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Economy and Employment Land Update Cotswold District Council

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Economy and Employment Land Update Cotswold District Council Economy and Employment Land Update Cotswold District Council April 2016 CONTENTS Executive Summary ................................................................................................................................................ 1 1. Introduction ................................................................................................................................................... 6 2. Business and Industrial Trends In Cotswold .................................................................................................. 8 Summary ........................................................................................................................................................... 15 3. B Class Employment Land Completion Trends 2011 to 2016 ..................................................................... 16 Employment Land Completion Rates and Trends ............................................................................................ 20 Summary ........................................................................................................................................................... 22 4. B Class Employment Land Supply ................................................................................................................ 23 Strategic Housing and Economic Land Availability Assessment ....................................................................... 23 Employment Study 2012 - Safeguarded Land................................................................................................... 24 B Class Employment Sites – Planning Commitments at March 2016 ............................................................... 25 Local Plan Proposed B Class Employment Allocations ...................................................................................... 27 Summary ........................................................................................................................................................... 29 5. B Class Employment Land Demand.............................................................................................................. 30 Key Assumptions in Calculating B Class Land Requirement ............................................................................. 30 Baseline Forecasts ............................................................................................................................................ 32 Baseline Forecasts - Sensitivity Test 1 .............................................................................................................. 34 Alternative Scenario ......................................................................................................................................... 35 Alternative Scenario – Sensitivity Test 2 ........................................................................................................... 37 Labour Supply Derived Assessment .................................................................................................................. 37 Summary ........................................................................................................................................................... 38 6. Recommendations ....................................................................................................................................... 42 Appendix A............................................................................................................................................................... i Appendix B ............................................................................................................................................................ xvi Economy and Employment Land Update April 2016 | PAGE i EXECUTIVE SUMMARY i. This report provides an update to the evidence paper: ‘Supplement to Cotswold Economy Study 2012 and Economy Evidence Paper 2013’ dated November 2014. It forms part of the evidence base for policies and proposals in the Cotswold District Local Plan Submission Draft Regulation 19 (2011 to 2031). ii. Building upon earlier evidence, this report provides new information, data and utilises more recent economic forecasts to ensure that the Employment Land Assessment is appropriately updated to inform Employment Land Allocations and Policies in the Local Plan. These updates include: • Assessment of the local economy including data published in Business and Industrial Trends, Nupremis Cambridge Limited, November 2015 • Economic and Employment Land Monitoring Reports published annually by Cotswold District Council with information to March 2016 on Employment Floorspace and Land Completions and Commitments • Strategic Housing and Economic Land Availability Assessment– Consolidation Report, Cotswold District Council, January 2016 • Economic forecasts for Cotswold District Council by Cambridge Econometrics and Oxford Economics, November 2015 • Review of Economic Forecasts for Cotswold District Council, Nupremis Cambridge Limited, February 2016 • An Updated Estimate of the Objectively Assessed Housing Needs of Cotswold District prepared by NMSS alongside this report (OAN 2016), March 2016 • Assessment against the objectives of GFirst’s Strategic Economic Plan for Gloucestershire BUSINESS AND INDUSTRIAL TRENDS iii. The Business and Industrial Trends Report provides a snapshot of the recent economic performance of the District. Despite the recession, Cotswold reports strong total jobs growth since 2010 particularly in Food and Accommodation and Professional, Scientific & Technical Activities sectors. However, there are distinct job losses reported in Wholesale and Retail together with losses in Education, Public Administration and Defence. iv. Job growth is driven by a significant increase in self-employment. The number of all self- employed people represents a total increase of +4,500, or 57.0 per cent growth between 2009 and 2014. At 2014, there are 3,200 self- employed people who are over 64 years in age. This represents 25 per cent of all people who are self- employed. The data also reports that 19 per cent of people work mainly from home. Economy and Employment Land Update April 2016 | PAGE 1 B CLASS LAND COMPLETION TRENDS 2011 TO 2016 v. The District Economic and Employment Land Monitoring Reports (as amended by data published in Appendix A) by Cotswold District Council report a net loss of 4.05 hectares of B Class employment land between April 2011 and March 2016. The loss of B Class employment land is seen at a time when ONS workforce and Business Register and Employment Survey (BRES) data report strong growth in jobs. Vacancy rates continue to be low and commercial values are below levels that are likely to support institutional or speculative investment. vi. The analysis of B Class completions between 2011 and 2016 highlights a distinct recycling of land between B Class uses. Analysis of B Class completions since 2011 reports an average of 48 per cent of land lost from one B Class use is reused within an alternative B Class development. vii. Rolling forward long term average completions trends since 2001 over the Local Plan period equates to a B Class employment land requirement of 19.84 hectares. Using this trend together, with an additional 5 year land supply buffer, equates to a requirement of 24.80 hectares over the plan period. B CLASS EMPLOYMENT LAND SUPPLY viii. The Strategic Housing and Economic Land Availability Assessment (SHELAA) – Consolidation Report January 2016 identifies a total potential economic land capacity of 76 hectares plus the potential for an additional 117 hectares at Fire Services College, Moreton in Marsh. ix. The Economic Land Monitoring Report 2015 to 2016 reports that at 31st March 2016, the district has net planning commitments of 2.91 hectares and 12,855 sq m B Class Employment Land/floorspace. x. In calculating the total B Class employment land supply at March 2016 full account is given to the loss of 4.05 hectares of employment land between 2011 to 2016, existing B Class employment land commitments totalling 2.91 hectares and proposed B Class employment land allocations in Cotswold District Local Plan Submission Draft Regulation 19 (2011 to 2031) of 27.61 hectares. The total B Class land supply, using this calculation at March 2016 amounts to a provision of 26.47 hectares as detailed in Table ES1. Economy and Employment Land Update April 2016 | PAGE 2 Table ES1: B Class Employment Land supply at March 2016 ha Completions 2011 to 2016 - 4.05 Commitments at March 2016 +2.91 2016 Allocations as proposed in Cotswold Local 27.61 Plan Reg 19 Submission Draft Regulation 19 Total B Class supply 2011 to 2031 26.47 Source: Economic and Employment Land Monitoring Reports 2011 to 2016 (updated by information in Appendix A) and Cotswold Local Plan consultations B CLASS EMPLOYMENT LAND DEMAND xi. The methodology and approach taken in assessing the B Class employment land requirement is compliant with national planning guidance and is consistent with the approach taken by the Stroud and the Joint Core Strategy (JCS) authorities (Cheltenham, Gloucester and Tewkesbury) in developing their employment land assessments. xii. In addition, to the completion trend based approach detailed in paragraph x above, this Employment Land Review considers the employment land implications of a series of tests based on recent economic forecasts, alternative scenarios and consideration of demographically derived labour impacts. These tests, together with the
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