South East EmploymentPremises & Land Review

FinalReport October2012

South East Lincolnshire Employment Premises & Land Review

Boston Borough Council South Holland District Council

FINAL REPORT

October 2012

50193/MS/JR

This document is formatted for double sided printing.

© Nathaniel Lichfield & Partners Ltd 2012. Trading as Nathaniel Lichfield & Partners. All Rights Reserved. Registered Office: 14 Regent's Wharf All Saints Street London N1 9RL All plans within this document produced by NLP are based upon Ordnance Survey mapping with the permission of Her Majesty’s Stationery Office. © Crown Copyright reserved. Licence number AL50684A South East Lincolnshire Employment Premises & Land Review

Contents

Executive Summary i

1.0 Introduction 1

2.0 Economic Context 4

3.0 The South East Lincolnshire Commercial Property Market 13

4.0 Review of Current Employment Sites 29

5.0 Future Requirements for B Class Employment Space 43

6.0 Need for Additional Employment Land 56

7.0 Impacts of the Proposed Spalding Rail Freight Interchange 71

8.0 Economic Role of the Agricultural Sector in South East Lincolnshire 78

9.0 Overall Conclusions & Policy Recommendations 85

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Figures3

Figure 1 Comparison of Demand/Supply in South East Lincolnshire by Growth Scenario v Figure 2.1 Sub-regional Context of South East Lincolnshire 4 Figure 2.2 Main Economic Sectors in South East Lincolnshire by share of employees, 2010 6 Figure 2.3 Employment Change in South East Lincolnshire by Sector, 2000-10 7 Figure 2.4 Occupation breakdown of South East Lincolnshire’s Residents relative to East /GB 9 Figure 2.5 Median Weekly Gross Earnings 9 Figure 3.1 Distribution of Employment Space in Boston and South Holland 15 Figure 3.2 Employment Floorspace in South East Lincolnshire and Surrounding Districts 16 Figure 3.3 Gross Development Rates 2004-12 – South East Lincolnshire 17 Figure 5.1 Outline of Approach to Scenarios 43 Figure 5.2 Gross Land Requirement by Scenario (ha) 52 Figure 5.3 Annual Job Growth Implied by Scenarios 53 Figure 6.1 Forecast surplus of office and industrial space to 2031 by scenario 58 Figure 6.2 Potential Mechanisms to Encourage Employment Development 66 Figure 7.1 Preferred location for Rail Freight Interchange 71 Figure 8.1 Horticultural Land under Cultivation In 78 Figure 8.2 Value of Horticultural Exports in East Midlands 79 Figure 8.3 Employment in Horticulture in East Midlands 79 Figure 8.4 Main agricultural related sectors in South East Lincolnshire 80 Figure 8.5 Location of Agriculture-related Businesses 83 Figure 9.1 Comparison of Demand/Supply in South East Lincolnshire by Growth Scenario 87

Tables3

Table 1 Gross Land Requirement by Scenario (ha) iv Table 1.1 B-class Employment Land Definitions 2 Table 2.1 SWOT Analysis of the South East Lincolnshire Economy 12 Table 3.1 B Class floorspace in South East Lincolnshire, 2008 14 Table 3.2 Change in Employment Stock 2000-2008 (000 m2) 15 Table 3.3 Available Employment Land, 2011-12 (ha) 19 Table 3.4 Industrial & Office Rents in South East Lincolnshire 24 Table 4.1 Distribution of Employment Sites by Settlement 30 Table 4.2 Ranking of employment sites 38

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Table 5.1 Forecast Employment Change in South East Lincolnshire 2012-2031 44 Table 5.2 Job Growth based Employment Space Requirements in South East Lincolnshire, 2012-2031 (Baseline) 45 Table 5.3 Job Growth based Employment Space Requirements in South East Lincolnshire, 2012-2031 (Higher Job Growth) 46 Table 5.4 Annual Net Completion Rates in South East Lincolnshire, 2004-12 47 Table 5.5 Employment Space Requirement based on Past Trends Continuing, 2012-31 (Baseline) 47 Table 5.6 Employment Space Requirement based on Reduced Take-up Rates, 2012-31 48 Table 5.7 Forecast labour supply in South East Lincolnshire 49 Table 5.8 B Class Floorspace Required from Labour Supply Growth 49 Table 5.9 Net Floorspace Requirement to 2031 for Different Growth Scenarios 50 Table 5.10 Safety Margin Allowances 51 Table 5.11 Gross Floorspace Requirement by Scenario (m2) 51 Table 5.12 Gross Land Requirement by Scenario (ha) 52 Table 6.1 Available employment land in South East Lincolnshire 56 Table 6.2 Demand/Supply of B Class employment space in South East Lincolnshire 57 Table 6.3 Demand/Supply for office and industrial space to 2031 (ha) 58 Table 6.4 Residential Completions by Parish/Settlement 2004-12 61 Table 6.5 Employment Space Completions by Settlement/Parish 2004 - 12 62 Table 6.6 Employment by Settlement/Parish, 2010 62 Table 6.7 Settlement/Parish Appraisal Matrix 63 Table 8.1 Employment in Agricultural Related sectors 81 Table 9.1 Gross Land Requirement by Scenario (ha) 85

South East Lincolnshire Employment Premises & Land Review

Executive Summary

This Employment Premises and Land Review for South East Lincolnshire has been prepared by Nathaniel Lichfield & Partners (NLP) on behalf of Boston Borough Council and South Holland District Council. The study will form part of the evidence base for the South East Lincolnshire Local Plan up to 2031 and inform the future allocation of land and policies for employment uses.

The study provides baseline information on existing employment sites and premises, local demand and supply information and indicates any need for changes to current land allocations across the combined area. It also assesses the potential impacts of the proposed Rail Freight Interchange (RFI) at Spalding on existing employment areas and allocations in the area.

Economic Context

South East Lincolnshire comprises the local authority areas of Boston and South Holland, mainly rural areas whose main centres are the towns of Boston and Spalding. The area is located on the south eastern edge of the East Midlands County of Lincolnshire, adjoining the Wash.

This area has been performing reasonably in economic terms in recent years. It has done slightly better than the East Midlands region in terms of job growth and unemployment. Its economy is more reliant on the manufacturing sector, which has been declining nationally for some time in job terms, but has also shown a strong rise in the typically high growth business services sector. The food industry employs many people in this area, including those employed directly in agriculture, in food manufacture and distribution. Key economic strengths and weaknesses, which will influence demand for employment space in the future, are summarised below.

Strengths/Opportunities Weaknesses/Threats

• Above average job growth and low • Distance from strategic road network unemployment • Lack of modern employment premises • Strong growth in business services • Below average skills/workplace wages • Strong food industry and growing energy • sector Low business formation rates • High reliance on manufacturing & food • Reasonable transport links to London/ports processing sectors • Low cost base (premises and wages) • Limited attraction to inward investment • Reasonable local manufacturing base less • Limited range of strong business sectors affected by global pressures

• High proportion of self-employed indicates entrepreneurial activity

• Potential spin-offs from Spalding RFI

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Employment Space Trends

Key features and recent trends in the supply of employment space in the area can be summarised as: a the great majority (95%) of employment space across the area is industrial (warehouse and factory), with a relatively small level of office provision; b during the period 2000-08, the total stock of employment space rose by 8%; this included a slight decline in warehousing space (4%) and increases in factory (12%) and office space (27%); c annual development rates of new employment space over the last eight years or so have been reasonably high at a net 13,850 m2 or so of mainly industrial space although rates have been lower since 2008; d past losses of employment land (mainly B2 industrial uses) have been significant across both local authorities, mainly to residential, retail and D1 (non-residential institutional) uses; e 238 ha of available employment land currently exists across the area of which the great majority (165 ha) is within South Holland;

The Local Commercial Property Market

A view of the commercial property market and levels of demand for employment space was obtained from discussions with commercial agents, economic development officers and developers active in the area. Based on this: a South East Lincolnshire is a relatively self-contained commercial property market, largely industrial and particularly associated with food processing/distribution industries. There are limited links with other regional markets such as , the A1(M) corridor and North ; b demand for industrial space is generally strong although less than in the past due to depressed national economic conditions. Most demand is from local firms wishing to expand or upgrade premises and stay within the area, and focused on the Spalding and Boston areas. Future levels of demand are expected to be similar to the past and focused particularly on Spalding; c there is a limited supply and some shortages of available industrial premises, mainly medium sized units, while much of the industrial stock is ageing and speculative new development constrained by low rents; much of the supply is also concentrated in just a few locations; there is reasonable provision for start up businesses across the area; d the local office market is very small, with relatively few enquiries and most demand coming from small businesses and a few medium-sized professional firms and some public sector organisations. Future levels of office demand are considered unlikely to be very different from current levels.

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e vacancy rates for both office and industrial floorspace are low, and appear well below the 8-10% availability rate typical in a normal market; f except for Peterborough, most adjoining areas are largely rural districts with no major employment developments that are likely to influence demand in South East Lincolnshire, which in any event operates separately from them; however, depending on the type of market which it will serve, the planned Rail Freight Interchange (RFI) in Peterborough/Fenland could have impacts on future demand for rail related distribution space in South East Lincolnshire.

Assessment of Existing Sites

The suitability to meet future needs of 29 existing or allocated employment sites in the area was assessed. Based on this assessment, South East Lincolnshire contains a reasonable range of industrial sites of differing quality and type. Other than Endeavour Park in Boston town, there is a very limited number and range of office sites across the area.

In terms of good quality sites, this assessment identified nine sites providing over 288 ha of land and making up some 47% of total supply. The great majority (over 97%) of the current supply of employment land is of good or average quality, although the largest share (50%) is in the average category.

Most of the sites rated as ‘good’ comprise well established employment areas close to the main urban areas or benefiting from good strategic transport links. Most of the lower average sites and poor quality sites lie in the rural areas and are more limited in terms of strategic road access or proximity to local labour and services. The five sites assessed as lower quality on the assessment criteria (see Appendix 5) are within the Boston or Spalding urban areas and typically constrained by adjoining uses or poor access although some appear able to meet some local needs for low cost space.

There appears to be in the order of 227 ha of undeveloped employment land available within the sites assessed, excluding land within the curtilages of existing businesses. The significant amount of undeveloped land on existing or allocated sites across the area suggests some may be unattractive to market needs or difficult to develop in the current climate and may mean the effective land supply is less than it appears. Most of the available land is theoretically developable in the short/medium term and there is no obvious shortage of immediately developable sites but some sites may need infrastructure provision or some form of intervention to ensure they come forward.

Future Land Requirements

Five different scenarios of future employment space requirements have been considered. These are based on a number of approaches which reflect both lower and higher levels of economic growth, development trends and potential housing supply factors. Several of these reflect assumptions of higher future economic growth in South East Lincolnshire than in the recent past.

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Table 1 Gross Land Requirement by Scenario (ha)

Labour Demand Past Development Rates Scenario 2 Higher 4 Lower 5 Labour 1 Baseline Job Growth 3 Past Take- Future Supply Job Growth Up Continues Take-Up Growth Use Offices (B1a) 5.4 5.4 15.2 11.6 5.1

Industrial 20.3 22.3 63.4 50.0 63.5 (B1c/B2/B8) All B Uses 25.7 27.7 78.6 61.6 68.6

Source: NLP analysis Totals rounded

The overall space requirements related to these different futures range from 104,800 to 319,600 m2 of all types of employment space up to 2031, implying in broad terms a need for between 25.7 ha and 78.6 ha of employment land (Table 1.1).

Given an uncertain economic outlook, it is difficult to select the most likely option from these alternative growth pictures. The estimates which assume past development trends continuing at similar or slightly reduced rates are perhaps most likely as they reflect actual patterns of development within South East Lincolnshire over recent years, covering periods of both economic growth and recession. This would also accord with commercial agent views that past levels of demand for space are expected to continue at broadly similar levels.

However, if that level of development were achieved, the associated job growth would exceed forecast growth in resident labour supply based on 810 dwellings p.a. Depending on the Councils’ aspirations, planning for broadly that level of development should just meet local job needs and would appear achievable in the context of past development trends. Planning for a higher level than this could encourage in-commuting but may be appropriate if the aim were to achieve a more aspirational level of economic activity in the area, building on the potential of developments such as the planned RFI and the renewable energy sector. It is also worth noting the aims of the NPPF to generally encourage economic growth and that the risks of under-providing may be greater than over-provision.

Need for Additional Land

Comparing these forecasts of future requirements with the current supply of employment land in the area suggests there is a more than adequate supply of employment space to meet future needs to 2031 in quantitative terms, under different estimates of future demand. This situation would apply even if a number of significant sites do not come forward for development.

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Figure 1 Comparison of Demand/Supply in South East Lincolnshire by Growth Scenario

200.0

192.9 180.0 190.9

160.0 163.2 140.0 149.8 149.7

120.0

100.0 (ha)

80.0

Surplus (+) / shortfall (-) 60.0

40.0

20.0 9.1 12.7 18.9 18.9 19.2 0.0 Office Office Office Office Office Industrial Industrial Industrial Industrial Industrial Baseline Job Growth Higher Job Growth Baseline Past Take-Up Lower Past Take-Up Labour Supply Scenario

The current supply also appears broadly adequate in terms of quality and distribution without further significant allocations. This is specifically the case in this area where existing firms are often able to expand within their own sites. For offices, the small supply of dedicated sites and limited choice might suggest a need for more provision but this must be tempered by the strength and nature of the local office market and the attractiveness of specific locations. Providing some small office sites (of say 2 ha) at Spalding and Boston would help expand choice but, with a surplus of potentially suitable land available and a modest level of demand, it is difficult to recommend allocation of new, dedicated office sites. This suggests continuing the approach at Wardentree Lane, Spalding with parts of larger employment areas identified, e.g. through a masterplan, as suitable for small office village schemes to be developed.

Analysis of any requirement for more employment land was carried out by main settlement, taking account of available land remaining, market attractiveness, and past employment space and housing growth. Overall, the study found that existing identified sites are likely to be adequate to meet future needs in the emerging plan period, and no further allocations are considered necessary for any settlements during the plan period.

For Spalding and Boston town, the areas attracting greatest levels of development in the past, there are sizeable areas of land available and, on the basis of current evidence, no clear need for further provision in the plan period. However, if past development rates applied again in future, the situation could become tight in the longer term. It is therefore suggested that the situation is monitored regarding future take-up rates, rent levels and any impacts from the RFI site, and that any need for an additional allocation is reviewed in 5-10 years.

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There is an issue, probably exacerbated by current subdued economic and property market conditions, of attracting development to some allocated employment sites. A range of potential approaches should be explored to tackle this. This could include providing greater flexibility on the range of B Class uses allowable at the Kirton Distribution Park, but also wider measures could be explored such as use of Local Development Orders (LDOs), public sector funding of infrastructure and rent guarantees.

Release of Sites

Given a lack of strong pressure on employment land from other uses, current employment sites or allocations that are performing some economic role could be retained as such at the present time unless strong requirements for other land uses emerge. While there is no immediate demand for employment use on some sites, a number such as Wingland at and Riverside Industrial Estate in Boston have certain infrastructure and services in place, making them available to capture unforeseen inward investment or other emerging opportunities and are worth retaining for this.

Most of the occupied sites continue to meet local needs at some level. Some of these, however, are candidates for release to other uses in the medium to longer term (5 -20 years), if they become or continue to remain vacant and when it is clear there are adequate opportunities to relocate existing firms.

While the most obvious candidates for release to other uses would be among the five lowest ranked individual existing sites from the site assessment process, there is no strong case for release of most of these sites at the present time. However, for the vacant factory unit on Norfolk Street in Boston, unless it attracts developer interest for redevelopment for modern employment premises, it should be a candidate for allowing other uses compatible with a residential area.

Several other sites, or parts of sites, are understood to have attracted no development interest after some time and some sites within Boston are subject to unresolved objections to the Boston 2006 Interim Local Plan. These include some land at the Endeavour Park site and land beside the Enterprise Park in . Given the large supply of land elsewhere, these are also candidates that could be considered for release if these issues are not resolved.

Impact of Spalding RFI

Specific consideration was given to whether provision of such a large new site (50-60 ha) for an RFI and associated distribution/food processing uses near Spalding would have significant impacts on existing employment areas or allocated sites. This analysis took account of experience at other RFIs in the UK, current levels and types of distribution premises within the area, the 2009 feasibility study for the RFI and discussions with local commercial property agents, local economic development officers and developers.

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This analysis found that the RFI site is likely to perform a different, more specialist role rather than form part of the general supply of employment land in the area and would have rent levels aimed at higher value businesses and which may deter local firms. Little evidence was found from RFI operations elsewhere of wide scale relocations of local firms to an RFI site. Any relocations of local firms to the RFI site are likely to be slow and incremental and reflect investment decisions of firms wishing to move anyway.

On the evidence currently available, providing a site of 50-60 ha near Spalding to accommodate an RFI facility and associated processing/distribution uses appears unlikely to have major impacts on current employment land supply in South East Lincolnshire or necessarily give rise to a need to reduce the scale of existing employment land allocations in the area.

Economic Importance of the Agricultural Sector

Specific consideration has been given to the role and importance within the local economy of various agricultural-related activities, their employment levels, land requirements and potential future risks.

Based on IDBR data, there are an estimated 720 or so businesses in the area which are directly or indirectly linked to the agricultural sector and dependent on it. These range from crop processing and food distribution to manufacture of farm equipment and research and development at the Food Technology Centre. These sectors account for an estimated 20,600 jobs or almost 40% of the area’s total employment and provide a range of local employment opportunities. These activities are relatively well dispersed across the area, and while some are located on identified employment areas, they are not confined to them.

The health of a fairly wide range of activities appears linked to the future of the agricultural sector in South East Lincolnshire. While there are some factors likely to support growth, potential risks include increased competition from areas such as China, more imports of speciality fruit and vegetables from emerging economies, the impacts of climate change and any future restrictions on supply of lower cost labour from EU countries. These agricultural-related activities appear unlikely to be a source of major economic growth in future but should continue to provide a relatively stable element of the local economy.

Policy Recommendations

Based on the findings of the study, the following recommendations can be made with regard to employment land provision in South East Lincolnshire: a based on the evidence currently available, there is no need to allocate further employment sites in the emerging plan period; b depending on future development rates, there may be a need for further provision at Spalding and Boston town in the medium/longer term and indicators of demand should be monitored to provide early warning of this e.g. completion rates, rent levels, views of local businesses;

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c various mechanisms should be explored to help bring forward development on employment sites which have failed to attract market interest; these could include use of public/private joint ventures, public funding of key infrastructure, selective enabling development and Local Development Orders (LDOs); d release for other uses of vacant or undeveloped, lower quality employment sites should be considered for sites that fail to attract development interest after some time and/or which have development constraints that are difficult to resolve; e for lower quality employment sites which contain existing businesses, release to other uses should only be considered where a combination of factors applies - poor quality units at the end of their functional life, very high vacancy across the site for several years, lack of investment and significant adverse environmental impacts in adjoining uses; f seek to identify specific parts of larger employment areas which may be suitable for small office village schemes, perhaps through a masterplan or Area Action Plan; g better quality employment areas/allocations should be protected from non B class uses subject to strict criteria such as:

• non B class uses should not be permitted on the better quality employment areas (to be defined by the Local Plan) except where they enhance the function, image or operation of the overall employment area and occupy less than 10% of the overall area;

• on other employment areas, non B class uses should not occupy more than about 20% of the total area or otherwise form such a large proportion of the employment area that they threaten its continuing function as such;

• non B class uses should generate significant employment;

• any permitted non B class uses should not be of a scale or nature that significantly competes with nearby town/district centres;

• any permitted non B class uses should not generate levels of traffic or cause environmental impacts that would constrain the efficient operation of existing B class employment uses on the site.

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1.0 Introduction

1.1 This Employment Premises and Land Review for South East Lincolnshire has been prepared by Nathaniel Lichfield & Partners (NLP) on behalf of Boston Borough Council and South Holland District Council. The study will form part of the evidence base for the South East Lincolnshire Local Plan for the period to 2031 and inform future allocations of land and policies for employment uses.

1.2 The study provides baseline information on existing employment sites and premises, local demand and supply information and indicates any need for changes to current land allocations across the combined area. However, individual economic issues and employment requirements of each district are also drawn out. Specific outputs required from this study were: a estimates of demand requirements for employment space for the area, up to 2031, by district and Use Class; b estimates of demand requirements for employment space up to 2031 within specified settlements, by Use Class and market segment; c the impact of different future growth scenarios on the levels and types of employment land required; d an assessment of the suitability of current employment land allocations to meet current and future market requirements in both quantitative and qualitative terms, including advice on sites to be retained/released; e the amount, type and broad location of any additional employment sites required to meet current and future market requirements; f the likely impact of the proposed Spalding Rail Freight Interchange (RFI) on employment land allocations in South East Lincolnshire. Approach and Methodology

1.3 The study’s approach to assessing employment land needs generally follows Government and other guidance on undertaking employment land reviews 1 and also takes into account more recent regional guidance on such studies and the aims of the National Planning Policy Framework (NPPF). It focuses on employment space needs for the group of B Use Classes indicated in Table 1.1 but also considers in broad terms the future employment potential and land needs of some other non B Class economic uses. The term “employment space” in this study means both employment land and floorspace, while “industrial space” includes both manufacturing and distribution uses.

1 Employment Land Reviews: Guidance Note (ODPM, 2004), Employment Land Reviews Guidance Manual, East of 2008, Draft Employment Land Study Source Book, East Midlands Councils, June 2012.

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Table 1.1 B-class Employment Land Definitions Business B1 • Commercial offices other than A2 uses • Research and development - laboratories and studios • Light industry General Industrial B2 • General industry (unless in B1) Storage or Distribution B8 • Storage or distribution centres - wholesale warehouses, distribution centres and repositories

1.4 For the purposes of this study, references to time periods should be taken broadly to mean: short term (0- 5 years); medium term (5-10 years); long term (over 10 years and within the plan period).

1.5 A key input to this process was consultation with various organisations with an interest in the supply of employment land including some local businesses, developers and commercial property agents active in the area. Appendix 1 contains a list of consultees. It also draws on the extensive consultation with such bodies undertaken directly by Boston and South Holland Councils.

1.6 The study also draws on previous employment land and economy studies undertaken for Boston, South Holland and adjoining districts as well as other relevant documents including economic strategy documents, the National Planning Policy Framework (NPPF), property market information and published economic statistics. These are listed in Appendix 2.

1.7 Data from the Inter Departmental Business Register (IDBR) provided by ONS to Boston and South Holland Councils has been analysed by the consultants for this report and the consultants take responsibility for this analysis. Structure of Report

1.8 The report is structured as follows:

• a review of current economic conditions and recent trends in the area that may affect future needs for employment space (Section 2.0);

• analysis of the current stock of employment space and a review of local commercial property market conditions and trends (Section 3.0);

• qualitative assessment of the current employment land supply against defined criteria including its attractiveness to the market and ability to meet future needs (Section 4.0);

• quantitative estimates of future requirements for B-class employment space based on a number of approaches (Section 5.0);

• assessment of the gap between current land supply and future needs in both quantitative and qualitative terms and any need for additional sites (Section 6.0);

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• assessment of the potential impacts of the proposed Rail Freight Interchange at Spalding on existing employment allocations in the area (Section 7.0);

• assessment of the particular land needs of agricultural related, food processing and food distribution sectors (Section 8.0); and

• overall conclusions and recommendations from the study (Section 9.0).

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2.0 Economic Context

2.1 This section establishes the economic context for the study by reviewing recent economic conditions and trends within South East Lincolnshire, relative to the East Midlands region and the national economy. This is important in identifying the existing strengths and weaknesses of the local economy, and the factors likely to influence the nature and level of future demand for employment space within it. Key economic indicators are drawn out for the individual districts to identify any local issues. Geography

2.2 South East Lincolnshire comprises the local authority areas of Boston and South Holland, whose main centres are the towns of Boston and Spalding respectively. The area is located on the south eastern edge of the East Midlands County of Lincolnshire, adjoining the Wash. It lies some 22 km from the nearest large centre of Peterborough to the south, 40 km from Lincoln to the north and 80 km from the major conurbation of to the west.

2.3 The area covered by South East Lincolnshire is about 1,221 square kilometres of flat fertile fenland. As well as Boston and Spalding, it contains the smaller settlements of Butterwick, , Donington, Holbeach, Kirton, Long Sutton, , Sutterton, Sutton Bridge, and Swineshead, where most of the employment is situated (Figure 2.1). There are also some employment sites in smaller settlements and in isolated countryside locations.

Figure 2.1 Sub-regional Context of South East Lincolnshire

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2.4 Spalding and Boston have limited local rail services which connect to mainline services to London Kings Cross and the north at Peterborough and respectively. The A16 links the main towns to Peterborough and , whilst the A17 runs across the area linking to Newark and Kings Lynn. The A52 links Boston with the A1 strategic route some 30 km to the west. The area is therefore relatively distant from the main motorway network. The nearest large employment centres are Peterborough, located 25 km to the south, and Lincoln, 40 km to the north west. The nearest airports with scheduled services are East Midlands some 80 km to the west, London Stansted some 90 km to the south, and Humberside International 100 km to the north.

2.5 Although 10 km from the sea coast, Boston functions as a small port, handling in excess of 1.5 million tonnes p.a. and taking vessels of up to 120 metres. It has 18,000 m2 of covered warehouse storage, 8,000 tonnes of grain silos and a secure container park, grain elevators, and Ro-Ro ramps while its rail sidings are linked to the national network. The main imports are grain, fertiliser, animal feed and timber with wheat, potatoes and beet sugar exported. A small port also exists at Sutton Bridge in South Holland district, which handles dry cargo, with a particular focus on steel, timber and agricultural products. Economic Conditions and Trends

2.6 Current economic conditions and trends in South East Lincolnshire are summarised below, with comparisons made, where appropriate, with regional and national averages.

2.7 The overall population of South East Lincolnshire is currently 152,900, comprising some 64,600 in the and 88,300 in South Holland District.2 The area’s population grew by some 15.6% between 2001 and 2011, above both the regional (8.7%) and national (7.9%) averages. Slightly more of this growth took place in Boston.

2.8 The number of employee jobs in 2010 was 59,300, made up of 28,600 in Boston and 30,700 in South Holland. Total jobs across the combined area rose by 9.6% from their 2000 level, a better performance than both the national (2.2%) and regional (5.5%) levels. Job growth was much stronger in Boston (18.6%) than in South Holland (4.8%).3

2.9 The area’s largest sectors in employment terms in 2010 were manufacturing (17% of all jobs), business services/IT (17%) and health (12.5%) with retail (10.5%) and wholesale (8.5%) also significant (Figure 2.2). Manufacturing is particularly important in South Holland with over 20% of all jobs. The manufacturing, business/IT services and transport/storage sectors in South

2 2011 Census preliminary figures 3 BRES employment data, 2010 via Nomis

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East Lincolnshire all had higher shares of private sector jobs than the regional average, with financial services under-represented.

2.10 Tourism-related activities, forming between 4.4% and 5.6% of all jobs in the area, had a lower share in this area than the regional (7.6%) and national (8.2%) averages. The area also has a lower proportion of employment in public sector jobs (24.7%) than the region (33.5%) and nationally (33.4%). However, the proportion of agricultural jobs (6.4%) was much higher than in the region (1%) and nationally (0.8%).4

Figure 2.2 Main Economic Sectors in South East Lincolnshire by share of employees, 2010

25% Boston South Holland East Midlands GB 20%

15%

% of Employment % of 10%

5%

0%

e e g s T n n r l e lth u ring ion a tail rin a tio lt u ct s e dmin e a le R a catio H e ricu tru o u g s servic rvices/I d A ufact Wh l E n ls/cate se l/recr Con Public ra Ma u Hote ess lt Financia Profess/ scientificsin Cu Transport & storage Bu Source: BRES, 2010

2.11 The food industry employs many people in this area, including those employed directly in agriculture, whose numbers fluctuate with seasonal employment, to jobs in factories producing food products. An estimated 8,200 jobs in the area are related to food processing or distribution, almost 14% of all jobs in South East Lincolnshire. South Holland has about three quarters of these jobs, particularly around Spalding, Holbeach and Sutton Bridge, with most of the rest around Boston and Old Leake.5 The sector has consolidated in recent years but with some signs of renewed growth.

2.12 Another potential growth sector is power generation. South Holland already has several large, gas fired power stations and there are proposals for 48 MW and 10 MW, biomass fuelled, power stations, using woodchip imported through local ports. Boston has planning permission for a 12 MW power station.

2.13 Over the last decade, the largest contributors to job growth in the combined area have been business services (104%), transport/storage (36%), and public

4 ABI employee data, 2008, via Nomis 5 Based on analysis of IDBR data for Boston and South Holland districts

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sector activities such as health (16%), recreation (20%) and education (23%). In all of these sectors, the area outperformed regional and national growth rates (Figure 2.3). This was particularly the case in business services, although the area perhaps started from a lower base. This growth was offset by significant job losses in manufacturing (-8%) in particular, although South East Lincolnshire performed much better in this sector than both the region (-35%) and nationally (-32%), as well as decline in wholesaling, where South East Lincolnshire did much worse than these wider areas.

Figure 2.3 Employment Change in South East Lincolnshire by Sector, 2000-10

160% Boston S. Holland East Midlands UK 140%

120%

100%

80%

60%

% Job Growth 40%

20%

0%

-20%

-40%

g il re ge ts n ort n rin s/IT ltu ra p ction alth e tu Reta e cation ic ru ura Admi H u rv /sto st c d rt bli ufac E Agricu ure & S esta u se Wholesaling t Con R P ss spo Man e n Cul & in ra , Financial Servicess T n u o tels B ti Ho crea Re

Source: Annual Business Inquiry

2.14 Looking at the size of businesses in South East Lincolnshire, Boston has a lower proportion of very small firms with 1-10 employees (81.6%) than the regional average (84.1%), and relatively few large firms. South Holland has a relatively higher share of smaller firms (85%) than both.6

2.15 Between 2004 and 2010 the number of VAT registered firms in the area fell by 1.4%, in contrast to growth of 4.3% in the East Midlands region, 6.4% nationally and 0.7% in the County. With 23 new business start-ups per 10,000 working- age population in Boston, and 31 in South Holland, the area’s rate of new business formation in 2010 was also a little worse overall than regional (30) and national (34) averages. These indicators suggest below average levels of entrepreneurial activity in South East Lincolnshire.

2.16 Economic activity rates, the proportion of working age residents in or seeking employment, vary significantly across the area. Boston’s level of 73.2% in

6 BRES, workplace data, 2010

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2011 is below the regional (76.9%) rate and also the national (76.1%) figure, while South Holland (82.9%) has a significantly higher rate than all these benchmarks. This suggests some scope to expand local labour supply from current residents in Boston, but less so in South Holland.

2.17 The area has high rates of self-employment, with 13% of the working-age population in Boston, and 15.4% in South Holland, falling within this category compared with just 8.7% in the East Midlands and 9.1% nationally in 2011.

2.18 Claimant unemployment has more than doubled in South East Lincolnshire since the start of the recession in early 2008 to some 2,794, or 3.2% of the workforce, in July 2012. However, the rates for both Boston (3.5%) and South Holland (3.0%) were still below the East Midlands (3.7%) and national (3.8%) averages, a pattern that has prevailed historically. On the wider Annual Population Survey Measure7, the area’s unemployment rate is higher at 6.9%, but this is also below both the regional rate (7.6%) and that of Great Britain (7.9%). Long term unemployment in Boston (22% of all claimants), is similar to regional (22.2%) and national rates (23.7%), while South Holland has a below average rate (16.6%).

