Council Local Development Plan 2011 –2026

Economy & Employment Topic Paper August 2013

www.npt.gov.uk/ldp Contents

1 Introduction 1 2 Background 3 3 Policy Context: National, Regional & Local 5 3.1 National Policy Context 5 3.2 Regional Policy Context 11 3.3 Local Policy Context 15 4 Current Situation and Trends 25 4.1 Economic Growth and Employment Land Provision 38 4.2 Employment Land Review and Allocations 47 4.3 Tourism and Other Growth Sectors 59 5 Summary of Consultation Responses 63 6 Issues to be Addressed 65 Deposit LDP - Economy & Employment Topic Paper (August 2013) 7 Objectives 69 8 Strategy Development 71 8.1 Pre-Deposit Strategy 71 8.2 Deposit Strategy 73 9 Strategic and Detailed Policy Development 77 Contents eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 1 . Introduction

1 Introduction

1.0.1 This topic paper is one of a range of papers prepared to offer more detailed information and to provide the approach taken in the Local Development Plan (LDP) in relation to different topics and issues affecting the County Borough.

1.0.2 This paper specifically considers the Economy and Employment.

1.0.3 The Deposit Plan is the second statutory stage of the plan and allows a further period of formal public consultation. Comments received at this stage will be considered by an Independent Planning Inspector who will hold an Examination In Public into the Plan. If the Inspector considers the Plan to be sound it will be recommended for adoption and once adopted it will supersede the current Unitary Development Plan (UDP), and be the primary document for use in the determination of planning applications in Neath Port Talbot.

1.0.4 This Topic Paper can be read in isolation or in conjunction with the other Topic Papers and Background studies/papers that have been prepared to give a full picture of (1)

Neath Port Talbot. Deposit LDP - Economy & Employment Topic Paper (August 2013)

1.0.5 It is suggested that this document is read in conjunction with the Neath Port Talbot County Borough Council Employment Land Review (2012), and Economic Assessment and Employment Land Provision for and Neath Port Talbot, Peter Brett Associates (2012).

1

1 The information contained within this Topic Paper is correct as of the date sent to print. 1 . Introduction eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit

2 2 . Background

2 Background

2.0.1 Neath Port Talbot County Borough is located at the centre of the South economy. It benefits from direct access via the M4 to Swansea and West Wales, Cardiff, London and the South East of England. Furthermore, the A465 provides access to the Heads of the Valleys with linkages to the East Midlands. Due to its geographical location the area has a large travel to work area which extends to Swansea, Llanelli, Bridgend and increasingly includes Cardiff and Eastern Valley areas.

2.0.2 The employment opportunities within the County Borough help to meet a regional need and support the role of the City of Swansea which is identified in the Wales Spatial Plan (WSP) as the powerhouse for economic growth for the Waterfront and Western Valleys region and the Economic Growth Strategy for South West Wales which supports the recently launched Swansea Bay City Region.

2.0.3 The area has a strong mix of manufacturing and service sector industries and a share of well-known companies with specific expertise in steel, electronics, automotive components, general and precision engineering. The Corus Group, taken over by India's

Tata Steel in early 2007 created the world's fifth-largest steel group and is one of the main Deposit LDP - Economy & Employment Topic Paper (August 2013) employers in the area. It directly employs some 3000 people in its plant in Port Talbot and also provides numerous contracting opportunities for local people and businesses.

2.0.4 Over recent years new developments have raised the profile of Neath Port Talbot. The Baglan Energy Park development, which has started to revive a formal industrial area, has won the British Urban Regeneration Association for best practice in regeneration. There remains additional scope for development of this site over the LDP period. Furthermore, Coed Darcy Urban Village is a mixed use housing-led development which will help to anchor growth in the Neath Port Talbot area and is anticipated to deliver business and industrial floor-space as part of the development. The new road scheme (Harbourway) will provide a link from Junction 38 (M4), through Port Talbot Docks and Baglan Energy Park and open up additional areas of land in the Docklands for redevelopment opportunities. A masterplan has been designed for the central Port Talbot area and a mixed use development scheme encompassing residential, bulky goods retail, leisure, office, business and storage opportunities will lead to the redevelopment of the Harbourside.

2.0.5 Despite a high proportion of the population employed within the manufacturing industry, the economy has diversified in recent years with an increase in the service sector and in light industry. Non traditional sectors such as tourism and leisure are becoming increasingly important while the coal industry has regained some momentum and employs increasing numbers in the Upper Neath Valley and the Afan Valley in particular. 3 2.0.6 Employment opportunities have tended to focus along the coastal corridor and within the urban areas of Neath and Port Talbot with limited development within the Valley communities. Many of the Valley communities developed around the coal industry and since its decline they have failed to attract new employment opportunities over recent years due to market forces. 2 . Background

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 2.0.7 The Welsh Government’s central economic objective is to deliver strong and sustainable economic growth through the promotion of a diverse, competitive, and high added value economy. Drafting policies aimed at achieving these objectives will be a fundamental aspect of the LDP. The Plan will need to ensure that an adequate supply of employment land is available to offer employment opportunities and stimulate economic growth for the local economy and the wider region. One of the overall aims of the LDP is to designate enough employment land to meet Neath Port Talbot’s identified needs and ensure the needs of new and existing businesses and residents can be met.

2.0.8 Since the Pre-Deposit consultation a further study was commissioned by NPTCBC and the City and County of Swansea: PBA (2012) Economic Assessment and Employment Land Provision for Swansea and Neath Port Talbot. This study, together with other background evidence resulted in a higher level of growth from that set out within the Pre-Deposit Plan. The revised level of growth now more accurately aligns with NPT's vision and objectives to address the Authority's key issues.

2.0.9 As a result, the growth strategy for the LDP uses an economic led scenario which is more robust, using job growth and economic activity rates to influence the plan's requirement for employment land and the number of houses that will be required. Using this approach to project future growth has enabled the Authority ensure that housing and employment strategies in the LDP are aligned.

4 3 . Policy Context: National, Regional & Local

3 Policy Context: National, Regional & Local

3.1 National Policy Context

Planning Policy Wales 5 (2012)

3.1.1 The Economic Development Chapter of Planning Policy Wales (PPW) was revised in the 5th Edition. It states that planning policies for economic development must provide developers and others with scope to make choices to secure the efficient and effective use of resources including land. Plans and decisions must be based on up-to-date and locally specific evidence which demonstrates the suitability of the existing employment land supply in relation to the locational and development requirements of business. Local Authorities are therefore required to undertake, and keep under review, an Employment Land Review.

3.1.2 PPW 'stresses the need for using evidence for setting an economic vision, and guides development plans to follow a number of processes, including the following selected points: Deposit LDP - Economy & Employment Topic Paper (August 2013) "a broad assessment of anticipated employment change by broad sector and land use;

Targets on land provision for the employment uses (Classes B1-B8), showing net change in land/floorspace for offices and industry/warehousing separately

Include policies relating to future development on existing employment sites to protect them from inappropriate development

To encourage the regeneration and re-use of sites which are still suitable and needed for employment

To control and manage the release of unwanted employment sites to other uses

Seek to provide the right amount of land and qualitative mix of sites to meet the market demand for economic development uses"

3.1.3 The economy should also be supported through the planning system adopting a holistic approach and making provision for the needs of the entire economy (including non B class uses such as retail, leisure, health and public services) in addition to traditional employment land uses defined as B1, B2 and B8. Furthermore, more effective working and decision making should be promoted both within and between Local Authorities - Local Authorities are required to work collaboratively to ensure the Employment Land 5 Reviews are undertaken at an appropriate strategic level and they need to cooperate to ensure that development takes place in the most appropriate locations in Wales even if that is outside of their boundaries. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 3.1.4 PPW also identifies a series of measures which aim to promote diversification in the rural economy including the need for local authorities to encourage the growth of self employment and micro businesses in rural areas by adopting a supportive and flexible approach to homeworking; adopting a positive approach to development associated with farm diversification in rural areas; and supporting the expansion of existing businesses located in the open countryside provided there are no unacceptable impacts on local amenity.

