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Employment Land Review Final Report Stockton-On-Tees Borough

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Employment Land Review Final Report Stockton-On-Tees Borough Employment Land Review Final Report Stockton-on-Tees Borough Council 14 October 2016 22954/HE/RL Nathaniel Lichfield & Partners Generator Studios Trafalgar Street Newcastle NE1 2LA nlpplanning.com This document is formatted for double sided printing. © Nathaniel Lichfield & Partners Ltd 2016. 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 Employment Land Review : Final Report Contents 1.0 Introduction 1 Scope of the Study ........................................................................................... 1 Report Structure ............................................................................................... 2 2.0 Policy Review 3 National Documents ......................................................................................... 3 Sub-Regional Documents ................................................................................ 6 Local .............................................................................................................. 10 3.0 Economic Context 12 Geography and Connections .......................................................................... 12 Functional Economic Market Area.................................................................. 13 Economic Conditions and Trends .................................................................. 15 Labour Market Conditions .............................................................................. 20 SWOT Analysis .............................................................................................. 24 4.0 Growth Sectors 26 Strategic Economic Plan: Priority Sectors ...................................................... 26 Priority Sectors: Local Performance ............................................................... 26 5.0 Understanding Business Needs 31 Business Survey ............................................................................................ 31 Stakeholder Interviews ................................................................................... 38 Duty to Co-operate Workshop ........................................................................ 42 6.0 The Market for Employment Premises in Stockton 45 Tees Valley .................................................................................................... 45 The Office Market .......................................................................................... 53 The Industrial Market ..................................................................................... 59 7.0 The Supply of Employment Land in Stockton 66 Context .......................................................................................................... 66 Sub-Region .................................................................................................... 69 Stockton-on-Tees ........................................................................................... 71 8.0 Future Requirements for B Class Employment Space 79 Methodology .................................................................................................. 79 a. Baseline Employment Forecast .................................................................. 80 b. Past Take-Up Rates ................................................................................... 85 c. Labour Supply Scenario ............................................................................. 89 Net Employment Space Requirements .......................................................... 92 12477262v1 : Net to Gross Adjustments .............................................................................. 92 Gross Employment Space Requirements ....................................................... 93 Sensitivity Testing .......................................................................................... 96 Summary ....................................................................................................... 98 9.0 Non-B Class Sectors 101 Historic Demand .......................................................................................... 101 Growth Potential by Sector ........................................................................... 102 Sector Drivers .............................................................................................. 104 10.0 Demand Supply Balance 110 Quantitative Balance .................................................................................... 110 Rationalising the Future Supply of Land ....................................................... 111 Qualitative Issues ......................................................................................... 116 Specialist Use Sites ..................................................................................... 116 11.0 Conclusions 120 Overview of Stockton’s Economy ................................................................. 120 Functional Economic Market Area ................................................................ 120 Market Overview .......................................................................................... 121 Meeting Future Needs .................................................................................. 122 12477262v1 Employment Land Review : Final Report 1.0 Introduction 1.1 Stockton-on-Tees Borough Council (SBC) appointed Nathaniel Lichfield & Partners (NLP) and Lambert Smith Hampton (LSH) to prepare an Employment Land Review (ELR) for the local authority area. The study is intended to provide SBC with an understanding of: The Borough’s current position with respect to employment land supply (in both qualitative and quantitative terms); and The anticipated future growth trajectory of the Borough’s economy and the implications of this with respect to demand for employment land over the period 2017 to 2032. 1.2 The methodological approach applied in undertaking the study has regard to the National Planning Policy Framework and the Planning Practice Guidance. It also takes into account the Employment Land Reviews: Guidance Note ‘Brown Book’ published by ODPM in 2004. Scope of the Study 1.3 The purpose of this ELR is to provide evidence in order to support the development of SBC’s Local Plan. It is not a policy or strategy document per se, but instead provides an evidence base input to specific planning or economic development policies being developed by the Council. 1.4 The principal role of the ELR is to provide SBC with an understanding of current and potential future requirements for employment land. This draws upon a range of scenarios underpinned by various alternative modelling techniques. For each scenario, the land and floorspace implications are specifically considered for the group of B class sectors outlined below: B1 Business (offices, research & development, light industry); B2 General Industrial; and B8 Storage and Distribution (wholesale warehouses and distribution centres). 1.5 Demand for B class employment land and floorspace is considered in this report and references to “employment space” are intended to relate to both. References to “industrial space” relate to both manufacturing and warehousing/distribution uses. 1.6 In addition to assessing future B class space needs, the ELR also considers future projections for growth in non-B class sectors, taking into account how the overall economy of the area could change in the future. It is important to note that the study does not specify the space implications associated with anticipated future change within each of these sectors, however. This is because individually they are – or should be – subject to separate, detailed reviews of future requirements and capacity planning through their own 12477262v1 P1 Employment Land Review : Final Report regulatory/statutory bodies (i.e. Health Trusts/Education Authorities/Tourism Boards) and by applying different methodological approaches. 1.7 An important consideration for work of this type is that it is inevitably a point-in- time assessment. The study has, however, drawn upon the latest data and other evidence available at the time of preparation. The accuracy and sources of data derived from third part sources have not been checked by NLP or LSH. Report Structure 1.8 The remaining sections of this report are structured as follows: Policy Review (Section 2.0) – a summary of key planning policy and economic strategy documents from the national to the local level; Economic Context (Section 3.0) – a review of current economic conditions and recent trends in Stockton and its economic strengths and weaknesses; Growth Sectors (Section 4.0) – focuses on the opportunities presented by those key growth sectors identified within the Strategic Economic Plan for the Tees Valley; Understanding Business Needs (Section 5.0) – a summary of key messages identified through consultation with local businesses, stakeholders and commercial agents; The Market for Employment Premises in Stockton (Section 6.0) – analysis of the current stock and trends of employment space in Stockton and the wider Tees Valley; The Supply of Employment Land in Stockton (Section 7.0) – a review of the current availability of employment land and the extent to which it is immediately available; Future Requirements for B Class Employment Space (Section 8.0) – presents
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