2.19 In April 2012 there was an average of 3.4 claimant unemployed workers for every notified job centre vacancy in the area. This was lower than the ratios for the East Midlands (4.5) and for Great Britain (5.1), indicating a tighter labour market locally than in other parts of the region and better prospects of unemployed residents finding work.

2.20 South East Lincolnshire’s resident workforce has lower than average skill levels when compared to the East Midlands region as a whole, with a much smaller proportion of graduate level workers in both Boston (13.9%) and South Holland (19.8%) than in the region (27.2%). In addition, there is a much higher proportion with no qualifications in Boston (20.9%) compared with regional (11.5%) and national averages (10.6%) although South Holland (15.3%) is closer to the average in this regard. The occupation profile of the area’s workforce is broadly in line with the national average but with higher proportions of lower skilled process workers and unskilled jobs in South Holland and a higher share of managerial/professional jobs in Boston (Figure 2.4).

7 this records all those searching for work but who are currently unemployed regardless of whether they are claiming job-seekers allowance or not

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Figure 2.4 Occupation breakdown of South East Lincolnshire’s Residents relative to East Midlands/GB

Great Britain

East Midlands

S. Holland

Boston

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Managers & Senior Officials Professional Associate Professional & Technical Administrative & Secretarial Skilled Trades Sales/personal service Operatives/Elementary Source: APS, 2010-11

2.21 Turning to the types of jobs required in the area, the most sought-after occupations amongst claimant unemployed workers are lower skilled, elementary jobs (28%), although this proportion was lower than the regional average (34%). This was followed by sales & customer service jobs (22%) and process, plant and machinery operatives (18%), the latter forming over twice the proportion of unemployed workers in this area as in the region. At the same time, there is a slightly lower proportion of unemployed residents seeking higher skilled jobs.8 Figure 2.5 Median Weekly Gross Earnings

Resident Workplace £470

£450

£430

£410

£390 Median Gross Weekly Income of Full-time Workers

£370

£350 Boston South Holland East Midlands Source: ASHE, 2010

8 Claimant unemployment by sought occupation, Nomis, March 2012

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2.22 Workplace wages in the South East Lincolnshire districts in 2010 were 10-11% below the East Midlands average and 17-18% below the national average (Figure 2.5). Resident wage levels, particularly in Boston, are also below the regional average. This indicates the types of jobs available locally are much less well paid than elsewhere in the region.

2.23 Boston and South Holland are ranked as the 89th and 168th most deprived local authority areas out of 326 in England. This places Boston among the 50% more deprived such areas in the country.9 However, there are some pockets of more concentrated deprivation in Boston and Spalding.

Inward investment

2.24 Although no quantitative data on inward investment or inquiries is available, in general, from discussions with commercial agents and local economic development officers, there has been very limited inward investment or business relocations into South East Lincolnshire in recent years. Exceptions include Culina Fresh, a logistics firm serving the food industry, and Woodhead Meats, a meat processing firm, to the Spalding area. There has also been little movement of businesses out the area. The attractiveness of South East Lincolnshire to new businesses in this respect is affected by:

• distance from the strategic road network

• an ageing stock of premises and in some cases shortages of available sites; and

• a limited range of strong economic sectors.

Knowledge-based industries

2.25 Knowledge-based industries are those sectors of the economy where value- added is derived from the intensity and accumulation of knowledge, often fostered through innovation and increasing use of technology. Firms within this sector tend to grow faster and have greater future potential than other sectors and so are considered an important indicator of an economy’s competitiveness and future growth prospects.10 Only 11.5% of Boston’s, and 13.9% of South Holland’s, businesses were defined as knowledge-based in 2010 - significantly lower than the East Midlands (18%) and the national rate of 21.8% and among the lowest in the region.11 This suggests the area is under-represented in the types of businesses that are more likely to generate higher value growth in future.

9 As measured by the Index of Multiple Deprivation 2010 on rank of average of score 10 Based on definition adopted by the Organisation for Economic Co-operation and Development (OECD), includes high-technology manufacturing such as pharmaceuticals, computers and aerospace, and services such as telecommunications, financial intermediation, computing and research and development. 11 UK Competitiveness Index, 2008

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Functional Economic Area

2.26 Examining commuting flows can help in defining the functional economic area within which an area lies. In 2001, only 15% of South East Lincolnshire’s working residents worked outside the two districts indicating a fairly high level of self-containment. In total, over 8,950 residents work elsewhere, predominantly in Peterborough which attracted over one third of out-commuters, but significant numbers also in South (13%), Fenland (11%) and Kings Lynn & West Norfolk (7.7%).

2.27 At the same time, approximately 8,700 workers, 14% of all working there, commuted into South East Lincolnshire, predominantly from the adjoining districts of , North and . On this basis, South East Lincolnshire has a broad balance between in and out-commuting, with a net outflow of only some 250 residents, less than 1% of its resident workforce.

2.28 A commonly accepted approach to defining Functional Economic Market Areas is where at least 75% of a Travel to Work Area’s resident economically active population also work in the area, and of all those working in the area at least 75% also live in the area.12 On this basis, with over 85% of its residents also working there, South East Lincolnshire forms a relatively self-contained functional area but with some economic linkages to Peterborough and South Kesteven. Strengths, Weaknesses, Opportunities and Threats

2.29 Taken as a whole, this area has been performing reasonably in economic terms in recent years. On the one hand, it has done slightly better than the East Midlands region in terms of job growth and unemployment. However, it also appears to have below average levels of entrepreneurial activity, a lower skilled workforce and lower paid local jobs. Its economy is more reliant on the manufacturing sector, which has been declining nationally for some time in job terms, but has also shown a strong rise in the typically high growth business services sector. Only the business services and transport/storage sectors form a higher share of local jobs than regionally but the local economy is also less reliant on public sector jobs.

2.30 Drawing together the above analysis, the economic strengths and weaknesses of the area, together with potential opportunities and threats, which will influence demand for employment space in the future, are summarised in Table 2.1 below.

12 Functional Economic Market Areas: An economic note, DCLG (February 2010) based on 2001 Census data

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Table 2.1 SWOT Analysis of the South East Lincolnshire Economy Strengths/ Opportunities Weaknesses / Threats

• Above average job growth and low • Distance from strategic road network unemployment • Lack of modern employment premises • Strong growth in business services • Below average skills/workplace • Strong food industry and growing energy wages sector • Low business formation rates • Reasonable transport links to • High reliance on manufacturing & London/ports food processing sectors • Low cost base (premises and wages) • Limited attraction to inward • Reasonable local manufacturing base investment less affected by global pressures • Limited range of strong business • High proportion of self-employed sectors indicates entrepreneurial activity

• Potential spin-offs from Spalding RFI

Source: NLP analysis

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3.0 The South East Lincolnshire Commercial Property Market

3.1 This section provides an overview of the current stock of employment space in the two local authorities within South East Lincolnshire, and recent trends and changes to the supply of such space. It also examines the supply of employment space likely to come forward in future, and losses to the current stock, as well as key features of the local commercial property market drawing on discussions with commercial agents active in the area. Main Employment Areas

3.2 The main centres of economic activity and employment within South East Lincolnshire are: 1 large scale mixed employment areas around Spalding, including Wardentree Lane, Clay Lake Industrial Estate and Cradge Bank Industrial Estate; 2 mixed employment areas around Boston including Riverside Industrial Estate, Nelson Way Industrial Estate, Norfolk Street Estate; Redstone Industrial Estate; Broadfield Lane and Endeavour Park; 3 30 ha of port related uses in central Boston (The Port Estate); and 4 large scale industrial development (75 ha) and port-related industries at Sutton Bridge; 5 Spalding and Boston town centres, which contain a mix of office, retail, leisure and service uses.

3.3 Other significant employment centres across the area include: 1 12 ha of mixed employment uses (industrial and B1) across two sites at Swineshead North; 2 mixed use employment development at Sutterton Enterprise Park (3.5) and small scale B1 development at Spalding Road Industrial Estate, Sutterton 3 large scale industrial development (10.5 ha) and small scale B1 uses at Crowland; and 4 B8 development with planning permission at Kirton Distribution Park (18.0 ha).

3.4 There are also a number of other employment sites scattered across rural areas including Long/Little Sutton, Holbeach, Donington and .

3.5 A new Rail Freight Interchange (RFI) is proposed to be developed to the south of Spalding in South Holland District. These proposals are at an early stage but if developed may have implications for overall employment land requirements and

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the distribution of employment space across the study area. This is discussed in more detail in Section 7.0. Trends in Employment Space

3.6 Table 3.1 compares the amount of B class employment floorspace and premises within South East Lincolnshire. In 2008 the area contained some 1,622,000 m2 of B class floorspace, of which 698,000 m2 was located in Boston (43%) and 924,000 m2 in South Holland (57%).

Table 3.1 B Class floorspace in South East Lincolnshire, 2008

Commercial Offices Factories Warehouses Total

Floorspace Floorspace Floorspace Floorspace No. No. No. No. (000 m2) (000 m2) (000 m2) (000 m2)

Boston 243 36 367 438 336 224 946 698

South 274 35 481 552 381 337 1,136 924 Holland

TOTAL 517 71 848 990 717 561 2,082 1,622

Source: Nomis, Neighbourhood Statistics

3.7 The great majority of employment space across the area is industrial (warehouse and factory), with a relatively small level of office provision. Some 95% of employment provision in Boston is industrial, compared to only 5% office space. Industrial space in South Holland comprises 96% of all employment space with 4% office space. Around two thirds of industrial space in the area comprises manufacturing premises, with the rest distribution units. Figure 3.1 provides a broad indication of the geographical distribution of the current stock of employment space across South East Lincolnshire.

3.8 This shows that, other than noticeable clusters within the towns of Boston and Spalding, office space is spread thinly across both local authority areas, with no particular concentrations. By contrast, factory uses within both authorities are concentrated along the eastern part of the area, spreading west along key transport corridors towards the A1. Similarly, warehousing space in Boston is heavily concentrated along the river estuary running north from the Wash. In South Holland, warehousing is mainly in the west of the district closer to the strategic A1 and A15 road links.

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Figure 3.1 Distribution of Employment Space in Boston and South Holland

Source: Nomis, Neighbourhood Statistics, 2008

3.9 An indication of the scale of change in employment floorspace in the study area over the last eight years for which data is available is provided in Table 3.2 below.

Table 3.2 Change in Employment Stock 2000-2008 (000 m2)

Commercial Offices Factories Warehouses Total

‘000 m2 (%) ‘000 m2 (%) ‘000 m2 (%) ‘000 m2 (%)

Boston 7 (24%) 59 (16%) -10 (-4%) 56 (9%)

South Holland 8 (30%) 48 (10%) 5 (2%) 61 (7%)

South East 15 (27%) 107 (12%) -5 (-1%) 117 (8%) Lincolnshire Source: Nomis

3.10 This shows that between 2000-08, the area had a net gain of 117,000 m2 of B class space, equating to 8% of its total stock. The biggest increase (107,000 m2) was in factory floorspace, while the greatest proportional increase was in commercial office space (27%), albeit from a low base. The only loss of employment space was of warehouse space within Boston, but this was only 4% of the borough’s warehouse stock. The small loss of warehouse space across South East Lincolnshire as a whole (1%) was more than offset by gains in office (27%) and factory space (12%).

3.11 The area’s overall growth in employment space (7.7%) was similar to the regional average of 7%, and much higher than the national average of 2%. However, the local decline in warehouse space and increase in factory floorspace contrasts with the regional and national picture where there was an overall fall in factory floorspace and an increase in warehouse space.

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3.12 Figure 3.2 provides a comparison of levels of employment space in South East Lincolnshire with nearby districts. It demonstrates that Boston and South Holland have similar levels of industrial floorspace to most adjoining districts, although Peterborough has much more, by a factor of two or three. South East Lincolnshire as a whole also appears to have a slightly lower amount of office space than most nearby districts.

Figure 3.2 Employment Floorspace in South East Lincolnshire and Surrounding Districts

1,400 Offices 1,200 Manufacture Distribution 1,000

800

600

400 Floorspace ('000Floorspace sqm)

200

0

n e nd lk ey nla rfo ds Boston Fe o Kestev st Lin st N a th Kesteven e E South Holland Peterborough orth u N So

's Lynn & W g Kin Source: VOA, 2008

Vacancy

3.13 A historic view of vacancy levels in South East Lincolnshire from Valuation Office Agency data indicates local vacancy of employment space in Boston (6- 7%) was generally slightly below regional and national rates up to 2005, the period for which data is available. In contrast, vacancy rates in South Holland exceeded the regional average between 1998-2005 and reached 11% in 2005.

3.14 Based on commercial property being marketed in June 2012 there was 35,000 m2 of industrial space available (equivalent to 2.3% of the total industrial stock) across the two local authorities. Boston had a higher amount of vacant industrial property with 4% of its total industrial floorspace vacant, while only 1% of industrial floorspace was advertised as vacant in South Holland.

3.15 The equivalent figure for office space was approximately 2,500 m2 across the study area, of which 970 m2 was within Boston and 1,540 m2 in South Holland. This indicates an overall vacancy level for office space of 3.5%, with individual vacancy rates of 4.4% for South Holland and 2.7% for Boston.

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3.16 This suggests that vacancy rates for both office and industrial floorspace across the study area are very low, and well below the 8-10% availability rate that is typical for a normal market with a reasonable amount of space available for firms to relocate and expand.

3.17 Discussions with local agents confirmed that, while not all vacant property was likely to be marketed via commercial property websites, vacancy rates across the two authorities were generally low. This was considered to be a result of relatively limited supply of available sites coupled with low rental values and a resulting lack of incentives for speculative or new build development in the current economic climate.

3.18 Nevertheless, such low rates, particularly in the period just after a major recession, could suggest a shortage of space relative to demand and the potential for a lack of available space to cope with increasing demands as economic conditions improve.

Development Rates

3.19 The gross amount of floorspace developed for employment uses in South East Lincolnshire over the last eight years is shown in Figure 3.3 below.

Figure 3.3 Gross Development Rates 2004-12 – South East Lincolnshire

50,000

B8 45,000 B1c/B2 B1a 40,000

35,000

30,000

25,000 Square Metres Square 20,000

15,000

10,000

5,000

0 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Source: Council monitoring data

3.20 These figures indicate that a gross figure of 17,770 m2 of B Class space was developed per annum across the two local authorities between 2004 and 2012. The level of development peaked in 2007/08 with more modest levels thereafter.

3.21 The net development rate was significantly lower, at approximately 13,850 m2 p.a., reflecting losses on redevelopment and to other uses.

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3.22 The majority of new floorspace developed (around 47%) was for B8 distribution, uses, 34% for B1c and B2 factory/industrial uses and only around 19% for B1 office use.

Losses of Employment Space

3.23 Council monitoring data indicates that past losses of employment land to other uses have been significant across both local authorities.

3.24 Boston had an annual average loss of just over 2,800 m2 for the period 2006- 12, most of this involving losses from B2 factory space. The majority of these losses were to residential use, closely followed by retail and D1 (Non- Residential Institutions) uses.

3.25 In South Holland, data available indicates a lower loss of employment land averaging approximately 1,080 m2 per year for the period 2008-2012. Losses were again mainly from B2 factory uses and as a result of change of use to D1, followed by residential and retail facilities. Only 680 m2 was lost to residential uses over this period.

Age of Premises

3.26 Although only covering the period up to 2003, ONS data on the age of premises can give a broad indication of quality of the current stock in the area.

3.27 Boston’s stock of office space is relatively old, with 72% built before 1970, albeit similar to the 70% average in the East Midlands. The proportion of post 1990 office premises in Boston was 12%, compared to a regional average of 14%, and a national average of 12%, indicating a fairly average proportion of modern, purpose-built office premises.

3.28 In contrast, only 57% of South Holland’s office stock predates 1970, a much lower proportion than the national average. Also, 16% of the District’s office premises were built after 1990 suggesting a better than average supply of modern, purpose built office facilities compared to the regional average.

3.29 With regard to industrial premises, in both Boston and South Holland some 55% of the total stock was built before 1970, a level slightly below regional (56%) and national (59%) averages. However, only 9% of the area’s industrial stock was built after 1990, compared with 12% in the region and 11% across the country, potentially indicating a lower proportion of modern industrial units.

Emerging Supply of Employment Space

3.30 The supply of employment space in the development pipeline comes from sites allocated for employment development in the Local Plans and from other sites with planning permission but not started.

3.31 The area’s Monitoring Report for 2011/12 indicates almost 238 ha of employment land available. Over a fifth of this supply comprises the allocation at Wingland, Sutton Bridge (50 ha), with the Enterprise Park at Spalding

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provides another significant source of employment land, with 42.6 ha remaining. In Boston, a significant element of supply is at Kirton, where there is an extant planning permission for 18 ha.

3.32 Over 174 ha out of the total 238 ha identified as available in the area does not currently have planning permission. For the remainder with permission for B Class employment use, assuming an average of 4,000 m2 per ha, potential employment space across the area would be 256,000 m2, this element of the supply alone is broadly equivalent to some 14 years of average gross completions in the recent past.

3.33 Table 3.3 summarises currently available employment land supply by type. It indicates that most of the supply is industrial in nature or mixed B uses, which often means B1-B8 industrial uses with limited office component. The amount of land specifically identified for B1a office use is very low, only 1% of the total supply. South Holland has more than twice as much land available as Boston.

Table 3.3 Available Employment Land, 2011-12 (ha)

B1a B1c/B2 B8 Mixed B uses Total

(ha) (ha) (ha) (ha) (ha)

South Holland 1.6 8.49 0.02 155.19 165.30

Boston 0.81 7.54 0.03 63.83 72.21

South East 2.41 16.03 0.05 219.02 237.51 Lincolnshire Source: Monitoring Report, 2011-12 - includes allocated sites + sites with planning permission not started Employment Space in Adjoining Areas

3.34 It is also important to understand the extent of available employment land in adjoining districts, and any major new economic developments coming forward there which might influence employment patterns within the study area. A brief review has therefore been undertaken below of the current position in each adjoining local authority area.

Peterborough

3.35 Peterborough has been an area of strong economic growth and has the largest local economy in the East of England, with a workforce of just over 100,000 people.13 Key growth sectors in the local economy are expected to be distribution and logistics, retail, environmental industries, financial services, media, printing and publishing and construction.

13 Peterborough Local Economic Assessment, April 2011

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3.36 The city contains major industrial estates and distribution parks (e.g. the 60 ha Kingston Park) and a number of business parks (e.g. Peterborough Business Park). It is a strong centre for distribution activities. It is not a major office centre although the current stock is some 400,000 m2 and there is a large amount of permitted office in the development pipeline; new office development is increasingly going to out-of-centre locations such as Peterborough Business Park and Cygnet Park at Hampton.

3.37 Peterborough’s Annual Monitoring Report (2011) indicates that, since 2001, take-up of employment land has been faster than expected due to the significant growth in warehouse development. However, Peterborough has an adequate supply of employment land and can identify a five year supply of employment land. The 2008 ELR indicated a future requirement up to 2021 of 198 ha compared with a current and potential supply of 256 ha. Major existing employment land allocations with planning permission for B1-B8 uses include 43 ha in the Hampton area and 40 ha at Hill, both as part of urban extensions, while a new allocation of 65 ha is also proposed for B1-B8 uses within an urban extension at Great Haddon. Current developments underway or planned are modest in scale – a 2,900 m2 office scheme at Cygnet Park and two offices of 2,800 m2 each at Orton Southgate.

3.38 Peterborough’s Core Strategy also identifies a large scale strategic allocation providing over 100 ha employment uses associated with a new Regional Freight Interchange (RFI), a joint project with Council, which will handle both road and rail freight at a significant scale. Whilst no developer has been selected, and interest in delivering the scheme is suppressed by the current economic climate, both authorities expect the site to come forward during their respective plan periods. The RFI is a major development with potential to have some impact on the proposed rail freight terminal in Spalding.

North Kesteven

3.39 is a mainly rural district with its main town and a small employment base. The district has a good portfolio of employment land and premises on its business parks and industrial estates. The industrial market is significantly larger than the office and the demand for industrial sites and premises is strong, in some places caused by a lack of supply and a limited availability of industrial land and modern premises. The most attractive business locations lie close to key arterial routes into and out of Lincoln and on the main business parks and industrial estates in Sleaford with demand more limited in the rural areas. The 36 ha Teal Park industrial area in is one of its larger sites.

3.40 Based on a 2010 joint Employment Land Review with Lincoln and districts, this district has a significant oversupply of employment land up to 2026, with a supply of 130 ha compared with estimated demand for 84 ha. Additional employment land is likely to be allocated within various sustainable urban extensions including:

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1 The Lincoln Western Growth Corridor, South East Quadrant and North East Quadrant; 2 Gainsborough Southern, Northern and Eastern Neighbourhoods; 3 Sleaford South and West Quadrants.

3.41 Up to 25 ha of employment land is proposed in the South East Quadrant (SEQ) from 2016 onwards, linked with 3,000 homes and the Lincoln Eastern Bypass. In terms of major new developments, Decoy Farm Business Park is a 25 ha allocation for B1 class uses (offices, research & development and light industrial) to the west of Lincoln. It is to be a high quality business park, operating at a sub-regional level, aiming to attract inward investors and provide relocation options for blue chip local businesses.

3.42 Developers are currently on site at Teal Park to complete an upgrade to the A46 and the Siemens development which will see some of their activities relocate from central Lincoln. Outline planning permission has also been granted for employment development at the Gainsborough Southern Neighbourhood, with an application made for additional development at the Western Growth Corridor.

South Kesteven

3.43 South Kesteven is a predominantly rural area, with economic activity focussed largely on the settlements of Grantham, Bourne and Stamford, alongside . In employment terms, the local economy is second only to Peterborough within the sub region and has experienced strong growth in recent years. Grantham is designated as a Growth Point.

3.44 South Kesteven has more than 1.2 million m2 of employment floorspace, second only to the amount in Peterborough. Its employment space is predominantly industrial, with commercial office premises accounting for a very low proportion of floorspace. Based on its 2010 Employment Land Capacity study, the district had 151 ha of available, allocated employment land.

3.45 On this basis, South Kesteven has sufficient employment land with the exception of good quality office space, but allocations emerging through the LDF are seeking to address this. A review of existing employment sites has led to the allocation of new employment land in place of existing provision, but providing a reconfiguration of employment land rather than a significant uplift in quantity.

3.46 In terms of major developments, a large warehouse/distribution centre has planning permission to the south of Grantham. A new business and enterprise centre ‘Eventus’ was developed in the last few years on Northfields Industrial Estate in . Otherwise there are no pipeline developments of more than local significance.

East Lindsey

3.47 East Lindsey is a relatively remote, rural district with a history of agriculture and coastal-related employment. The employment and business base is dominated

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by agriculture, tourism and traditional manufacturing, with fewer jobs in financial and business services and knowledge intensive employment.

3.48 Recent take up of employment land in East Lindsey has been steady and there is considered to be a sufficient short term supply of employment land. A review of employment sites in June 2011 concluded the need for small scale additional employment development to be allocated across the district, with locally significant additional floorspace required in Louth and to reflect past growth in these locations.

3.49 There are currently no large scale developments coming forward or being promoted in the district. Many of the existing, allocated industrial estates are at capacity and there are limited inquiries for development of new floorspace. Any development which did come forward is likely to only be of local impact.

Kings Lynn and West Norfolk

3.50 This is a mainly rural district with the town of Kings Lynn the main centre and containing 80% of all employment land; is a smaller centre of along with the coastal resort town of . Much of the economic activity is related to food related processing with a limited office market.

3.51 The 2007 ELR for the borough identified a generous supply of employment land to meet needs up to 2021, particularly for manufacturing space. The Council’s 2011 Annual Monitoring Report also suggests an over-allocation of employment land in this area, and is considering whether sites are readily available and/or appropriate for development. This indicates sufficient employment land existing without the need to identify further land allocations.

3.52 The Hardwick Extension, a 15 ha site with planning permission, is currently being developed for general employment use in Kings Lynn near the A47. Otherwise, there are no pipeline developments of anything more than local significance.

Fenland

3.53 Fenland’s economy is predominantly rural with a significant share of its economic activity related to agricultural production, processing and distribution but also has a strong general industrial tradition. Its main centres of economic activity are March, , and . Most of its employment land is within 11 Primary Business/Industrial areas. The Annual Monitoring Report for 2010/11 indicates over 100 ha of available employment land, predominantly for industrial uses.

3.54 Fenland’s emerging Core Strategy identifies broad locations for future growth of 85 ha of additional employment land across the plan period in the settlements of Wisbech (30 ha), March (30 ha), Chatteris (20 ha), and Whittlesey (5 ha).

3.55 As indicated above, an RFI is proposed within Fenland’s emerging Core Strategy as a development of strategic significance. There is currently no developer for the scheme but it is expected to be developed over the plan period. Depending

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on ongoing negotiations with potential developers/operators, this scheme may have potential to influence the timing and delivery of the proposed Spalding RFI. There are no other proposed developments or allocations of more than local significance. Commercial Market Conditions

3.56 A brief review of market conditions has been undertaken based on discussions with a number of local commercial property agents and drawing on interviews undertaken by the two Councils in 2011 with local firms, developers and land agents.

Overview

3.57 In early 2012, the UK commercial property market was still recovering from the financial crisis of 2007/8 and the ensuing recession and property slump. Falls in the capital value and rental levels of office and industrial premises of up to 40% combined with stricter lending criteria from banks and the abolition of tax relief on empty property mean that property development is less profitable, finance is hard to obtain and the risks of developing space without an end-user identified are high. As a result, speculative development has become very rare in virtually all of the UK outside London. This is particularly the case in more economically marginal locations, and those without a significant existing commercial property market, where lenders and developers are likely to be especially cautious.

3.58 However, there are differing views on how the market will evolve in the coming years. For example, competing forces such as a scaling back of public sector space requirements but a fall in employment land prices may play out in different ways in different locations. In any case, this study looks over the long- term of the plan period up to 2031 and the inherent qualities of South East Lincolnshire as a commercial location must therefore be considered.

Market geography

3.59 South East Lincolnshire is a relatively self-contained commercial property market, which is largely industrial in character and particularly associated with food production and processing industries. There is limited relationship with other regional markets such as Peterborough, the A1(M) corridor to the west, or the North Norfolk area to the east.

3.60 As noted earlier, the great majority of the area’s stock of employment space is industrial and concentrated on a relatively limited number of medium to large sites around Spalding and Boston. The main attractions for firms are low rents, the presence of a good local workforce (including availability of contract workers from EU countries) and a stock of premises which generally meets indigenous business needs. Partly reflecting its location and more limited access to strategic routes, the market is viewed as quite insular and localised, and lower rents are insufficient incentive to draw firms from other areas.

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3.61 Many firms in the area are long-established, with locally-based owners and often reflecting historic investment and growth by larger businesses mainly associated with food production (e.g. Bakkavor).

Industrial market

3.62 Demand levels for industrial premises in South East Lincolnshire are generally strong although subdued in comparison to the past as a result of depressed national economic conditions. Most demand is from local firms wishing to expand or upgrade premises and stay within the area, and is generally focused on the Spalding area. Boston has greater industrial availability, but is more remote from strategic routes and is perceived as having traffic congestion problems that cause delays when accessing many of the town’s main employment sites.

3.63 Rent levels for industrial space in South East Lincolnshire are generally competitive compared with Peterborough for example, but depending on the type and age of unit. However, in Spalding shortage of supply and concentration of supply on just one site have inflated prices (Table 3.4).

Table 3.4 Industrial & Office Rents in South East Lincolnshire

Use Industrial Offices (£/sq ft) (£/sq ft) Boston £1.7 - £6.0 £4 - 9

Spalding £5 – £8.5 £4 - 6

South East Lincolnshire £2 – £3.5 n/a Rural areas Peterborough £4.7 – 7.5 £7 - 15

Lincoln £2.4 - 5.5 £5 – 12

Source: Survey of commercial agents / EG Propertylink

3.64 It was considered that most occupiers generally preferred sites within or close to Spalding and Boston, only locating in the smaller villages if there was a strong business reason or if focused on serving a local market. Employment areas located along strategic routes were generally more popular (e.g. Fleet Road industrial estate in Holbeach), and agents considered that it was important to provide sites to meet the needs of smaller settlements. However, some concerns were expressed that a number of allocated employment sites appeared to have barriers limiting their ability to be developed; these include Kirton Distribution Park (residential amenity issues/restrictive planning consent) and the Land to the West of Holbeach Allocation (infrastructure and servicing requirements).

3.65 There is, however, relatively little industrial stock available and limited supply of modern premises. There is no speculative development being carried out and it may not be viable to build new units at present given the generally low rent

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levels being paid for older premises in the area. Much of the stock is older and run down, but is often suitable for providing relatively low cost premises. Some agents considered that upgrading and refitting of older premises was more likely than new build industrial units for general industrial needs, particularly in areas away from Spalding where industrial demand is mainly focused. The exception would tend to be the larger occupiers who are more likely to develop their own bespoke freehold space on stand-alone sites.

3.66 Agents perceived a shortage of medium-sized industrial properties in the order of 10,000 - 20,000 sq. ft (930 - 1,860 sq. m), particularly at Spalding. It was also considered that a greater choice of sites and industrial supply is required around Spalding where most of the available supply has recently been concentrated at Wardentree Lane. There was some suggestion that the limited industrial land supply had been inflating prices, which risks eroding the price advantage that the area can offer over nearby larger centres such as Peterborough. The effect has been to reduce the amount of immediately available land to meet occupier needs, although recent planning permissions granted for extensions to Wardentree Lane and Clay Lake Industrial Estate may help to alleviate this in the future.

3.67 The general view was that future industrial demand levels would be similar to the past, and mainly centred on Spalding. Some noted that food industry related businesses had generally been more resilient to the recession, and would continue to generate requirements for warehousing as many customers do not want to hold stock themselves. The sector is dominated by existing businesses rather than offering much scope for new inward investment. Therefore it was considered unlikely that any significant inward investment or relocations from outside of the sub-region were likely to occur, although some pointed to the upgrading of the A16 trunk route as helping to improve perceptions of the area. There were also suggestions that, if the Port of Boston were to expand and increase freight volumes, this could generate additional demand for employment space in that location.

3.68 The implications of the proposed RFI at Spalding are considered in more detail in Section 7.0, but in summary, views were mixed. Whilst most agents considered that the RFI would offer significant benefits in terms of reducing traffic congestion, it was less clear whether larger food producers who had already invested in existing sites and premises would be likely to relocate from existing sites in order to be adjacent to the RFI.

Office market

3.69 The office market across South East Lincolnshire is very small, and there are relatively few enquiries for space of this type. Most demand arises from small businesses and a few medium-sized firms, such as local solicitors and accountants, and also some public sector organisations.

3.70 Much of the current supply comprises small second-hand town centre premises (often in historic buildings) in Spalding and Boston town centre, although in recent years there has been a trend towards some office-based firms relocating

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and developing new premises in out-of-town locations. There are examples at Wardentree Lane in Spalding and Endeavour Park in Boston, which generally benefit from better car parking provision than town centre sites, and give the opportunity for businesses to develop modern accommodation on a freehold basis. Phase 1 of a new office scheme comprising nine units (up to 170 m2 each) has recently been completed at Wardentree Lane and some viewed this as having absorbed most latent demand for office space locally in the short- term.