3.1.5 Local planning authorities should also support the shift towards a low carbon economy and should seek to support the development of innovative and business and technology clusters.

3.1.6 A new Technical Advice Note aimed at providing further guidance on the preparation and use of Employment Land Reviews was published for consultation in June 2013.

Tourism

3.1.7 The tourism sector is identified in PPW as a 'significant and growing source of employment and investment, based on the country's cultural and environmental diversity and can be a catalyst for environmental protection, regeneration and improvements in both rural and urban areas.

3.1.8 The Welsh Government's objectives for tourism are:

To encourage sustainable tourism in Wales, promoting local prosperity and supporting well-being and involvement, while protecting and giving value to natural heritage and culture; and

To manage the tourism sector in ways which minimise environmental impact.

3.1.9 PPW recognises that tourism involves a wide range of activities, facilities and types of development throughout Wales. The planning system should encourage sustainable tourism in ways which enable it to contribute to economic development, conservation, rural diversification, urban regeneration and social inclusion, recognising the needs of visitors and those of local communities. In addition to supporting the continued success of existing tourist areas, appropriate tourist-related commercial development in new destinations, including existing urban and industrial heritage areas, should be encouraged.

3.1.10 The LDP should establish a strategic framework for the provision and enhancement of well designed tourism, sport, recreation and leisure facilities in the areas 6 they cover. They should consider the scale and broad distribution of existing facilities and activities and provide for the accommodation and management of future needs in ways which limit negative environmental impacts (including the consequences of climate change), protecting the landscape, biodiversity, the coast, the historic environment and areas of special interest, and the interests of local communities. They should take into account the 3 . Policy Context: National, Regional & Local

environmental, economic and social implications of likely future changes in the provision of these facilities and have regard to objectives for urban regeneration and rural diversification.

3.1.11 Furthermore, the diversification of farm enterprises and other parts of the rural economy for appropriate tourism, sport, recreation and leisure uses, subject to adequate safeguards for the character and appearance of the countryside, particularly its landscape, biodiversity and local amenity value should be encouraged.

The Wales Spatial Plan Update: People, Places, Futures (2008)

3.1.12 The Wales Spatial Plan sets a regional strategic agenda and encourages the concept of spatial planning. The Spatial Plan establishes a vision for The Swansea Bay: Waterfront & Western Valleys which is made up of Neath Port Talbot and Swansea unitary authority areas, together with large parts of Carmarthenshire and bordering parts of Bridgend and Powys. The plan aims to achieve an area of planned sustainable growth and environmental improvement, realising its potential, supported by integrated transport within the area and externally and spreading prosperity to support the revitalisation of West Wales’. Deposit LDP - Economy & Employment Topic Paper (August 2013)

3.1.13 The plan aims to achieve this through developing the waterfront area, revitalising Swansea as Wales’ second National City and enhancing transport links between inland communities and the coast.

3.1.14 The development of employment along the M4 corridor on sites within Port Talbot and Neath will make much use of existing brownfield land. The Plan outlines the importance of linking future employment strategies with existing proposals, including the Energy Park, Urban Village and SA1 Waterfront.

3.1.15 Specific propositions for achieving the plan's overall goal include:

Improved public transport needs to extend the labour market and create better accessibility to services, providing additional opportunities to inland valley communities.

Make decisions that maintain and enhance the facility of international gateways and corridors to maximise the potential opportunities these present for the area.

Continue to develop Swansea as the regional centre and second city with other centres benefiting from complementary development opportunities.

The area’s important port facilities provide the capacity for new port related activities, and an opportunity to explore the potential to release surplus land for other uses. 7 The University, Further Education colleges and Techniums should embed the knowledge economy within the area.

Heritage, landscape and activity tourism and leisure use should be developed in a sustainable manner, particularly in areas in need of regeneration. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 3.1.16 The plan focuses the development of the Swansea Bay region on the encouragement of a knowledge based economy, a sustainable environment, a vibrant waterfront and excellent national and international connections.

3.1.17 Key priorities for the region:

Develop a strong network of urban centres across the region – spread prosperity to surrounding smaller settlements,

Regenerate town / city centres,

Regenerate the coast,

Improve connectivity.

3.1.18 Key settlements identified which will play a central role in making the city region a success – 3 of which are within Neath Port Talbot:

Pontardawe / Clydach

Neath

Port Talbot

3.1.19 Priority in these areas is town centre regeneration.

3.1.20 Settlements have been identified as ‘supporting communities’ – key role on local service provision within the region. Four are located within Neath Port Talbot:

Ystalyfera / Ystradgynlais

Dulais Valley

Glynneath /

Upper Afan Valley

Aims and objectives:

Create sustainable places through co-location of housing, jobs, facilities / infrastructure 8 and leisure;

Recognise that the region has a diverse economic base and that it is important to maintain this and build upon strengths in existing and emerging sectors;

Build and support a knowledge based economy. 3 . Policy Context: National, Regional & Local

Technical Advice Note (TAN) 6: Planning for Sustainable Rural Communities (2010)

3.1.21 TAN 6 states that Planning Authorities should support the diversification of the rural economy as a way to provide local employment opportunities, increase local economic prosperity and minimise the need to travel for employment. TAN 6 identifies a range of issues which the development plan should consider and address including the identification of a diverse range of sites suitable for employment use, farm diversification and encouraging the growth of self-employment and micro-business by adopting a supportive approach to home-based working.

Technical Advice Note (TAN) 13: Tourism (1997)

3.1.22 TAN 13 provides guidance on tourism and states that the issues it raises should be addressed in preparing or revising development plans and may feature in development control decisions. Development plans may provide guidance on opportunities for larger scale or innovative projects, appropriate facilities for the countryside or designated areas and the provision of facilities in historic towns and seaside resorts.

Wales: A Better Country (2003) Deposit LDP - Economy & Employment Topic Paper (August 2013) 3.1.23 This sets out a strategic agenda for the Welsh Government. Its main intention with regard to the economy is to promote ‘a diverse, competitive and high added value economy with high quality skills and education that minimises demand on the environment’. This is in line with WGs national economic development strategy Winning Wales (2002) which states that, “The way forward is clear, we need to increase the number of new and growing businesses in modern economic sectors…we need to modernise the industrial structure of the Welsh economy to ensure that Wales has a higher share of employment in high growth, high skill and high value added industries and occupations, and moves up from the assembly line branch factory economy”.

3.1.24 The strategy also expresses the importance of encouraging innovation and entrepreneurship. These objectives are to be achieved by encouraging strong links between business and education institutions on matters such as recruiting, training, management development, international networking and technology transfer.

A Vibrant Economy (2005)

3.1.25 This document outlines WG’s strategic framework for economic development which aims to deliver strong and sustainable economic growth. Its approach for realising this vision is built around Wales’s core strengths, an increasingly skilled, innovative and entrepreneurial workforce; an advanced technology and knowledge base; strong communities; a stunning natural environment; and an exceptional quality of life. At the heart of the document is the objective of creating more employment and also raising the 9 quality of employment available to both raise the employment rate and the average earnings within Wales. The document states that WG will aim to achieve this by,

Supporting job creation;

Investing in community regeneration projects; 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Investing in transport networks and other economic infrastructure;

Attracting more high added value functions to Wales;

Helping businesses become more competitive by supporting other drivers to business growth: entrepreneurship, innovation investment and trade;

Creating an environment in which businesses can improve the adverse occupational mix and increase average added value per job with the consequent benefit for earning levels;

Helping to create a stable and favourable business environment through the public sector;

Improving Wales’s skills and qualifications profile;

Encouraging the growth of employment in the following high growth sectors – automotive, aerospace, agri-food, high technology, pharmaceuticals/bio-chemicals, financial services, creative industries, construction, hospitality, leisure and tourism and social care

Capturing the Potential - A Green Jobs Strategy for Wales (2009)

3.1.26 The One Wales programme looks to WG’s Capturing the Potential – A Green Jobs Strategy for Wales which identifies the importance of ‘green’ jobs in the context of transition to a more sustainable economy.

