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Report by BBP Regeneration Coventry & Warwickshire Sub- Regional Employment Market Signals Study Report by BBP Regeneration For [Client] [Publication date] Based on Data Summer / Autumn 2018 Published April 2019 Based on Data Summer / Autumn 2018 Published July 2019 1 Report prepared by: Studio 432, Metal Box Factory 30 Great Guildford Street London, SE1 0HS [email protected] www.bbpregeneration.co.uk Job number: 2756 Version: FINAL Prepared by: Elena Kosseva / Dolapo David Checked by: Robert Bennett ([email protected]) Status: FINAL details Document © BBP Regeneration 2018 - Neither the whole nor any part of this report may be published in any way without prior consent. Disclaimer: This report is only for the benefit of the party to whom it is addressed, and no responsibility or liability is extended to any third party for the whole or any part of its contents. Whilst every effort has been made to ensure the accuracy of its content, the report has been prepared on the basis of information available at the date of publication and without any independent verification. 2 Contents 1. Introduction .................................................................................................................................... 6 2. Background/ Evidence Base and Benchmarking Review ......................................................... 9 National and Regional Policy and Trends ........................................................................................... 9 Coventry and Warwickshire Sub-Region ........................................................................................... 10 CWLEP Employment Land Review (2015) – Benchmarking the Key Issues ................................... 14 3. The Business Drivers of Demand .............................................................................................. 19 Current Business Base and Recent Trends ...................................................................................... 19 Current Employment and Recent Trends .......................................................................................... 21 Sectors Driving Future Economic Growth ......................................................................................... 23 Labour Market ................................................................................................................................... 23 Gross Value Added, Productivity and Competitiveness .................................................................... 25 Population, Housing and Commuting ................................................................................................ 25 4. Current Business Demand and Market Analysis ...................................................................... 29 Current Business Demand Issues ..................................................................................................... 29 Key Sites and Premises Issues for Business .................................................................................... 37 Future Business Demand for Sites and Premises in Coventry and Warwickshire............................ 37 5. The Current Supply of Land / Accommodation ........................................................................ 41 What is required for a successful economy - in terms of land and premises supply. ....................... 41 How does Land supply in the C&W area, meet Business Needs and either aid or impede economic activities? ........................................................................................................................................... 44 6. Supply Issues Emerging from the Consultations .................................................................... 50 7. Changing Business Requirements and Property Impacts ...................................................... 66 General and National Future Demand for Sites and Premises ......................................................... 66 Changing Property Market Trends/ Demand..................................................................................... 67 8. Going Forward – How Can the Public Sector Help Address These Issues ........................... 75 Policy Priorities .................................................................................................................................. 75 Public Sector Direct Interventions ..................................................................................................... 77 9. Conclusions ................................................................................................................................. 84 10. Recommendations ....................................................................................................................... 92 Annex A - Policy and Strategy Review ........................................................................................... 100 Annex B – Sites and Land Availability ............................................................................................ 105 Annex C - Economic Data Review ................................................................................................... 106 Annex D – UK Competitiveness ...................................................................................................... 118 Annex E – C&W Business Survey – Results and Analysis ........................................................... 119 Annex F – Property Market Review / Market Signals .................................................................... 129 3 Annex G – Local Plan - Land/ Site Supply Analysis ...................................................................... 134 Annex H - Office Land/ Site Supply Analysis ................................................................................. 142 Annex I – Traditional Industrial Estate Analysis ............................................................................ 144 Annex J - Land/ Site Supply Analysis by Local Authority ............................................................ 146 Annex K – Local Authority Managed Workspace .......................................................................... 152 Annex L - Employment Land Re-allocation and Protection Policies ........................................... 154 Annex M - List of Consultees ........................................................................................................... 162 4 Glossary Term Definition AME employment / logistics Advanced Manufacturing and Engineering BREEAM Building Research Establishment Environmental Assessment Method CPO Compulsory Purchase Order CWLEP The Coventry and Warwickshire Local Enterprise Partnership DPP Development Partner Panel EPC Energy Performance Certificate EPIC (in Nuneaton and Bedworth) Eliot Park Innovation Centre EZ Enterprise Zone FSB Federation of Small Businesses FT The Financial Times IE Industrial Estate IPD Investment Property Databank JLR Jaguar Land Rover JV Joint Venture LA Co Local Authority Company LEP Local Enterprise Partnerships LQ Location Quotient MIRA Motor Industry Research Association NNDR National Non-Domestic Rates NPPF National Planning Policy Framework PDR Permitted Development Rights PRS Private Rented Sector PWLB Public Works Loan Board R&D Research and Development SEP Strategic Economic Plan SME’s Small and medium-sized enterprises SPV Special Purpose Vehicle Turnkey Purpose built development to meet a company’s specific requirements VFM Value for Money 5 1. Introduction BBP Regeneration and Hardisty Jones have been jointly commissioned by the six Local Authorities within the Coventry and Warwickshire Housing Market Area (comprising Coventry City Council, North Warwickshire Borough Council, Nuneaton and Bedworth Borough Council, Rugby Borough Council, Stratford-upon-Avon District Council and Warwick District Council), along with Warwickshire County Council and the Coventry & Warwickshire Local Enterprise Partnership, to undertake an analysis and assessment of the market for employment land within the Coventry and Warwickshire sub-region. The purpose of this high-level study is to assess the current and likely future demands of business for employment land and accommodation across the sub-region and understand how the current and anticipated future supply of employment land meets the needs of the market in terms of quality, type, specification, size and affordability as well as how general changes in the market for employment uses are impacting on property requirements in Coventry and Warwickshire. This study provides an understanding of the sub-regional employment market, from a market perspective. Its findings will be used to both inform future discussions on potential public sector interventions and as part of the evidence to inform plan and policy-making to assist with the delivery of adopted and emerging plans as well as assist with the determination of planning applications. It will also feed into a full quantitative and qualitative assessment of employment land requirements to be undertaken under a separate commission once all the current round of local plans for the sub-region are in place. In the shorter term, the study identifies potential interventions for more immediate consideration and action. The following diagram shows the adopted approach to the research, analysis and consultations underpinning this piece of work and the key questions that we are aiming to answer as part of the study. Figure 1.1 Methodology Background, Evidence Base & Benchmarking Business Drivers of Demand
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