3.71 In terms of future needs for office space, agents considered it difficult to predict but viewed the future demand picture as unlikely to be very different from now. It was considered that recent completions of new office space may have met latent demand in the short/medium term, but that any new office development would probably be in out-of-centre schemes or possibly as part of small mixed-use developments within or on the edge of town centres.14 However, the overall scale would be relatively modest and almost exclusively focused in the towns of Spalding and Boston. There was no expectation of large-scale office relocations moving into the area from elsewhere. Start-up Space

3.72 The area has a modest amount of space geared towards small, start-up businesses. The Boston Enterprise Centre on Endeavour Park in Boston provides small office units (20-30 m2) on flexible leasing arrangements with in house support and training facilities. South Holland has a limited number of serviced office centres e.g. Welland House and Welland Workspace. There are also a number of County Council owned small industrial units (typically up to 185 m2) scattered across the area; examples include Marsh Lane in Boston, Roman Terrace in Sutterton, and Plover Court in Pinchbeck.

3.73 Managed workspace units of between 10 -100 m2, both office and light industrial, are provided at the Holbeach Technology Park, on the A17, a joint venture between the and the County Council, which houses the University’s National Food Sector Technology Centre and training.

3.74 There is also a reasonable range of small B1 and industrial units suitable for start up businesses at various locations such as the Haven Business Centre in Boston town, Tec Business Park in Boston, Fleet Road in Holbeach, Venture Court and Edison Court in Pinchbeck and within small scale incubator units in the rural area.

14 In this context, short term is assumed to be the next 5 years and medium term approximately 6-10 years ahead

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Conclusions

3.75 Based on the above analysis, the following conclusions can be drawn about the recent trends in the supply of employment space and the commercial property market in South East Lincolnshire: a the majority of employment space across the area is industrial (warehouse and factory), with a small level of office provision; b during the period 2000-08, the total stock of employment space rose by 8%; this included a slight decline in warehousing space (4%) and increases in factory (12%) and office space (27%); c annual development rates of new employment space over the last eight years or so have been reasonably high at a net 13,850 m2 or so of mainly industrial space although rates have been lower since 2008; d past losses of employment land (mainly B2 industrial uses) have been significant across both local authorities, mainly to residential, retail and D1 (non-residential institutional) uses; e 238 ha of available employment land currently exists across the area of which the great majority (165 ha) is within South Holland; f South East Lincolnshire is a relatively self-contained commercial property market, largely industrial and particularly associated with food processing/distribution industries. There are limited links with other regional markets such as Peterborough, the A1(M) corridor and North Norfolk; g demand for industrial space is generally strong although less than in the past due to depressed national economic conditions. Most demand is from local firms wishing to expand or upgrade premises and stay within the area, and focused on the Spalding and Boston area. Future levels of demand are expected to be similar to the past and focused on Spalding; h there is a limited supply and some shortages of available industrial premises, mainly medium sized units, while much of the industrial stock is ageing and speculative new development constrained by low rents; much of the supply is also concentrated in just a few locations; i the local office market is very small, with relatively few enquiries and most demand coming from small businesses and a few medium-sized professional firms and some public sector organisations. Future levels of demand are considered unlikely to be very different from current levels. j vacancy rates for both office and industrial floorspace are low, and appear well below the 8-10% availability rate typical in a normal market; k there is reasonable provision for start up businesses across the area; l except for Peterborough, most adjoining areas are largely rural districts with no major developments likely to affect the market in South East Lincolnshire, which in any event operates separately from them; depending on the type of market it serves, the planned RFI

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Peterborough/Fenland may have impacts on future demand for rail related distribution space in South East Lincolnshire.

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4.0 Review of Current Employment Sites

4.1 This section assesses the characteristics and quality of existing and allocated employment sites in South East Lincolnshire and their suitability to meet future employment development needs. Locations of these sites are shown in Plans 4.1- 4.5.

4.2 A total of 29 developed, allocated and other undeveloped employment sites were assessed amounting to about 605 ha in total area. These sites comprise the main employment areas and allocations, as identified by Boston and South Holland Councils, as well as a sample of small rural sites but do not include every employment site within the study area. It should be emphasised that the Council’s preferred 50-60 ha site for an RFI near Spalding is not included as part of the general employment land supply at this point.

4.3 An assessment was made on each site’s suitability for employment use, against the criteria listed below, which reflect those in the ODPM and other recent Guidance on Employment Land Reviews: a strategic road access and local road access; b accessibility to public transport and services; c adjoining uses that might constrain employment uses; d site size, characteristics and potential development constraints; and e attractiveness to the market, including vacancy and market activity.

4.4 Other factors were also noted including the site’s suitability for specific uses, any barriers to the delivery of undeveloped sites for employment uses, as well as sustainability and sequential preference factors where relevant. Detailed assessment criteria are listed in Appendix 4. The assessment also draws on information available from the Councils, including their recent survey of uses and vacancy levels on existing employment sites.

4.5 It should be noted, however, that this assessment process in itself does not necessarily provide a complete picture of a site’s role within the local economy. For example, a site’s importance to meeting rural/local needs or providing a location for bad neighbour uses can be important reasons for retaining a site despite it recording a low ranking. In addition, not all businesses require a site which performs well on all these criteria. A broader commentary is therefore provided on each site to supplement the formal scoring exercise.

4.6 Details of each assessed site are contained in Appendix 5.

Overview of Sites

4.7 The broad distribution of employment sites assessed by this study is illustrated by Table 4.1. This indicates that the highest proportion of employment land (36.8%) is located within the urban area of Spalding, the great majority of which is located at Wardentree Lane to the north east of Spalding town centre. A

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similar proportion of employment land (30.5%) is located within the Boston urban area but spread over a greater number of smaller industrial sites. Sutton Bridge within South Holland district also accounts for a significant proportion of employment land (16%) across three sites. Otherwise, the remaining employment sites are spread across small villages within the rural areas of Boston (6.2%) and South Holland (10.3%).

Table 4.1 Distribution of Employment Sites by Settlement

Settlement No. of sites Total site area % of total site (ha) * area

Spalding Town 3 223.2 36.8

Boston Town 9 185.2 30.5

Sutton Bridge 3 97.3 16.1

Rural Areas (Boston)

Swineshead 2 11.8 2.0

Kirton 1 18.0 3.0

Sutterton 2 5.4 0.8

Freiston 1 2.3 0.4

Sub-Total 6 37.5 6.2

Rural Areas (South Holland)

Donington 2 12.7 2.3

Holbeach 2 12.9 2.1

Crowland 2 10.7 1.8

Long/Little Sutton 2 25 4.1

Sub-Total 8 61.3 10.3

TOTAL 29 604.5 100.0

Source: NLP analysis * site areas based on Council figures

4.8 The suitability of individual sites in each sub-area is considered below.

Boston Town

4.9 Existing employment sites within the town of Boston are mainly located in the central and southern parts of the town centre along the River Haven, but with some sites also located to the north and west.

4.10 The largest site within Boston town is the Riverside Industrial Estate (B9) (119 ha) located to the south of the town centre and adjacent to the western bank of the River Haven. This large, established employment area includes over 100 units with a range of different uses including B2 and B8 premises (of various sizes), as well as a number of B1 offices and a number of sui generis (notably

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car showrooms) and retail trade units. Vacancy is above average for the area due to loss of some large firms but still below 10%. Strategic access is compromised by the site’s location to the south east of the town centre, requiring vehicles from the north to use busy urban routes, and site access is via a difficult traffic light junction at its entrance and residential areas. Large areas within the site are available for expansion of firms, many plots with permission for B1/2/8 uses. The urban location provides access to local labour, although the site is severed from the town centre and public transport routes to an extent by the river and road network. Whilst there are some site constraints, notably inclusion within a high flood risk zone, overall this is an average quality employment site suited to industrial uses.

4.11 To the north of the Riverside Industrial Estate and the River Haven lies The Port Estate (B8). This 30 ha site contains a range of B2 and B8 uses, with some sui generis uses, focussed on port related activities. Site access is via residential areas and busy urban routes, although proposed link roads and railway line have potential to improve future access. There is no apparent vacancy and approximately 3.7 ha of land available for further development/intensification of port related activities. As with the Riverside Industrial Estate, the location of the Port Estate within the Boston urban area provides easy access to local labour, albeit some severance is caused by the river and road network. Overall the Port Estate comprises an average quality employment site suitable for continued, and potentially increased, port related activity.

4.12 Nelson Way Industrial Estate (B5) (5.6 ha) lies to the north west of the Port Estate. This site provides a range of B1c/B2 and B8 uses as well as sui generis uses and retail trade counters. The overall quality of units is generally low, with limited signs of recent investment. Despite this, the site has a relatively high profile within the centre of Boston and is busy and well used with low levels of vacancy. Other than an exit-only route from the A16, access is taken through residential areas and is likely to provide difficulties for larger vehicles, with evidence of on street parking and conflict between cars, pedestrians and HGVs. Limited land is available for further development at the site. Overall, this is an average quality employment site but suitable for continued industrial and trade counter uses.

4.13 To the north and west of these two sites lie two additional existing industrial estates - Redstone Industrial Estate and Broadfield Lane.

4.14 Redstone Industrial Estate (B7) is a long established industrial site of 6 ha comprising a mixture of B1c/B2/B8 and sui generis uses, with some of the units owned and managed by the Council. The general quality of the units and operators is low, with limited sign of any recent investment activity. Vacancy is about average but the site profile is low with no road frontage and poor visibility. Further development is potentially constrained by flood risk and adjoining railway lines. The site also shares its access with a caravan site to the north, which is a potential restriction on future industrial development. Strategic road access is adequate and there is reasonable access to a local

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labour force and local shops and services. Overall this is assessed as a lower quality industrial site.

4.15 Broadfield Lane (B6) (2.1 ha) contains mainly B2 uses with some B1c and B8. A scrap metal recycling plant is the main tenant at the site. Site access is highly constrained, and via a poorly maintained single track with no opportunity for turning and manoeuvring and passing through local residential streets. It has a low profile with lower value activities and high levels of vacancy. The site is bounded by a railway line and the only available development land is a small strip to the north, which is constrained by adjacent new residential development. The main site may be contaminated by its existing land uses and is within an area of high flood risk. Given these constraints, this is assessed as a lower quality industrial site.

4.16 Endeavour Park (B2) (12.2 ha) comprises Boston’s main business park and lies on the edge of the urban area, immediately north of the A52. It mainly contains B1 office uses, including a range of medium sized offices and small business units and the Boston Enterprise Centre, as well as some sui generis and D2 uses. Units are modern, high quality and the site is actively managed and well maintained. There is good access directly onto strategic routes avoiding congested routes through the town centre, and good visibility from major routes, while urban areas and a local workforce are in close proximity. Vacancy levels are low but there is significant land remaining for expansion, including land to the west for which an access spur off a roundabout is in place. Whilst out of centre, this is a very good quality employment site primarily suited to continued office, and some other employment, uses.

4.17 To the north of Boston town centre lies the industrial area known as Norfolk Street Industrial Estate. Given the nature of different parts of this site, the estate has been considered as three different sites – the Norprint Site, the Boston Trade Park and the Vacant Factory Unit off Norfolk Street.

4.18 The Norprint site (B3b) (4.9 ha) is fully occupied (by a single firm Norprint) and appears to be in generally good condition. The Norprint unit is fully occupied, and appears in reasonable condition. Access is via residential streets with a tight junction difficult for larger vehicles to manoeuvre. The site is adjoined by sensitive uses on three sides including residential development. Overall, this is a lower quality employment site.

4.19 Further south lies Boston Trade Park (B3a) (3.8 ha), containing a number of trade counters and B1c, B8 and sui generis uses. The trade park takes its access directly off Norfolk Street via a one way system. Units on the site’s frontage have visibility from Norfolk Street but otherwise the site has a low profile and experiences high vacancy. However, the site is managed, appears generally fit for purpose and units are currently being actively marketed. No land is available for redevelopment. It is therefore considered as an average quality employment site suited to continued industrial/trade counter activity.

4.20 To the south of the trade park, with access also off Norfolk Street, is a 1.6 ha site (B3c) comprising a former factory unit and Bush Tyres. The former factory

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unit is currently vacant. The site is being marketed but is in poor condition with no space for car parking, turning or manoeuvring. It is adjoined on three sides by residential development and does not appear well suited to continued industrial use.

Boston Rural Area

Swineshead

4.21 Swineshead lies approximately 7 miles (11 km) west of Boston. Employment activity is located to the north of the settlement in two separate employment sites.

4.22 North End Business Park (B1) (8.7 ha) is a high profile location with good visibility and access to strategic routes. The site is well maintained and provides good quality, modern accommodation for its two main industrial occupiers. Vacancy is very low, the units are modern and there has been recent investment. Limited local labour is available in Swineshead but otherwise the site is relatively isolated within a rural area. There is some potential expansion land to the north west and south, albeit this land is unallocated and beyond the development limits of the village. However, the site is not constrained by nearby sensitive uses and provides a good quality employment area for industrial use.

4.23 To the south of North End business park closer to Swineshead lies Station Road Industrial Estate (B13) (3.1 ha). There are two main industrial occupiers with some vacant units and some buildings in poor condition. This site also offers good strategic access and visibility from major routes, albeit in a small settlement with limited access to local labour and services. The site provides relatively modern accommodation for the two main occupiers, and appears well maintained. A plot of land with frontage onto Station Road is available for development with a spine road in place. This is an average quality employment site overall.

Sutterton

4.24 Sutterton lies approximately 6 miles (10 km) south-west of Boston town centre at a key strategic location on the A17 at its junction with the A16.

4.25 Enterprise Park Sutterton (B11) comprises 3.5 ha and contains 16 medium to large scale units with a mixture of uses (B1/B2/B8/Sui generis). Despite its location in a small settlement with and limited access to local labour and services, the site benefits from excellent strategic links and has good visibility/effective signage. It appears well maintained and provides modern accommodation with limited vacancy. It is therefore assessed as a good employment site with potential to accommodate additional industrial/distribution uses.

4.26 Spalding Road Industrial Estate, Sutterton (B12) (1.9 ha) comprises an allocated employment site with six small scale, starter units (B1c) on the site’s

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frontage which provide modern and fit for purpose accommodation. It contains a range of smaller-scale users (e.g. car repairs) and high levels of vacancy. There is expansion land with high road frontage/visibility. Again, despite a peripheral location, it benefits from good strategic access and visibility from major routes. The site is surrounded by open space, is level and regular in shape and falls within a low to medium flood risk zone. Other than the need to fund site infrastructure and servicing, there are no obvious constraints limiting development of the site. This site therefore also comprises a good employment location suited to smaller scale industrial uses and with potential for further employment development.

Kirton

4.27 Kirton lies 4 miles (6 km) south west of Boston and within it lies the Distribution Park, Kirton (B10) (18 ha), a large employment allocation on the edge of the settlement beyond the A16. Although on the edge of a rural village, direct access onto the A16, and further access to the A17, give the site good strategic links and good visibility along the A16. The site is within a low flood zone and has benefitted from ERDF funding which has been used to implement access, infrastructure and groundworks. Despite this, the site remains vacant. Its planning permission restricts potential uses to B8 only to protect amenity of nearby residential properties and this may be limiting its attractiveness to potential occupiers. Overall, Kirton Distribution Park is assessed as a good quality employment site for B8 use but there may be a potential for a slightly wider range of B uses.

Freiston

4.28 Freiston lies approximately 4 miles (6 km) east of Boston. Enterprise Park, Freiston (B4) (2.3 ha) on the edge of the settlement contains 14 small-medium sized units for B1c, B2 and B8 uses. Road access is adequate. Whilst its location outside the Boston urban area limits access to local labour and services, the site is actively managed with adequate parking and access and no vacant units. There is limited available land for further development and overall it forms an average quality employment site which is adequate to meet local needs in this rural location.

Spalding Town

4.29 The great majority of Spalding’s employment space is within a single, key employment area, including allocated land, at Wardentree Lane/Enterprise Park (SH3). This 195.6 ha site lies north of the town centre and contains a wide range of uses including B1 offices, B1c, B2, B8, sui generis and retail uses including a food superstore. The site benefits from good strategic access directly onto the A16 which avoids busy urban routes. It has a high profile and a number of national firms, low vacancy and reported high levels of demand. Units vary in terms of size and quality but the overall site is well organised and well maintained, with adequate access, servicing and car parking for individual units. There is easy access to local labour within Spalding and dedicated

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public transport links. A significant portion of the site (approximately 42.6 ha) is available for employment development and, other than flood risk, there are no apparent barriers to delivery. This site is ranked as the best employment site across the area and suited to a range of employment uses, including offices. There is also planning permission for a 10 ha extension to the Enterprise Park.

4.30 To the south of Spalding is the Clay Lake Industrial Estate (SH4) (25.4 ha), which contains 7 large scale units and a mix of B1c, B2 and B8 uses with one tenant occupying a significant proportion of the site. Units are modern and in good condition with limited vacancy. There is planning permission for development of a 10 ha business park (B1, B2 and B8 uses) on land partly within the site. Local road access is currently constrained but will be improved through the above planning permission to provide direct access on to strategic routes. Overall, this is a good employment site and suited to industrial uses.

4.31 Cradge Bank Industrial Estate (SH5) (2.2 ha) is a small site occupied by a mix of industrial units, trade counters and sui generis uses. Within 1 km of a junction with the A16, strategic access is reasonable although linked to the A16 by minor roads, while local site access is poor and via local, narrow roads through residential areas. It has a high proportion of vacant units and, whilst these are being marketed, the quality of units is low with no evidence of recent investment. The site is surrounded by residential properties in very close proximity and within an area of high flood risk. This is considered a lower quality employment site.

Sutton Bridge

4.32 Sutton Bridge, a village approximately 23 km east of Spalding, is a key employment area within South Holland District. It contains a mixture of large and small scale employment areas as well as a commercial dock on the west bank of the .

4.33 Wingland (Enterprise Park) (SH8) (75 ha) is the largest of the three employment areas in Sutton Bridge, with 50.4 ha of allocated land and other undeveloped land. This established site to the south east of Sutton Bridge and along the eastern bank of the River Nene contains mainly B2 ‘bad neighbour’ industrial uses. One major company (Wingland Foods) occupies the site and there is only one vacant unit. The site benefits from good strategic transport links and a long, dedicated access road suitable for all vehicles including HGVs. Although reasonably close to Sutton Bridge village, the site is somewhat isolated from its workforce, shops and services. Over half of the site is undeveloped but, other than flood risk and the need to provide site infrastructure, there are no obvious barriers to development. Wingland is therefore assessed as an average employment suite overall but well suited for continued industrial, and particularly ‘bad neighbour’ type, uses.

4.34 Sutton Bridge Port and Extension (SH10) (21.7 ha) lies to the north of Sutton Bridge on the western bank of the River Nene. It contains five modern B8 units and associated port facilities with no vacant units. There is adequate space for

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manoeuvring, and adequate strategic access, although site access is via busy local roads. An area of allocated ‘expansion land’ of approximately 13 ha lies along the banks of the river to the north. The site has access to a limited local labour force and shops and services within Sutton Bridge although part falls within an area of high flood risk. Otherwise there are no potential constraints to development. Overall this is an average quality employment location suited to continued use for industrial and port related activities.

4.35 A further small site lies within the village is the Railway Lane Industrial Estate (SH9) (0.6 ha). This provides relatively modern and fit for purpose B1c units which are well used and well maintained with low vacancy. Site access would be unsuitable for large scale vehicles or HGVs but is adequate for existing uses. Access to the limited population and services of Sutton Bridge is adequate for the nature of uses. This site provides an average quality employment location but suited to the needs of small local businesses.

South Holland Rural Area

Long/Little Sutton

4.36 To the west of Sutton Bridge lies the small village of Long/Little Sutton, approximately 13 miles (20 km) west of Spalding.

4.37 The Long/Little Sutton allocation is the home of Princes (SH11), a food canning business, and this site forms part of a larger employment area to the south of the A1101, including allocated land. The site lies close to the A17 but access is via local roads and site access is problematic for HGVs. The site is well established and developed to a very high density with no vacancies. The site is very busy and disorganised in parts with few, or no, suitable through routes and there is evidence of HGVs parking and unloading on through routes causing conflict with other vehicles. The wider site including the factory extends to 24.6 ha. There are no obvious environmental constraints to development and no sensitive uses nearby, although electricity pylons run through part of the site. Mainly due to site access constraints, this ranks as an average employment site overall but appears suited to its current use although any future development would require improvements to site access and servicing.

4.38 Bridge Road Industrial Estate (SH12) (0.4 ha) on the eastern edge of Little Sutton contains 7 small industrial/incubator units. The site is fully occupied, well used and well maintained. Roads to strategic routes are constrained but adequate for the type and scale of existing uses, as is the site’s location within a more peripheral location outside established urban areas. There is no available land for further development at the site. Overall, this is an average quality employment site suited to continued small scale industrial use to serve rural and local needs.

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Crowland

4.39 Crowland is a small town approximately 12 km (8 miles) south of Spalding with two established employment sites.

4.40 Harvester Way/Crease Road (SH7) is a large employment area, including allocated land, of 10.5 ha. Approximately one half is developed with B2 general industrial units and some smaller B1c workshops, the remainder allocated for further employment use (5.5 ha). Vacancy is above average although this may reflect new units still to be let. It contains a mix of old and more modern units, is in a relatively peripheral location and has limited visibility from primary routes. Near to the A16, it benefits from good access to the strategic road network and is serviced via a dedicated access road. Further development on the site would require extension of services, although an access road spur is in place. An area of new residential development lies to the south but, other than this, there are no obvious constraints to further development. This is considered a good quality employment site with potential for further industrial and distribution floorspace.

4.41 Horseshoe Yard (SH6) (0.2 ha) is a much smaller existing employment site with 10 small scale B1c workshops/incubator units. Access is via a narrow road shared with adjacent residential properties, and the site is surrounded by residential uses with no obvious scope for expansion. However, the site appears actively managed and well maintained, units are modern and fit for purpose with low vacancy, indicating a site that meets local needs in its rural location. Overall, this is an average quality employment site suited to small scale local business needs.

Donington

4.42 Donington lies 8 miles (13 km) north of Spalding, on the A152 in close proximity to the A52.

4.43 Millfield Road Industrial Estate (SH1) (2.1 ha) is an established industrial site located within Donington, lying south of the A152. The site contains a mix of small to medium scale industrial units (B1c, B2, B8) which are generally in good condition, and the site is actively managed and marketed. Vacancy is average, and although there has been limited recent investment, site is generally in good condition. It benefits from proximity to the A52 and road access is adequate, as is its limited accessibility to local labour and services. While there is no land remaining for further development, the site is assessed as an average quality employment location and suited to meeting small-medium scale business needs.

4.44 In addition, a large Proposed Allocation (SH2) (10.6 ha) lies west of Donington village immediately north of the A52. This site benefits from direct access onto the A52 via an upgraded, existing access. Whilst in a more remote location outside the Spalding urban area, the site has effective road frontage and access to strategic links, with no adjoining sensitive development, and within an area of low flood risk. Although there is no obvious indication of developer

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interest, this is assessed as a good quality employment site overall suitable for a range of mainly industrial employment uses.

Holbeach

4.45 Holbeach is a market town approximately 8 miles (13 km) east of Spalding. Fleet Road Industrial Estate (SH13) (2.9 ha) comprises the only existing employment site in the town. This provides a range of unit sizes and types, including B1c, B2, B8, sui generis and a number of retail and trade units. The site has low levels of vacancy and appears popular among local tenants with adequate road access both internally and to locally important routes. The site is fully developed with no scope for expansion within its existing boundary but open land lies to the north east. This is assessed as an average quality site suited to a range of local business uses.

4.46 The 10 ha Land to the West of Holbeach (SH14) employment/allocation area forms part of a proposed urban extension to the west of the town immediately adjacent to the A17 at its junction with the A151. Providing good site access from these roads can be obtained, this location would have good strategic access close to local labour in Holbeach. However, the site is not yet developed and relatively isolated in terms of other strategic employment locations, which could restrict developer interest. Overall, therefore, whilst the site ranks as a good quality employment site, delivery of employment uses in the short to medium term may be difficult.

4.47 Table 4.2 summarises the quality/suitability of existing employment sites and ranks these as good, average or lower quality sites.

Table 4.2 Ranking of employment sites

Site name (ref no) Location Size Potential uses Score Ran (ha) (out of k 30) Wardentree Lane/Enterprise Spalding 195.6 B1/B2/B8 29 Park (SH3)

Endeavour Park (B2) Boston 12.2 B1/B2/B8 27 (including offices)

Allocation (SH2) Donington 10.6 B1/B2/B8 26

Enterprise Park (B11) Sutterton 3.5 B1/B2/B8 23

Clay Lake Industrial Estate Spalding 25.4 B1/B2/B8 23 Good (SH4)

Spalding Road Industrial Sutterton 1.9 B1/B2/B8 23 Estate (B12)

Land to the west of Holbeach Holbeach 10.0 B1/B2/B8 22 Allocation (SH14)

Distribution Park (B10) Kirton 18.0 B8 only 21

Harvester Way/Crease Road Crowland 10.5 B1/B2/B8 21 (SH7)

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Site name (ref no) Location Size Potential uses Score Ran (ha) (out of k 30) Station Road Industrial Estate Swineshead 3.1 B1/B8 20 (B13)

Riverside Industrial Estate Boston 119.0 B1/B2/B8 20 (B9)

Fleet Road Industrial Estate Holbeach 2.9 B1 and small 20 (SH13) scale B2/B8

Millfield Road Industrial Donington 2.1 B1 and small 20 Estate (SH1) scale B8

Bridge Road Industrial Estate Long Sutton 0.4 B1 and small 20 (SH12) scale B2/B8

North End Business Park Swineshead 8.7 B1/B2/B8 19 (B1a)

Wingland (Enterprise Park) Sutton 75.0 B1/B2/B8 19 (SH8) Bridge

Sutton Bridge Port and Sutton 21.7 Port related 19 Extension (SH10) Bridge industry and Average associated B1/B2/B8

Long/Little Sutton Allocation Long/Little 24.6 B1/B2/B8 19 (SH11) Sutton

Nelson Way Industrial Estate Boston 5.6 B1 and small 19 (B5) scale B8

The Port Estate (B8) Boston 30.0 Port related 19 industry and associated B1/B2/B8 Horseshoe Yard (SH6) Crowland 0.2 B1 19

Boston Trade Park (B3a) Boston 3.8 B1; small scale 18 B8

Railway Lane Industrial Estate Sutton 0.6 B1 18 (SH9) Bridge

Enterprise Park (B4) Freiston 2.3 Small scale 18 B1/B2/B8

Redstone Industrial Estate Boston 6.0 B1 and small 17 (B7) scale B2/B8

Norprint Site (B3b) Boston 4.9 B1 14

Vacant Factory Unit, Norfolk Boston 1.6 B1 13 Poor Street (B3c)

Cradge Bank Industrial Estate Spalding 2.2 B1 13 (SH5)

Broadfield Lane Industrial Boston 2.1 Small scale 12 Estate (B6) B1/B2/B8

Source: NLP analysis

Available Development Land

4.48 Although some 605 ha of land exists in total across all of the above sites, the amount of developable land remaining is much less. Table 4.3 below summarises the potential amount of available allocated land and undeveloped

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land on other development sites. This is based on available plots identified during the site assessment process and, excluding land within the curtilage of an existing business, estimates some 227 ha as available. This figure is similar to the 238 ha indicated by the South East Lincolnshire 2011/12 Monitoring Report, which includes other land with planning permission at Clay Lake and the Enterprise Park.15

Table 4.3 Undeveloped Employment Land Opportunities

Site name (ref no) Location Available Potential Time- Score Rank Land (ha) uses scale (out of 30) Wardentree Spalding 42.6 B1/B2/B8 Short 29 Lane/Enterprise Park term (SH3)

Endeavour Park (B2) Boston 3.8 B1/B2/B8 Short- 27 (including medium offices) term Allocation (SH2) Donington 10.6 B1/B2/B8 Short 26 term Clay Lake Industrial Estate Spalding 10.0 B1/B2/B8 Short 23 Good (SH4) term Spalding Road Industrial Sutterton 1.7 B1/B2/B8 Short 23 Estate (B12) term Land to west of Holbeach Holbeach 10.0 B1/B2/B8 Short 22 Allocation (SH14) term Kirton Distribution Park Kirton 18.0 B8 only Short 21 (B10) term Harvester Way/Crease Crowland 5.5 B1/B2/B8 Short 21 Road (SH7) term Riverside Industrial Estate Boston 45.3 B1/B2/B8 Short 20 (B9) term North End Business Park Swineshead 1.2 B1/B2/B8 Short- 19 (B1a) medium term Wingland (Enterprise Park) Sutton Bridge 50.4 B1/B2/B8 Short 19 (SH8) term Sutton Bridge Port and Sutton Bridge 13.0 Port related Short 19 Average Extension (SH10) industry and term associated B1/B2/B8 Long/Little Sutton Long/Little 11.3 B1/B2/B8 Short- 19 Allocation (SH11) Sutton medium term The Port Estate (B8) Boston 3.7 Port related Short- 19 industry and medium associated term B1/B2/B8 TOTAL 227.1

Source: NLP analysis Note: table excludes 10 ha Enterprise park extension at Spalding

4.49 A large share of this estimated available land (102 ha) falls within sites assessed as of good quality by the study, with a further 125 ha on average

15 difference related to measurement, site definitions and what land is monitored and counted as available.

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quality sites. The remaining land at Donington (10.6 ha), Holbeach (10 ha) and Enterprise Park, Spalding (42.6 ha) make up much of the good quality supply, with other sizeable but average quality amounts available at the Riverside Industrial Estate, Boston (52 ha) and Wingland, Sutton Bridge (50.4 ha).

4.50 Most of this land is assessed as having potential to come forward for development in the short to medium term and a significant proportion could be developed in the short term, typically within 5 years. This does not suggest a shortage of immediately available land although the issue is probably more of attracting developer funding to provide infrastructure and speculative units on sites in a difficult funding and market climate.

4.51 If all this undeveloped land came forward for employment development, this amount of land could theoretically provide over 50 years of supply at recent completion rates in the area.

4.52 However, this estimated 227.1 ha of available land represents the ‘maximum’ case - i.e. the total amount of land theoretically able to accommodate employment development. There is some uncertainty as to how much of this land will realistically come forward for employment uses. In particular, the following factors may limit the potential for sites to come forward for development: a the extant planning permission at Kirton Distribution park restricts development to B8 distribution uses with only ancillary B1 uses. This 18 ha site has so far failed to attract development despite benefitting from publically funded infrastructure and ground preparation, and indications from the market suggest this may be due to the restrictive permission reducing its attractiveness to potential developers/occupiers. b similarly, the 10 ha allocation at Holbeach remains undeveloped so far and it is understood that the need for costly infrastructure works to facilitate a suitable access off the A17 could restrict development of employment uses; while funding could potentially come from housing development as part of the proposed urban extension, the subdued housing market at present makes this less certain. c the 10.6 ha allocation at Donington will also require infrastructure to attract its first development but could also be affected by greater developer aversion to risk in the current climate especially in more marginal locations outside proven employment areas.

4.53 If these three sites failed to come forward, this could reduce available supply by some 38 ha.

Conclusions

4.54 Overall, South East Lincolnshire contains a reasonable range of industrial sites of differing quality and type. Other than Endeavour Park, there is a very limited number and range of office sites across the area.

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4.55 Of the sites assessed, around 37% of the employment land area is located within Spalding, 30% within Boston town, 16% at Sutton Bridge and 17% spread across other settlements.

4.56 In terms of good quality sites, this assessment has identified nine sites (providing approximately 288 ha of land) and making up some 47% of total supply. The great majority (over 97%) of the current supply of employment land is of good or average quality, although most (50%) is in the average category.