Economic Renewal: A New Direction (July 2010)

3.1.27 In response to the economic downturn WG has published Economic Renewal: A New Direction which stresses the importance of building the Welsh economy on the strengths and skills of its people and natural environment. It outlines its five priorities with regard to economic renewal following the economic downturn:

Investing in high quality and sustainable infrastructure,

Making Wales a more attractive place to do business,

Broadening and deepening the skills base,

Encouraging innovation, 10 Target business support where it adds the most value. 3 . Policy Context: National, Regional & Local

Vibrant and Viable Places (2013)

3.1.28 The Welsh Government recently published a new regeneration framework, with the vision that everybody in Wales should live in well-connected vibrant, viable and sustainable communities with a strong local economy and good quality of life.

3.1.29 The framework sets a number of national outcomes to achieve prosperous, learning and healthier communities. Under these outcomes a number of activities are supported including, improving levels of economic activity, supporting strong and diverse economies, supporting a skilled and confident workforce, supporting healthy and cohesive communities able to grow and work together, and good housing which is affordable and provides tenure choice.

3.1.30 The framework gives three principles for effective regeneration:

partnership, involving effective communication and joint working between and across all sectors, which embraces good practice, equality and innovation; strategy, underpinned by evidence-based programmes and combining dynamic leadership with robust governance, including monitoring and evaluation, to ensure value for money; and Deposit LDP - Economy & Employment Topic Paper (August 2013) sustainable development, the Welsh Government’s central organising principle, enabling long-term investment through locally conceived and delivered projects, within a shared overarching strategy.

3.1.31 The approach to achieving regeneration involves using robust evidence to inform strategies and investment decisions and combining improvements to places with support for the people who live in them.

3.1.32 A number of key priorities for investment are identified which includes a more targeted approach to successful place making resulting in more intensive investment in fewer places to maximise impact, Town centres serving 21st Century towns, Coastal communities and Communities First clusters.

3.2 Regional Policy Context

South West Wales Economic Forum (SWWEF)

3.2.1 The Forum was established in 1997. Its aim is to promote the economic growth and development of South West Wales. It is a vehicle for co-ordinating and promoting action on issues of agreed regional importance, undertaking research into regional economic issues and liaising with government and other agencies.

3.2.2 The Forum covers Carmarthenshire, Neath Port Talbot, Pembrokeshire and 11 Swansea. It consists of delegates from seventeen organisations representing businesses, local government, higher education and voluntary sectors.

3.2.3 SWWEF sets out the regions' aspirations for the economy and aims to promote the economic regeneration and growth of South West Wales. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 3.2.4 Its aspirations include:

Move towards a knowledge-driven economy;

Increase competitiveness of firms;

Assist in the creation of new businesses;

Attract inward investment;

Create higher value jobs;

Reinvigorate urban and rural communities;

3.2.5 Aim to achieve these by:

Raising basic and specialist skills;

Increasing innovation and entrepreneurial capacity;

Provide highest quality infrastructure (sites/premises, integrated transport, ICT);

Developing balanced, vibrant and sustainable valleys and rural communities.

3.2.6 A number of priorities are identified as forming the basis of the Regional Economic Framework which will be supported through a number of strategic actions.

Priority 1: Developing a more dynamic and creative business base - actions include:

Encouraging an entrepreneurial society;

Targeting key sectors (tourism, agri-food, energy and environmental science, creative media, high value manufacturing and bio-science).

Priority 2: Developing creative human capital – actions include:

Securing skills base;

Tackling economic inactivity;

12 Retaining and attracting skills and experience.

Priority 3: Developing the Spatial Economy – actions include:

Supporting balanced spatial development;

Promoting enhanced regional connectivity; 3 . Policy Context: National, Regional & Local

Ensuring adequate supply of sites / premises;

Ensuring adequate supply of appropriate housing.

Priority 4: Rising the profile of the ‘creative region’ – actions include:

Developing our presence in Europe;

Developing the creative region.

The South West Wales Regional Waste Plan, 1st Review (2008)

3.2.7 The Regional Waste Plan identifies that between 8.6 and 11.4ha of land is required within Neath Port Talbot for in-building waste facilities. Waste disposal facilities are suitable uses on B2 land however they are considered highly vulnerable development and in order to accord with TAN 5: Development and Flood Risk they should not be located within areas of flood risk. Deposit LDP - Economy & Employment Topic Paper (August 2013) Valleys Regional Park Strategic Delivery Framework (Draft 2012)

3.2.8 The Valleys Regional Park (VRP) initiative aims to maximise the social and economic potential of the outstanding natural and cultural heritage assets of the South Wales Valleys. It seeks to develop and coordinate environmental and heritage projects and activities across the Valleys as a catalyst for regeneration working in conjunction with the WG Heads of the Valleys and Western Valleys Regeneration Programmes. The initiative aims to develop the region as a highly desirable place to live, work and visit associated with marketing through the Valleys 'Heart and Soul Campaign.'

3.2.9 The overall aim of the initiative is to create a high-quality sustainable network of greenspace which will;

Create an attractive environment for residents, businesses and visitors to stimulate enterprise and investment;

Offer outstanding recreational opportunities to change the image and perception of the Valleys for ever;

Improve the health and well being of communities and generate increased pride in the area; Utilise economic, tourism and community regeneration potential of our natural and 13 pre-industrial and industrial cultural heritage. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit City Regions Final Report, Welsh Government (2012)

3.2.10 The Welsh Government recommend that two City Regions are identified in Wales. This approach will deliver more jobs and greater prosperity in and for Wales than current approaches to economic development. A city region can be defined as 'a network of urban communities, linked by functional economic and social ties to a hinterland.'

3.2.11 Neath Port Talbot will form part of the South West Wales city region along with Swansea, Carmarthenshire and Pembrokeshire. It is hoped that the city region approach will deliver three main economic benefits: 'larger and more efficient labour markets;...larger potential markets for goods and services because of the concentration of activity and transport cost savings; and a greater exchange of knowledge, ideas and innovation.'

Swansea Bay City Region (2013)

3.2.12 In July 2013, Swansea Bay was launched as Wales' first City Region, to boost investment and job opportunities. The Swansea Bay City Region includes the Local Authority areas of Pembrokeshire, Carmarthenshire, City and County of Swansea and Neath Port Talbot.

3.2.13 The identification of the City Region has emerged as a result of a report commissioned by the Welsh Government highlighting that economic growth increasingly happens in regions centred on a city, attracting higher skilled jobs and pay.

3.2.14 The City Region concept will remove existing administrative boundaries between Local Authorities to create a central business area. The approach will create a larger and more efficient labour market and better prospects for job creation, attracting inward investment and innovation to create additional value added to the local economy. The approach also offers better scope for planning housing, transport, support for business and other services.

Economic Growth Strategy for South West Wales (2013 - 2030)

3.2.15 This strategic framework looks to support South West Wales and its future economic development. The New South West Wales (NSWW) represents an ambitious new economic growth plan for South West Wales. The strategy found that despite investment into infrastructure within the area, the region is under performing and focuses on the most important strategic challenges the region faces. The long term vision is for economic success, to allow South West Wales to be a confident, ambitious and connected City-Region, recognised internationally for its emerging Knowledge and Innovation economy.

