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Stockport Local Plan Representations to the Issues Paper

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Stockport Local Plan Representations to the Issues Paper Report Stockport Local Plan Representations to the Issues Paper Norfolk House On behalf of Quorum 7 Norfolk Street Manchester Estates Limited M2 1DW October 2017 T: +44 (0)8449 02 03 04 F: +44 (0)161 956 4009 gva.co.uk Quorum Estates Limited Contents Contents 1. Introduction ............................................................................................................................................ 1 2. Jobs: Questions 3 and 4 ........................................................................................................................ 2 3. Green Space: Question 15 ................................................................................................................. 10 4. Bredbury Gateway – Additional Considerations ............................................................................. 13 5. Conclusions .......................................................................................................................................... 16 Appendices Appendix I Site Location Plan Appendix II Distribution of Advanced Manufacturing Employment in Stockport Appendix III Distribution of Unemployment Author: Hollie Bryant, Principal Planner Reviewer: Nicola Rigby, Director Issue: Final Issue Date: October 2017 For and on behalf of GVA Grimley Limited October 2017 gva.co.uk Quorum Estates Limited Representations to Stockport Local Plan 1. Introduction 1.1 GVA is instructed by Quorum Estates Limited (“Quorum”) to submit representations to the Stockport Local Plan Issues Paper, July 2017, on their behalf. 1.2 Quorum control 29 hectares of land located to the East of Ashton Road, Bredbury in its entirety through an exclusive option agreement with the landowner, and in that capacity have previously promoted the site to the Greater Manchester Spatial Framework (GMSF). 1.3 A site location plan depicting the extent of land East of Ashton Road is attached at Appendix I. The site has historically been referred to as “Bredbury Industrial Estate Extension”, “Bredbury Extension” and as within the Local Plan Issues Paper as “land East of Ashton Road”. Within the remainder of this report it is referred to as “Bredbury Gateway” – in line with promotion materials now being prepared by the site promotor. 1.4 The site, which is located within Stockport Council’s administrative boundary, has been proposed for large scale industrial and warehouse development through the draft GMSF (October 2016). As illustrated by these representations there is a clear case for the allocation of this site having regard to its strategic importance to Stockport and Greater Manchester and to the delivery of the aims of the emerging Stockport Local Plan. It has particularly been noted to be significant in terms of scale, ability to attract inward investment and its deliverability. 1.5 We trust that the comments provided within this document are helpful and will be considered by Stockport Council prior to the next iteration of the Stockport Local Plan. The document has been structured to respond to specific questions posted within the Issues Paper within Sections 2 (Jobs) and 3 (Green Belt), and within Section 4 summarises additional considerations within the wider case for Bredbury Gateway: Section 2: Jobs: Issues Paper Questions 3 and 4 Section 3: Green Space: Issues Paper Question 15 Section 4: Bredbury Gateway – Additional Considerations Section 5: Conclusions October 2017 gva.co.uk 1 Quorum Estates Limited Representations to Stockport Local Plan 2. Jobs: Questions 3 and 4 2.1 Section 3 of the Issues Papers relates to jobs – including both the creation and retention of employment opportunities across Stockport. Questions 3 and 4 specifically ask: Question 3 What types of jobs should there be in Stockport, where should they be and what should happen to the existing areas where people work? Question 4 Do you have any other comments about jobs, shops and services in Stockport? 2.2 In response to these questions posed the following should be noted: 2.3 We support the view that Stockport benefits from a mix of businesses across growing sectors of the economy, and with the intention to create the conditions for, and harness the benefits of, a thriving local economy. 2.4 The need to protect and deliver jobs to enable Stockport to grow sustainability is also supported – rather than promoting Stockport as a dormitory location. The Issues Paper rightly recognises the need to ensure space for businesses to develop and thrive. The Issues Paper refers to small and medium enterprises, but should also note the need to ensure a land supply to accommodate inward investment in Stockport – something which has been lacking in recent years. 