4.57 Most of the sites rated as ‘good’ comprise well established employment areas close to the main urban areas or benefiting from good strategic transport links. Most of the lower average sites and poor quality sites lie in the rural areas and are more limited in terms of strategic road access or proximity to local labour and services. The five sites assessed as lower quality on the assessment criteria are within the Boston or Spalding urban areas and typically constrained by adjoining uses or poor access although some appear able to meet some local needs for low cost space.

4.58 There appears to be in the order of 227 ha of undeveloped employment land available. The significant amount of undeveloped land on existing or allocated sites across the area suggests some may be unattractive to market needs or difficult to develop in the current climate and may mean the effective land supply is less than it appears. Most of the available land is theoretically developable in the short/medium term and there is no obvious shortage of immediately developable sites but some sites may need infrastructure provision or some form of intervention to ensure they come forward.

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Plan 4.1

Boston

2. Boston

5. Swineshead

1. Freiston

3. Kirton

4. Sutterton

8. Donington

9. Spalding

6. Holbeach 7. Long Sutton & Sutton Bridge

South Holland

10. Crowland

Based upon Ordnance Survey mapping with the permission of Her Majesty’s Stationery Office. © Crown Copyrigh reserved. Licence number AL50684A Key Boston and South Holland Local Authority Boundaries

Employment Site

Boston Context 2. Boston Key Boston Local Authority

Employment Site

2. Norfolk Street Industrial Estate (North Site) 1.

Boston Trade Park

Norfolk Street Industrial Estate (South Site)

Endeavour Way

Nelson Way Industrial Estate

Broadfield Lane The Port Industrial Estate Estate

Redstone Industrial Estate

Riverside Industrial Estate

Freiston Enterprise Park

South East Lincolnshire ELR

Plan 4.2 Employment Sites - Boston & Freiston

Boston Borough Council

24.07.2012 - MAr GIS50193-001

1. Freiston GIS Reference: S:\LE50193 - SE Lincolnshire ELR\LE50193 - SE Lincolnshire ELR - Context - Employment Sites - Boston & Freiston - 11.06.2012.mxd

Boston Context 3. Kirton Key Boston Local Authority

Employment Site

Kirton Distribution 5. 3. Park

4.

4. Sutterton

Swineshead North End Business Park (North Site)

Swineshead North End Business Park (South Site)

Sutterton Spalding Road

Enterprise Park, Sutterton South East Lincolnshire ELR

Plan 4.3 Employment Sites - Kirton, Sutterton & Swineshead

Boston Borough Council

24.07.2012 - MAr GIS50193-002

5. Swineshead GIS Reference: S:\LE50193 - SE Lincolnshire ELR\LE50193 - SE Lincolnshire ELR - Context - Employment Sites - Kirton, Sutterton & Swineshead - 11.06.2012.mxd

6. Holbeach Key South Holland Local Authority

Employment Site Holbeach Allocation

6.

7. Holbeach Fleet Road Industrial Estate

South Holland Context

Sutton Bridge Port and Extension Little Sutton Bridge Road Industrial Estate

Little Sutton Allocated Site

Sutton Bridge Railway Lane Industrial Estate

South East Lincolnshire ELR

Plan 4.4 Employment Sites - Holbeach, Long Sutton & Sutton Bridge Sutton Bridge Wingland

Boston Borough Council

24.07.2012 - MAr GIS50193-003

GIS Reference: S:\LE50193 - SE Lincolnshire ELR\LE50193 - SE 7. Long Sutton & Sutton Bridge Lincolnshire ELR - Context - Employment Sites - Holbeach, Long Sutton & Sutton Bridge - 11.06.2012.mxd

9. Spalding Key South Holland Local 8. Authority

Employment Site

Wardentree Lane / Enterprise Park

9.

10.

South Holland Context

Cradge Bank Industrial Estate Clay Lake Industrial Estate

Donington Proposed 10. Crowland Allocation

Donington Millfield Road Industrial Estate

Crowland Horseshoe Yard South East Lincolnshire ELR

Plan 4.5 Employment Sites - Crowland, Donington & Spalding

Boston Borough Council

24.07.2012 - MAr Crowland Harvester GIS50193-004 Way

8. Donington GIS Reference: S:\LE50193 - SE Lincolnshire ELR\LE50193 - SE 2. Long Sutton & Sutton Bridge Lincolnshire ELR - Context - Employment Sites - Crowland, Donington & Spalding - 11.06.2012.mxd

South East Lincolnshire Employment Premises & Land Review

5.0 Future Requirements for B Class Employment Space

5.1 This section assesses B Class employment space requirements in South East Lincolnshire in the period to 2031 using several different approaches: a forecasts of employment growth in the main B class sectors (labour demand); b consideration of past trends in completions of employment space, and how these might change in future; c estimating future growth of local labour supply and the amount of jobs and employment space that this can support.

5.2 All these approaches have some limitations and careful thought needs to be given as to how appropriate each is to circumstances in South East Lincolnshire. In addition, to be robust, the economic growth potential and likely demand for employment space in South East Lincolnshire needs to be assessed under different future scenarios, to reflect lower or higher economic growth conditions arising in future.

5.3 Forecasts of future demand for employment space have therefore been made for various different growth scenarios for South East Lincolnshire, using data provided by Boston and South Holland Councils and job forecasts commissioned from Experian. The first two scenarios are based on job growth projections, the second two based on past take-up trends of employment space and the fifth based on planned housing growth and associated labour supply. These scenarios are outlined in Figure 5.1 and described in more detail below.

Figure 5.1 Outline of Approach to Scenarios

1 Job growth (Baseline) Forecasts of job demand by sector 2 Job growth (Higher)

3 Past development rates (Baseline) Net annual completions of industrial & office space 4 Past development rates (Low)

Growth of workplace 5 Labour Supply (810 dw.p.a.) population, assuming current out-commuting rates

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a. Job Growth

Scenario 1: Baseline Job Growth

5.4 Forecasts of job growth for the South East Lincolnshire districts up to 2031 were commissioned from Experian. Such forecasts tend to be most reliable at regional and national scales and consequently less so at the local economy level, but are recognised as a valuable input and can indicate the broad scale and direction of economic growth in different sectors and provide some indicators to help assess future land requirements.

5.5 The forecasts of job growth by sector used here reflect recent trends and economic growth projections at national and regional level, and how economic sectors in South East Lincolnshire have fared relative to the region’s growth in the past. These forecasts also reflect the current post-recession economic climate.

5.6 The overall employment change in South East Lincolnshire resulting from these forecasts is shown in Table 5.1 along with expected job growth in the main B class sectors. This includes an allowance for jobs in other Non B class sectors that typically utilise industrial or office space, such as some construction uses, vehicle repair, courier services, road transport and cargo handling and some public administration activities (see Appendix 3). This indicates low net job gains (approximately 1,450 jobs) in the B-use classes in South East Lincolnshire over the period to 2031, with strongest growth in office based activities, moderate job change in distribution employment and low gains in manufacturing employment. This is within the context of overall job growth of 6,080 predicted for South East Lincolnshire over the period, which outside B Class uses are expected to be mainly in the retail, education, healthcare and related sectors.

Table 5.1 Forecast Employment Change in South East Lincolnshire 2012-2031

No. of Jobs Change 2012 2031 2012-2031 Manufacturing (B1c/B2)* 12,916 13,061 144

Distribution (B8)** 9,080 9,507 427

Offices (B1a/b)*** 3,927 4,803 876

Total B-class Jobs 25,923 27,370 1,447

Jobs in All Sectors 70,976 77,057 6,081

Source: Experian / NLP analysis 2012 - total jobs including self employed

* includes vehicle repair and some construction activities ** includes parts of transport & communications sectors that use industrial land *** includes a proportion of government offices

5.7 These job forecasts for South East Lincolnshire are then converted to future employment space requirements assuming typical ratios of jobs to floorspace

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for the different B uses.16 To estimate space needs, an average ratio of 1 job per 43 m2 gross is assumed for manufacturing space. For distribution, 1 job per 65 m2 is assumed for general, smaller scale warehousing, which is assumed to account for 80% of distribution jobs in this area. In addition, 1 job per 74 m2 is assumed for large scale, lower density strategic units, which are expected to accommodate no more than 20% of distribution jobs. Business and financial services jobs are taken to be the main requirements for B1 office space, at a general office ratio of 1 job per 10.5 m2.

5.8 An allowance of 10% is added to all floorspace requirements to reflect a normal level of market vacancy in employment space. The resulting floorspace requirements for this baseline scenario are set out in Table 5.2 and indicate demand for some 38,200 m2 of industrial space and 10,100 m2 of office space by 2031.

Table 5.2 Job Growth based Employment Space Requirements in South East Lincolnshire, 2012-2031 (Baseline)

B Class sector Floorspace (m2)

Manufacturing (B1c/B2) 6,840

Distribution (B8) 31,350

Offices (B1a/b) 10,120

Total 48,300

Source: NLP analysis (*figures rounded)

5.9 The forecast net increase of 1,450 B Class jobs over a 19-year period, which underpins this estimate of future employment space needs, is equivalent to an average of 76 additional jobs each year. This is significantly higher than the job growth achieved in South East Lincolnshire over the last 10 years. Between 2002 and 2012, Experian data indicates that B class jobs in South East Lincolnshire declined by approximately 170 jobs per annum, driven largely by losses in the manufacturing sector. On the basis of past job change, the above employment space forecasts could be regarded as a fairly optimistic estimate, although quite low in floorspace terms compared with the past development rates in the area outlined in Section 3.0.

Scenario 2: Higher Job Growth

5.10 Given the relatively low floorspace requirement implied by the baseline scenario, and the fact that it reflects growth forecasts at a time when the economic outlook is very pessimistic, it was considered appropriate to also consider an alternative, more optimistic job growth scenario predicated on

16 Based on HCA/Offpat Employment Densities Guide, 2010

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significant additional investment and development occurring within South East Lincolnshire, which would not have been reflected in the Experian forecasts. This scenario therefore allows for an uplift in growth in sectors such as renewable energy, port logistics and food processing, including development of a Rail Freight Interchange (RFI) at Spalding. Growth in these sectors would then be expected to create new employment opportunities and support higher job growth in these sectors.

5.11 As such, the higher job growth scenario assumes that, compared with the Experian job forecasts, growth in industrial jobs would be 20% higher over the period to 2031, while growth in office employment would remain the same. This results in the higher floorspace demand estimates indicated in Table 5.3.

Table 5.3 Job Growth based Employment Space Requirements in South East Lincolnshire, 2012-2031 (Higher Job Growth)

Floorspace (m2)

Industrial (B1c/B2/B8) 45,880

Offices (B1a/b) 10,120

Total 56,000

Source: NLP analysis figures rounded b. Past Development Rates

5.12 Because they reflect market demand and actual development patterns on the ground, in some situations long term completion rates of employment floorspace can provide a reasonable basis for informing future land needs, particularly where land supply or demand has not been unduly constrained historically. However, the future demand picture may not reflect past trends and some adjustments may be needed.

Scenario 3: Baseline Past Development Rates

5.13 Data on past completions by B class sector was provided by Boston and South Holland Councils. Completions in the period 2004-2012 have been analysed, since this is a reasonably long period covering periods of recession and economic buoyancy. Over this period, average annual net completions for B Class uses amounted to 13,850 m2, broken down as shown in Table 5.4. Just over half (54%) of net completions were for distribution space, with 26% for manufacturing space and 20% for office space.17

17 Average annual net completion rate based on gross annual completions in each district over 2004-12 less average annual losses in each district over 4 or 6 years depending on data available

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Table 5.4 Annual Net Completion Rates in South East Lincolnshire, 2004-12

Sector (Use Class) Net annual completion (m2) Manufacturing (B1c/B2) 3,580 Distribution (B8) 7,490

Office space (B1a) 2,780

All 13,850

Source: Boston and South Holland Council completions data, 2004-12

5.14 One view of future growth in South East Lincolnshire could simply assume that future development rates carry on at the long term average achieved in the past. If it were assumed that the past net completion rates noted above continued in the 19 years between 2012-2031, it would equate to a need for 52,800 m2 of office space, and 210,300 m2 of industrial space. In total, this would indicate demand for approximately 263,150 m2 of employment space by 2031, a figure over five times greater than that estimated using job forecasts (Table 5.5).

Table 5.5 Employment Space Requirement based on Past Trends Continuing, 2012-31 (Baseline)

Sector (Use Class) Assumed annual Floorspace completion rate Required (m2) * (m2) Industrial (B1c/B2/B8) 11,070 210,330

Office space (B1a) 2,780 52,820

All 13,850 263,150

Source: NLP analysis * totals rounded

5.15 This approach assumes that past trends of development would continue unchanged, and may not fully reflect changes in the economy once it fully emerges from recession. It may also underestimate future demand if the supply was constrained in the past, for example because of poor sites available or infrastructure/funding factors. On the other hand, future development rates for industrial space may be less than historically as the sector rationalises and/or makes more efficient use of space.

Scenario 4: Lower Past Development Rates

5.16 Scenario 3 produces a very high level of employment space compared with other approaches and includes a period of strong economic growth and development activity. Given predictions of slower economic growth in the UK for some time ahead it is appropriate to consider a situation where completion rates of B Class space are lower than in the past.

5.17 Take-up rates for both offices and industrial uses have been very variable over recent years but particularly high during 2007/08, which recorded gross

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completions of 34,200 m2 industrial space and 9,200 m2 of office space, compared with a total of 4,420 m2 in 2011/12. If it were assumed that 2007/08 was an exceptional year which partly reflected peak market conditions that are unlikely to be repeated over the next few years and unduly affects the past average completion rate, an average take-up rate excluding that year might provide a more realistic basis for projecting future development rates.

5.18 An alternative growth scenario was therefore considered based on the average completion rate over the past seven years excluding figures for the year 2007/08. This results in a lower average take-up rate, and a reduced level of future requirements, some 25% lower overall, as shown in Table 5.6 below.

Table 5.6 Employment Space Requirement based on Reduced Take-up Rates, 2012-31

Sector (Use Class) Assumed annual Floorspace completion rate Required (m2) * (m2) Industrial (B1c/B2/B8) 8,250 156,750

Office space (B1a) 1,950 37,050

All 10,200 193,800

Source: NLP Analysis (*totals rounded) c. Future Labour Supply

Scenario 5: Labour Supply (810 dwellings p.a.)

5.19 It is also important to consider how many jobs, and hence how much employment space, would be needed to broadly match forecast growth of the area’s resident workforce. In contrast to the two preceding approaches, this forecasts the supply of labour rather than labour demand, based upon projected levels of housing growth in South East Lincolnshire. It then indicates the amount of new jobs needed to match this future supply of workers and minimise local unemployment, and how much employment space would be needed to accommodate these jobs.

5.20 The assumed level of future housing growth in South East Lincolnshire is 810 dwellings per annum over the Plan period to 2026.18 This figure has been adjusted on a pro-rata basis to cover the study period 2012-2031 and results in 15,390 more dwellings over the period. The labour supply implications of this have been modelled to take account of economic activity rates and future pension age changes.

18 based on rolling forward the annual target of 270 dwellings for Boston and 540 dwellings for South Holland over the full RSS plan period (2006-2026)

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5.21 These 15,390 dwellings were converted into population using the current ratio of dwellings to population in the area. The future working age population was estimated using Experian population forecasts by age group, and an economic activity rate applied to estimate the resident labour supply. An adjustment was then made to reflect those likely to seek work outside the area, based on 2001 Census data on out-commuting.

5.22 This produces an increase of 12,330 residents seeking work in the area by 2031 (Table 5.7). This takes account of forecast decline in the working age residents to reflect a generally ageing population. From these forecasts, the number of B Class jobs required was estimated assuming one additional job would be required for each additional worker forecast and based on the forecast proportion of B Class jobs within total jobs in South East Lincolnshire in 2031.

Table 5.7 Forecast labour supply in South East Lincolnshire

Change 2012-2031 810 dwellings p.a. Resident labour supply 14,510 Workplace labour supply* 12,330

B-class job requirement 4,380

Source: NLP analysis * assumes 15% of economically active residents out-commute to work

5.23 The resulting job numbers were then translated into estimated requirements for B class employment floorspace by applying the same job/floorspace ratios used in the job growth based approach and adding a 10% vacancy allowance (Table 5.8). The floorspace estimates for manufacturing and warehousing space were combined since these two sectors typically occupy the same types of sites at similar development densities.

Table 5.8 B Class Floorspace Required from Labour Supply Growth

Floorspace (m2) 810 dwellings p.a. Industrial (B1c/B2/B8) 191,480 Office space (B1a) 8,070

All 199,550

Source: NLP analysis *figures rounded

5.24 Overall, future employment space requirements based on meeting the job needs of local residents would mean some 199,550 m2 of B-class employment space being required. This labour supply based estimate provides a useful benchmark for comparison with other approaches. This forecast based on 810 dwellings p.a. falls between the estimates based on job growth (48,300 m2) and past take-up (263,150 m2).

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Net Employment Space Requirements

5.25 Drawing together the results from these different approaches and growth scenarios, Table 5.9 summarises the net floorspace requirement up to 2031 arising from each.

Table 5.9 Net Floorspace Requirement to 2031 for Different Growth Scenarios

Scenario Labour Demand Past Development Rates 5 Labour 2 Higher 3 Past 4 Lower 1 Baseline Supply Job Growth Job Growth Take-Up Future Use Continues Take-Up Growth Offices (B1a) 10,100 10,100 52,820 37,050 8,070

Industrial 38,200 45,900 210,330 156,750 191,480 (B1c/B2/B8) All B Uses 48,300 56,000 263,150 193,800 199,550

Source: NLP analysis Note: totals rounded

5.26 The different approaches and forecasts produce a wide range of potential space requirements. For industrial space, this would be between 38,200 m2 (job growth) and 210,330 m2 (based on past development trends). For office space, the range is narrower but still significant, between 8,070 m2 (based on housing/labour supply growth) and 52,820 m2 (based on past development trends continuing). Safety Margin

5.27 To estimate the overall requirement of employment space that should be planned for in allocating sites, and to give some flexibility of provision, it is normal to add an allowance as a safety margin for factors such as delays in some sites coming forward for development.

5.28 Guidance published by East Midlands Councils on undertaking employment land studies recommends that a flexible margin is applied to the overall demand requirement, while the South East England Partnership Board recommends an allowance that is equivalent to the average time for a site to gain planning permission and be developed, typically about two years.

5.29 For South East Lincolnshire, the margins set out in Table 6.10 were added based on two years worth of average net take-up, using the lower rate that excludes 2007/08. Applied to the different estimates, this margin equates to between 8% and 42% of the original requirement estimate and this does not appear unreasonable.

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Table 5.10 Safety Margin Allowances

Use Average Annual Safety Margin Take-up (m2) Added (m2) Offices (B1) 1,950 3,900

Industrial (B1c/B2/B8) 8,250 16,500

Source: NLP analysis Convert to Gross Floorspace Requirements

5.30 To convert the net requirement of employment space into a gross requirement (the amount of employment space or land to be allocated), an allowance is also typically made for some replacement of losses of existing employment space that may be developed for other, non B Class uses.

5.31 Judgements were made on the suitability and degree of the allowance for future losses which it would be appropriate to apply here based on a review of supply- side deliverability factors in the area and current trends in the market. Not all losses need to be replaced as some will reflect restructuring in the local economy as less manufacturing space is needed in future. Also, future losses should reduce as the overall supply of industrial sites reduces and those left are better quality ones. For industrial uses, therefore, a modest level of loss replacement was allowed (1,400 m2 p.a.) equivalent to replacing about half of past losses. For offices, allowance was made to replace most losses which were relatively low anyway (500 m2 p.a.).

5.32 The resultant gross floorspace requirements incorporating these allowances are set out in Table 5.11.

Table 5.11 Gross Floorspace Requirement by Scenario (m2)

Scenario Labour Demand Past Development Rates 5 Labour 1 Baseline 2 Higher 3 Past 4 Lower Supply Job Job Growth Take-Up Future Use Growth Continues Take-Up Growth Offices (B1a) 23,500 23,500 66,200 50,450 22,300

Industrial 81,300 89,000 253,400 199,850 253,900 (B1c/B2/B8) All B Uses 104,800 112,500 319,600 250,300 276,200

Source: NLP analysis (totals rounded)

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Estimate Land Requirement

5.33 The final step, for all scenarios, was to translate floorspace into land requirements for both office and industrial uses. This has been calculated by applying appropriate plot ratio assumptions to the floorspace estimates using the following assumptions:

• Industrial: a plot ratio of 0.4 was applied so that a 1 ha site would be needed to accommodate 4,000 m2 of employment floorspace; and

• Offices: it was assumed that 90% of new floorspace would be in lower density developments with a plot ratio of 0.4, with 10% in higher density urban locations/town centres at a plot ratio of 2.0.

5.34 The resulting land requirements are set out in Table 5.12 and Figure 5.2.

Table 5.12 Gross Land Requirement by Scenario (ha)

Scenario Labour Demand Past Development Rates 4 Lower 5 Labour 1 Baseline 2 Higher 3 Past Take- Future Supply Job Growth Job Growth Up Continues Use Take-Up Growth Offices (B1a) 5.4 5.4 15.2 11.6 5.1

Industrial 20.3 22.3 63.4 50.0 63.5 (B1c/B2/B8) All B Uses 25.7 27.7 78.6 61.6 68.6

Source: NLP analysis Totals rounded

Figure 5.2 Gross Land Requirement by Scenario (ha)

70.0

60.0

63.4 63.5

50.0

50.0

40.0

30.0 Land Requirements (ha) Requirements Land

20.0

22.3 20.3 15.2 10.0

11.6

5.1 5.4 5.4 0.0 Office Office Office Office Office Industrial Industrial Industrial Industrial Industrial Baseline Job Growth Higher Job Growth Baseline Past Take-Up Lower Past Take-Up Labour Supply Scenario

Source: NLP analysis (totals rounded)

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5.35 The range of land requirements for office development land is fairly narrow - between 5.1 and 15.2 ha, depending on the approach used. For industrial land, the range is much wider, between 20.3 ha to 63.4 ha required in the maximum case. It is possible that these figures overestimate industrial land needs if some existing firms are able to expand within their own curtilage, as has happened frequently in the area in the past. Sensitivity Tests

5.36 Given the range of potential requirements implied by these different estimates of future requirements, it is important to test how reasonable each appears against other factors and how sensitive they are to different assumptions.

5.37 It is useful to compare the employment growth implied by these amounts of land with employment growth actually achieved in South East Lincolnshire in recent years (Figure 5.3). The lowest estimate (baseline job growth) implies about 76 B Class jobs annually would be required over the next 19 years, mostly office jobs. The highest growth estimate based on past development trends continuing implies over 400 more B class jobs annually, with a mix of office and industrial jobs. These figures compare with an average loss of 170 B class jobs in South East Lincolnshire per year between 2002 and 2012.

Figure 5.3 Annual Job Growth Implied by Scenarios

500

400

300 412

200 297

195 100

76 82 Implied Annual Job Growth 2012-2031 Growth Job Annual Implied 0 1. Baseline Job Growth 2. Higher Job Growth 3. Past Take-Up Continues 4. Lower Future Take-Up 5. Labour Supply (810 d.p.a.)

-100

-200 2002-2012 annual average

Source: NLP analysis / Experian

Note: Estimated job levels for each scenario do not take account of additional floorspace allowance in the safety margin, which is identified for planning purposes and may not actually be developed.

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5.38 This indicates that all these demand estimates could generate a significantly higher level of job creation than has been achieved in South East Lincolnshire in the recent past. As that period included both strong economic growth and a severe recession and weak recovery, these estimates may appear optimistic. The estimates based on past take up also appear likely to exceed growth in the area’s labour supply up to 2031.

5.39 Other assumptions which can make a significant difference to the forecasts of future requirements are the scale of the safety margin and allowance for replacement of future losses. With no allowance for future losses, the highest estimate of future industrial space needs would fall by approximately 36,100 m2, or about 13%. For the lowest estimate, it would reduce the requirement by one third. These are significant changes but the allowance for loss replacement in this case is only half the past rate of losses in the area.

5.40 The safety margin allowances used here are also fairly modest. For the higher estimate of industrial space requirements, the safety margin equates to only 8% of the original demand estimate. At the lowest end of the range, however, it equates to a 42% uplift, which is not inconsistent with earlier studies of this type where margins of 40 - 50% have been assumed. This issue can be considered further in the context of any surplus in supply and in considering whether additional supply is needed for other reasons.

5.41 In a more marginal demand location such as this, there may be greater delays in bringing sites forward. However, with much land available, the need for a large safety margin could be reduced. If one year’s worth of past take-up, rather than two, were used as the safety margin, this would reduce the overall requirement by 10,200 m2, and the uplift would fall to between 4% and 21% of the original estimate.

5.42 The assumed plot ratio for office development appears unlikely to make a significant difference to land requirements since the office requirement is fairly modest and varying the plot ratio, from 2.0 to 1.5 for example, for part of this requirement would make minimal difference.

5.43 Overall, it is the choice of approach and growth scenario which most affects the level of future requirements and this will need to be carefully considered by the Councils in selecting a basis for future planning.

5.44 It is also important to consider which estimate best accords with market views of future demand in the area, although these are perhaps only reliable for the short term picture. From discussions with local commercial agents, the general view was that the modest but steady levels of demand experienced in the recent past are expected to continue at broadly the same level, driven by indigenous demand and local businesses seeking to expand or upgrade their space. It was not anticipated that there would likely be significant levels of inward investment to South East Lincolnshire, although some ‘overspill’ from Lincoln and Peterborough is possible if attractive and well located sites were made available. It was considered that certain factors, for example if the proposed Rail Freight Interchange at Spalding is developed or the Port of

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Boston significantly expands freight volumes, could also result in increased demand for space.

5.45 This points towards using a demand estimate that reflects past development trends but takes account of likely housing and labour supply growth in the area, perhaps somewhere between scenarios 4 and 5. Conclusions

5.46 Based on consideration of various factors, five different scenarios of future employment space requirements have been considered. These are based on a number of approaches which reflect economic growth, development trends and potential housing supply factors. Several of these reflect assumptions of higher future economic growth in South East Lincolnshire than in the recent past.

5.47 The overall space requirements related to these different futures range from 104,800 to 319,600 m2 of all types of employment space up to 2031, implying in broad terms a need for between 25.7 ha and 78.6 ha of employment land.

5.48 Given an uncertain economic outlook, it is difficult to select the most likely option from these alternative growth pictures. The estimates which assume past development trends continuing at similar or slightly reduced rates are perhaps most likely as they reflect actual patterns of development within South East Lincolnshire over recent years, covering periods of economic growth and recession. This would also accord with commercial agent views that past levels of demand for space are expected to continue at broadly similar levels.

5.49 However, if that level of development were achieved, the associated job growth would exceed forecast growth in resident labour supply based on 810 dwellings p.a. Depending on the Councils’ aspirations, planning for broadly that level of development would meet local job needs and this would appear achievable in the context of past development trends. Planning for a higher level than this could encourage in-commuting but may be appropriate if the aim were to achieve a more aspirational level of economic activity in the area, building on the potential of developments such as the planned RFI and the renewable energy sector. It is also worth noting the aims of the NPPF to generally encourage economic growth and that the risks of under-providing may be greater than over-provision.

5.50 To assist in future planning, a breakdown of the demand estimates by local authority area is provided in Appendix 6. This indicates significant differences, with the majority of B Class growth estimated to occur in South Holland, which is also expected to accommodate the majority of new housing provision for South East Lincolnshire. However, these figures should be regarded as indicative because of the difficulty in applying consistent assumptions across smaller areas in the forecasting model.

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6.0 Need for Additional Employment Land

6.1 This section draws together the forecasts of future employment land needs in Section 5.0 and the estimates of land available on the area’s existing and allocated employment sites in Section 4.0 to identify any need for more provision of employment space, or surpluses of it, in both quantitative and qualitative terms. Quantitative Balance

6.2 The previous section identified a need for between 104,800 m2 and 319,600 m2 of employment space up to 2031, including a modest safety margin largely to allow for delays in sites coming forward for development. The land requirements associated with these amounts of employment floorspace were estimated at between 25.7 and 78.6 ha.

Available Supply

6.3 Allocated and other employment space in South East Lincolnshire that is not yet started or still under construction and available to help meet this future need is identified in the South East Lincolnshire Monitoring Report (2011-12). This includes both allocated sites and other land with planning permission for B Class uses and comprised around 238 ha of available B class land (165 ha in South Holland, 72 ha in Boston). Much of this is contained within a modest number of larger sites, with an estimated breakdown by main use shown in Table 6.1.

6.4 It should be noted that this figure includes some space under construction and committed to a specific user so that it may be less able to meet general future needs. Available land within the curtilage of an existing business is also not included although this could allow firms to expand. Also, as noted earlier, the 50-60 ha site near Spalding identified for an RFI is not included within the available supply figure below. This partly reflects the specialist nature of the site but also that it is not yet an allocation or a site with planning permission.

Table 6.1 Available employment land in South East Lincolnshire

Industrial Offices (B1a) Mixed B Uses Total (B1c/B2/B8) (ha) (ha) (ha) (ha) South Holland 8.51 1.6 155.19 165.3 Boston 7.57 0.81 63.83 72.21 South East 16.08 2.41 219.02 237.51 Lincolnshire

Source: South East Lincolnshire Monitoring Report 2011/12, Table 23

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6.5 Most of the identified supply is industrial in nature or mixed B uses (B1-B8 industrial uses with limited office component) with very little B1a office supply. The majority (70%) of total supply falls within South Holland. It is worth noting that 174 ha (73%) out of the total 237 ha identified as available in the area does not have planning permission.

6.6 There is also some vacant employment space available in existing premises. However, based on the current stock of space being marketed it appears these vacancy levels are below the range found in a normal market to allow churn and choice, and so none of this vacant space has been added to current supply.

6.7 A broad comparison of estimated demand for B Class space against all currently identified supply, as shown in Table 6.2, implies that, for all estimates of future employment space requirements, South East Lincolnshire would have more than enough employment space in quantitative terms up to 2031.

Table 6.2 Demand/Supply of B Class employment space in South East Lincolnshire

1 Baseline 2 Higher 3 Past 4 Lower 5 Labour Job Job Take-Up Future Supply Growth Growth Continues Take-Up Growth Requirement for B Class 25.7 27.7 78.6 61.6 68.6 space (ha) Available employment space 237.5 (ha) Surplus (+)/Shortfall (-)(ha) 211.8 209.8 158.9 175.9 168.9

Needs of Different Employment Uses

6.8 Ensuring an adequate choice of types of sites is important even if there is adequate supply in quantitative terms. This is necessary to meet the land needs of different employment sectors but also to help ensure some diversity of local employment opportunities. Potential supply of employment space for both industrial and office uses was therefore compared with estimated requirements for these uses.

6.9 As outlined in Section 3.0, the great majority (92%) of available employment space in South East Lincolnshire is for mixed B uses (B1-B8 industrial uses with limited office component). For the purposes of comparison, Table 6.3 and Figure 6.1 assume that 90% of this mixed space will be available for industrial (B1c/B2/B8) uses with the remaining 10% available for office (B1a) use.19 However, at this stage there is no certainty that these sites will come forward on this basis as some predominantly industrial sites may not be attractive to office occupiers.

19 This assumption is based on past completions in the area, the study’s assessment of what uses sites are suited to and data in the Monitoring Report for the area.

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6.10 Table 6.3 and Figure 6.1 compare the demand and supply situations for industrial and offices uses separately. This indicates that there should be more than enough supply available, in purely quantitative terms, to meet industrial needs arising under all demand estimates. Whilst there should also be enough supply available to meet office needs arising under all demand estimates, the surplus would be tighter under some situations, in particular falling to 9.1 ha for scenario 3, which assumes past take-up rates continue in future.