14 3.2.16 The framework comprises of five complementary Strategic aims:

1. Business Growth, Retention and Specialisation. This includes;

Providing tailored business and support for retention and growth; Supporting large-scale existing major employers across SWW, within both the public and private sectors; 3 . Policy Context: National, Regional & Local

Developing a coherent and consistently first rate inward investment; Developing a more entrepreneurial culture across the City-Region; Encouraging a more dynamic and sustainable start-up market.

2. Skilled and Ambitious for long-term success. This includes;

Improving attainment and ambition in our low performing schools; Ensuring further and higher education provision in the City-Region offers flexible support and aligned to needs of employers; Promote awareness of the value of up-skilling;

3. Maximising job creation for all. This includes;

Supporting workforce re-entry amongst those who are economically inactive; Local enterprise development; Increasing job opportunities by supporting employment growth within the indigenous business stock; Establishing a co-ordinated programme of work experience placements and formal

apprenticeships; Deposit LDP - Economy & Employment Topic Paper (August 2013)

4. Knowledge Economy and Innovation. This includes:

Maximising the long-term potential of the new Science and Innovation Campus at Swansea University; Developing a long-term strategic approach to nurturing new businesses;

5. Distinctive Places and Competitive Infrastructures. This includes;

Developing and implementing a concerted framework for the engagement of visitor and investor audiences; Investing in the coordination of spatial planning to establish a roadmap for targeted development of land, property, and infrastructure; Engaging local communities, businesses, and associated stakeholders such as housing associations in local visioning; Developing a competitive Next Generation Broadband infrastructure across all parts of the City-Region; Empowering the community and voluntary sector to take a role in development, delivery and testing of new approaches to public service delivery.

3.3 Local Policy Context

3.3.1 The Authority’s existing commitments are set out in the Unitary Development Plan, 15 Valleys Strategy, and Community Plan.

Neath Port Talbot Community Plan (2010-2020) 'Greater Opportunity For All'

3.3.2 The Community Plan identifies a number of key economic issues which it aims to address. The key issues include low levels of economic activity; high levels of unemployment and a heavy dependence on benefits. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 3.3.3 The Plan is underpinned by the 3 guiding principles of sustainable development, social inclusion and fairness and the vision for 2020 is:

“We want Neath Port Talbot to be a place where local services help people look after themselves, each other and their communities; with greater opportunity for all – in a greener, healthier and safer environment.”

3.3.4 By 2020 the following will have been achieved:

The quality of provision and achievement in the tertiary sector will have improved providing greater opportunities to continue their education and training beyond 16. There will be more opportunities for family learning, with young parents becoming better educated.

In recognition of the ageing population, a diverse range of up skilling, learning and training opportunities will be available, to help older people access jobs, be independent and maintain their health and wellbeing.

We expect that the local economy will be strong and diverse, retaining a core manufacturing sector supported by a growing knowledge-based sector, built upon better skills and local research and development activity, and specialist sectors such as energy, social enterprise and tourism.

The County Borough will be business friendly, encouraging green businesses and sustainable construction. Small indigenous businesses will be flourishing, supporting all sectors of the economy and there will be a stronger regional economy resulting from the successful application of European Convergence Funding and based upon the Wales Spatial Plan.

Levels of economic inactivity will have reduced with a variety of support available to help people into work – and young people will have better opportunities for getting work, continuing their education or accessing training opportunities, including apprenticeships.

3.3.5 One of the seven themes identified in the Community Plan, which is a priority for action, is Economic Prosperity. The following objectives are to be achieved by 2014:

European Union Convergence and other funding opportunities are maximised to build 16 stronger local and regional economies. Major strategies and programmes such as Coed Darcy Urban Village, Baglan Energy Park, Port Talbot Docks and the Town Centre and the new University ‘Innovation Campus’ are all well underway with additional opportunities available in other areas. 3 . Policy Context: National, Regional & Local

The benefits of the Welsh Government’s Western Valleys Strategic Regeneration Area and the County Borough’s Western Valleys Strategy are being maximised, including the development of Rheola and the regeneration of Neath and Town Centres.

The number of people not in work has reduced due to the success of initiatives such as the South West Wales Workways Scheme, the Coastal Project and Local Employment Partnerships. Good quality business support services and self employment initiatives are also being used more effectively.

Young, high technology companies have emerged from the Sustainable Technologies Technium.

Social enterprise becomes an increasingly important element of the local economy linked to the provision of other public services. This will be helped by forging better links between the different sectors, so that service gaps, and who is best placed to meet them, are identified.

Accessible tourism opportunities are rolled out for the Neath, Dulais, Swansea, Upper Deposit LDP - Economy & Employment Topic Paper (August 2013) Amman and Upper Afan Valleys in keeping with the heritage and natural assets of the areas concerned.

Maximise social clauses in plans and service contracts which increase the number of local jobs and promote sustainable procurement and collection systems for goods and materials, which preferably are locally sourced.

Neath Port Talbot County Borough Council Unitary Development Plan (2008)

3.3.6 The Authority’s Unitary Development Plan is the Authority’s land use plan and guides employment along the coastal belt, mainly within the urban areas of Jersey Marine, Neath and Port Talbot. The plan aims to diversify and strengthen the local economy through emphasising farm diversification, tourism-related proposals, assisting the creation and growth of small and medium sized enterprises and in particular, those which seek to promote social inclusion and more environmentally sustainable practices. The expansion or redevelopment of existing enterprises will wherever appropriate be encouraged.

Employment Policy

Policies are included to encourage employment, reduce the need for residents to leave the area in search of work, and help stabilise the areas population.

Ensure that there is an attractive, readily available and sufficient range and number 17 of sites and premises. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Focus key employment provision within Port Talbot and Neath at Llandarcy Urban Village, Jersey Marine, Baglan Bay Development, Port Talbot Docks and Margam, together with important sites within the valleys at Abernant (), Glanrhyd (Pontardawe), , Resolven and Cymmer.

Encourage tourism and improvement of tourism facilities to maximise the economic and employment benefits whilst safeguarding the environment and interests of local communities.

Social Enterprise Strategy (2010-2013) Profit With Purpose

3.3.7 The Strategy aims to inspire, transport and liberate social enterprises in the County Borough which are recognised as having the potential to deliver employment at the local level and stimulate economic growth.

3.3.8 The Council's objectives concerning the future development of social enterprises fall into five overarching categories:

1. Development of the sector

2. Training, development and sharing of best practice

3. Marketing

4. Partnership structure

5. Support

Waterfront Regeneration Strategy (2011)

3.3.9 The Council published its Waterfront Regeneration Strategy in 2011 which defines the strategy for the physical and economic regeneration of the Waterfront area of the County Borough.

3.3.10 The Waterfront area contains major regeneration sites and projects within Neath Port Talbot that are crucial for the future prosperity of the County Borough and the sub-region. Furthermore, there are a number of business parks and industrial estates within the locality which also help to meet the needs of local enterprises and there are opportunities for tourism and leisure related activity which have the potential to contribute to the growth and diversify the local economy. 18 3.3.11 The Strategy identifies six strategic goals:

1. To develop the town of Port Talbot as a hub for commercial, residential, social and employment activities through an integrated physical regeneration of the town centre and the attraction of new investment; 3 . Policy Context: National, Regional & Local

2. To bring forward the development of major strategic regeneration sites in the area of Port Talbot that will attract major new investment, create employment opportunities and spread prosperity to surrounding communities;

3. To develop existing and establish major new employment sites within the area of Port Talbot that meet the needs of modern business, strengthen the local economy and ensure the provision of employment opportunities;

4. To develop high quality sites for tourism and leisure that will attract visitors and new investment and improve the image and environment of Port Talbot Waterfront;

5. To improve the physical fabric within the urban areas, improving quality of life and making the area of Port Talbot an attractive place in which to live, work and invest;

6. To improve the transport and communications infrastructure, ensuring that the area of Port Talbot maximises its locational advantages and brings benefits to the economy and the people of the area.

