighted in the text.

5.0 Perceptions of North East presented

5.1 Overall, Aberdeen is portrayed as an area faced with a steady decline in its population. The North East is also perceived to be an area challenged with adapting to the decline in North Sea oil and gas production; total employment in North East Scotland’s energy industry is forecast to fall from 40,000 at present to 25,000 by 2021. However, the North East can build on Aberdeen’s strength as an energy centre by diversifying into new technologies, including renewable and carbon capture. With employment in the oil and gas industry now past its peak, Aberdeen and Aberdeenshire are applying their energy sector and offshore strengths to the development of renewable and clean energy technologies. Aberdeen is focusing on strengthening its role as Scotland’s northern gateway and broadening its economic base.

5.2 A substantial proportion of Scotland’s population live in small to medium sized towns which have taken on a dormitory role, and those with a narrow economic based have found it particularly difficult to adapt to change. The fishing towns of the North East are given as an example of this. These rural areas have experienced major structural changes with the traditional sectors (farming and fishing) now being complemented by an expansion of employment in services, diversification into a wide range of new activities and the growth of the leisure economy.

5.3 As stated above, Aberdeen/Aberdeenshire is portrayed as a region facing the challenge of steadily declining population, and also with fewer people being of a working age. The population of Aberdeen is stated as having declined by 5% between 1996 and 2006 and the projected population to 2024 indicates a fall in population by 18%, with a decrease in the number of households of 6%. The projected fall in population in Aberdeen can be partly attributed to outward migration across a tight city boundary. The figure presented for Aberdeenshire indicate a growth of 5% by 2024.

5.4 Aberdeen is presented as having good employment, high income and good urban and rural environments, which combines to provide a good quality of life. NPF2 acknowledges that Aberdeen City Council has focused on improving the quality of environment in the city centre and developing cultural and recreational facilities to create a more vibrant social scene. Yet there is no mention of the cultural and recreational facilities within the city. NPF2 also suggests that more can be done to attract tourists to the city and expanding the service sector, including financial services. The city’s role as a regional media centre provides a base from which to build a larger creative sector. This is consistent with the approach Aberdeen City Council has taken in endorsing various projects such as the extension to His Majesty’s theatre, development of AVC media facilities, White Spaces contemporary arts venue and the Peacock Visual Arts Centre. NPF2 also recognises that Aberdeen is seeking to pursue further opportunities in leisure and recreation. This is consistent with the City Council’s approach in endorsing projects such as the Regional Sports Centre, the Extreme Sports Centre and Arena Community Stadium.

5.5 The draft NPF2 document also rightly recognises that parts of Aberdeen require restructuring and that there are small but persistent pockets of deprivation. This is an issue that the City Council fully recognises and is addressing through aberdeenfutures project, significant community regeneration which plans to deliver improved housing, shopping, community facilities, green spaces and streetscapes across Cummings Park, Middlefield, Woodside, Tillydrone, Torry, Seaton and Northfield.

6.0 Detailed Observations

6.1 As detailed in paragraph 5.1 and 5.3 above, NPF2 suggests that the population of Aberdeen will steadily decline between now and 2024. However, both more recent official projections published since draft NPF2 and the Strategic Forecasts for Aberdeen and Aberdeenshire published by the two Councils in September 2007, indicate a quite different picture. Both the projections and the forecasts suggest population and household growth on a significant scale – a population growth in Aberdeen and Aberdeenshire of almost 60,000 in the high migration variant projections. The provisional strategy for the next structure plan for the North East is also predicated on growth and NPF2 will need to recognise these factors and reflect them in the final draft.