Table 6.3 Demand/Supply for office and industrial space to 2031 (ha)

1 Baseline 2 Higher 3 Past 4 Lower 5 Labour Job Growth Job Growth Take-Up Future Supply Continues Take-Up Growth Industrial Industrial space 20.3 22.3 63.4 50.0 63.5 requirement Potential supply of 213.2* industrial space Surplus(+)/Shortfall(-) 192.9 190.9 149.8 163.2 149.7 Offices Office space requirement 5.4 5.4 15.2 11.6 5.1 Potential supply of office 24.3* space Surplus(+)/Shortfall(-) 18.9 18.9 9.1 11.8 19.2

*Assumes 10% of mixed B use space could be developed for B1a offices

Figure 6.1 Forecast surplus of office and industrial space to 2031 by scenario

200.0

192.9 180.0 190.9

160.0 163.2

140.0 149.8 149.7

120.0

100.0 (ha)

80.0

Surplus (+) / shortfall (-) / shortfall (+) Surplus 60.0

40.0

20.0 9.1 12.7 18.9 18.9 19.2 0.0 Office Office Office Office Office Industrial Industrial Industrial Industrial Industrial Baseline Job Growth Higher Job Growth Baseline Past Take-Up Lower Past Take-Up Labour Supply Scenario

Source: NLP analysis Note: Assumes 10% of supply of mixed B use space relates to B1a office

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6.11 Even if the worst case situation discussed in Section 4 is considered where three significant undeveloped allocation sites fail to come forward due to infrastructure funding or other market issues, reducing land supply by some 38 ha mainly for industrial uses, this would not greatly reduce the large overall surplus. It may however have implications for choice and providing an adequate distribution of employment sites across the area.

6.12 Although the 50-60 ha RFI site is excluded from the calculations at this stage and will be a more specialist employment location, if developed, it does have some potential to meet some potential future needs, for example any large scale industrial relocation.

6.13 A further factor which could affect the scale of future land requirements is that some firms in the area have significant sites containing vacant land which could allow expansion without requiring additional land for this purpose. This has happened to a significant extent in Boston Borough in the past.20 If this happened to a significant extent in future, this would reduce the future additional employment land requirement and effectively increase the quantitative surplus. Qualitative Factors

6.14 Even where no quantitative shortfall of space is identified, in some circumstances additional land may be needed for qualitative reasons, for example to:

• improve the choice of provision for occupiers;

• meet gaps in the supply of particular types of premises;

• improve or modernise the quality of current provision and so help attract more occupiers; or

• provide a better distribution of employment opportunities across the district or for specific settlements.

6.15 Qualitative needs were therefore considered for each broad property type/area individually and for the different sub-areas.

Industrial

6.16 For industrial uses, from the analysis above, there appears to be a large overall surplus of employment land supply across the area as a whole. However, much of this supply is concentrated in a few locations. In particular, almost all of Spalding’s existing industrial supply to meet future needs is concentrated at the Enterprise Park on Wardentree Lane. This might suggest making a modest

20 Between 2001-08 some 25,340 m2 of new employment space, broadly equivalent to 6 ha of development land, was provided by expansion of Boston businesses within their existing curtilage, Boston Employment land review, 2008

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amount of alternative provision for industrial development at Spalding to increase choice and competition on rents. However, there are two new areas of approximately 10 ha each with planning permission, one in a different location from Wardentree Lane, which would help address this issue.

6.17 Despite some access and amenity issues and failing to attract occupiers so far, the large allocation at the Distribution Park, Kirton appears a broadly adequate site for employment uses and the issue may be one of providing greater flexibility to widen the range of potential B Class uses on this site, rather than any alternative provision.

6.18 Donington and Holbeach both have sizeable allocations but both have yet to attract development and there are questions about how quickly this could occur in the context of a subdued property market. These are both assessed as good sites so that there may be a need to examine mechanisms for encouraging development on them rather than seeking alternatives at this point.

Offices

6.19 In terms of office space, the range of suitable and available sites is not extensive. There is very little land specifically identified for B1 offices although the large areas identified for mixed B1-B8 uses could meet much of the requirement. At present, this type of office provision is concentrated at Endeavour Park in Boston and the office village scheme at Wardentree Lane in Spalding, with small elements on other sites and different types of office space in Boston and Spalding town centres. The other current allocated sites could theoretically accommodate some office space but not all of these will be obvious office locations.

6.20 In some situations, this might suggest a need for greater choice of provision but this must be tempered by the strength and nature of the local office market and the attractiveness of specific locations. Mixed use schemes could provide some of this need but market demand appears to be for out-of-centre rather than town centre locations. Providing some small office sites (of say 2 ha) at Spalding and Boston would help expand choice but, with a surplus of potentially suitable land available and a modest level of demand, it is difficult to recommend allocation of new, dedicated office sites, which may sit empty. This suggests continuing the approach at Wardentree Lane, with small office village schemes being developed within larger employment areas. A masterplanned approach to such employment areas could identify enclaves suitable for office development. Distribution of Any New Provision

6.21 In considering the need for any new provision of employment land and where this might be located, it is useful to examine the distribution of housing and employment development in the area in the past, as well as the likely scale of planned future housing provision if known. These can provide some indication of levels of demand in these locations and potential local labour supply.

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6.22 Any new allocation of employment sites should take account of a combination of factors: a market demand for employment space in that location, which may be partly gauged by past take-up; b market perceptions of the settlement as a business location, including its overall scale and accessibility; c the scale of housing growth, past and planned, which will affect labour supply and demand for jobs; d the remaining amount and current status of employment land there; and e any environmental constraints on new development in this location.

6.23 Reflecting this, an appropriate level of provision was assessed for each sub- area within the area total, based on discussions with commercial agents and officers, site inspections and analysis of IDBR data which sought to identify:

• any indicated shortfalls of employment land in terms of location

• the strength of demand/capacity in different sub-areas

• past patterns of take-up of employment space in different sub-areas

• the competitive advantage of different sub-areas in terms of road/rail access, strategic corridors, established clusters of activity, market attractiveness (as identified in Stages 1 and 2)

• past levels of housing growth in different sub-areas, as a proxy for future housing growth.

6.24 Table 6.4 summarises levels of housing development by settlement/parish over the last eight years. It shows that most residential growth has been focused around Spalding and Boston with Kirton, Holbeach, Sutton Bridge among the smaller settlements with larger levels of development.

Table 6.4 Residential Completions by Parish/Settlement 2004-12

Settlement/Parish Total completions % of Completions

Spalding/Pinchbeck 1,673 33.9% Boston 1,119 22.7% Kirton 345 7.0% Holbeach 278 5.6% Sutton Bridge 195 4.0% Long/Little Sutton 125 2.5% Crowland 92 1.9% Donington 69 1.4% Swineshead 71 1.4% Old Leake 62 1.3% Sutterton 46 0.9% Butterwick 11 0.2% Total South East Lincolnshire 4,932 100% Source: South Holland/Boston Councils

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6.25 Table 6.5 indicates levels of B class employment space completed by settlement/parish between 2004 - 12. From this, it is clear that Spalding/Pinchbeck has attracted the greatest amount of employment space although this reflects that this area includes the majority of the Enterprise Park at Wardentree Lane, where there have been significant recent completions of employment space. Boston is also a major focus for such growth. These two locations are followed by more modest amounts in Swineshead, Sutterton, Sutton Bridge, Old Leake and Holbeach.

Table 6.5 Employment Space Completions by Settlement/Parish 2004 - 12

Settlement/Parish Total completions (m2) % of Completions

Spalding/Pinchbeck 54,535 38.8% Boston 35,640 25.4% Swineshead 10,590 7.5% Sutterton 5,095 3.6% Sutton Bridge 6,342 4.5% Old Leake 3,385 2.4% Holbeach 3,208 2.3% Crowland 1,445 1.0% Donington 518 0.4% Kirton 350 0.3% Long/Little Sutton 31 0.0% Butterwick 0 0.0% Total South East Lincolnshire 140,380 100% Source: South Holland / Boston Councils monitoring data - not all parishes/settlements included

6.26 Table 6.6 summarises the spatial distribution of B class jobs across South East Lincolnshire using Inter-Departmental Business Register (IDBR) data. This indicates that the majority of B class jobs are located within Boston (30%) and Spalding towns (30%), with Holbeach, Long Sutton, Kirton and Old Leake among the other larger settlements in this respect.

Table 6.6 Employment by Settlement/Parish, 2010

Settlement/Parish Total B-Class Jobs % of B-Class Jobs

Spalding/Pinchbeck 9,502 30.7 Boston 9,355 30.2 Holbeach 3,206 10.4 Long Sutton 1,051 3.4 Sutton Bridge 1,055 3.4 Old Leake 839 2.7 Kirton 729 2.4 Sutterton 603 1.9 Butterwick 409 1.3 Swineshead 387 1.2

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Settlement/Parish Total B-Class Jobs % of B-Class Jobs

Donington 333 1.1 Crowland 305 1.0 Other settlements 3,201 10.3 Total South East 30,975 100% Lincolnshire Source: IDBR/NLP analysis

6.27 Table 6.7 summarises the position of each main settlement in terms of its scale as an employment centre, its available employment land, market perceptions of demand there and past levels of housing development achieved.

Table 6.7 Settlement/Parish Appraisal Matrix

Settlement/ Available Market Housing Share of B Parish Employment Perception/ Completions Class Jobs Land (ha) Demand (2004-12)

Spalding/Pinchbeck 62.6* High 1,673 34.2% Boston town 52.8 Medium/high 1,119 33.7% Holbeach 10.0 Medium 278 11.5% Sutton Bridge 63.4 Medium 195 3.8% Donington 10.6 Low 69 1.2% Long/Little Sutton 11.3 Medium 125 3.8% Kirton 18.0 Low 345 2.6% Sutterton 1.7 Low 46 2.2% Swineshead 1.2 Low/medium 71 1.4% Crowland 5.5 Medium 92 1.1% Butterwick 2.7 Low 11 1.5% Old Leake 2.4 Low 62 3.0

Source: Note: Spalding figure includes 42.6 ha on Enterprise Park plus 20 ha in two permitted extensions

6.28 Only Spalding and to a lesser extent Boston are locations with strong demand for employment space, and both have significant amounts of available land remaining.

6.29 For Spalding, as noted above, there is an issue of limited choice of sites, which might suggest making some additional provision. Take-up rates at Spalding/Pinchbeck have averaged between 3.4 and 3.9 ha p.a. in the past eight years, depending on whether the very high 2007/08 data is excluded. These are gross development rates but are relevant for a location where most new development will be on undeveloped sites. If this annual rate were to continue in future, it would imply a need for between 65 - 74 ha of land by 2031. Even including the two permitted extensions at the Enterprise Park and at Clay Lake Industrial estate, this location will have just under 63 ha to meet future needs and this appears tight. Also, one extension is understood to be under the same control as the Enterprise Park, which will not improve occupier

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choice. Given the amount of land currently available, there would be no need for any further allocation in the short/medium term. It is suggested that the situation is monitored regarding future take-up rates, rent levels and any impacts from the RFI site and any need for an additional allocation reviewed in 5-10 years.

6.30 Boston town is a major employment centre and a likely focus of future housing growth. Since 2004, annual take up of employment land there has averaged 2.7 ha. If that rate continued up to 2031, it would imply a need for 51 ha in that location, over 90% of it industrial. However, Boston town/parish has currently only some 52.8 ha of available employment land, mainly at Riverside Industrial Estate and Endeavour Park. This suggests reasonable supply even for the longer term, although limited choice of locations. However, not all of Boston’s future needs necessarily need to be met in the town, future development rates may not fully reflect the past and other approaches to estimating future needs imply much lower requirements. As with Spalding, the large amount of land available currently in Boston town and the long timescale before problems are likely to arise indicate holding off on any new allocations at present and monitoring future developments.

6.31 Holbeach has reasonable demand levels, is a sizeable employment centre and has had strong housing growth but also has a 10 ha undeveloped allocation. This does not indicate a need for further provision, more a need to utilise approaches to bring forward development on this existing land.

6.32 Donington also has a large undeveloped allocation but this a smaller employment centre with weaker market demand and not a location where housing growth would be strongest. No need for additional provision is indicated here.

6.33 Long/Little Sutton is a modest employment centre with over 11 ha of available land remaining. Demand is moderate and housing growth reasonable but its current provision would appear adequate to meet future needs.

6.34 A similar analysis applies to Kirton which has even more land available despite being a smaller employment centre and an area of weaker demand, although its housing growth has been strong in the past. As it is allocated solely for B8 uses and has not attracted development so far, the Kirton site also appears more vulnerable than others to competition from any major allocation for the RFI at Spalding. As with Holbeach, the need here is to find ways to bring forward the existing site rather than allocate more land. As Kirton has no other available employment land, the case for making this allocation more flexible by being open to B1-B8 uses should be explored.

6.35 Although a significant centre, with over 63 ha available, Sutton Bridge has probably more employment land than it needs for its own activities but this provision gives it an ability to respond to any growth of port uses or renewable energy and other green industries in the area. No change is indicated here.

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6.36 Council data indicates Sutterton has a moderate level of employment land (1.7 ha) at Spalding Road Industrial Estate, and 10,300 m2 of permitted floorspace. The site assessment process suggested there might be more potential land there but it is understood there has been no interest in the 2.5 ha of allocated land beside the Enterprise Park. For an area identified as one of weaker demand and with low past housing growth, the modest amount identified appears adequate to meet future needs.

6.37 Swineshead has a modest amount of remaining employment land (1.2 ha) but has achieved low housing growth in the past and is also a fairly small centre in employment terms. It is not perceived as an area of strong demand for more employment space. The available land is on North end Business Park and the site assessment process suggested there may be some more than this available, but it is expansion land for a specific firm. On this basis, although the remaining amount is not large, it appears likely to be adequate for this small settlement and no strong case is seen for further allocations here.

6.38 The other smaller settlements appear to have modest amounts of employment land remaining and probably generally enough for future needs unless any of them are to become significant areas of housing growth in the future. Crowland appears to have relatively large provision for its size, which reflects the major allocation at Harvester Way/Crease Road. These settlements are also providing employment opportunities for their rural hinterlands, which may justify a larger amount than for their own needs.

6.39 This analysis suggests that, in the context of a significant predicted surplus of employment land across the area, the majority of settlements do not require any additional allocations for qualitative reasons. The exception could be at Spalding, but this already has two sites with planning permission for employment use - an extension to the Enterprise Park and at Clay Lake industrial estate.

6.40 While the level of provision for office development is fairly limited in choice and distribution, this may reflect the market demand picture. Greater flexibility towards B1 office development in industrial areas, perhaps in the form of small self-contained office unit schemes, and in mixed uses schemes in Boston and Spalding town centres would also be helpful. Approaches to Encouraging Development

6.41 Given the delays in development taking place on some allocated sites, there is probably a need to explore mechanisms to help bring forward development and attract development/occupier interest. Measures to encourage and facilitate development on these sites could include: a Council use of Local Development Orders (LDOs) on specific sites, which could for example reduce planning permission requirements for specified types of development within certain parameters, and reduce developer uncertainty;

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b Council assistance in seeking Government funding, or use of CIL or TIF funding, to provide first units on a site, or provide an access road; c a joint venture approach between Council and developer on Council owned sites to bring forward development; d use of rent guarantees by the Council to a developer of initial employment units on a site; e providing plots for design & build approaches by industrial firms would also be supportive f selective use of enabling development on allocated sites to secure infrastructure improvements or new employment units; g use of Business Improvement Districts to help upgrade older industrial areas.

6.42 Figure 6.2 below illustrates the range of potential mechanisms and their applicability to different situations.

6.43 Also, despite successes such as the Boston Enterprise Centre and the Holbeach Technology Park, and a number of Council owned small industrial units in the area, the relative lack of provision for small start-up businesses could be tackled by seeking further provision of such facilities. This could involve sub-division of older industrial units and provision of an enterprise centre type facility in Spalding. Figure 6.2 Potential Mechanisms to Encourage Employment Development

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Release of Employment sites

6.44 Given the anticipated oversupply of industrial space it is also necessary to look at whether any existing allocated employment sites can be released. The NPPF warns against long term protection of sites allocated for employment use where there is no reasonable prospect of a site being used for that purpose. It notes that “where there is no reasonable prospect of a site being used for the allocated economic use, applications for alternative uses ...should be treated on their merits having regard to market signals and the relative need for different land uses…”

6.45 The predicted oversupply of industrial land in quantitative terms relative to future needs also raises the question of whether the area could consider reducing the size of some allocations, as well as releasing some lower quality employment land to other uses.

6.46 A cautious approach should be taken to release of employment sites, even when assessed as lower performers in the site assessment process. Such sites can perform poorly because of a rural location or isolation from strategic roads, which is not important for all firms, and does not mean that such sites are not meeting some local needs. Sites that meet specific economic needs or are well occupied should generally be retained. Only when a site has a combination of lack of developer interest, high vacancy, serious adverse environmental impacts from its operation or is otherwise unlikely to be able to perform an employment role in future should release to non-employment uses be considered.

6.47 In addition, in South East Lincolnshire, it is not obvious that there is very strong pressure on employment land from other uses such as housing. There is also no strong pressure on industrial land from office uses. This suggests that current employment sites or allocations that are performing some economic role could be retained as such at the present time unless strong requirements for other land uses emerge. While there is no immediate demand for some sites, a number such as Wingland (Enterprise Park) at Sutton Bridge and Riverside Industrial Estate in Boston have certain infrastructure and services in place, which means they are available to capture unforeseen inward investment or other emerging opportunities and worth retaining for this.

6.48 Against that background, the assessment of existing sites in Section 4.0 did not identify any sites that were clearly unsuited to continued employment use at some level. The most obvious candidates would be among the five lowest ranked individual existing sites from the site assessment process. Most of these are older established sites within the Boston or Spalding urban areas. Most suffer from poor road access and some from constraints arising from adjoining residential uses. This might normally suggest such sites could be released to other uses although it is not obvious that many of them have potential for residential or other alternative uses.

6.49 Cradge Bank Industrial Estate is occupied by a mix of industrial units, trade counters and various sui generis uses and its industrial function appears to be

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reducing. Vacancy is relatively high and its road access is constrained but it appears to be functioning reasonably as a mixed employment area without causing significant problems, so there is no obvious case to allow further Non B uses on all of it.

6.50 Redstone Industrial Estate in Boston is a large, long established industrial site part off which is owned and managed by the Council. While the general quality of the units is low, vacancy is about average and the estate appears to be functioning reasonably so that there is no short term case for release.

6.51 Broadfield Lane in Boston is a mixed industrial area with a focus on bad neighbour uses such as scrap metal recycling plant. While access is highly constrained and through local residential streets, and vacancy is high, this site appears to meet a useful local function and may be difficult to replace or relocate. This may be a long term candidate for release to other uses if environmental impacts become strong, but otherwise there is a reasonable case for its retention at present.

6.52 The Norprint site in Boston is large, fully occupied by a single firm and appears to be in generally good condition. It ranks low due to constrained road access via residential areas and adjoining residential development on three sides. However, with reasonable quality occupied premises there is no obvious reason why it should not remain in productive industrial use for some time.

6.53 The vacant factory unit on Norfolk Street, Boston is in poor condition, surrounded by residential uses and has poor access. Unless this attracts developer interest for redevelopment for modern employment premises, this would be a candidate for allowing other uses compatible with a residential area.

6.54 Several other sites, or parts of sites, are understood to have attracted no development interest after some time and some are subject to unresolved objections to the Boston 2006 Interim Local Plan. These include some land at the Endeavour Park site in Boston and land beside the Enterprise Park in Sutterton. Given the large supply of land elsewhere, there is no obvious need to allocate these sites for employment use if these issues can not be resolved.

6.55 In the longer term, several of these lower quality sites may become candidates for release to residential or other uses. This should reflect there being suitable, affordable and available alternative land or premises nearby to which to decant any existing occupiers.

6.56 The three large allocations, at Holbeach, Donington and Kirton, all appear adequate as potential employment sites but, given the scale of surplus industrial land in the area, there may be some scope to allow other uses on part of such sites where this would help bring forward necessary infrastructure or help encourage B class development on them. This process would need to be carefully controlled to avoid constraints on B Class uses, but there are examples elsewhere of activities such as hotels, healthcare and offices co- existing successfully on modern industrial parks.

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Conclusions

6.57 Overall, South East Lincolnshire has a sizeable quantitative surplus of employment land, adequate to meet needs up to 2031 under a range of different economic growth scenarios.

6.58 The current supply also appears adequate in terms of quality and distribution without further significant allocations. This is specifically the case in this area where existing firms are often able to expand within their own sites.

6.59 There is an issue, probably exacerbated by current subdued economic and property market conditions, of attracting development to some allocated employment sites. A range of potential approaches should be explored to tackle this. This includes greater flexibility on the range of B Class uses allowable at the Kirton Distribution Park allocation.

6.60 There is no strong case for significant release of existing, lower quality employment sites at the present time. Most of the occupied sites continue to meet local needs at some level. Some of these, however, are candidates for release to other uses in the medium to longer term, if they continue to remain vacant and when it is clear there are adequate opportunities to relocate existing firms.

6.61 Overall, after examining the case for further allocations of employment land, the study found that existing identified sites are likely to be adequate to meet future needs in the emerging plan period, and no further allocations are considered necessary.

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7.0 Impacts of the Proposed Spalding Rail Freight Interchange

7.1 This section examines the potential impacts of the proposed Rail Freight Interchange (RFI) near Spalding on current employment sites in the area, as well as its implications for future employment land allocations. Background

7.2 In March 2010, following a feasibility study prepared in 2009, South Holland Council consulted on a preferred option site for an RFI, which involved a 50-60 ha site, adjoining a rail line some 5 km south west of Spalding (Figure 7.1).21

Figure 7.1 Preferred location for Rail Freight Interchange

Source: South Holland District Council

7.3 The aim of the proposal is to encourage further investment and employment in the fresh food processing sector, a key sector within South East Lincolnshire, without increasing the large volumes of related vehicle traffic on local roads. This followed from a positive feasibility study for the development which identified interest from local producers and retailers.

21 Rail Freight Interchange Facilities for South Holland District, Intermodality et al, Nov. 2009

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7.4 This analysis of potential impacts of the RFI proposal takes account of:

• current levels and types of distribution premises within the area;

• experience at other RFIs in the UK;

• information contained in the 2009 feasibility study; and

• discussions with local commercial property agents, local economic development officers, food processing firms and developers. Current Supply of Distribution Premises

7.5 The food processing and related distribution sector in this area is concentrated around the main towns of Spalding and Boston but with a number of other individual operations in rural areas. Many are located within general employment areas, for example Bakkavor and Fowler Welch at Wardentree Lane, Spalding, and Princes at Long Sutton.

7.6 Food production operations in South East Lincolnshire are dominated by the outward distribution of indigenous and internationally-sourced fresh, processed and packaged products, much having been originally imported from abroad and transported to South East Lincolnshire for value-added processing and packaging before further distribution inland. This means that there are not significant requirements for large-scale warehousing facilities because the goods form part of multiple supply-chain strategies in which they are transferred to a regional distribution or consolidation centre for onward delivery within certain delivery time parameters. The latter are determined by end customers, predominantly being major retailers.

7.7 South East Lincolnshire therefore contains no major strategic distribution parks at present, with the majority of industrial estates accommodating a range of industrial and warehousing uses. The majority of B8 units within 20 km or so of the RFI site are under 470 m2 and used predominantly for storage, with units over 1,400 m2 often incorporating packing/chilling facilities. Most of the larger units in the area are used for B1/B2 uses rather than distribution and there is currently limited demand for large scale B8 units.22 There are also some large allocated sites with scope for B8 distribution uses, for example Kirton Distribution Park.

7.8 This position suggests that even if some firms did relocate to the RFI site, they would not be in such numbers as to have a widespread impact on existing industrial estates. There are some large units such as Bakkavor and Fowler Welch at Wardentree Lane, Spalding, and Princes at Long Sutton, where their relocation would be a major loss to the estates they are located on. However, this would not necessarily mean all such firms moved, or that all would move at the same time, while experience at other RFIs is that relocating firms can also

22 Rail Freight Interchange Facilities for South Holland District, Intermodality et al, Nov. 2009

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retain their existing bases elsewhere. These factors should reduce any impacts of the Spalding RFI on existing estates. Experience at other RFIs

7.9 Consideration has been given to experience at some existing RFI developments in terms of the extent to which they attract or displace existing occupiers and the impact of existing employment sites.

7.10 In 2009, NLP analysed levels and types of development at a number of RFIs within England.23 These included the Daventry Rail Freight Interchange (DIRFT) in the East Midlands, Hams Hall in the West Midlands, the Corby Eurohub, Wakefield Europort and the Doncaster Traxpark.

7.11 From this review, it is clear that RFIs can attract substantial levels of associated distribution development. The DIRFT development performs a national role and contains some 350,000 m2 of floorspace, primarily in large units of between 10,000 and 70,000 m2. Phase 2 has permission for a further 190,000 m2 and a further application for a 340 ha Phase 3 is expected. Other RFIs are much smaller, such as Ely Distribution Centre in East , a rail freight terminal with some 22,400 m2 of associated distribution space and 12 ha of available development land.

7.12 It should be noted that, in the main, these facilities cater for a wide range of freight markets and sectors and are not focused on one individual sector, such as food processing/distribution. However, the larger RFI developments contain many large national retailers or food distributors (e.g. Unilever, Tesco, Sainsburys) or logistics operators (DHL, Wincanton, Stobarts). Although this was not a factor specifically investigated by the study, it was clear that these operations generally had not relocated to the RFI site from within the local area and many were serving a regional or national distribution role.

7.13 This study also found that the nature of rail freight operations made it unlikely to attract other types of processing or value-added activity to the RFI site or surrounding area. Some of the sites did contain a hotel or restaurant but few other facilities.

7.14 Discussions were also held with the operators of the Ely Distribution Centre in East Cambridgeshire. This facility handles a range of products other than food – aggregates, animal feed, textiles, white goods, chip board, healthcare goods and pick & pack operations. Its occupiers are predominantly non-local firms. Several are European-based firms and a few from within 30 km of the RFI, but the latter also maintain an existing base elsewhere. It is understood there were no relocations to this RFI site by local firms already established in the area. The view was that local firms were unlikely to relocate to this site unless

23 Assessment of Employment & economic Impacts of proposed Kent International Gateway SRFI, for Maidstone Council, September 2009

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there were financial incentives and they could justify the move in terms of a significant volume of goods being transported by rail.

7.15 Economic development officers in East Cambridgeshire, the local authority covering the Ely RFI, also indicated that the development and growth of the RFI has not had noticeable impacts on the district’s other employment areas catering for industrial uses, e.g. Lancaster Way Business Park, which have reportedly grown well over the last 20 years. Local Market Views

7.16 Views on the likely impact and role of the RFI were also sought from commercial property agents active in the area and from local economic development officers in South East Lincolnshire.

7.17 Views from those involved in economic development were that most established firms would not move to the RFI site and that it would tend to attract new businesses. This would partly reflect changing practices in food production/processing with more items being packed at the place of growing/production and loaded straight on to truck there. Spalding is seen as attractive as a major food processing centre closely linked to production areas nearby.

7.18 The number of firms that might consider relocating to the RFI will also be limited to those that have sufficient volume of goods and those transporting such goods long distances. For many, continued use of the road system will be more cost effective.

7.19 Most existing firms will also find their existing sites/premises adequate and could not justify the cost of relocating a short distance to the RFI. Many will have invested in specialist cold store buildings and would not want to lose this investment and incur costs of a new building nearby, unless they were already considering a move for other reasons. Some will have expansion space on site, which would be a more cost effective way of growing. Potential loss of staff as a result of a move would be another constraint but only for firms seeking to move from further afield.

7.20 There are also understood to be some cost benefits in transporting goods a short distance by road from the site to the RFI, particularly for long distance shipment, and this could outweigh the costs of relocation. For established sites located further than 15 km from the RFI, it is understood there would be little benefit in transporting many products this distance to be reloaded on to trains and that it would more efficient to continue the journey by road instead.

7.21 Some of the potential occupiers of the Spalding RFI site are anticipated to be major supermarkets, packing operations and distribution firms which have scattered operations across the UK or Europe and may seek to consolidate these into major centres. There were also some indications that a large existing logistics operator in the area is prepared to operate the Spalding RFI.

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Requirements of Food Processors/Distributors

7.22 Discussions were held with locally-based food producers and distribution firms, developers of rail freight terminals and Intermodality (authors of the 2009 Spalding RFI feasibility study) to understand trends among local firms to move food by rail and where they anticipate occupiers at the Spalding RFI coming from.

7.23 This indicated a view that most occupiers of new development at the RFI site were more likely to be European-based food producers looking to establish a base within the UK, with very few UK companies coming from the local area. This reflected that most local firms would be able to utilise the RFI facility effectively without necessarily relocating to the site, may be reluctant to risk moving until the RFI had shown itself to be successful and well established, and that many had expansion space on their existing sites.

7.24 It was considered possible that there would be some movement of local firms to the RFI site over time but only as such firms were planning to expand and move to new premises anyway, and/or as their use of the RFI increased to a level which necessitated co-locating on site. This would imply a small and incremental movement out of existing sites that would not be much different to the typical churn of occupiers on industrial estates and should be manageable.

7.25 A prospective developer of the Spalding RFI indicated that it is aiming to attract higher value end users with manufacturing elements to their operations. These are expected to be national or European-based, food processing and food logistics firms which do not have any local operations at present and would be predominantly new to the area. The developer is also targeting types of firms able to sustain higher rent levels for the new premises built at the RFI site than currently apply locally. The view is that most local firms currently paying only £5/sq ft for premises would be unable to afford to move to the RFI. However, the operation of the RFI would enable local firms to transport goods to the new RFI and share train loads. This could result in higher usage of rail freight by local businesses but reduce any incentive to actually move to the RFI site. Conclusions

7.26 Based on the above analysis, the following points can be made: a not all existing firms on industrial estates in South East Lincolnshire will make use of the RFI - this will depend on their types of produce, the volumes they ship and the length of journeys involved. b there will be significant disincentives for many existing food processing/distribution firms to move to the RFI, such as investment costs, higher rents and potential impacts on staff. c trends towards more food items being packed at the place of growing/production and loaded straight on to truck there, along with adequate expansion/loading land at existing sites provide incentives for many food related businesses to remain on their existing sites;

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d many existing firms who wish to use rail freight will be able to use the RFI by trucking goods a short distance there without any great need to be relocated on the RFI site itself; this would tend to mean most firms remaining on their existing sites; e the RFI operators are likely to target higher value users with food manufacturing operations that are able to sustain higher rents than most existing local firms; this would tend to mean most RFI occupiers would be from outside the local area; f there is very little evidence from RFI operations elsewhere of wide scale relocations of local firms to the RFI site; indeed most firms based on these sites appear to be national or European based companies; g any relocations of local firms to the RFI that does occur is likely to be slow and incremental and reflect investment decisions of firms wishing to move anyway; h the scale and nature of existing distribution units on most industrial estates in South East Lincolnshire suggest that relocation by some firms would not have major impacts on estates as a whole, while some firms moving to the RFI site may retain their existing base also.

7.27 Overall, while establishment of an RFI at Spalding may itself stimulate greater use of rail freight by local businesses in the food production/distribution industry, and some established firms in the area may relocate, the above factors suggest that the extent of any such relocations from existing employment areas is likely to be limited in scale. It does not appear likely that the development of the RFI will result in significant losses of firms from existing estates.