Port Talbot Harbourside & Town Centre Development Framework Supplementary Deposit LDP - Economy & Employment Topic Paper (August 2013) Planning Guidance (SPG) (2011)

3.3.12 Supplementary Planning Guidance, in the form of a development masterplan for Port Talbot Harbourside and Town Centre was adopted in 2011. The SPG informs potential developers of the type of development that the council considers appropriate within Harbourside and the town centre and is supported by a Development Framework Plan. One of the key aims of the Plan is to secure integrated development for the area.

3.3.13 The Plan identifies six strategic goals:

1. To development the town of Port Talbot as a hub for commercial, residential, social and employment activities through the integrated physical regeneration of the town centre and the attraction of new investment;

2. To bring forward the development of major strategic regeneration sites in the area of Port Talbot that will attract major new investment, create employment opportunities and spread prosperity to surrounding communities;

3. To develop existing and establish new employment sites within Port Talbot that meet the needs of modern business, strengthen the local economy and support the improvement of employment opportunity;

4. To develop high quality sites for tourism and leisure that will attract visitors and new 19 investment to improve the image and environment of Port Talbot Waterfront; 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 5. To improve the physical fabric within the urban areas, improving quality of life and making the area of Port Talbot an attractive place in which to live, work and invest;

6. To improve the transport and communications infrastructure, to ensure that Port Talbot maximises its locational advantages to the benefit of the local economy and population.

Neath Port Talbot Tourism Development Action Plan (2011 - 2014)

3.3.14 The Tourism Development Action Plan identifies the actions required to further develop tourism throughout Neath Port Talbot in order to continue to increase the contribution that the sector makes to the local economy and the jobs it creates in Neath Port Talbot in the longer term. The action plan outlines the key themes for development and a structure for delivering actions with local stakeholders between 2011 and 2014.

3.3.15 The aim of the strategy is to 'increase the contribution that the tourism industry makes to the economy of Neath Port Talbot by attracting investment in tourism infrastructure and creating jobs within the local community.'

3.3.16 A key objective in delivering the action plan is to convert the day visitors to staying visitors so that they take up accommodation within the County Borough and as a result spend more money in the local economy. The strategy identifies that further work is required in matching both the private sector and third sector to specific retail and accommodation development opportunities to create more places for visitors to buy souvenirs, have a snack / meal, buy supplies etc. Furthermore, further work is required to attract families to the County Borough.

3.3.17 A number of tourism accommodation provision opportunities are identified:

Tourism numbers are likely to increase in the Neath Valley over the LDP period due to the improved profile of the Waterfall Country and the Neath Canal which may increase demand for accommodation. The Afan Valley is the main tourist attraction in the County Borough due to the presence of Afan Forest Park which offers world class mountain biking facilities. Over the LDP period there will be further development of the mountain bike trails (Cognation is due to be delivered in 2013) which will increase visitor numbers and create demand for additional accommodation. There remain opportunities for the tourism sector in the Swansea, Dulais and Amman Valleys due to the close proximity to the Brecon Beacons National Park. Visitors to the Vale of Neath and Afan Forest Park often also stay within these Valleys. Furthermore, the Amman Valley Trotting Club attracts visitors and there are further 20 opportunities for tourism in this area. 3.3.18 The Tourism Action plan has been developed around five strategic themes in order to maximise the impact of tourism on the local economy:

1. Business Development and Engagement 2. Product Development 3. Marketing 3 . Policy Context: National, Regional & Local

4. Accessibility 5. Maintaining our tourism assets

Glynneath Town Centre Regeneration Strategy (2012)

3.3.19 Consultants (The Urbanists) were commissioned by Neath Port Talbot County Borough Council and the Welsh Government to prepare a Regeneration Plan for Glynneath Town Centre.

3.3.20 One of the objectives of the study was to define the vision for the development of Glynneath Town Centre and which acts as the framework through which regeneration activity and projects can be implemented in the short and medium term and which seeks to build on the opportunities and counteract the threats that could be faced in Glynneath in the future.

3.3.21 The vision is to:

develop Glynneath into a model sustainable town that is an exemplar within the Western Valleys and beyond establish Glynneath as a base for tourism. The strategy identifies that Glynneath is Deposit LDP - Economy & Employment Topic Paper (August 2013) at the heart of a variety of tourist attractions and is located approximately 2 miles from Brecon Beacons National Park. Together with its good connections to the road network this makes Glynneath a potentially attractive location from which to explore this part of S. Wales.

3.3.22 A number of proposals are suggested to boost tourism including: improving the appearance of the town, ensuring that it is welcoming and prepared for visitors, providing local information about what the town has to offer and developing facilities such as cafes and overnight accommodation.

3.3.23 The strategy identifies that a grant scheme should be put in place to improve the quality and appearance of the pubs in the town and the development of accommodation on upper floors would provide initial opportunities to generate overnight stays. In time further accommodation should be provided.

Aberafan Seafront Strategy (2003)

3.3.24 The Council is committed to the long-term regeneration of the Aberafan Seafront and published a Strategy in 2003 which sets out the vision that the Council and its partners have for the future development if the Seafront. It describes the main achievements to date and identifies a number of projects which are to be implemented.

3.3.25 Since the publication of the Strategy a number of projects have been completed 21 including the following:

Redesign of the sunken gardens which were officially opened to the public in June 2012 Development of a seaside-theme play area which is suitable for children aged two to five and a Skateboard Park and amphitheatre 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Construction of a shelter to provide seating and shelter Improved parking facilities, landscaping, installing new promenade railing and improved signage, lighting and street furniture Development of apartments

Neath Port Talbot Single Integrated Plan: Working in Partnership (2013-2023)

3.3.26 Incorporating the vision and guiding principles of the Community Plan, the Single Integrated Plan (SIP) sets out the Council’s vision for Neath Port Talbot.

3.3.27 The Plan’s vision is to; ‘Creating a Neath Port Talbot where everyone has an equal opportunity to be healthier, happier, safer and prosperous’. The Plan outlines steps to protect and improve local services and support our communities over the period 2013-2023 and prioritises action in the following areas;

Children and Young People –working to ensure that children and young people get the best possible start in life and achieve their potential. Anti-poverty –supporting families on low incomes, prioritising mitigating impacts of welfare reform and make best use of available European funding. Health inequities - working to integrate local health and social care services for older and disabled people , with a strong focus on enabling people to retain or regain their independence. Transport - identifying transport issues locally and explore how these might be addressed through local, regional and national mechanisms.

3.3.28 The Plan has 5 main outcomes to achieve the vision. Under each outcome, a list of measures and steps are detailed;

3.3.29 Outcome 1- Healthier. Children and Young People in Neath Port Talbot are physically and emotionally healthy; Adults of working age in Neath Port Talbot are physically and emotionally healthy; and Older People are independent and enjoy a good quality of life.

This outcome aims to

improve the health and wellbeing of Neath Port Talbot’ residents and reduce the gap between the least and most healthy. To achieve this, a number of measures are identified, including encouraging healthier lifestyles.

3.3.30 Outcome 2 - Safer: People in Neath Port Talbot “Feel Safe and are Safe”

This outcome aims to improve people’s safety through a number of measures including 22 reducing the impacts of and fear of crime, domestic abuse, substance mis-use and young people in criminal behaviour.

3.3.31 Outcome 3 - Sustainable: Neath Port Talbot’s communities and environment are sustainable

This outcome will 3 . Policy Context: National, Regional & Local

improve the sustainability of our communities and environment to create strong and sustainable communities to face increasing challenges. The following measures specifically relate to employment: Support opportunities for the building of safe, resilient, economically viable and sustainable communities, including;

Prepare a Local Development Plan (LDP) which projects the overall growth of the County Borough (population, economic, housing) and promotes sustainable development. Support the development of local produce and the market for it both within and outside Neath Port Talbot. Support and promote development of social enterprises and encourage third sector organisations to become grant independent and generate more income through trading and other sustainable income sources. Deliver current Convergence funded programmes aimed at making social enterprises more sustainable. Support and promote the interests of the third sector to prosper on a local, regional and national level.

