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Taunton Deane Economy Topic Paper Final Report 2010

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Taunton Deane Economy Topic Paper Final Report 2010 Roger Tym & Partners t: 01392 210868 11-15 Dix's Field e: 01392 210869 Exeter e: [email protected] Devon EX1 1QA w: www.tymconsult.com Taunton Deane Borough Council Taunton Deane Economy Topic Paper Final Report Final Report December 2010 Taunton Deane Economic Topic Paper This report is the property of Roger Tym & Partners unless alternative contractual arrangements have been made. If there are such alternative arrangements, Roger Tym & Partners retains ownership of the report until such time as its fees have been paid in full. Copyright and other intellectual property laws protect this information. Reproduction or retransmission of the information, in whole or in part, in any manner, without the prior written consent of the copyright holder, is a violation of copyright law. A645a Taunton Deane Economic Topic Paper CONTENTS 1 INTRODUCTION ............................................................................................... 1 The Economic Topic Paper ............................................................................... 1 Jobs Targets to 2027 ......................................................................................... 1 2 TAUNTON DEANE ECONOMY ......................................................................... 4 Introduction........................................................................................................ 4 Strategic Context ............................................................................................... 4 Current Economic Performance ......................................................................... 9 Future Economic Performance ........................................................................ 11 3 KEY SECTORS ............................................................................................... 15 Introduction...................................................................................................... 15 B-Space Sectors ............................................................................................. 15 Non B-space Sectors ....................................................................................... 16 The Green Economy ....................................................................................... 18 4 EMPLOYMENT SPACE REQUIREMENTS ..................................................... 25 Introduction...................................................................................................... 25 B-Space Requirements ................................................................................... 25 Non B-Class Requirements ............................................................................. 27 Green Economy Space Requirements ............................................................. 30 5 EMPLOYMENT SITES .................................................................................... 32 Introduction...................................................................................................... 32 Market Overview of Employment Space .......................................................... 32 Qualitative Assessment of Sites ...................................................................... 34 Quantitative Assessment of Sites .................................................................... 44 Employment Land Strategy ............................................................................. 49 6 CONCLUSIONS .............................................................................................. 52 Future Growth ................................................................................................. 52 Employment Land Supply ................................................................................ 53 Monitoring and Review .................................................................................... 54 APPENDICES Appendix 1 - The Taunton Deane Economy Appendix 2 - Sector Definitions and Conversions to Space Requirements Taunton Deane Economic Topic Paper Taunton Deane Economic Topic Paper 1 INTRODUCTION The Economic Topic Paper 1.1 The purpose of this Economic Topic Paper is to guide employment land policy and site allocations appropriate to the Taunton Deane Core Strategy, the current Urban Extensions Study (UES) and other strategic development initiatives. The Topic Paper therefore needs to provide an adequate evidence base to support sound proposals, to provide a coherent analysis of employment land requirements which are consistent with established economic aspirations and strategy for the Borough. 1.2 The Topic Paper starts with an overview of jobs and housing alignments to inform the requirements for employment land, which is set out in the rest of this section. Further sections are then set out as follows: . Section 2 reviews relevant plans and strategies to outline the local economic development priorities and objectives that may provide drivers for future growth and employment land policy. Section 3 reviews the Taunton Deane Borough and Taunton SSCT job forecasts to identify which sectors are projected to grow and which sectors require space to support this growth. Section 4 forecasts the demand for employment land based on employment forecasts and compares them with supply in quantitative terms. Section 5 assesses the allocated sites and sites identified for employment use in the Stage 1 Taunton Deane Employment Land Review, in terms of their broad market and deliverability potential to meet the identified requirements. Conclusions, including recommendations on future site allocations, are in Section 6 Jobs Targets to 2027 1.3 The Economic Topic Paper focuses on a 21 year planning horizon, from 2006 to 2027 to align with the emerging Taunton Deane Core Strategy. Before identifying the need for additional employment space and employment policies within the Taunton Deane Core Strategy, an appropriate and realistic job target for this period needs to be established. 1.4 There have been a number of studies that identify a range of employment change projections for Taunton Deane Borough. The Council’s Economic Development Strategy (EDS) prepared by GeoEconomics (2010) reports a range of studies conducted between 2005-08 which contain employment and/or floorspace projections for Taunton Deane or Taunton travel-to-work-area (TTWA). To these can be added the subsequent forecast produced by Cambridge Econometrics (CE) for the revoked South West RSS. The EDS also sets an objective to create 16,500 jobs over the period to 2026, which would be an aspirational increase of nearly 30% even before considering the impact of the recent recession. These figures are identified in Table 1.1. Final Report | December 2011 1 Taunton Deane Economic Topic Paper Table 1.1 Range of Taunton Deane Employment Forecasts1 2006 2026 2006-26 %p.a. CE RSS 2.8% GVA 62,300 73,300 11,000 0.8% CE RSS 3.2% GVA 62,300 76,100 13,800 1.0% GeoEconomics (2010) 59,000 74,125 15,125 1.1% Taunton EDS (2010) 59,000 75,500 16,500 1.2% Source: GeoEconomics (2010) 1.5 Since all these forecasts were produced, the UK economy has been through its longest and deepest recession of the post–war era, resulting in current forecasts being below those set a few years earlier. For example, more recent employment projections for the South West forecast an annual GVA growth of 2.4% per annum compared with the RSS target 2.8% and 3.2% annual GVA growth rates. 1.6 Given the current conditions and revised projections, the lower 2.8% annual Regional GVA growth target is considered an appropriate and more realistic target to plan for. (Further explanation on why this preferred scenario has been selected is provided in Section 2.) To achieve this target future scenario, Taunton Deane Borough would be expected to support a growth of a net additional 11,000 jobs between 2006 and 2026. 1.7 Whilst there have already been changes recorded in the economy since 2006, not least with the arrival of new employment data for 2007 and 2008, no adjustment has been applied in moving the employment base forward two years. This is because employee data for Taunton Deane in the Annual Business Inquiry (which unfortunately excludes self employed workers) for the years 2006 to 2008 show a reduction in employment numbers between 2006 and 2007 and then the apparent modest recovery in 2008, demonstrating some volatility but with limited net change over this period. 1.8 Also, during the preparation of this Topic Paper, the Council decided to change the end date covered by the Core Strategy from 2026 to 2027. Much of the evidence base work used in this Topic Paper is to 2026; however it is unnecessary to make any adjustments because the GVA growth rates are reasonably aspirational, particularly in the short term, and an additional planning year is unlikely to change this position. In other words we consider it realistic to expect the employment projections to be achieved over 21 years rather than 20 years. So, for the ease of referencing with the Core Strategy, the proposed planning targets in this Topic Paper should reflect the period to 2027 and not 2026, however we show data as 2026 where it comes directly from an external source (as in Section 2). 1 Other forecasts (for different years) include: Roger Tym & Partners (2003): 6,600-12,400 additional jobs in Taunton Deane between 2001 and 2021; Baker Associates (2005): 9,300-15,100; additional jobs in Taunton TTWA between 2001 and 2026; DTZ/CE: 7,600-9,800 additional jobs in Taunton Deane between 2006 and 2021. These forecasts projected growth
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