7.28 Consideration has also been given to whether provision of such a large new site (50-60 ha) for the RFI and associated distribution/food processing uses will reduce the need for some existing allocations to meet future needs, or at least reduce the amount of land provided on some of these. At present, there are only a few large undeveloped sites in the area, mainly the allocations at Kirton (18 ha) and those at Holbeach with 10 ha and Donington with 10.6 ha remaining.

7.29 The RFI site will tend to attract a specific sector of businesses, particularly food distributors and processors requiring rail transport of goods. Unless it is also to accommodate more general industrial activities, it will not avoid the need for some sites elsewhere for general industrial development. It appears likely to perform a different, more specialist role rather than form part of the general supply of employment land in the area. Its rail connections are also likely to result in a rental premium on space at the RFI site and this may also deter other users.

7.30 The allocation most likely to be affected is the Kirton Distribution Park allocation, which is restricted to B8 uses and has so far found it difficult to attract interest. The RFI site appears likely to be more attractive to some distribution uses than the Kirton Distribution Park allocation, which is not

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particularly large for a distribution park and not particularly well related to strategic roads. This can be seen as reinforcing the indications in the previous section that Kirton would benefit from a more flexible B use allocation, rather than continuing to focus this allocation strongly on B8 uses.

7.31 It is possible that the RFI site will attract some new businesses which might otherwise have taken up land on existing allocated sites. The scale of this is uncertain but there has been very limited inward investment into the area in the past. Many existing businesses also have adequate expansion space on their sites. This suggests that provision of the RFI site itself is unlikely to require reduction of existing allocations, other than possibly the Kirton Distribution Park site. Given the large quantitative surplus of employment land in the area, however, there may be a case for reducing such allocations for other reasons.

7.32 Overall, on the evidence currently available, providing a site of 50-60 ha near Spalding to accommodate an RFI facility and associated processing/distribution uses appears unlikely to have major impacts on current employment land supply in South East Lincolnshire or necessarily give rise to a need to reduce the scale of existing employment land allocations in the area.

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8.0 Economic Role of the Agricultural Sector in South East Lincolnshire

8.1 This section examines the role and importance within the local economy of various agricultural-related activities and their land requirements.

Context

8.2 The horticultural sector itself comprises a diverse range of activities – from growing fruit, flowers and vegetables in fields to highly intensive glasshouse production. The value of horticultural output in the East Midlands region in 2009 was over £478 million.

8.3 Figures 8.1 to 8.2 illustrate some general trends in the sector in the East Midlands over the last decade. In particular, the amount of land under cultivation has been falling while the export value of the products has grown significantly.

Figure 8.1 Horticultural Land under Cultivation In East Midlands

170,000

160,000

150,000 Land area cultivated (ha) cultivated area Land

140,000

130,000

0 1 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2

Source: Defra Basic Horticultural Statistics, 2010

8.4 The number of workers in the sector has fallen slightly over the last decade but compared with other sectors can be considered relatively stable (Figure 8.3).

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Figure 8.2 Value of Horticultural Exports in East Midlands

160

150

140

130

120

110

100

90 Value of Exports (£million) of Exports Value

80

70

60

50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Defra Basic Horticultural Statistics, 2010

Figure 8.3 Employment in Horticulture in East Midlands

10000 Permanent Non-Permanent 9000

8000

7000

6000

5000

4000 No. of Agricultural Workers Agricultural of No.

3000

2000

1000

0 2005 2006 2007 2008 2009 2010

Source: Defra Basic Horticultural Statistics, 2010

Horticulture within South East Lincolnshire

8.5 The agricultural sector, and particularly the horticulture sector and various activities related to it, is very important within South East Lincolnshire. This part of Lincolnshire accounts for 60% of the region’s horticultural output by value. Lincolnshire as a whole contains 22% of England’s crop growing area for horticultural crops, 28% for field vegetables, and 40% of the national area used

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for flower and bulb growing.24 South Holland district alone contains some 5% of England’s potato production area.

8.6 The value of horticultural output in Lincolnshire in 2009 was over £287 million, 60% of East Midland’s total output value. In addition, the supply chain linked to the horticultural sector is estimated to be worth some £2.7 billion annually to the Lincolnshire economy, including activities such as packing, processing, importing and wholesaling.

Employment

8.7 The agricultural sector within South East Lincolnshire was estimated to employ 3,750 workers in 2010. This may well be an underestimate as all seasonal farm workers may not be included in the recorded figures.25 As noted earlier, South East Lincolnshire has a much higher share of all jobs based in the agricultural sector (6.4%) than the regional (1%) and national (0.8%) shares. Between 2000-08, ONS data suggests that the number of jobs in the sector fell by 19% in South East Lincolnshire but agriculture performed better in the region (a fall of 3%) and Great Britain (a gain of 13%).26 Looking forward, forecasts of agricultural jobs in the South East Lincolnshire indicate a 23% decline between 2012 - 2031.27

8.8 As illustrated below, there a number of other sectors in the area which are directly or indirectly linked to the agricultural sector and dependent on it.

Figure 8.4 Main agricultural related sectors in South East Lincolnshire

Food processing Cold Food Distribution storage/transport

Manufacture of fertilisers/ Manufacture/repair pesticides of Agric Equipment

Heating/cooling Distribution of Agric equipment repair Equipment Agriculture

Agricultural consultancy Packaging suppliers

Food R&D Financial/insurance (Holbeach services Technology Centre)

Agricultural Land management buildings services Temporary worker construction recruitment agencies

Source: IDBR, 2010

24 Grow EM: The horticultural Industry in the East Midlands, emda, 2010 – figures relate to PE postcode area in Lincolnshire. 25 2010 IDBR data for Boston and South Holland for 2007 SIC codes 01.1 to 01.7 26 Based on ABI data via Nomis although some agricultural jobs may not be recorded 27 Experian employment forecasts by sector, Spring 2012

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8.9 An estimated 720 businesses in the area are involved directly in agricultural activities or in activities directly related to or supporting agriculture in some way.25

Table 8.1 Employment in Agricultural Related sectors

Sector/activity Boston South South East Holland Lincolnshire Agriculture 1,610 2,140 3,750 Crop/Food processing 1,256 5,240 6,496 Wholesale of agricultural products 1,058 3,034 4,092 Wholesale of agricultural 129 107 236 equipment/fertilisers/forklifts Other agriculture related distribution 70 370 440 Distribution/Cold storage of produce 360 658 1,018 Manufacture/repair/lease of agricultural 97 54 151 equipment Manufacture/wholesale of 27 0 27 fertilisers/agricultural chemicals Crop/food related R&D 0 40 40 Recruitment agencies for temporary staff 2,870 620 3,490 Farming/land management services 35 56 91 Various support services (e.g. packaging, 0 727 727 agricultural engineers, importers, vets, NFU) Total 7,512 13,046 20,558

Source: IDBR data, 2010

8.10 Table 8.1 above estimates employment in agriculture and related sectors in the area using IDBR data. This indicates that these sectors account for almost 20,600 jobs in total in South East Lincolnshire, or almost 40% of the area’s total employment.28 Apart from direct agricultural jobs, the largest elements are crop/food processing (32% of the total) and wholesale/storage/distribution of produce (27%).

8.11 Various assumptions have been made in this job estimate. It includes all jobs in specialist warehousing/transport of agricultural produce. However, it is probably an underestimate as some of the jobs in the general warehousing and distribution sector could relate to agricultural activities although it is not possible to be certain from the available data. As it is very likely that a proportion of the activity in these distribution sectors is agricultural/food related given the importance of food production in the area, it appears a reasonable assumption that 25% of general warehousing and distribution jobs in this area are agricultural related in some way, equivalent to some 440 jobs.

28 based on IDBR data for South East Lincolnshire districts, ONS, 2010

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8.12 On the other hand, while there are some 4,800 jobs in temporary job recruitment in the area (and many more in permanent job recruitment), some of these may not be in agricultural related activities. Some of these jobs will be staff employed by the agency but working for individual farmers. Overall, it has been assumed that 75% of all temporary recruitment jobs are agricultural related.

8.13 Given the wide range of businesses directly or indirectly linked to agricultural activity in the area, it would not be unreasonable to conclude that these activities provide a fairly wide range of job types at different skill levels. These would range from lower skilled work harvesting crops, to factory based semi- skilled processing activities, skilled driving jobs and higher skilled job opportunities in consultancy, management and in research & development in the Holbeach Food Technology Centre.

8.14 It is also evident that the agricultural sector in this area is highly dependent on EU and other overseas workers, and these are represented in agricultural related industries to a large extent also.

Spatial Distribution

8.15 The broad distribution of agriculture related jobs is shown in Figure 8.5.

8.16 Agricultural businesses are, as might be expected, scattered across the rural area while food processing activities are both clustered around the main centres of Boston and Spalding but also in smaller centres (e.g. Holbeach) and in rural areas. Food related warehousing businesses are found both in the main employment centres and in diverse rural locations. Food processing activities appear to be concentrated around Boston, Spalding and Holbeach but with a number in rural locations also. Manufacturers and distributors of agricultural equipment and support activities appear fairly widely dispersed.

8.17 It is reasonable to conclude that agricultural related activities provide a range of employment opportunities across the area and contribute to sustainable travel to work journeys.

Land Requirements

8.18 Many of the agricultural related activities listed above fall within the B Use classes (e.g. food manufacturing, distribution) and therefore typically occupy B Class employment land such as industrial estates. A number, for example food consultancy and recruitment agencies, will occupy offices in urban areas. The land needs of these uses should be accounted for within the forecast of future requirements in Section 6.0.

8.19 The distribution of these activities illustrated by Figure 8.5 also shows that many activities are located outside the identified employment areas. This applies to agricultural uses but also crop storage/processing located on farms and elsewhere in rural areas, often for historic reasons. Many office based activities will be in town centres rather than allocated employment areas.

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Figure 8.5 Location of Agriculture-related Businesses

Source: IDBR data, 2010

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8.20 It is clear that agricultural related activities will use identified employment areas to some extent but are not confined to them.

Economic Linkages

8.21 It is also very likely that the agricultural sector, and many of the various related activities identified above, will have linkages with and support other parts of the local economy. For example, agricultural produce storage and transport activities are likely to require insurance and vehicle maintenance and repair services. The many agricultural workers in the area clearly support local shops and other services.

Future Prospects/Risks

8.22 As its outputs are essential commodities, the agricultural sector and its related industries should be a relatively stable element of the local economy. While employment levels have declined somewhat over the last decade this may reflect increased automation and efficiency, although employment in this sector is more difficult to record accurately than others.

8.23 Factors that should support growth include population rises and a widening range of food products, as well as growing exports markets in Europe and elsewhere. The sector is likely to see more consolidation into larger units and more use of technology. There may be some scope to move into higher value products and activities, with more product innovation, and develop the area’s role as a focus for food related research and development.

8.24 Risk factors would include increased competition that is likely to emerge from areas such as China, more imports of speciality fruit and vegetables from emerging economies, the impacts of climate change and any future restrictions on, or competition for, a continuing supply of lower cost labour from EU countries.

8.25 On balance, somewhere between stability and modest growth is perhaps more likely. The sector is unlikely to rival growth rates in other business sectors but should provide a relatively stable element of the local economy. The development of a Spalding RFI could promote the area further as a focus of the UK food sector and may stimulate new investment and modest growth. Conclusions

8.26 Overall, the health of a fairly wide range of activities appears linked to the future of the agricultural sector in South East Lincolnshire. These activities account for almost 40% of employment in the area, are relatively well dispersed, provide a range of local employment opportunities and are not necessarily located on employment land. They appear unlikely to be a source of major economic growth in future but should continue to provide a relatively stable element of the local economy.

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9.0 Overall Conclusions & Policy Recommendations

9.1 The following key conclusions can be drawn from this study on the adequacy of current employment land supply in South East Lincolnshire and requirements for the period up to 2031.

Future Land Requirements

9.2 To estimate future employment space requirements, five different scenarios of growth were considered. These are based on a number of approaches which reflect both lower and higher levels of economic growth, development trends and potential housing supply factors. Several reflect assumptions of higher future economic growth in South East Lincolnshire than in the recent past.

9.3 The overall space requirements related to these different futures range from 104,800 to 319,600 m2 of all types of employment space up to 2031, implying in broad terms a need for between 25.7 ha and 78.6 ha of employment land (Table 9.1).

Table 9.1 Gross Land Requirement by Scenario (ha)

Labour Demand Past Development Rates Scenario 5 2 Higher 4 Lower 1 Baseline 3 Past Take- Labour Job Growth Future Job Growth Up Supply Continues Take-Up Use Growth Offices (B1a) 5.4 5.4 15.2 11.6 5.1

Industrial 20.3 22.3 63.4 50.0 63.5 (B1c/B2/B8) All B Uses 25.7 27.7 78.6 61.6 68.6

Source: NLP analysis Totals rounded

9.4 Given an uncertain economic outlook, it is difficult to select the most likely option from these alternative growth pictures. The estimates which assume past development trends continuing at similar or slightly reduced rates are perhaps most likely as they reflect actual patterns of development within South East Lincolnshire over recent years, covering periods of both economic growth and recession. This would also accord with commercial agent views that past levels of demand for space are expected to continue at broadly similar levels.

9.5 However, if that level of development were achieved, the associated job growth would exceed forecast growth in resident labour supply based on 810 dwellings p.a. Depending on the Councils’ aspirations, planning for broadly that level of development should just meet local job needs and would appear achievable in the context of past development trends. Planning for a higher level than this could encourage in-commuting but may be appropriate if the aim were to achieve a more aspirational level of economic activity in the area, building on the potential of developments such as the planned RFI and the renewable

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energy sector. It is also worth noting the aims of the NPPF to generally encourage economic growth and that the risks of under-providing may be greater than over-provision.

Suitability of Existing Supply

9.6 The suitability to meet future needs of 29 existing or allocated employment sites in the area was assessed. Based on this, South East Lincolnshire contains a reasonable range of industrial sites of differing quality and type. Other than Endeavour Park in Boston town, there is a very limited number and range of dedicated office sites across the area.

9.7 In terms of good quality sites, this assessment identified nine sites providing over 288 ha of land and making up some 47% of total employment land supply. The great majority (over 97%) of the current supply of employment land is of good or average quality, although the largest share (50%) is in the average category.

9.8 Most of the sites rated as ‘good’ comprise well established employment areas close to the main urban areas or benefiting from good strategic transport links. Most of the lower average sites and poor quality sites lie in the rural areas and are more limited in terms of strategic road access or proximity to local labour and services. The five sites assessed as lower quality on the assessment criteria are within the Boston or Spalding urban areas and typically constrained by adjoining uses or poor access although some appear able to meet some local needs for low cost space.

9.9 There appears to be in the order of 227 ha of undeveloped employment land available, excluding land within the curtilages of existing businesses. The significant amount of undeveloped land on existing or allocated sites across the area suggests some may be unattractive to market needs or difficult to develop in the current climate and may mean the effective land supply is less than it appears. Most of the available land is theoretically developable in the short/medium term and there is no obvious shortage of immediately developable sites but some sites may need infrastructure provision or some form of intervention to ensure they come forward.

Need for Additional Land

9.10 Comparing the forecasts of future requirements with the current supply of available employment land in the area suggests there is a more than adequate supply of employment space to meet future needs to 2031 in quantitative terms, under different estimates of future demand. This situation would apply even if a number of significant sites do not come forward for development.

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Figure 9.1 Comparison of Demand/Supply in South East Lincolnshire by Growth Scenario

200.0

192.9 180.0 190.9

160.0 163.2 140.0 149.8 149.7

120.0

100.0 (ha)

80.0

Surplus (+) / shortfall (-) 60.0

40.0

20.0 9.1 12.7 18.9 18.9 19.2 0.0 Office Office Office Office Office Industrial Industrial Industrial Industrial Industrial Baseline Job Growth Higher Job Growth Baseline Past Take-Up Lower Past Take-Up Labour Supply Scenario

9.11 The current supply also appears broadly adequate in terms of quality and distribution without further significant allocations in the plan period. This is specifically the case in this area where existing firms are often able to expand within their own sites. For offices, the small supply of dedicated sites and limited choice might suggest a need for more provision but this must be tempered by the strength and nature of the local office market and the attractiveness of specific locations. Providing some small office sites (of say 2 ha) at Spalding and Boston would help expand choice but, with a surplus of potentially suitable land available and a modest level of demand, it is difficult to recommend allocation of new, dedicated office sites. This suggests continuing the approach at Wardentree Lane, with parts of larger employment areas identified, e.g. through a masterplan, as suitable for small office village schemes to be developed.

9.12 Analysis of any requirement for more employment land was carried out by main settlement, taking account of available land remaining, market attractiveness, and past employment space and housing growth. Overall, the study found that existing identified sites are likely to be adequate to meet future needs in the emerging plan period, and no further allocations are considered necessary for any settlements at present.

9.13 For Spalding and Boston town, the areas attracting greatest levels of development in the past, there are sizeable areas of land available although if strong past development rates applied again in future, the situation could become tight in the longer term. It is therefore suggested that the situation is monitored regarding future take-up rates, rent levels and any impacts from the RFI site, and that any need for an additional allocation is reviewed in 5-10 years.

9.14 There is an issue, probably exacerbated by current subdued economic and property market conditions, of attracting development to some allocated

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employment sites. A range of potential approaches should be explored to tackle this. This could include providing greater flexibility on the range of B Class uses allowable at the Kirton Distribution Park allocation, but also wider measures could be explored such as use of LDOs, public sector funding of infrastructure and rent guarantees.

Release of Sites

9.15 Given a lack of strong pressure on employment land from other uses, current employment sites or allocations that are performing some economic role could be retained as such at the present time unless strong requirements for other land uses emerge. While there is no immediate demand for employment use on some sites, a number such as Wingland at Sutton Bridge and Riverside Industrial Estate in Boston have certain infrastructure and services in place, which means they are available to capture unforeseen inward investment or other emerging opportunities and are worth retaining for this.

9.16 Most of the occupied sites continue to meet local needs at some level. Some of these, however, are candidates for release to other uses in the medium to longer term, if they continue to remain vacant and when it is clear there are adequate opportunities to relocate existing firms.

9.17 While the most obvious candidates for release to other uses would be among the five lowest ranked individual existing sites from the site assessment process, there is no strong case for release of most of these sites at the present time. However, for the vacant factory unit on Norfolk Street in Boston, unless it attracts developer interest for redevelopment for modern employment premises, would be a candidate for allowing other uses compatible with a residential area.

9.18 Several other sites, or parts of sites, are understood to have attracted no development interest after some time and some are subject to unresolved objections to the Local Plan. These include some land at the Endeavour Park site in Boston and land beside the Enterprise Park in Sutterton. Given the large supply of land elsewhere in the area, there is no obvious need to allocate these sites for employment use if these issues can not be resolved.

Impact of Spalding RFI

9.19 Specific consideration was given to whether provision of such a large new site (50-60 ha) for an RFI and associated distribution/food processing uses near Spalding would have significant impacts on existing employment areas or allocated sites. This analysis took account of experience at other RFIs in the UK, current levels and types of distribution premises within the area, the 2009 feasibility study for the RFI and discussions with local commercial property agents, local economic development officers and developers.

9.20 This analysis found that the RFI site is likely to perform a different, more specialist role rather than form part of the general supply of employment land in the area and would have rent levels aimed at higher value businesses and

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which may deter local firms. Little evidence was found from RFI operations elsewhere of wide scale relocations of local firms to an RFI site. Any relocations of local firms to the RFI that do occur are likely to be slow and incremental and reflect investment decisions of firms wishing to move anyway.

9.21 On the evidence currently available, providing a site of 50-60 ha near Spalding to accommodate an RFI facility and associated processing/distribution uses appears unlikely to have major impacts on current employment land supply in South East Lincolnshire or necessarily give rise to a need to reduce the scale of existing employment land allocations in the area.

Economic Importance of the Agricultural Sector

9.22 Specific consideration has been given to the role and importance within the local economy of various agricultural-related activities, their employment levels, land requirements and potential future risks.

9.23 There are an estimated 720 or so businesses in the area which are directly or indirectly linked to the agricultural sector and dependent on it. These range from crop processing and food distribution to manufacture of farm equipment and research & development in the Holbeach Food Technology Centre. These sectors account for an estimated 20,600 jobs or almost 40% of the area’s total employment and provide a range of local employment opportunities. These activities are relatively well dispersed across the area, and while some are located on identified employment areas, they are not confined to them.

9.24 The health of a fairly wide range of activities appears linked to the future of the agricultural sector in South East Lincolnshire. While there are some factors likely to support growth, potential risks include increased competition from areas such as China, more imports of speciality fruit and vegetables from emerging economies, the impacts of climate change and any future restrictions on supply of lower cost labour from EU countries. These agricultural-related activities appear unlikely to be a source of major economic growth in future but should continue to provide a relatively stable element of the local economy.

Policy Recommendations

9.25 Based on the findings of the study, the following recommendations can be made with regard to employment land provision in South East Lincolnshire: a based on the evidence currently available, there is no need to allocate further employment sites in the emerging plan period; b depending on future development rates, there may be a need for further provision at Spalding and Boston town in the medium/longer term and indicators of demand should be monitored to provide early warning of this e.g. completion rates, rent levels, views of local businesses; c various mechanisms should be explored to help bring forward development on employment sites which have failed to attract market interest; these could include use of public/private joint ventures, public

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funding of key infrastructure, selective enabling development and Local Development Orders; d release for other uses of vacant or undeveloped, lower quality employment sites should be considered for sites which fail to attract development interest after some time and/or which have development constraints that are difficult to resolve; e for lower quality employment sites which contain existing businesses, release to other uses should only be considered where a combination of factors applies – poor quality units at the end of their functional life, very high vacancy across the site for several years, lack of investment and significant adverse environmental impacts on adjoining uses; f seek to identify specific parts of larger employment areas which may be suitable for small office village schemes, perhaps through a masterplan or Area Action Plan for the area. g better quality employment areas/allocations should be protected from non B uses subject to strict criteria such as:

• non B class uses should not be permitted on the better quality employment areas (to be defined by the Local Plan) except where they enhance the function, image or operation of the overall employment area and occupy less than 10% of the overall area;

• on other employment areas, non B class uses should not occupy more than about 20% of the total area or otherwise form such a large proportion of the employment area that they threaten its continuing function as such;

• non B class uses should generate significant employment;

• any permitted non B class uses should not be of a scale or nature that significantly competes with nearby town/district centres;

• any permitted non B class uses should not generate levels of traffic or cause environmental impacts that would constrain the efficient operation of existing B class employment uses on the site.

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APPENDICES

Appendix 1 Consultees

Appendix 2 Reference Documents

Appendix 3 Definition of B Class Sectors

Appendix 4 Site Assessment Criteria

Appendix 5 Employment Site Assessment Sheets

Appendix 6 Future Requirements by Local Authority

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Appendix 1 Consultees

Nigel Burch, Economic Development Officer, South Holland District Council

Gary Alexander, Planning Policy, South Holland District Council

Peter Frost, Kilbride Group

Shirley Blake, Economic Development Officer, East Cambridgeshire District Council

Darren Tofts, General Manager, Ely Distribution Centre

Nick Gallup, Intermodality

Tim Humphrey, Brown & Co

Chris Longstaff, Longstaff

Peter Sampson, Pygott & Crone

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Appendix 2 Reference documents

National Planning Policy Framework, CLG, March 2012

Employment Land Reviews Guidance Note, ODPM, 2004

South East England Planning Partnership Board, Guidance on Employment & Economic Land Assessments, 2010

Employment Land Reviews Guidance Manual, East of England, 2008

Draft Employment Land Study Source Book, East Midlands Councils, June 2012

South Holland Local Plan, 1998

Annual Monitoring Reports for Boston Borough Council, 2004-12

Annual Monitoring Reports for South Holland Council, 2004-12

Rail Freight Interchange Facilities for South Holland District, Intermodality et al, Nov. 2009

Assessment of Employment & economic Impacts of proposed Kent International Gateway SRFI, for Maidstone Council, NLP, September 2009

Joint Employment Land Review for North Kesteven, Lincoln and West Lindsey districts, 2010

Peterborough Employment Land Study, 2008

Kings Lynn & West Norfolk Employment Land Study, 2007

Fenland Employment Land Review, 2006

South Kesteven Employment Capacity Study, 2010

East Lindsey Council, Review of Employment Sites, June 2011

HCA/Offpat Employment Densities Guide, 2010

Realising the Potential, Research on approaches to Delivery of Employment Sites, NLP 2011

Future of UK Horticulture, National Horticulture Forum, 2006

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Appendix 3 Definition of B Class sectors

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Definition of B Class Sectors

The method used for re-categorising the employment forecasts by sector into B- Class uses is summarised below.

Apportionment of B Class Sectors to Land Uses

Experian Sector Proportion of Jobs by Use Class

B1c/B2 B8 B1 office Manufacture warehousing Agriculture, Forestry & Fishing Non B-Class Extraction & Mining Non B-Class Food, Drink & Tobacco 0% 100% 0% Textiles & Clothing 0% 100% 0% Wood & Paper 0% 100% 0% Printing and Recorded Media 0% 100% 0% Fuel Refining 0% 100% 0% Chemicals 0% 100% 0% Pharmaceuticals 0% 100% 0% Non-Metallic Products 0% 100% 0% Metal Products 0% 100% 0% Computer & Electronic Products 0% 100% 0% Machinery & Equipment 0% 100% 0% Transport Equipment 0% 100% 0% Other Manufacturing 0% 100% 0% Utilities Non B-Class Construction 0% 59% 0% Wholesale 0% 16% 84% Retail Non B-Class Accommodation & Food Services Non B-Class Transport 0% 0% 88% Recreation Non B-Class Media Activities 100% 0% 0% Telecoms Non B-Class Business Services 100% 0% 0% Administrative & Supportive Services Non B-Class Other Private Services Non B-Class Public Administration & Defence 10% Education Non B-Class Health Non B-Class Residential Care & Social Work Non B-Class

Source: Experian / NLP analysis

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Appendix 4 Site Assessment Criteria

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Site Assessment Criteria

The criteria for assessing the quality/condition of protected and other existing sites, reflecting the particular circumstances of the area are set out below. These criteria mainly relate to the inherent value of a site rather than current conditions on it, although such characteristics have been noted. Additional criteria apply to undeveloped allocated/development sites although ownership and availability information has not been possible to obtain in many cases and a judgement has been made on these.

Each site is given a score of between 1 and 5 against each criterion (1 = poor, 5 = very good). No individual weightings are attached to different criteria.

Scorings can reflect a combination of different factors applying to the same criteria and a balanced judgment has to be made on an appropriate overall score.

Existing Developed Employment Areas

Strategic Access:

5 = Very good: within 2 Km of strategic road junction/ via good unconstrained roads

1 = Poor: over 5 Km from strategic road junction/access, and/or through constrained/local roads, and/or though town centre or residential areas etc.

Local Accessibility:

5 = Very good local access: via free moving good roads avoiding residential areas/difficult junctions; unconstrained vehicle access to the site with good visibility/lack of queuing; close access to range of town centre public transport services

1 = Poor: difficult/narrow road access, via residential roads, difficult site access junction, congested local roads; low level/limited range/infrequent public transport services nearby;

Proximity to Urban Areas and Access to Labour and Services:

5 = Very good: near centre of urban area with wide range of services nearby; proximity to sizeable residential areas providing local labour supply.

1 = Poor: remote isolated site, no local services or residential areas nearby;

Site characteristics and development constraints:

5 = Very good: generally level site, regular shape, over 3 ha in size; low flood risk (Zone 1); no conservation or landscape constraints on scale of development; no adverse ground conditions or abnormal development costs; no other significant constraints on new development,

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1 = Poor: sloping/uneven site; under 0.5 ha, irregular/narrow shape, other severe constraints; within flood risk Zone 3; conservation or landscape constraints on scale of development; adverse ground conditions or abnormal development costs

Proximity to incompatible uses:

5 = Within larger employment area/no incompatible surrounding land use

3-4 = B1 use adjoining residential/other sensitive uses;

1 = B2/B8 adjoining residential/other sensitive uses;

Market Attractiveness:

5 = Very good: high profile/high quality appearance, managed site; good environment and quality of occupiers; under 10% vacant; viewed as attractive by agents/occupiers; recent investment/development activity, strong demand, units rarely available

1 = Poor: run-down unattractive appearance/location; attracts lower end users and over 25% vacant space/buildings; vacant units not marketed; no recent investment; units remain vacant for lengthy period;

Sequential Status:

Applies to existing/potential office sites only – identifies whether site is in town centre, edge of centre or out-of-centre location in PPS4 terms

Barriers to Delivery:

Identify any factors that would constrain development of the site for employment uses e.g. site occupied, need for infrastructure

Planning Factors:

Identify any planning designations or policy constraints that could affect development of the site for employment uses.

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Appendix 5 Employment Site Assessment Sheets

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North End Business Park, Reference B1 Swineshead

Total site area (ha) 8.7 Current uses B1c / B2 / B8 Sui Generis Undeveloped land (ha) 1.2 (excluding expansion land for Number of units 9 individual firm) Grid reference 522503 341934 Sequential status N/A (offices only) Site status Unallocated existing employment Density Low - Medium site

Criteria Comment Score (out of 5) Strategic access Close proximity to A17 as a key strategic route, as well as the A1121 and A52 3 and equidistant from Boston, Spalding and Sleaford. Site access is via Station Road. Local accessibility Local access is unconstrained and avoids residential areas. Adequate site 4 (local road access and junction off Station Road and dedicated access road and reasonable internal public transport) road layout with sufficient room for manoeuvring and car parking. Swineshead Railway station approx. 1km away but limited bus services some distance away on Boston Road. Proximity to urban areas On the edge of Swineshead village with access to limited local workforce and 2 and access to labour & local services. Swineshead Railway station approx. 1km away but limited bus services services some distance away on Boston Road. Compatibility of adjoining Site is surrounded on all sides by open space with sensitive uses (residential 4 uses development) a significant distance from the site and separated by the road network. Development and Greenfield land available to the south of the site although this comprises 3 environmental constraints unallocated land outside the development limits. No obvious constraints other than the presence of a pond to the front of the site. Site appears to be at medium risk of flooding with a comparatively low probability of flooding. Market attractiveness Good visibility/road frontage and access to strategic links with potential access 3 directly off the A17, albeit within a secondary location. Site dominated by two main occupiers. Site is attractively landscaped, well laid out, managed and maintained with limited vacancies. Modern units with signs of recent investment. Planning factors Site is unallocated in the Local Plan. The site is outside the development limits of Swineshead. Barriers to delivery Undeveloped area of land has no access point and would require access off either the A17 or Station Road as well as internal infrastructure and servicing as a likely barrier to development in the current climate. No sensitive uses nearby. Potential uses B1 / B2 / B8

Timescale/availability Short – medium term subject to provision of infrastructure and site servicing.