6.2 The developments contained in the discussion draft of NPF2 that are deemed to be of national importance appears to have an element of Central Belt bias. It could be argued that they do not fully reflect the aspirations and vision of Aberdeen City Council to provide the infrastructure to enable the region to play a key role in the sustainable economic growth of the nation and be vibrant, dynamic and forward looking. The economy of the North East is global in its reach and has a disproportionate impact on the Scottish and UK economy which is not fully recognised. For example, improving connectivity, both to other cities in the UK and overseas destinations, are emphasised, rightly so, as being of importance to achieving the aim of sustainable economic growth. However, whilst extensions to Edinburgh and Glasgow airports are identified in NPF2 as national developments, an extension to the runway at Aberdeen airport to allow flights to new destinations for both business and tourist related opportunities is not included. Instead, paragraph 202 states that “development plans safeguard land for expansion at Aberdeen airport.” The process of safeguarding land for an expansion at Aberdeen airport would be more streamlined and forward-looking if such a project were identified within the national developments contained in the discussion draft of NPF2. Improving accessibility and reducing journey times are focused strongly on linking Edinburgh and Glasgow with one-another and other parts of the country and further afield whereas there should, perhaps, be more emphasis placed on improving connectivity between the North East and other parts of the UK and overseas destinations.

6.3 It is positive to see regional transport initiatives referred to in NPF2, such as the Aberdeen CrossRail project. By committing to this project the objective of bringing Aberdeen and Inverness closer together and the aim of good connectivity to rural areas could be more easily achieved, which will strengthen Aberdeen and Inverness as they will become more attractive and easier places to travel to. The Aberdeen Western Peripheral Route is also referred to within the context of relieving congestion in the city centre and improving connectivity between the North East and the Central Belt. The NPF2 also states that the Government is committed to further improvements to nationally strategic trunk routes such as the A96.

6.4 The outward-looking status of Aberdeen was more clearly reflected in the strategy map in the original NPF and consideration should be given to more fully representing this important aspect of the North East in NPF2. NPF2 for example fails to recognise that Aberdeen Airport has a significantly greater reach as there are scheduled links to worldwide hub connections with daily flights to Copenhagen, Amsterdam, Paris, and Heathrow. There are also 18 domestic destinations excluding Heathrow.

6.5 The improvements to cross border rail and road links is welcomed, however, it should be noted that many places in Scotland are more than three hours apart by road or rail.

6.6 Within the draft NPF2 there should be more emphasis placed on Aberdeen as a tourist destination and also as a centre for conferences, conventions and business related tourism. The success of the Offshore Europe shows that Aberdeen can host large conferences and is improving on those areas needing attention, such as accommodation.

6.7 Monitoring arrangements and action programming need more specific reference in NPF2 so that it is clear that the framework will be implemented and progress monitored.

7.0 Conclusions

7.1 The production of NPF2 is welcomed, particularly the statutory status that the final document will have, which should offer a greater degree of confidence and certainty for developments considered to be of national importance. The preparation of NPF2 will be crucial given the fact that its preparation will coincide closely with the preparation of the next structure plan for the North East. The detail and clarity given by the NPF2 should provide clarity for both the business community and members of the public when it comes to implementing the Government’s strategic objectives into a spatial plan at a city-region level.

7.2 Reference to the social, economic, environmental and demographic issues that relate to Aberdeen and the North East are also welcome, particularly in relation to the recognition that priority must be given to ensuring that Aberdeen and the North East remains a hub for commercial and business activity. Reference in the NPF2 to specific regional transportation initiatives planned for the North East, such as the AWPR and CrossRail, is welcomed. These projects are consistent with the Government’s objective of enabling sustainable economic growth by improving connectivity between the main city-regions and other parts of the UK and overseas. The identification of ‘national developments’ in Scotland should portray the North East as a region that is open for business and forward-looking. It is essential that the identification of such national developments provides a robust and efficient framework that will encourage inward economic investment in the North East and improve the region’s links with the rest of the UK and further afield. Appendix 1: Map of ‘National Developments’ (Extract from draft National Planning Framework 2) Appendix 2: Strategy Map (Extract from draft National Planning Framework 2)