3.3.32 Outcome 4 - Prosperous: Neath Port Talbot has a strong and prosperous Deposit LDP - Economy & Employment Topic Paper (August 2013) economy leading to reduced poverty. The outcome aims to improve our local economy and help reduce poverty, addressing the loss of industry within the area and the challenging economic climate through the following;

Developing key sites, projects and infrastructure to retain and attract investment into the local economy;

Develop key sites and premises across the County Borough to encourage economic growth and ensure that the development and implementation of the Local Development Plan allows us to do this. Sites include Coed Darcy Urban Village, the new Swansea University Science and Innovation Campus, Baglan Energy Park, Harbourside serviced by the new Harbour Way, Port Talbot Parkway, physical improvements to Port Talbot Town Centre, Pontardawe and , the redevelopment of Neath Town Centre and Croeserw Community Enterprise Centre and the Afan Lido. Maintain a watching brief of the City Region developments and future Welsh Government regeneration programmes and consider ways in which Neath Port Talbot can benefit. Develop the tourism sector, in particular tourism related businesses, and consequently increase jobs in the local area. Maximise community benefit clauses in all contracts and the planning process to increase local jobs and benefits to local businesses. Make the most of community investment by working in partnership with NPT Homes 23 and Gwalia who are delivering substantial investment programmes within the County Borough. Delivering the Convergence/Welsh Government funded project to develop mountain biking in South Wales. Work with Welsh Government to gain investment from the final year of the Western Valleys Strategic Regeneration Area. 3 . Policy Context: National, Regional & Local

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Create high quality jobs and economic growth across the County Borough through development and investment;

Deliver the current programme of European Convergence and Rural Development Plan for Wales funded projects to build stronger local and regional communities. Take a more strategic targeted approach to maximising funding from European and domestic sources in the future. Engage with others to deliver regional collaborative projects, such as in relation to inward investment, place marketing and business development through the Swansea Bay Partnership.

Maximise the number of people who are able to access employment, by addressing barriers to employment;

Reduce the number of people not in work through key employment support initiatives such as the South West Workways project, COASTAL project, local Employment Support Group, other initiatives sponsored/led by Jobcentre Plus and employability projects supported in Communities First areas. Work with young people and disadvantaged parents to ensure that they have the skills and confidence so that they are best equipped to embark on working life. Further develop training and employment opportunities for disadvantaged groups including young carers, care leavers, past offenders and unemployed 18-25 year olds. Promote self-employment initiatives. Ensure that a strong network of support is available to help individuals manage changes to Welfare Reform, in order to address barriers which prevent people from accessing employment.

Develop a strong network of local businesses who are able to generate economic growth.

Provide good quality business support services. Encourage young, high technology companies to emerge from the Baglan Bay Innovation Centre. Attract business leaders in Research and Development to purpose built accommodation such at the Research and Development Village in Port Talbot Harbourside. Support the development of social enterprises, as an alternative business model where appropriate.

3.3.33 Outcome 5 - Learning: People in Neath Port Talbot fulfil their learning potential

24 This outcome will help and support people fulfil their learning potential to address instances of under achievement and raise standards in school and pupil performance through improving education, ensuring schools are fit for purpose and supporting children and young people to fulfil their full potential. 4 . Current Situation and Trends

4 Current Situation and Trends

4.0.1 At the time of the 2011 Census, there were 102,986 people living in Neath Port Talbot between the ages of 16 and 74. The percentage of the population who were economically active was 62.3%, of which 55.6% were in employment. This was lower than the economically active averages for Wales (65.8%) and England and Wales (69.7%).

4.0.2 Neath Port Talbot had a greater number of economically inactive people than the National average at a rate of 37.7%, compared to 34.2% in Wales and 30.3% in England and Wales. Of these percentages, Neath Port Talbot has a large percentage of long term sick or disabled, at a rate of 9.6%, which is higher than the Welsh average (6.3%) and over double the average for England and Wales (4.2%).

Table 4.1 Economic Activity in Neath Port Talbot

Economic Activity Neath Port Neath Port Wales England and Talbot (Number) Talbot (%) (%) Wales (%)

All residents aged 16 to 74 102,986 100 100 100 Deposit LDP - Economy & Employment Topic Paper (August 2013) Economically active: 64,110 62.3 65.8 69.7

Economically active: In employment 57,220 55.6 58.2 61.9

Economically active: Employee: Part-time 14,335 13.9 13.9 13.7

Economically active: Employee: Full-time 36,997 35.9 35.6 38.5

Economically active: Self-employed 5,908 5.7 8.6 9.7

Economically active: Unemployed 4,630 4.5 4.3 4.4

Economically active: Full time student 2,260 2.2 3.3 3.4

Economically Inactive 38,876 37.7 34.2 30.3

Economically Inactive: Retired 17,837 17.3 16.1 13.8

Economically Inactive: Student 4,397 4.3 6 5.8

Economically Inactive: Looking after family 4,446 4.3 3.8 4.3 or home

Economically Inactive: Long term sick or 9,839 9.6 6.3 4.2 disabled

Economically Inactive: Other 2,357 2.3 2 2.2 Unemployed: Age 16 to 24 1,548 1.5 1.4 1.2 25 Unemployed: Age 50 to 74 747 0.7 0.7 0.8

Unemployed: Never worked 673 0.7 0.7 0.7

Long-term unemployed 1,706 1.7 1.7 1.7

Source: 2011 Census 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 4.0.3 Neath Port Talbot suffers from high levels of unemployment and low levels of economic activity.(2) Low levels of economic activity, and correspondingly high levels of economic inactivity can be detrimental to the economy, as they suggest a high number of residents relying on government benefits and can also indicate social exclusion.

4.0.4 There are many reasons for the high levels of unemployment including the decline of major industries including coal mining and petro-chemicals, the limited success over recent years in attracting new employment opportunities to the Valley communities in particular, the skill base of the population and problems many experience with poor health which may be impacting upon their ability to access jobs.

4.0.5 Unemployment trends have fluctuated in recent years largely due to the unstable economic climate. Over the period July 2011 to June 2012, 9.3% of the working age population were unemployed, a greater percentage than the average for Wales (8.5%) and the UK (8.2%). This figure had decreased slightly from the previous year, which saw unemployment at its highest rate over recent years at 10.3%(3)

Table 4.2 Unemployment Rate

Date Neath Port Neath Port Wales (%) UK (%) Talbot Talbot (%)

Jul 05 – Jun 06 3,800 6.4 5.2 5.3

Jul 06 – Jun 07 3,800 6.3 5.5 5.3

Jul 07 – Jun 08 3,400 5.7 5.5 5.2

Jul 08 – Jun 09 4,900 8.0 7.7 6.9

Jul 09 - Jun 10 5,600 9.6 8.3 7.9

Jul 10 - Jun 11 6,100 10.3 8.8 7.9

Jul 11 - Jun 12 5,600 9.3 8.5 8.2

Source: Nomis: Time Series data, Neath Port Talbot

Economic Base

4.0.6 Neath Port Talbot remains a strong-hold for manufacturing and heavy industry and has attracted a number of large employees into the area. The employment base has broadened over recent years and new sectors are investing in Neath Port Talbot and 26 providing a wider range of job opportunities.