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Endeavour Park, Site Name Reference B2 Boston

Total site area (ha) 12.2 Current uses B1 (office) / D2 / Sui Generis Undeveloped land (ha) Approx 3.8. ha Number of units 10+

Grid reference 530362 343724 Sequential status Out of centre (offices only) Site status Allocated business park Density Low-medium

Criteria Comment Score (out of 5) Strategic access Site has direct access off A1121 where it joins the A52 providing access into 5 Boston and to the A17/A15 strategic routes but without having to pass through local residential areas or busy congested streets within Boston centre. Local accessibility Good quality roundabout junction directly off strategic routes onto dedicated 5 (local road access and spine road which services the site. Some evidence of on street parking but all public transport) units have their own dedicated parking areas. Approx 3km from railway station. Nearby bus stops and town centre routes along the A52. Proximity to urban areas On the western edge of Boston with nearby residential areas, and access to 5 and access to labour & local workforce. Nearby local services including a supermarket and services neighbourhood services associated with nearby residential uses. Site provides a cluster of different uses and business services. Approx 3km from Hubberts Bridge railway station. Nearby bus stops and routes along the A52 with regular services to Boston and surrounding areas. Compatibility of adjoining New residential development immediately to east of the site. Other commercial 4 uses development to south and parts of the west, with open space to north and west. Land to the north is allocated as open countryside (and Boston Woods Project area of search) with limited potential for development of further sensitive uses. Development and Large greenfield site, level and regular in shape. No obvious environmental 3 environmental constraints constraints although drainage channels appear to run through the site. Identified as area of flood risk. Market attractiveness High profile site with good road frontage/visibility and access to strategic 5 routes. High quality appearance with mainly new build units within a high quality and landscaped environment. Site is actively managed and well maintained. Generally low vacancy and some vacant plots remaining. Range of medium- sized offices and small business units (in Boston Enterprise Centre). Planning factors Site is out of centre. Existing site is allocated as Boston Business Park (Policies ED2 and ED5) with adjoining land allocated for Business Park Extension. The expansion land falls outside Boston settlement boundary. Land to the north and south allocated as Countryside with land to the immediate north falling within the Boston Woods Project Area of Search. Barriers to delivery Vacant plots have initial infrastructure and servicing in place, to be extended into individual plots. An access spur off the roundabout to the north of the site will provide access to the expansion land but wider site will require additional infrastructure and servicing. Potential uses B1 (office); B1 / B2 / B8. Timescale/availability Short-medium term. Vacant plots within the business park are available now. Total Score: 27 [Scoring: 5 = best, 1 = worst]

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Boston Trade Park, Site Name Reference B3a Boston

Total site area (ha) 3.8 Current uses B1c / B8 / D1 / Sui generis Undeveloped land (ha) 0 Number of units Approx 50

Grid reference 532875 345000 Sequential status N/A (offices only) Site status Allocated Existing Industrial / Density High Commercial Areas

Criteria Comment Score (out of 5) Strategic access Close proximity to A16 (at its junction with the A1137) leading to the A52. 3 Location of site requires traffic to pass through congested roads / urban routes. Local accessibility Access directly off Norfolk Street via a one way system. Norfolk Street is narrow 3 (local road access and and the junction would be unsuitable for large HGVs. Boston Trade park has a public transport) dedicated access road which appears to be in good condition, with parking and servicing areas for individual units. Access is via narrow local and constrained roads routes through residential areas and along urban routes. Bus routes along Horncastle Road and Robin Hoods Walk approx 500m from the site and approx 1.5 km from Boston Railway Station. Proximity to urban areas On the edge of Boston town centre with nearby residential areas. Access to a 4 and access to labour & local labour force and local shops and services within the town centre. Bus services routes along Horncastle Road and Robin Hoods Walk approx 500m from the site and approx 1.5 km from Boston Railway Station. Compatibility of adjoining Site immediately adjoins residential on two sides and on opposite side of 3 uses Norfolk Street. A secondary school with playing fields lies to the west of the trade park. Development and Site is fully developed. The majority of the site is at a very high risk of flooding 2 environmental constraints with a comparatively medium probability of flooding. The site is surrounded by sensitive uses (residential) on two sides. Market attractiveness Low profile location with limited visibility/road frontage but the site is actively 3 managed and marketed and has adequate strategic links. The site appears to be well maintained with some new units and evidence of recent investment. The site has a high vacancy rate although units are being actively marketed. Planning factors Site is allocated as an existing Industrial Commercial Area (Policies ED1 and ED5). Recreational open space associated with the secondary school lies to the west. The site is within the settlement boundary of Boston. Barriers to delivery The site is within an area of very high flood risk. Presence of residential properties as well as the wildlife park and Park/Garden of Special Historic Interest could limit the redevelopment potential of the site. Areas of potential redevelopment/expansion are allocated as proposed housing land. Potential uses B1; small scale B8 and trade. Timescale/availability Medium-long term – given limited land availability and significant site constraints Total Score: 18 [Scoring: 5 = best, 1 = worst]

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Site Name Norprint Site, Boston Reference B3b

Total site area (ha) 4.9 Current uses B2 Undeveloped land (ha) 0 (excluding 1.5 ha expansion land Number of units Approx 50 for individual firm) Grid reference 532852 345311 Sequential status N/A (offices only) Site status Allocated Existing Industrial / Density Medium Commercial Areas and Proposed Housing Sites

Criteria Comment Score (out of 5) Strategic access Close proximity to A16 (at its junction with the A1137) leading to the A52. 3 Location of site requires traffic to pass through congested roads / urban routes within Boston Centre. Site access directly off the B1183 (Horncastle Road) as a narrow, local road serving local residential streets. Local accessibility Access is via a single, narrow access road onto Horncastle Road as a narrow, 1 (local road access and local route through residential areas and along urban routes. Tight junction public transport) problematic for larger vehicles. Bus routes along Horncastle Road and Robin Hoods Walk approx 0.5 km from site and 1.5 km from Boston Railway Station. Proximity to urban areas On the edge of Boston town centre within the wider urban area with nearby 4 and access to labour & residential areas. Access to a local labour force and local shops and services services within the town centre. Bus routes along Horncastle Road and Robin Hoods Walk approx 500m from site and approx 1.5 km from Boston Railway Station. Compatibility of adjoining Surrounded by residential uses and potential housing allocations to the north, 2 uses south and east, with some limited residential properties to the west (although these are some distance from the factory). A secondary school lies to the west. Development and Majority of the site developed. Land remaining to north and east of the factory, 2 environmental constraints allocated for housing development. Previously developed site with potential ground contamination. Majority of site at very high risk of flooding (Danger to All zone) with comparatively medium probability of flooding. Site adjoined by sensitive uses/allocations on three sides. A wildlife park and Park or Garden of Special Historic Interest lies immediately to the north of the site. Market attractiveness The Norprint unit is fully occupied, and in reasonable condition. Current access 2 arrangement likely to be problem for operators requiring access by HGV. Planning factors Allocated as an existing Industrial Commercial Area (Policies ED1 and ED5) with parts of the site identified as proposed housing sites. A wildlife park and Park or Garden of Special Historic Interest lies immediately north of the site. Recreational open space associated with the secondary school lies to the west. Site lies within Boston settlement boundary. Barriers to delivery Access to the Norprint unit and disused factory is likely to be a major factor constraining redevelopment for employment uses. The site is within an area of very high flood risk. Presence of residential properties as well as the wildlife park and Park/Garden of Special Historic Interest could limit the redevelopment potential of the site. Areas of potential redevelopment/expansion are allocated as proposed housing land. Potential uses B1 only given the proximity to residential development and access constraints Housing (on Norprint site as per allocation) Timescale/availability Medium-long term – Given limited land availability and significant site constraints Total Score: 14 [Scoring: 5 = best, 1 = worst]

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Vacant Factory Unit, Norfolk Street, Site Name Reference B3c Boston

Total site area (ha) 1.6 Current uses B2 Undeveloped land (ha) 0 Number of units Approx 50

Grid reference 532963 344767 Sequential status N/A (offices only) Site status Allocated Existing Industrial / Density High Commercial Areas

Criteria Comment Score (out of 5) Strategic access Close proximity to A16 (at its junction with the A1137) leading to the A52. 3 Location of site requires traffic to pass through congested roads / urban routes within Boston Centre. Site access directly off the Norfolk Street a locally busy through route. Local accessibility Access to the disused factory building and Bush Tyres is directly off Norfolk (local road access and Street as a locally busy urban route with no space for parking, turning or 1 public transport) manoeuvring. Local access is via narrow local and constrained local residential roads and busy urban routes. Bus routes along Horncastle Road and Robin Hoods Walk approx 500m from the site and approx 1.5 km from Boston Railway Station. Proximity to urban areas On the edge of Boston town centre within the wider urban area with nearby 4 and access to labour & residential areas. Access to a local labour force and local shops and services services within the town centre. Bus routes along Horncastle Road and Robin Hoods Walk approx 500m from the site and approx 1.5 km from Boston Railway Station. Compatibility of adjoining Surrounded by residential properties on all sides. Boston Trade Park lies to the 2 uses north. Development and No land available for development without demolition of the factory building. 2 environmental constraints Previously developed site with potential for ground contamination. The majority of the site is at a very high risk of flooding (Danger to All zone) with a comparatively medium probability of flooding. The site is surrounded by sensitive uses on three sides. Market attractiveness The disused factory unit on the southern part of the site is vacant and being 1 marketed but is in poor condition. Redevelopment of the factory for employment uses is unlikely to be viable in the current economic climate. Planning factors Allocated as an existing Industrial Commercial Area (Policies ED1 and ED5). The site is within the settlement boundary of Boston. Barriers to delivery Redevelopment of the factory for employment uses is unlikely to be viable in the current economic climate and would be limited by residential proximity to the site. The site is within an area of very high flood risk. Potential uses B1 only given the proximity to residential development. Potentially other more viable uses. Timescale/availability Medium-long term – Given significant site constraints Total Score: 13 [Scoring: 5 = best, 1 = worst]

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Enterprise Park, Site Name Reference B4 Freiston

Total site area (ha) 2.3 Current uses B1c / B2 / B8 Undeveloped land (ha) Less than 0.5 (hard standing in Number of units 15 north east corner of site) Grid reference 537295 344080 Sequential status N/A (offices only) Site status Allocated industrial area Density Medium

Criteria Comment Score (out of 5) Strategic access Approx. 1.5 km from A52 (via Church Road) providing access to the A16 north of 2 Boston avoiding urban routes. Alternative route via Priory Road unsuitable for HGVs due to weak bridge Access to A17 corridor requires traffic to pass through Boston urban routes. Local accessibility Reasonable access off Priory Road, albeit large HGVs may cross over the 3 (local road access and carriageway on Priory Road. A dedicated access road runs through the site and public transport) a shared area of car parking to the front of the site. Site appears to provide adequate space for vehicle turning, and no evidence of on street parking. Limited public transport although some bus services run along Church Street. Proximity to urban areas On the edge of Freiston village with limited local population/labour force or 2 and access to labour & associated services and limited public transport provision. Within 1.5km of the services very edge of the Boston urban area and further potential local workforce. Compatibility of adjoining Surrounded by open space to the north, south and west. Some residential 4 uses development to the east along Priory Road. Development and Limited development opportunities other than a small parcel of land to the north 4 environmental constraints east of the site. No obvious environmental constraints or adverse ground conditions. Site is within a very high flood risk zone but with a comparative low risk of flooding. Market attractiveness Secondary location with adequate strategic access. Limited signs of recent 3 investment although the site is actively managed and appears suitable for local rural needs with no availability / vacant units. Planning factors Allocated as an existing Industrial/Commercial Area (Policies ED1, ED4, A3). The site is within Freiston’s settlement boundary. Barriers to delivery Flood risk could be a significant barrier to further or redevelopment of the site. Potential uses Small scale B1 / B2 / B8 Timescale/availability Limited land available for immediate development. Total Score: 18 [Scoring: 5 = best, 1 = worst]

3068784v1 Nelson Way Industrial Estate, Site Name Reference B5 Boston

Total site area (ha) 5.6 Current uses B1c / B2 / B8; Sui Generis; Retail Undeveloped land (ha) Less than 1.0 (area of land to the Number of units south of the site) Grid reference 532557 343474 Sequential status N/A (Out of centre) (offices only) Site status Allocated existing / commercial Density Medium – High area

Criteria Comment Score (out of 5) Strategic access Close to strategic routes including A16 and A52. One direct access (entrance 3 only) onto A16 but otherwise access is via constrained local roads through residential areas. In this location the A16 acts as a busy urban route which serves Boston town centre and often heavily congested. Local accessibility Other than an exit-only route from A16, access is via constrained and narrow 3 (local road access and local roads and passes through residential areas and are likely to prevent ease public transport) of access for HGVs. Site has a main spine road off which the various units and site compounds take access. On street parking and loading/servicing and conflict between cars, pedestrians and HGVs. Under 1km from Boston Rail Station but severed by A16. Bus routes serve the site along High Street. Proximity to urban areas Within Boston urban area with nearby residential areas and a potential local 4 and access to labour & workforce. Access to local services within Boston town centre and services services associated with established commercial location. Under 1km from Boston Rail Station but severed by the A16. Bus routes serve the site along High Street. Compatibility of adjoining Site is self contained and surrounded on all sides by commercial development. 4 uses Some residential development to the north but this is separated by A52. Development and The majority of the site is developed except a strip of land to the south, 2 environmental constraints although this area provides part of the protected route for the proposed docks link road. The site is within a high flood risk area (Danger for Most and Danger for All Zones) with a comparatively high probability of flooding. A zone of archaeological potential is present to the east and south of the site. Market attractiveness High profile location in the centre of Boston with visibility from key road links. 3 Established site with much activity and low levels of vacancy. Site is generally of average to low quality with old units no signs of recent investment. Planning factors Allocated as an Existing Industrial / Commercial area (Policies ED1 / ED5). Part of the site falls within an Existing Area of Mixed Use (Policy ED6) and a Regeneration / Redevelopment Site (RTC 11). A zone of archaeological potential is present to the east and south of the site. The proposed Docks link road runs (Policy T6) through the site to the south. Barriers to delivery Limited land available for development and available land is along the route of the proposed Docks Link Road (Policy T6) as a likely barrier to delivery of this part of the site. High flood risk and the nearby zone of archaeological potential constraints to development. Potential uses B1; Small scale B8; Sui Generis and trade Timescale/availability N/A – Fully developed. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1 Broadfield Lane Industrial Estate, Boston Reference B6

Total site area (ha) 2.1 Current uses Mainly B2. Some B1c and B8. Undeveloped land (ha) 0.21 Number of units 25

Grid reference 481745 082601 Sequential status N/A (offices only) Site status Allocated existing employment site Density Medium – High

Criteria Comment Score (out of 5) Strategic access Within close proximity to strategic routes including the A16 and A52. In this 3 location the A16 acts as a busy urban route which serves Boston town centre and is often heavily congested. Site access is highly constrained by the presence of the railway, with access via Broadfield Lane and residential streets. Local accessibility Site access is highly constrained from Broadfield Lane via narrow, local roads 1 (local road access and which pass through a residential estate. The access/site road itself is a single, public transport) narrow track, poorly maintained with on street car parking along its length and no opportunity for turning/manoeuvring. Located less than 1km from Boston railway station with nearest bus stops on Broadfield Lane. Proximity to urban areas Within the urban area of Boston close to residential areas and a potential local 3 and access to labour & workforce. Local shops and services located nearby within Boston town centre. services Compatibility of adjoining Bordered by the railway line to the east, residential development to the north 2 uses and west, some of which is immediately adjacent to potential development land to the north of the site. Allocated allotment gardens lie to the west; caravan park and Redstone Industrial Estate lie to the south. Development and Site is small scale (less than 3 ha) and irregular in shape, bounded by railway 1 environmental constraints line to the east. Potential for contamination due to presence of scrap metal facility. Within an area of identified flood risk. Potential development land to the north constrained by proximity of new residential. Market attractiveness Low profile site with difficult access and no visibility from major routes. Low 2 quality units and poor environmental quality. High levels of vacancy with nine vacant units and no evidence of site marketing. Planning factors Allocated as Existing Industrial / Commercial Area (Policies ED1 and ED5). A proposed rail freight site (Policy ED14 and T7) is allocated to the east along the route of the Docks Railway Line (Policy T7). Allotment gardens allocated to the west. Barriers to delivery The majority of the site is developed. Vacant part of the site highly constrained in terms of size and configuration and adjoins new build residential development to the west. Flood risk could limit development options at the site. Potential uses Small scale B1 / B2 / B8. Timescale/availability Main part of site fully developed. Some vacant land at northern edge of site potentially available in short-term but subject to some constraints. Total Score: 12 [Scoring: 5 = best, 1 = worst]

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Redstone Industrial Estate, Site Name Reference B7 Boston

Total site area (ha) 6.0 Current uses B1c / B2 / B8 / Sui Generis Undeveloped land (ha) Less than 0.5 ha Number of units 33

Grid reference 532287 343076 Sequential status N/A (offices only) Site status Allocated employment site Density Medium

Criteria Comment Score (out of 5) Strategic access Within close proximity to strategic routes including the A16 and A52. In this 3 location the A16 acts as a busy urban route which serves Boston town centre and is often heavily congested. Site access is provided directly off the A16. Local accessibility Serviced by a central spine road accessed directly off the A16, avoiding the 3 (local road access and need to pass through residential areas but shared with the caravan site. public transport) Parking areas are provided for each of the various units, although some evidence of on street parking. Approximately 1km from Boston Railway Station but severed by the A16/A52. Bus routes do not appear to serve the site. Proximity to urban areas Within the urban area of Boston with nearby residential development and in 3 and access to labour & reach of surrounding residential areas and a potential local workforce. Access services to nearby local shops and services within Boston town centre is limited by the site’s isolated location and severance by the A16/A52. Compatibility of adjoining Self-contained site, surrounded by railways on three sides. A caravan site 3 uses adjoins the site to the north and some additional residential development lies beyond the railway line to the west. Development and Very limited land available for development. Site is within an area of high flood 2 environmental constraints risk; no other obvious environmental or other development constraints. Market attractiveness Long established site with a variety of uses and some vacant units. Poor 3 quality site with limited recent investment. The site is low profile with no road frontage and poor visibility. Some units owned and managed by the Council. Planning factors Allocated as an Existing Industrial / Commercial Area (Policies ED1 and ED5). A proposed rail freight site (Policy ED14 and Y7) is allocated to the north of the site along the route of the Docks Railway Line (Policy T7). An area of allotment gardens is allocated to the north. Barriers to delivery Limited land available for development. Poor strategic access and only one access road for a large site. Site is bounded by railway lines on three sides, limiting any potential for expansion. Presence of the caravan site to the north further restricts potential uses from operating at the site. Flood risk could limit the potential for redevelopment. Potential uses B1. Some potential for small scale B8 and B2 providing this is located away from the caravan site. Timescale/availability Limited land available for development. Total Score: 17 [Scoring: 5 = best, 1 = worst]

3068784v1 The Port Estate, Site Name Reference B8 Boston

Total site area (ha) 30.0 Current uses B2 / B8 and Sui generis Undeveloped land (ha) Approx 3.7 Number of units 10

Grid reference 533060 343141 Sequential status N/A (offices only) Site status Allocated as an area of Port Related Density Low Development

Criteria Comment Score (out of 5) Strategic access Within close proximity to strategic routes including the A16 and A52. In this 3 location the A16 acts as a busy urban route which serves Boston town centre and is often heavily congested. Local accessibility Site access is off St Johns Road via the A1138, both local roads which also 3 (local road access and serve residential areas. Site access appears adequate but is not ideal as public transport) passes along residential routes. Potential upgraded strategic access will be provided via proposed Docks Link Road. Access to strategic routes via A16/A52 which act as urban routes serving Boston town centre and are often heavily congested Some 1km from Boston Railway Station but severed by river and A16, limiting access. Nearest bus routes distant along Skirtbeck Road. Proximity to urban areas Within the urban area of Boston with nearby residential development and in 3 and access to labour & reach of surrounding residential areas and a potential local workforce. Access services to nearby local shops and services within Boston town centre, albeit this is constrained by the severance produced by the A16 and river. Compatibility of adjoining Self contained site surrounded on three sides by commercial development. 4 uses Some new build residential to the north of the site. Otherwise nearby residential development is on other side of the river. Development and Majority of site within medium-high area of flood risk. A zone of archaeological 3 environmental constraints potential lies to north. There are no other obvious constraints. Market attractiveness All units within the site appear occupied. Opportunity to accommodate port- 3 related industries. Development of the docks link road could increase the attractiveness of the site, as will completion of the Docks Railway Line. Planning factors Allocated under Policy ED2 as an Area of Port Related Development. The route of the Proposed Docks Link Road (Policy T6) runs to the north of the site, as does a zone of archaeological potential (Policy E6). The Docks Railway Line (Policy T7) enters the site in the west. An area of Recreational Open Space is present to the north of the site (Policy R1). Barriers to delivery Some land remaining as available for development. Flood risk/required mitigation measures and restrictions could constrain development. Nearby zone of archaeological potential is unlikely to prevent development at the site. Site access could also be a potential problem. It is understood that current channel depths are a barrier for some forms of operation. Potential uses Port related industry; B1 / B2 / B8.

Timescale/availability Short – Medium term. More intensive redevelopment may be dependent on timescales associated with delivery of the link road and railway line. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1 Riverside Industrial Estate, Site Name Reference B9 Boston

Total site area (ha) 119 Current uses B1 (including offices) / B2 / B8 / Sui Generis / Retail. / household recycling plant. Undeveloped land (ha) 45.31 Number of units Over 100

Grid reference 533595 342236 Sequential status Out of centre (offices only) Site status Allocated existing and proposed Density Medium employment site

Criteria Comment Score (out of 5) Strategic access In close proximity to A16, leading to the A52, providing strategic access north 3 and south of Boston. All journeys from north and west must pass through busy urban routes serving Boston town centre and which are often heavily congested. Local accessibility Single site access is via Marsh Lane, a local road which also passes through 3 (local road access and residential areas and requires navigation of traffic light junction with public transport) Low Road. The site is served by a main spine road (Marsh Lane) which individual plots take their access. Parking and servicing are provided for individual units, with some limited on street parking. Proximity to urban areas Within the urban area of Boston with some nearby residential areas and local 3 and access to labour & services, although isolated location severed by road network and river. services Approximately 2km from Boston Railway Station but severed by the river and road network, providing limited access by public transport. The nearest bus routes are a considerable distance from the site on London Road. Compatibility of adjoining Very large, self contained site surrounded by commercial uses (The Port Estate) 4 uses to the north and open space to the south and west. Some residential development immediately adjoins the site to the west although the site is large enough for these sensitive uses to be accommodated (via location of uses, site layout etc). Other residential uses to the east are on the other side of the river. Development and Significant areas of land available for development, some of which have extant 3 environmental constraints planning permission for B1/2/8 use. Plots are large and flat with no obvious environmental constraints or potentially adverse ground conditions or abnormal development costs. Vast majority of the site falls within area of very high flood risk (Danger for All) with medium probability of flooding. Market attractiveness Very large, well established site with a range of different uses including a 4 number of smaller, council operated units/sites and trade counters. Reasonable condition and well maintained site. Pilgrim Foods occupy a new, large unit indicating recent investment at the site. Two large units (formerly Del Monte) and approximately six smaller units vacant 5-10% of total floorspace. Planning permission in place for a significant addition of floorspace. Planning factors Allocated as Existing and Proposed Industrial/Commercial Area -Polices ED1 and ED5; Surrounded by open countryside. Extension land outside Boston settlement boundary. Barriers to delivery Individual development plots have spine infrastructure in place but will require appropriate infrastructure development and site servicing. Flood risk mitigation and associated restrictions is likely to be a significant barrier to delivery. Potential uses B1 / B2 / B8 / Sui Generis. Timescale/availability Short term – infill plots available now, some of which have extant planning permission. Total Score: 20 [Scoring: 5 = best, 1 = worst]

3068784v1 Distribution Park, Site Name Reference B10 Kirton

Total site area (ha) 18.0 Current uses N/A Undeveloped land (ha) 18.0 Number of units N/A

Grid reference 530896 337882 Sequential status Out of centre (offices only) Site status Allocated employment site Density N/A

Criteria Comment Score (out of 5) Strategic access Direct access off the A16 providing access to strategic routes north to Boston 4 and access to the A17 to the south. Local accessibility Direct access off the A16 avoids the use of local roads or residential routes. 4 (local road access and Dedicated spine road into the site with spurs into three development; individual public transport) plots would provide site access roads and parking/servicing areas. The site is not currently serviced by bus routes, with the nearest stop at over 50m from the site (along A16). Proximity to urban areas On the edge of Kirton with access to local population and labour force, and 3 and access to labour & some limited local services. The site is not currently serviced by bus routes, services with the nearest stop at King Street over 50m from the site (along A16). Compatibility of adjoining Surrounded mainly by open space to the east and south, with some isolated 3 uses areas of residential development adjoining the site. Middlecott secondary school bounds the site to the west, and further employment land is allocated to the north. Extant planning permission is restricted to B8 uses. Development and Flat site, regular in shape, more than 3 ha in size. No obvious environmental 4 environmental constraints constraints with dedicated access and spine infrastructure already in place. Site appears to fall within a low-medium flood risk area (Low Hazard / Danger to some) with a comparative low probability of flooding. Nearby sensitive uses limit prohibit B2 use. Market attractiveness Potential to be a high profile site with good visibility along, and access via, 3 strategic routes. The site is available and is being actively marketed, a significant amount of groundwork and infrastructure provision having been put in place. The site is restricted to B8 provision with ancillary B1/B2 only. Planning factors Allocated in the Boston Borough Interim Plan as a Proposed Distribution Park (Policies ED1 and ED4). Outside the settlement boundary of Kirton. Uses at the site are limited to B8 only on account of nearby residential properties. Barriers to delivery Main infrastructure, servicing and ground works already undertaken. Restriction limiting the site to B8 uses is a further potential barrier to development. Potential uses B8 only with ancillary B1/B2 as per planning application ref B/09/0363. Timescale/availability Short term – site is available with spine infrastructure and groundworks complete. Total Score: 21 [Scoring: 5 = best, 1 = worst]

3068784v1

Site Name Enterprise Park, Sutterton Reference B11

Total site area (ha) 3.5 Current uses B1c / B2 / B8 Sui generis Undeveloped land (ha) 0 Number of units 16

Grid reference 528512 335136 Sequential status N/A (offices only) Site status Allocated as a proposed Density Medium (where developed) Industrial/Commercial site

Criteria Comment Score (out of 5) Strategic access In close proximity to the A17 at its junction with the A16 key strategic corridors 4 / routes providing access to the A52. Access to strategic routes is unconstrained via Station Road avoiding the need for vehicles to pass through Sutterton village centre or residential areas. Local accessibility The site has its own dedicated access road (Endeavour Way) directly off the 4 (local road access and Station Road off which individual units are serviced. Site provides adequate public transport) parking and room for manoeuvring/servicing with no evidence of on street parking or conflict with HGVs. The site is not served by a railway station but bus stops are present along Station Road. Proximity to urban areas On the far edge of Sutterton village with access to limited local labour force and 3 and access to labour & small scale services. services Compatibility of adjoining Surrounded by open space to the north, west and south. Residential 4 uses development and a secondary school are present to the east of the site but these are separated by Station Road. Cemetery to the north of the site. Development and Flat site, regular in shape with a large development plot available to the south. 5 environmental constraints Entirety of the site appears to fall within a low flood risk zone. No other obvious constraints. Market attractiveness Low levels of vacancy (2 units). Site is well maintained and provides modern 3 units. The site is actively managed and well signposted from the main road and appears. Relatively high profile location with good visibility from local roads and excellent strategic access, albeit from a secondary location. Agents reported no immediate market demand for development of expansion land. Planning factors Entirety of the site part allocated as a Proposed Industrial/Commercial area under Policies ED1, ED4 and A3. The entirety of the site appears to fall outside the development limits of Sutterton. No other allocations or designations of relevance. Barriers to delivery Access road terminates at entrance to the expansion land. Upfront costs associated with providing site infrastructure and servicing as a potentially significant barrier to development. Potential uses B1 / B2 / B8 Timescale/availability Short term – subject to provision of site infrastructure and servicing. Total Score: 23 [Scoring: 5 = best, 1 = worst]

3068784v1 Spalding Road Industrial Estate, Site Name Reference B12 Sutterton

Total site area (ha) 1.9 Current uses B1c Undeveloped land (ha) 1.7 Number of units 6

Grid reference 527863 335521 Sequential status N/A (offices only) Site status Allocated existing and proposed Density Medium (where developed) industrial and commercial area

Criteria Comment Score (out of 5) Strategic access In close proximity to the A17 at its junction with the A16 key strategic corridors 4 / routes providing access to the A52. Local accessibility Dedicated access road directly off the B1397, which links to A17. Junction 4 (local road access and appears to be of an adequate standard. Site provides dedicated parking for public transport) individual units and appears to provide adequate space for turning and manoeuvring. The site is served by bus services operating along Spalding Road with stops approximately 500m from the site. Proximity to urban areas On the far edge of Sutterton village with access to limited local labour force and 3 and access to labour & small scale services. services Compatibility of adjoining Surrounded by open countryside on all sides with the exception of the south 4 uses east corner of the site where some residential properties front onto Spalding Road but do not immediately adjoin the site. Development and Flat site, regular in shape and over 3 ha in size. Entirety of the site appears to 5 environmental constraints fall within a low-medium flood risk zone. No other obvious constraints. Market attractiveness Range of smaller-scale users (e.g. car repairs) and high levels of vacancy at four 3 units. Expansion land provides a location with high road frontage/visibility and good links onto an important strategic route, albeit in a secondary location. Planning factors Front part of the site allocated as an existing Industrial/Commercial area and the wider site is allocated as a Proposed Industrial/Commercial area under Policies ED1, ED4 and A3. The entirety of the site appears to fall outside the development limits of Sutterton. No other allocations or designations of relevance. Barriers to delivery Access road terminates at entrance to the expansion land. Upfront costs associated with providing site infrastructure and servicing as a potentially significant barrier to development. Potential uses B1 / B2 / B8 Timescale/availability Short term – subject to provision of site infrastructure and servicing. Total Score: 23 [Scoring: 5 = best, 1 = worst]

3068784v1 Station Road Industrial Estate, Site Name Reference B13 Swineshead

Total site area (ha) 3.1 ha Current uses B1 / B2 and Sui Generis Undeveloped land (ha) 0 Number of units 10

Grid reference 522742 341438 Sequential status N/A (offices only) Site status Existing employment site allocated Density Low - Medium as an existing and proposed industrial/commercial area

Criteria Comment Score (out of 5) Strategic access Close proximity to A17 as a key strategic route, as well as the A1121 and A52 4 and equidistant from Boston, Spalding and Sleaford. Site access is via Station Road. Local access is unconstrained and avoids residential areas. Local accessibility Adequate junction off Station Road with dedicated access roads to both parts of 3 (local road access and the site. Dedicated parking areas for individual units with adequate parking public transport) provision and space for manoeuvring. Swineshead Railway station approx. 1km away but limited bus services some distance away on Boston Road. Proximity to urban areas On the edge of Swineshead village with access to local workforce and limited 3 and access to labour & local services. Swineshead Railway station approx. 1km away but limited bus services services some distance away on Boston Road. Compatibility of adjoining Site is surrounded to the north, east and south by open space; residential uses 3 uses adjoin the site immediately to the west. Development and Portion of undeveloped land to the site frontage along Station Road. No 4 environmental constraints obvious constraints. Site appears to be at medium risk of flooding. Market attractiveness Good visibility/road frontage and access to strategic links with potential access 3 directly off the A17 albeit in a secondary location away from established industrial centres. Two main occupiers within a maintained site. Some vacant units, with some buildings in poor condition. Planning factors Part of the site is allocated as an existing Industrial/Commercial area and the wider site is allocated as a Proposed Industrial/Commercial area under Policies ED1, ED4 and A3. The entirety of the site falls outside the development limits of Swineshead. No other allocations or designations of relevance. Barriers to delivery Undeveloped land within site, and potential expansion land would require internal access provision and servicing. Small area of undeveloped land with existing spine road therefore limited constraints. Potential uses B1 / B8 Timescale/availability Short - medium – land within the site is available for development subject to provision of infrastructure and servicing. Total Score: 20 [Scoring: 5 = best, 1 = worst]