2.5 Section 3 of the Issues Paper focuses on Stockport town centre / town centre related growth. We believe that this underestimates or does not fully recognise the wider definition of ‘jobs’ relating specifically to a recognised opportunity for B2/B8 (manufacturing and distribution related) growth within Stockport and the wider Manchester Combined Authority area. 2.6 It is our opinion that providing appropriate and sufficient space for B2/B8 jobs will align with both local regeneration priorities and labour force attributes, and will respond to a national and local market opportunity to attract investment. Nature of the B2/B8 Market 2.7 The main driver for the national industrial and logistics market over recent years has been the growth of the ecommerce sector. The need to satisfy consumer demand across multiple channels is forcing retailers to ask more of their supply chains which is having a consequential effect on the sector. Ecommerce is not only growing rapidly, but it is evolving as retailers have October 2017 gva.co.uk 2 Quorum Estates Limited Representations to Stockport Local Plan to cope with higher inventory levels, increased deliveries and high return volumes. Parcel couriers have expanded their delivery networks to meet this demand allied to requirements for ever more convenient delivery times, whilst at the same time traditional retailers continue to invest in “click and collect” and “ship from store”. 2.8 Nationally 2016 was a strong year for take up, led by the e-retail sector. Take up of units over 100,000 sq ft totalled 28.5million sq ft. In this context, retailors were the most active sector (62% of all take up), with Amazon accommodating over 8million sq ft of all take up over this period. 2.9 In the first half of 2017, take up nationally amounted to 11 million sq ft, just below the 5 year average of 11.3million sq ft. In the same period, take up from the internet / e-retail sector was down, while take up in manufacturing increased from 17% to 28%. 2.10 The North West market replicates this picture and companies at the forefront of this retail revolution in the North West include: Amazon, The Hut Group, Misguided and Boohoo, all of whom are growing at a staggering rate. 2.11 Within the North West take up during 2016 totalled 4.2million sq ft, with Amazon occupying 1million sq. ft. 2.12 In the first half of 2017, the take up of new speculative sheds comprised 582,000 sq ft in two buildings. This level of take up is down from last year but reflects short term market sentiment rather than a long term market trend. 2.13 Other key drivers of the Greater Manchester industrial and logistics scene include: Retailers and discount retailers; Third party logistics operators; Parcel delivery companies; Expanding locally and regionally based occupiers seeking to expand or consolidate; Manufacturers, who in the case of advanced manufacturing tend to cluster such as - automotive, rail, aerospace, pharmaceuticals, life sciences, paper and support engineering to all of these sector and more; Service and maintenance companies; SMEs in manufacturing, support and distribution sectors; 2.14 All these sectors come together to provide the full industrial sector offer across the Greater Manchester area with the typical user split over many years being 80% B8/ 20% B2 across the entire size range. October 2017 gva.co.uk 3 Quorum Estates Limited Representations to Stockport Local Plan Greater Manchester Context 2.15 Across the Greater Manchester area and nationally, a case can be made for significant growth in the industrial and distribution sectors: - The period 2007/08 – 2011/12 suffered depressed take up rates especially of newly built stock as a result of the worst recession and aftermath since the 1930s i.e. this was a once in a lifetime event; - New build completions for 2016 were more than double the annual projected take up rate; - The retail revolution in logistics will continue to reinvent itself and new players continue to emerge, just as we have seen in the recent past with companies like Amazon, Ocado, Boohoo, B&M, Poundland, The Hut Group. - “Reshoring” of manufacturing cannot be ruled out as labour costs rise and currencies strengthen in emerging regions such as China, South East Asia and Eastern Europe, as their respective economies mature and living standards improve. - The sheer speed and scale of take up as prime sites are made oven ready and brought to the market demonstrates the scale of demand, examples include: o Kingsway Business Park, Rochdale 1.5 million sq ft 2011 – 2017; o Logistics North, Bolton 2 million sq ft 2014 – 2017; o Omega, Warrington 3 million sq ft 2012 – 2017. - The population is growing faster than at any time in 60 years with 80 million projected by 2050, with an attendant rise in consumer demand and growing labour pool. 2.16 The industrial and logistics market within the Greater Manchester conurbation has recovered strongly from the 2008 financial crisis. Since 2012 the market has seen increasing take up rates of Grade A stock. Initially this was led by build to suit development in the absence of fund intervention but as confidence returned so has spec build; in 2016 this accounted for over 50% of completions within the 10 Greater Manchester authorities. 2.17 Across the North West in 2016 there was take up of 4.3 million sq ft in units in excess of 100,000sq ft. 2.18 To date in 2016 we have seen 4,050,000 sq ft of completions in units in excess of 100,000 sq ft, of which 2,200,000 sq ft was speculatively built across Greater Manchester.
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