2 The economic activity rate is the percentage of residents of working age who are in employment or registered as unemployed. A person is defined as unemployed if they are without a job, are available to start work and are actively seeking a job or are waiting to start a job already obtained. The economic activity rate is a useful indicator of the labour force, however, the figures include those who commute into the area and exclude residents who commute out of the County Borough for employment. 3 The unemployment rate is an estimate of the % of economically active males (aged 16-64) and females (aged 16-59) who are unemployed but are actively seeking work. The data is expressed as a percentage of the economically active population. 4 . Current Situation and Trends

4.0.7 The 2011 Census indicates there are a lower percentage of professional occupations than national averages. In Neath Port Talbot, 12.9% hold professional occupations, lower than the Welsh average of 15.8% and England and Wales average of 17.4%. The largest percentage of the workforce are employed in skilled trade occupations, at 13.4% this is the same as the Welsh average and higher than the England and Wales average of 11.5%. Neath Port Talbot has a high percentage for process plant and machine operatives, which at 10% is greater than the England and Wales average of 7.2%, which is reflective of the large manufacturing base and presence of large employers in this field, such as Tata. These trends are also reflected in Table 4.7, Qualifications in Neath Port Talbot.

Table 4.3 : Neath Port Talbot Employment by Occupation, 2011 Census

Neath Port Neath Port England and Occupation Talbot - Wales (%) Talbot (%) Wales (%) Number

Managers, directors and 4,570 7.7 9.2 10.8 senior officials Deposit LDP - Economy & Employment Topic Paper (August 2013) Professional occupations 7,618 12.9 15.8 17.4

Associate professional 5,875 10 10.8 12.7 and technical occupations

Administrative and 7,573 12.8 11.1 11.4 secretarial occupations

Skilled trades occupations 7,880 13.4 13.4 11.5

Caring, leisure and other 6,670 11.3 10.5 9.4 service occupations

Sales and customer 5,328 9 9 8.4 service occupations

Process plant and 5,902 10 8.1 7.2 machine operatives

Elementary occupations 7,564 12.8 11.9 11.1

Source: 2011 Census

4.0.8 Reflecting the lower level of professional occupations, the average weekly earnings for residents is below the average for Wales and the UK as a whole. However, the increase 27 from the previous year was +2.6% in Neath Port Talbot, a greater percentage increase than for Wales (0%) and UK (1.5%). 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.4 Average Weekly Pay (April 2011 to April 2012)

Weekly earnings Neath Port Talbot Wales UK

Full time employees £446.00 £455.00 £505.90

% change on previous +2.6% +0.0% +1.5% year

Male full time £471.50 £493.00 £545.80

Female full time £382.20 £406.70 £448.60

Part Time Employees £163.10 £151.00 £155.00

All employees £366.00 £366.50 £405.00

Source: Annual Survey of Hours and Earnings (ASHE) 2012, ONS

4.0.9 There are low levels of business start-ups in Neath Port Talbot and a relatively small proportion of the population are self employed. This suggests a lack of entrepreneurship within Neath Port Talbot and a possible area for expansion throughout the LDP period.

4.0.10 In 2007 the stock of VAT-registered businesses in Neath Port Talbot only marginally increased with a net change of 25 which equates to an increase of 1% (205 registrations and 180 de-registrations). This level of business growth is below the net increase in Wales (1.3%) and the UK (2.9%). These are the most up to date figures available at the present time.

Table 4.5 VAT stocks

Industry type Neath Port Talbot(1) Neath Port Wales UK Talbot (%) (%) (%)

Registrations 205 8.3 7.9 10.4 (2007)

De-registrations 180 7.3 6.6 7.5 (2007)

Net change +25 1.0 +1.3 +2.9 28 (2007)

1. Numbers have been rounded at source to the nearest 5 to prevent disclosure

Source: VAT Stocks, registrations and de-registrations, Department for Business, Innovation and Skills. 4 . Current Situation and Trends

4.0.11 The number of residents that are self employed is lower than both the Welsh and UK average. There has however been a gradual increase over the period 2004 to 2012 and by 2012, the percentage difference between Neath Port Talbot and the UK average had reduced to 2.3%, compared to 4.1% in 2004.

Table 4.6 Number Self Employed

Date Neath Port Neath Port Wales (%) UK (%) Talbot Talbot (%)

Jan 04 – Dec 04 4,200 8.0 12.0 12.1

Jan 05 – Dec 05 3,900 7.2 12 12.3

Jan 06 – Dec 06 4,100 7.4 12.1 12.4

Jan 07 – Dec 07 4,300 7.9 12.2 12.5

Jan 08 – Dec 08 5,000 8.8 12.4 12.4

Jan 09 - Dec 09 4,400 8.3 12.4 12.7 Deposit LDP - Economy & Employment Topic Paper (August 2013) Jan 10 - Dec 10 5,100 9.5 12.5 12.9

Jan 11 - Dec 11 5,400 10.2 12.4 13.1

Jan 12 - Dec 12 6,300 11.2 12.9 13.5

Source: ONS annual population survey

Skill Base

4.0.12 The Authority has a significantly smaller proportion of residents obtaining level NVQ 4 and above compared to the Welsh average. At the time of the 2011 Census, only 18.8% of the population of Neath Port Talbot had a NVQ 4 and above qualification, lower than the average for Wales (24.5%) and England and Wales (27.2%). The percentage with no qualifications was also higher than the national average, amounting to 30.9% in Neath Port Talbot, 25.9% in Wales and 22.7% for the England and Wales average.

29 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.7 Qualifications in Neath Port Talbot

NVQ level Neath Port Neath Port Wales (%) UK (%) Talbot (Total) Talbot (%)

NVQ 4 & above 21,636 18.8 24.5 27.2

NVQ 3 12,629 11.0 12.3 12.3

Trade 5,856 5.1 3.9 3.6 Apprenticeships

NVQ 2 18,371 16.0 15.7 15.3

NVQ 1 16,557 30.9 13.3 13.3

Other qualifications 4,519 3.9 5.7 5.7

No qualifications 35,607 30.9 25.9 22.7

Source: 2011 Census

4.0.13 In addition, the percentage of residents with trade apprenticeships amounted to 5.1% of the population, which was greater than the Welsh average of 3.9% and England and Wales average of 3.6%.

4.0.14 The level of qualifications within Neath Port Talbot suggest there is a lower skilled workforce which could potentially be a barrier to attracting highly skilled and high wage employment.

Travel to Work Patterns

4.0.15 A high proportion of the population commute out of the County Borough in order to access employment opportunities. This reflects the good transport links and easy access to adjoining authorities and the dependency of the employment market on manufacturing and the public sector (serving the local area).The table below illustrates that the number of commuters out of the area exceeds those coming into the area, indicating a negative net inflow pattern. The trend however does appear to be reducing, with levels falling over recent years, with the net inflow reducing by half between 2007 and 2010.

Table 4.8 Statistics on Commuting in Neath Port Talbot 2007-2010

Year Commuting out of area Commuting into area Net Inflow

30 2007 24,400 11,000 -13.4%

2008 24,000 14,100 -9.9%

2009 22,000 13,200 -8.8%

2010 20,400 13,800 -6.7% 4 . Current Situation and Trends

Source: Statistics on Commuting in Wales, Welsh Government.

4.0.16 Table 4.9 shows the number of residents who live and work in Neath Port Talbot. It is evident that there has been an increase in the percentage of people working within the Authority over the period 2007-2010. The percentage of residents working in the Authority increased from 55% in 2007 to 62% in 2010. Over the same period the work force did reduce by 500 people, however, the increase of 7% reflects a positive change and may indicate that Neath Port Talbot is retaining a greater percentage of its workforce for the local economy. Whilst the increase in residents working in the Authority is positive, in 2010, 38% of the workforce still commuted outside the County Borough for employment purposes.

Table 4.9 Statistics on Commuting in Neath Port Talbot 2007-2010

Year No. of Working Residents Percentage of Residents Working in Home Authority (Neath Port Talbot)

2007 54,800 55% Deposit LDP - Economy & Employment Topic Paper (August 2013) 2008 57,200 58%

2009 54,200 59%

2010 54,300 62%

Source: Statistics on Commuting in Wales, Welsh Government.