3068784v1

3068784v1

SOUTH HOLLAND EMPLOYMENT SITES

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Millfield Road Industrial Estate, Site Name Reference SH1 Donington

Total site area (ha) 2.1 Current uses B1c / B2 / B8 (small-medium scale industrial units) Undeveloped land (ha) 0 ha Number of units 12

Grid reference 520400 335425 Sequential status N/A (offices only) Site status Existing employment site, not Density Medium allocated in Local Plan

Criteria Comment Score (out of 5) Strategic access Within 500m of junction with A52 providing strategic access to the A17. Access 4 to the site is directly off the A152 via an unconstrained route. Local accessibility Single good quality access road directly off the A152. Junction suitable for 3 (local road access and HGVs with adequate visibility. Dedicated access and parking for individual units public transport) although some on street parking and limited opportunities for turning/manoeuvring large vehicles. Approx. 500m from local services in Donington village centre. Bus stops immediately adjacent on the A152. Proximity to urban areas Located within Donington and in close proximity residential areas as a potential 3 and access to labour & workforce and a number of local services. More secondary, rural village location services isolated from other industrial estates and associated services. Compatibility of adjoining Surrounded by residential development to the east, south and west, albeit at a 3 uses generous distance from properties themselves. Development and Flat site, regular in shape but less than 3 ha in size. Low flood risk (Zone 1). 4 environmental constraints No obvious environmental, conservation or landscape constraints. No apparent adverse ground conditions or abnormal development costs. Note proximity to residential on three sides. Market attractiveness Established industrial location with some frontage to A152. Site actively 3 managed. Some vacant units and the site is being actively marketed. Limited recent investment but site is generally in good condition. Planning factors No allocations or designations, or adjoining allocations. Within the development limits of Donington. Barriers to delivery Site currently fully occupied (other than a small area of land to the south of the access road). No obvious barriers to prevent redevelopment, although some proximity to residential areas. Potential uses B1 and small scale B8 (given proximity to residential uses). Timescale/availability Fully occupied/developed. Some scope for short term intensification of uses / improvement of site frontage. Total Score: 20 [Scoring: 5 = best, 1 = worst]

3068784v1

Site Name Allocation, Donington Reference SH2

Total site area (ha) 10.6 Current uses Agricultural land with associated farm buildings and storage Undeveloped land (ha) 10.6 Number of units N/A

Grid reference 519973 335534 Sequential status N/A (offices only) Site status Allocated employment site Density N/A

Criteria Comment Score (out of 5) Strategic access Adjacent to A52 at junction with the A152 providing access to the A17. 4

Local accessibility Existing access via dedicated spur off the A52 roundabout shared with farm 5 (local road access and buildings. Scope to upgrade to provide direct access onto the A52. Approx public transport) 750m to local services in Donington village centre. Bus stops within 50m on the A152. Proximity to urban areas Located within the settlement of Donington and in close proximity residential 3 and access to labour & areas as a potential workforce and a number of local services. More secondary, services rural village location. Compatibility of adjoining No proximity to sensitive uses. Surrounded by open countryside to the bounded 5 uses to the north and west; bound by the A52 and railway line to the south and east. Development and Flat site, regular in shape, more than 3 ha in size. Greenfield site. No obvious 5 environmental constraints environmental constraints although drainage channels appear to run through the site. No adverse ground conditions or abnormal development costs. Low flood risk (Zone 1). Market attractiveness High profile site with good road frontage along a strategic route. Rural location 4 away from larger, established industrial areas (Spalding) albeit to the north of Spalding and close to strategic routes. Planning factors Allocated employment site (Major Employment Area and Major Employment Proposal under Policy EC1). Within settlement boundary. Barriers to delivery Likely upfront costs associated with providing site access, infrastructure and servicing is a significant barrier to development. Potential uses B1 / B2 / B8. Timescale/availability Immediately available. Short-medium term subject to infrastructure provision. Total Score: 26 [Scoring: 5 = best, 1 = worst]

3068784v1

Wardentree Lane / Enterprise Park, Site Name Reference SH3 Spalding

Total site area (ha) 195.6 Current uses B1 (including office) / B2 / B8; Sui Generis (car show rooms); Retail, (food superstore) Undeveloped land (ha) 42.6 ha (excluding permitted 10 ha Number of units Approx 150 extension) Grid reference 525464 324719 Sequential status Out of centre (offices only) Site status Allocated employment site Density Medium

Criteria Comment Score (out of 5) Strategic access Access via direct junction off A16 as a strategic route north south route, in 5 close proximity to the A151 link to the A17. Local accessibility Good local access off main roundabout via adequate junctions with wide spine 5 (local road access and roads running through the site. Busy junction at Enterprise Way and Spalding public transport) Road. Mix of site uses introduces local non-commercial traffic with HGV movements although vehicular movement appeared unconstrained. No evidence of on-street parking and sufficient turning and servicing provision. Some units are serviced off Lane where vehicular access is more constrained and access points less adequate due to narrower roads. Bus routes provided along Wardentree Lane. Over 1km to Spalding railway station. Proximity to urban areas Located on the northern edge of the urban area of Spalding with a large work 5 and access to labour & force and services nearby. Some non B-class uses (e.g. foodstore) and services associated industrial services located within the site itself. Compatibility of adjoining Open countryside to the north and west of the site as a whole. Some residential 5 uses adjoining the site to the west and south although this appears to be sufficiently separated from sensitive uses. Development and The site is large and flat with large scale, regular development plots. No 4 environmental constraints obvious constraints. Entirety of the site falls within Flood Zone 3 protected by flood defences. Market attractiveness High profile, strategic industrial site forming one of the key employment areas in 5 the District. Well maintained and organised site with signs of recent investment and plots being marketed for development. Good number and range of occupiers including multi-nationals. Good strategic access and critical mass of established industrial uses. Limited vacancies and reported high demand. Planning factors Entirety of the site is allocated as a Major Employment Area with some parts identified as a Major Employment Proposal under Policy EC1). Within the Spalding settlement boundary. Adjacent to a protected cycleway and recreational routes. No further constraints limiting further development of the site. Barriers to delivery Infrastructure and site services require extension into individual development plots. Potential uses B1 / B2 / B8 Timescale/availability Short term - development plots available immediately. Total Score: 29 [Scoring: 5 = best, 1 = worst]

3068784v1

Clay Lake Industrial Estate, Site Name Reference SH4 Spalding

Total site area (ha) 25.4 Current uses B1c / B2 / B8 – large scale industrial units Undeveloped land (ha) 0 (but 10 ha of land with planning Number of units 7 permission for B uses partly within and adjoining site) Grid reference 525568 321145 Sequential status N/A (offices only) Site status Existing employment site, not Density Medium allocated in Local Plan

Criteria Comment Score (out of 5) Strategic access Within 1km of A16 as a major north-south route, albeit no direct access from 4 this route with access via Spalding Drove which also serves residential areas. Extant planning permission for development of a new business park (ref H16- 0347-11) provides for direct access onto the A16 via a Ghost Island right turn. Local accessibility Access via Spalding Drove links site to A16, although cross-road junction of 4 (local road access and Spalding Drove/Burr Lane constrained for larger vehicles. Access to the north public transport) runs through residential areas and is more constrained. Extant planning permission provides for improved access onto the A16 via a Ghost Island right turn. Reasonable internal road access and parking with adequate turning space. Significant distance from bus stops on Clay Lake. Proximity to urban areas Located close to southern edge of Spalding urban area provides access to local 3 and access to labour & labour force and some neighbourhood services. Approx 2km from main services services in Spalding town centre. Compatibility of adjoining Small number of residential properties immediately adjoining the site fronting 3 uses onto Spalding Drove, albeit with gardens providing a separation from industrial uses. Otherwise, surrounded by open land. Development and Large site, level and regular in shape. No obvious environmental, conservation 4 environmental constraints or landscape constraints. Entirety of the site falls within Flood Zone 3 (protected by flood defences); area of archaeological potential. Extant planning permission for re-development of a new business park (B1, B2, B8) within site. Market attractiveness One large occupier (FESA) occupies significant proportion of the site. Site 4 includes modern units in reasonable condition, and low vacancy. Relatively isolated from other employment areas albeit planning permission recently granted re-development for business park will improve profile. Planning factors No allocations or planning designations and outside the settlement limits of Spalding. Recreational route running to the north along existing channel. Planning permission recently granted for re-development of a new business park (ref H16-0347-11). Barriers to delivery Expansion land could be serviced by new infrastructure provided as part of the extant planning permission for redevelopment of the business park which significantly improves access. Presence of electricity pylons would need to be accommodated or addressed if this part of the site were to be developed. Potential uses B1 / B2 / B8 as per the recently granted permission. Timescale/availability Short term – expansion land immediately available with an extant planning permission. Total Score: 23 [Scoring: 5 = best, 1 = worst]

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Cradge Bank Industrial Estate, Site Name Reference SH5 Spalding

Total site area (ha) 2.2 Current uses B1c / B2 / Sui Generis / D2 – Mixture of large scale industrial units; trade counter & sui generis uses Undeveloped land (ha) 0 Number of units 19

Grid reference 524009 321092 Sequential status N/A (offices only) Site status Existing employment site, not Density Medium - High allocated in Local Plan

Criteria Comment Score (out of 5) Strategic access Within 1km of a junction with the A16 as a major north-south route via the 3 B1172 or B1173. Site access constrained via local roads passing through residential areas. Local accessibility Poor site access via local, narrow roads which pass through residential areas to 2 (local road access and the east and west of the site. Units serviced via Cradge Bank with poor public transport) junctions, limited turning provision and unsafe access and parking to the front of units. Bus services available along Cradge Bank. Over 1.5km to Spalding Railway Station. Proximity to urban areas Far southern edge of urban area of Spalding providing access to local labour 3 and access to labour & forces and neighbourhood services. Approx 1.5km to services in Spalding town services centre. Compatibility of adjoining Surrounded by residential uses to the north, east and west with some individual 1 uses dwellings located within the site itself. Development and Small site, irregular in shape, with surrounding residential uses. General 2 environmental constraints accessibility and residential amenity could present barriers to development. Entirety of the site falls within Flood Zone 3, albeit the area is protected by flood defences. No other obvious constraints. Market attractiveness High proportion of vacancies; the majority of units to the north of Cradge Bank 2 appeared to be vacant (being marketed). Low quality units and poor environment with limited evidence of recent investment. Mix of non B-class uses including cement plant, trade counters, vet surgery and dance studio. Planning factors No allocations or planning designations. Within the settlement limits of Spalding. A recreational route and area of flood plain and flood storage wash exists to the south. An area proposed for an urban extension is present past the railway line to the west. Barriers to delivery Site is fully developed. Constrained access and residential amenity likely to present significant barriers to redevelopment. Potential uses B1 only as a result of surrounding sensitive uses. Timescale/availability Fully occupied/developed. Total Score: 13 [Scoring: 5 = best, 1 = worst]

3068784v1

Horseshoe Yard, Site Name Reference SH6 Crowland

Total site area (ha) 0.2 Current uses B1c Undeveloped land (ha) 0 Number of units 10

Grid reference 523739 310066 Sequential status N/A (offices only) Site status Existing employment site, not Density High allocated in Local Plan

Criteria Comment Score (out of 5) Strategic access Approx 1km from A16 as a strategic north-south route, albeit access is 3 constrained via narrow local roads and residential areas. Local accessibility Site access is narrow and unlikely to be suitable for HGVs, shared with adjacent 3 (local road access and residential properties. Site access appears adequate for the current type (B1) public transport) and scale of uses, with dedicated parking. In close proximity to Crowland village centre but limited services and public transport links. Proximity to urban areas Within the small settlement of Crowland which provides a small workforce and a 3 and access to labour & limited number of neighbourhood services. Some distance from other major services settlements or associated services. Compatibility of adjoining Surrounded by residential development on all sides, albeit with some separation 3 uses by residential gardens. Suitable for existing uses. Development and Very small site constrained by surrounding residential development with no 3 environmental constraints opportunity for expansion. No obvious environmental, conservation or landscape constraints No apparent adverse ground conditions or abnormal development costs. Low flood risk (Flood Zone 1). Market attractiveness Well occupied with low vacancy (1 unit at 10% total floorspace). Units appear 4 well maintained and in good condition. Range of small-scale local occupiers. Planning factors No allocations or planning designations. Within the settlement limits of Crowland. Barriers to delivery Fully occupied/developed. Constrained by existing residential development with no opportunity for expansion. Potential uses B1 only given sensitivity of surrounding residential uses. Timescale/availability Fully occupied/developed. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1 Harvester Way/Crease Road, Site Name Reference SH7 Crowland

Total site area (ha) 10.5 Current uses B2 with some limited B1c Undeveloped land (ha) 5.5 Number of units 15

Grid reference 523574 309352 Sequential status N/A (offices only) Site status Allocated employment site Density Low

Criteria Comment Score (out of 5) Strategic access Approx 600m from A16 as a strategic north-south route via roundabout with 4 Peterborough Road. Local accessibility Serviced via a new, dedicated access road which is shared with new residential 3 (local road access and development (Harvester Way) albeit vehicle access is unconstrained. The public transport) nearest bus stops are approximately 400m from the site on Peterborough Road. Proximity to urban areas Within the small settlement of Crowland which provides access to labour and 3 and access to labour & neighbourhood services. Some distance from other major settlements or services associated services. Compatibility of adjoining Residential area immediately adjoins the eastern boundary of site. Adjoined by 4 uses open countryside to the north, west and south. Development and Large site, level and regular in shape. No obvious environmental, conservation 4 environmental constraints or landscape constraints; lies within Flood Zone 3 but protected by flood defences. Market attractiveness Mix of old and new units; low profile site with no visible frontage behind 3 residential areas. Relatively remote within a rural location. Four vacant units at approximately 35% of available floorspace (although it is likely that the some of these units have been subsequently let). Evidence of recent development and existing spine road allows for further development of vacant plots. Planning factors Identified as Major Employment Area and parts as Major Employment Proposal under Policy EC1. Within the settlement limits of Crowland. Barriers to delivery Some infrastructure in place but would need to be extended to accommodate new development. No other obvious constraints. Potential uses B1 / B2 / B8 Timescale/availability Short term – available immediately subject to provision of site infrastructure and servicing. Total Score: 21 [Scoring: 5 = best, 1 = worst]

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Wingland (Enterprise Park), Site Name Reference SH8 Sutton Bridge

Total site area (ha) 75.0 Current uses Mainly B2. Limited B8. Undeveloped land (ha) 50.4 Number of units 10

Grid reference 548565 320244 Sequential status N/A (offices only) Site status Allocated employment site Density

Criteria Comment Score (out of 5) Strategic access Close proximity and dedicated access to the A17 as a key strategic transport 3 corridor (east-west). Potential for bridge crossing to cause congestion at peak times. Local accessibility Site access via a long feeder road directly off the A17. The access is shared 4 (local road access and with the adjacent power plant but provides good access for large scale HGVs public transport) with a filter onto the A17. Internally the site has a good road layout served by a dedicated spine road from which the various units have individual access points. Provision for cycle paths has been made within the site. No evidence of on street parking and sufficient turning provisions for HGVs. Proximity to urban areas The site is physically close to the urban area of Sutton Bridge but is isolated in 2 and access to labour & access terms from the village and the associated workforce and service services provision. Compatibility of adjoining Some limited residential development to the north east boundary of the site 4 uses albeit these are physically separate from the site. Otherwise surrounded by open countryside. Development and Flat site, regular in shape with large development plots available. Entirety of the 4 environmental constraints site falls within Flood Zone 3, albeit the area is protected by flood defences. No other obvious constraints. Market attractiveness Large, established industrial site with good strategic links but limited profile 2 from the road network. One major company (Wingland Foods) is present at the site with limited signs of investment. Appears to be only one vacant unit but lots of undeveloped land. Planning factors Allocated as a Major Employment Area with parts identified as a Major Employment Proposal with planning permission (as at 1st April 2004) under Policy EC1. Within a discreet settlement boundary within the Sutton Bridge area. Barriers to delivery Spine road complete with spurs in place for future development. Individual access and servicing would need to be extended into the individual plots. Potential uses B1 / B2 / B8 Timescale/availability Short term – development plots available immediately subject to site infrastructure and servicing. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1

Railway Line Industrial Estate, Site Name Reference SH9 Sutton Bridge

Total site area (ha) 0.6 Current uses B1c Undeveloped land (ha) 0.2 Ha – undeveloped land to rear Number of units 14 of existing units Grid reference 547348 321220 Sequential status N/A (Out of centre) (offices only) Site status Unallocated existing employment Density Medium-High site

Criteria Comment Score (out of 5) Strategic access Within close proximity to the A17 as a key strategic transport corridor (east- 3 west) although site access is via busy local roads through Sutton Bridge (Bridge Road and Railway Lane). Local accessibility Site access through the centre of Sutton Bridge via narrow local roads (Railway 3 (local road access and Lane and Bridge Road). Site access appears unconstrained although would be public transport) unsuitable for HGVs. Dedicated parking at front of site to serve all units. In close proximity (approx 200m) to local services within Sutton Bridge and existing bus stops opposite the site with further services on Bridge Road. Proximity to urban areas Within Sutton Bridge with access to limited local services and local workforce. 3 and access to labour & Secondary location away from the major towns. services Compatibility of adjoining Surrounded by residential development to the west and north east; open 3 uses land/large scale industrial unit to the south and east; and new development (doctors’ surgery) to the north. Adjoining uses are compatible with existing uses at the site. Development and Majority of site is developed except for small area of land to the rear of the 3 environmental constraints units. No obvious constraints, albeit there may be some issues associated with the allocated recreational ground to the rear. Entirety of the site falls within Flood Zone 3, but protected by flood defences. Market attractiveness Well used and well maintained site managed by the Council with relatively 3 modern units and low levels of vacancy. Low profile site with limited frontage within a secondary location away from major towns. Planning factors No allocations or designations. Within the Settlement Limits of Sutton Bridge. Land to the rear of the site is allocated as recreation space, potentially precluding this area as potential expansion land. Barriers to delivery Majority of land is developed save for a small area of land to the rear of the units. Potential expansion land to the north is constrained by an open space/recreation ground allocation. Potential uses B1 Timescale/availability N/A Total Score: 18 [Scoring: 5 = best, 1 = worst]

3068784v1

Sutton Bridge Port and Extension, Site Name Reference SH10 Sutton Bridge

Total site area (ha) 21.7 Current uses B8 Undeveloped land (ha) 13 Ha Number of units 5

Grid reference 548497 322480 Sequential status N/A (offices only) Site status Existing port is an unallocated, Density Low – large site with limited existing employment site. development Expansion land allocated as a major employment proposal

Criteria Comment Score (out of 5) Strategic access Site is within close proximity to the A17 as a key strategic transport corridor 3 (east-west). However, dedicated site access is via busy local roads through Sutton Bridge (Bridge Road) and potential for bridge crossing to cause congestion at peak times. Local accessibility Site access road junction with Bridge Road potentially constrained for larger 3 (local road access and vehicles with narrow, local roads. Secondary access via a single track road public transport) unsuitable for HGVs. Sufficient room within the site to allow for adequate off road parking and manoeuvring. Edge of Sutton Bridge within approx 800m of bus routes on Bridge Street. Proximity to urban areas Edge of Sutton Bridge with access to limited local services and local workforce. 3 and access to labour & Relatively isolated site in a secondary location with no related industry nearby. services Compatibility of adjoining Surrounded by open space on all sides (golf course to the south) with waterway 4 uses to the east with no adjoining sensitive uses. Some residential development to west beyond golf course but expansion land not adjoining sensitive uses. Development and Extension land comprises a flat site, regular in shape. Entirety of the site falls 3 environmental constraints within Flood Zone 3, albeit the majority of the site is protected by flood defences. A small area of the site remains at a high risk of flooding to the north of the expansion land. No other obvious constraints. Market attractiveness Established employment site with port facilities. The site has a relatively high 3 quality, modern appearance with no vacant units. Adequate strategic links, and presence of port, but limited profile from the road network. Expansion land available to meet potential future demand for port facilities. Planning factors Existing port is an unallocated, existing employment site. Expansion land allocated as a Major Employment Proposal under policy EC1. Within settlement boundary of Sutton Bridge. Barriers to delivery Expansion land unoccupied and available for development. Dedicated access road terminates before expansion land and access and site servicing required. Flood risk mitigation be required and could prohibit development at northern most part of the site. Potential uses B1/B2/B8 Timescale/availability Short term - Expansion land is unoccupied and available for development. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1 Long/Little Sutton Allocation, Site Name Reference SH11 Long/Little Sutton

Total site area (ha) 24.6 Current uses B2 / B8 Undeveloped land (ha) 11.3 ha Number of units 2 major occupiers

Grid reference 544915 322160 Sequential status N/A (offices only) Site status Allocated employment site Density High (where developed)

Criteria Comment Score (out of 5) Strategic access Adjoins A17 strategic transport corridor (east-west) close to existing roundabout 3 access with the A1101. Site access via local roads (B1359 and London Road). Junction between the B1359 and Bridge Road problematic for larger HGVs. Second access directly off A17 (Hundreds Lane) but unsuitable for HGVs. Local accessibility Multiple access points to the site along Bridge Road. Junctions are narrow with 2 (local road access and short or non-existent access routes through the site. Route to A17 corridor is public transport) via poor, narrow and winding local roads (B1359) with likely difficulties for HGV access. Hundreds Lane runs through the site which is a narrow/singe track with no passing points. Evidence of parking and unloading along this route causing conflict with other vehicles. Existing bus routes along Bridge Road. Proximity to urban areas Relatively isolated site outside the main urban area of Little Sutton by 2 and access to labour & approximately 1km with some access to the local workforce and local service services provision. Compatibility of adjoining Surrounded by existing employment areas and open space on all sides 5 uses therefore no sensitive uses nearby. Development and Large greenfield site, level and regular in shape. No obvious environmental 3 environmental constraints constraints although electricity pylons run through part of the allocated land. Entirety of the site falls within flood zone 3, albeit the site is protected by flood defences. Market attractiveness Relatively high profile site with road frontage along secondary roads 4 (Bridge/London Road) and strategic access via the A17. The site is occupied by a well known, high quality occupier (Princes Foods). The site is well established with no apparent vacancies. The site is busy and appeared disorganised and tired in parts. Some signs of investment/new build development in the site next door. Planning factors Major Employment Area and Major Employment Proposal under Policy EC1. Within settlement boundary around the existing site and allocation. Barriers to delivery Existing infrastructure (Hundreds Lane) will need upgrading and creation of an adequate access onto the A17 would be costly. Site servicing would need to be extended to the undeveloped areas of the site. Existing electricity pylons to be accommodated/relocated. Potential uses B1 / B2 / B8 Timescale/availability Short-medium term subject to site infrastructure and servicing. Total Score: 19 [Scoring: 5 = best, 1 = worst]

3068784v1 Bridge Road Industrial Estate, Site Name Reference SH12 Little/Long Sutton

Total site area (ha) 0.4 Current uses B2 / B8 Some limited B1c Undeveloped land (ha) 0 (area of land to the rear now Number of units 7 developed) Grid reference 544096 322380 Sequential status N/A (offices only) Site status Unallocated existing employment Density High site

Criteria Comment Score (out of 5) Strategic access Very close to A17 strategic transport corridor (east-west) close to existing 3 roundabout access with the A1101. Site access via local roads (B1359 and London Road). Junction between the B1359 and London Road could create problems for some larger HGVs. Second access directly off A17 (Hundreds Lane) but unsuitable for HGVs. Adequate access for existing occupiers/uses. Local accessibility Dedicated access road off Bridge Road and adequate junction onto Bridge Road 3 (local road access and but route to A17 corridor is via poor, narrow and winding local roads (B1359) public transport) with likely difficulties for HGV access. Dedicates parking areas for individual units. Turning/manoeuvring space more constrained but adequate for the present use. Existing bus routes along Bridge Road. Proximity to urban areas On the edge of Little Sutton with access to local workforce and limited local 3 and access to labour & services. services Compatibility of adjoining Surrounded by industrial/commercial uses to the east and west with open 4 uses space to the south. Residential development lies to the north but separated by the road. Development and No available land for development. No obvious environmental constraints, 3 environmental constraints adverse ground conditions or abnormal development costs. Entirety of the site falls within flood zone 3, albeit the site is protected by flood defences. Market attractiveness Small scale industrial park within a secondary location outside the major towns 4 and centres of industry, with visibility from local roads (Bridge Road). The site is fully let, well used and well maintained, and actively managed. Recent investment in the form of a new unit on land to the south of the site. Planning factors The site is not the subject of any allocations or designations, and falls just outside the settlement boundary of Little Sutton. Barriers to delivery No land available for development. Potential uses B1 and small scale B2/B8 Timescale/availability N/A Total Score: 20 [Scoring: 5 = best, 1 = worst]

3068784v1 Site Name Fleet Road Industrial Estate, Holbeach Reference SH13

Total site area (ha) 2.9 Current uses B1c / B2 / B8 / Sui Generis / Retail Undeveloped land (ha) 0.3 ha – land to rear of existing unit Number of units 34

Grid reference 537173 325029 Sequential status Out of centre (offices only) Site status Unallocated existing employment Density Medium – High area

Criteria Comment Score (out of 5) Strategic access Relatively close to A17 corridor via local roads (B1515 and Church Street or 3 Foxes Low Road), all of which have direct access onto the A17. Local accessibility Route from the A17 is via local roads and through residential areas, albeit HGV 3 (local road access and access can be achieved via the main road through Holbeach (B1515). Site public transport) access junction appears adequate. Site has a dedicated access road through the site off which the individual units take their access. Sufficient space for off street parking and ability to manoeuvre within the site. Existing bus stops on the B1515. Proximity to urban areas Close to the centre of Holbeach with access to local labour force and local 4 and access to labour & service provision. Bus services along the B1515. services Compatibility of adjoining Surrounded by residential development except open countryside to the east. 3 uses Development and Majority of the site is developed, only small infill opportunities available and a 3 environmental constraints potential opportunity to the rear of one of the units. No obvious environmental constraints. Entirety of the site falls within flood zone 3, albeit the site is protected by flood defences. Market attractiveness Established and well used industrial estate. Relatively well maintained and 4 actively managed. Range of age and size of units with some new units indicating recent investment in the site, and low vacancy. Planning factors Existing employment site unallocated in the Local Plan. No other relevant allocations. Within the settlement boundary of Holbeach. Barriers to delivery Site is fully developed with only limited infill opportunities. Potential expansion land to the north east although not currently identified/allocated for development. No scope for expansion within the current settlement boundary and any expansion would require a suitable access point. Potential uses B1. B2 and B8 providing this was small scale and compatible with surrounding residential uses. Timescale/availability Fully developed. Any potential expansion land would be in the longer term. Total Score: 20 [Scoring: 5 = best, 1 = worst]

3068784v1 Land to the West of Holbeach Site Name Reference SH14 Allocation

Total site area (ha) 10.0 Current uses N/A Undeveloped land (ha) 10.0 Number of units N/A

Grid reference 535002 325601 Sequential status Out of centre (offices only) Site status Allocated employment site within a Density N/A wider urban extension

Criteria Comment Score (out of 5) Strategic access Immediately adjacent to the A17 at its junction with the A151 with potential to 4 provide direct access onto important strategic east-west routes and avoid the need for access via local roads. Local accessibility Current site access limited to narrow track; future development would require 5 (local road access and significant new access including potentially delivery of roundabout on A17. public transport) Reasonable public transport access with nearest bus stops serving residential areas 300m to the south west. Proximity to urban areas On edge of Holbeach with access to local workforce. Access to local services 3 and access to labour & (supermarket etc) within Holbeach centre approximately 1km south east. services Allocated as a proposed urban extension providing further local residents/potential workforce, accessibility by public transport etc. Compatibility of adjoining Residential development located to the north and east, and an allocation for 3 uses residential development immediately to the east and south. Existing dwellings/farm buildings immediately to the north and south. Development and Flat site, regular in shape, more than 3 ha in size. Greenfield site with no 4 environmental constraints adverse ground conditions or abnormal development costs. No obvious environmental constraints although drainage channels appear to run through the site. The entirety of the site is in flood risk 3, albeit the site is protected by flood defences. Market attractiveness High profile site with good visibility from the A17/A151, with potential to service 3 more strategic and local employment needs Isolated from existing employment areas. Planning factors Allocated as a Major Employment Area under EC 1 within a wider urban extension (Policies HS3; EC1 and SG6). Within the settlement boundary of Holbeach. Barriers to delivery Upfront costs associated with providing site access, infrastructure and servicing is a significant barrier to development. Significant costs associated with upgraded junction/roundabout access to link to the A17. Potential uses B1 / B2 / B8. Consider extension of additional residential development onto the site. Timescale/availability Short term –allocated and available for development subject to infrastructure and servicing.

Total Score: 22 [Scoring: 5 = best, 1 = worst]

3068784v1 South East Lincolnshire Employment Premises & Land Review

Appendix 6 Future Requirements by Local Authority Area

3068799v1

South East Lincolnshire Employment Premises & Land Review

3068799v1

South East Lincolnshire Employment Premises & Land Review

Employment Space Requirements by Local Authority Area (Figures are broad estimates and should be regarded as indicative)

Table A6.1 Gross Floorspace Requirement by Scenario (m2) - Boston Scenario Labour Demand Past Development Rates

4 Lower 5 Labour 1 Baseline 2 Higher Job 3 Past Take- Future Supply Job Growth Growth Up Use Continues Take-Up Growth

Offices (B1a) 5,800 5,800 17,500 14,450 7,400

Industrial 17,700 19,000 128,100 97,200 83,800 (B1c/B2/B8)

All B Uses 23,500 24,800 145,600 111,650 91,200

Table A6.2 Gross Floorspace Requirement by Scenario (m2) – South Holland Scenario Labour Demand Past Development Rates

4 Lower 5 Labour 1 Baseline 2 Higher Job 3 Past Take- Future Supply Job Growth Growth Up Use Continues Take-Up Growth

Offices (B1a) 17,700 17,700 48,700 36,000 14,900

Industrial 63,600 70,000 125,300 102,650 170,100 (B1c/B2/B8)

All B Uses 81,300 87,700 174,000 138,650 185,000

Table A6.3 Gross Land Requirement by Scenario (ha) – Boston Scenario Labour Demand Past Development Rates

4 Lower 5 Labour 1 Baseline 2 Higher Job 3 Past Use Future Supply Job Growth Growth Take-Up Continues Take-Up Growth

Offices (B1a) 1.3 1.3 4.1 3.3 1.7

Industrial 4.5 4.7 32.0 24.3 21.0 (B1c/B2/B8)

All B Uses 5.8 6.0 36.1 27.6 22.7

Table A6.4 Gross Land Requirement by Scenario (ha) – South Holland

Scenario Labour Demand Past Development Rates

2 Higher Job 3 Past 4 Lower 5 Labour 1 Baseline Use Growth Take-Up Future Supply Job Growth Continues Take-Up Growth

Offices (B1a) 4.1 4.1 11.1 8.3 3.4

Industrial 15.8 17.6 31.4 25.7 42.5 (B1c/B2/B8) All B Uses 19.9 21.7 42.5 34.0 45.9

Note: All figures rounded. Labour supply based estimates are derived by splitting S E Lincs total based on planned housing levels by district; other estimates adjusted where necessary to match S E Lincs total requirement.

3068799v1

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