4.0.17 As anticipated by the high commuting rates a high proportion of the population travel to work by car. The 2011 Census found that 80.4% of people in Neath Port Talbot travel to work by car. The greatest percentages of those travelling by car were found in the Amman and Swansea Valleys.

31 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.10 Current Travel to Work Patterns

Travel by Travel by Travel by Travel by Travel by Car (%) public foot/cycle taxi (%) motorcycle transport (%) (%) (%)

Afan Valley 79.7 7 8.2 0.9 0.3

Amman Valley 86.5 2.9 5.6 0.2 0.6

Dulais Valley 84.2 4.1 7.2 0.2 0.7

Neath 79.9 5.7 9.7 0.5 0.7

Neath Valley 81.8 4.5 9.4 0.2 0.5

Pontardawe 82.5 3.9 6.9 0.6 0.9

Port Talbot 78.72 5.1 11.6 0.6 1

Swansea Valley 85.47 2.9 6.4 0.3 0.8

Neath Port 80.4 5.11 9.6 0.5 0.8 Talbot

Source: 2011 Census

4.0.18 In terms of distanced travelled to work, data from the 2011 Census has not yet been released, Table 4.11 therefore uses data from the 2001 Census. It indicates that Neath Port Talbot has a diverse travel to work base largely due to its geographical make-up. A high percentage of those living in Port Talbot work less than 5km from their home while 40% of residents in the Neath Valley travel between 20 and 30km to work. This suggests that jobs are centred within the main urban areas and along the M4 corridor in particular with residents in valley communities having to travel a greater distance to work.

4.0.19 Home working figures within the Valley communities are also higher than the average for Neath Port Talbot.

32 4 . Current Situation and Trends

Table 4.11 Distance Travelled to Work

Works Less 2km to 5km to 10km to 20km to 30km to 40km to 60km No fixed Working Working

mainly at than 2km less than less than less than less than less than less than and over place of outside at

or from 5km 10km 20km 30km 40km 60km work the UK offshore

home installation

Afan 7.04 10.58 10.97 17.33 38.64 7.28 1.99 1.26 1.55 3.35 - -

Valley

Amman 9.20 13.42 3.87 19.16 33.20 8.44 2.70 2.07 3.04 4.91 - -

Valley

Dulais 6.55 12.00 8.86 15.63 32.20 12.60 2.53 2.20 2.09 5.01 0.33 -

Valley

Neath 6.96 14.59 22.61 20.24 20.02 5.05 1.11 3.52 2.43 3.10 0.37 -

Neath 6.81 17.92 4.12 19.04 27.06 13.87 2.40 2.04 1.92 4.63 0.19 -

Valley Deposit LDP - Economy & Employment Topic Paper (August 2013)

Pontardawe 7.96 15.26 4.44 31.50 27.11 2.11 2.46 2.77 2.60 3.46 0.18 0.16

Port 6.46 20.97 22.44 17.21 18.78 3.94 1.70 2.88 2.34 2.98 0.29 0.02

Talbot

Swansea 7.52 11.85 10.50 13.14 39.27 7.17 2.69 2.09 1.79 3.14 0.55 0.30

Valley

Neath 6.60% 19.85% 16.13% 21.19% 20.40% 5.44% 1.54% 2.74% 2.33% 3.43% 0.27% 0.08%

Port

Talbot

Source: 2001 Census

33 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Unitary Development Plan - Employment Land

4.0.20 Policy ECI 'Employment Landbank' of the Unitary Development Plan (UDP) allocated twenty sites for business, industry, storage, distribution and offices (financial and professional services). The policy identified a number of sites as 'Key Sites' and 'Other Sites' for employment. All of these employment sites were included within the Pre-Deposit Plan. A number of comments received during the Pre-Deposit Plan Consultation suggested that there was a substantial over-allocation of employment land within Neath Port Talbot and a review of these sites was necessary for the Deposit Plan.

4.0.21 Table 4.1 illustrates the UDP employment allocations:

Map 4.1 UDP Employment Allocations

34 4 . Current Situation and Trends

Table 4.12 : UDP Employment Landbank (Policy EC1)

Reference Site Use Class Hectares

2001 2003

Key sites

EC1/1 Baglan Bay Development A2, B1, B2 and B8 300 75

Llandarcy Urban Village A1, A2, A3, B1, B2, C3, D1 32 13 EC1/2 and D2

EC1/3 Jersey Marine A2, B1, B2 and B8 36.3 48.8

EC1/4 Port Talbot Docklands A1, A2, B1, B2 and B8 140 82

EC1/5 Neath Abbey Wharf A2, B1, B2 and B8 24 3.7

EC1/6 Glynneath Business Park A2, B1. B2 and B8 13.8 8.3

EC1/7 Kenfig Industrial Estate A2, B1, B2 and B8 37.4 2.9 Deposit LDP - Economy & Employment Topic Paper (August 2013)

Other sites

EC1/8 Neath Abbey Business Park A2, B1, B2 and B8 3 3

EC1/9 Rheola A2, B1 and B2 4.9 4.9

EC1/10 Nantycafn, Seven Sisters A2, B1, B2 and B8 4.7 3.6

EC1/11 Vale of Neath Supplier Park A2, B1, B2 and B8 5.2 5.2

EC1/12 Former Blaenant Colliery A2, B1, B2 and B8 2.4 2.4

EC1/13 Baglan Industrial Park A2, B1, B2 and B8 6.5 6.5

EC1/14 Junction 38, Margam A2, B1, B2 and B8 27.2 27.2

EC1/15 Croeserw Industrial Estate A2, B1, B2 and B8 3.3 3.3

EC1/16 Glanrhyd, Pontardawe A2, B1, B2 and B8 6.6 6.6

EC1/17 Cwmgors Industrial Estate A2, B1, B2 and B8 0.8 0.8

EC1/18 Abernant Colliery Site A2, B1, B2 and B8 9.2 9.2

EC1/19 Melincryddan, CMB site A2, B1, B2 and B8 11.2 11.2

Former Dewhirst Factory Site, A2, B1, B2 and B8 1.5 1.5 EC1/20 35

4.0.22 Some of these employment sites have had low-take up rates over recent years and some have seen low levels of market demand, in particular, a large number of the 'Other Sites' remain undeveloped. The following tables provide a breakdown of the available and occupied land on the above sites in 2011: 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.13 : Pre-Deposit LDP Strategic Employment Sites

Pre-Deposit LDP Strategic Employment Sites Available In Use Area (net)

Baglan Bay 171.14 71.85 242.99

(1) Coed Darcy 1.99 12.68 14.67

Fabian Way 18.08 14.27 32.35

Port Talbot Docklands 23.17 26.04 49.21

Glynneath Business Park 10.38 0.00 10.38

Kenfig Business Park 7.13 35.14 42.27

Junction 38 (M4), Margam 27.20 0.00 27.20

Glanrhyd, Pontardawe 6.60 0.00 6.60

265.69 159.98 425.67

1. Coed Darcy Urban Village also includes provision of substantial business use (41,200sqm).

Table 4.14 : Other UDP Employment Sites

Other UDP Employment Sites Available In Use Area (net)

Neath Abbey Business Park 2.96 0.00 2.96

Rheola 4.33 0.00 4.33

Nantycafn, Seven Sisters 1.67 0.27 1.94

Vale of Neath Supplier Park 4.85 0.00 4.85

Former Blaenant Colliery 2.04 0.00 2.04

Baglan Industrial Park 6.00 0.00 6.00

Croeserw Industrial Estate 0.20 1.41 1.61

Cwmgors Industrial Estate 0.00 0.42 0.42

Abernant Colliery 9.20 0.00 9.20

Melincryddan CMB Site 11.20 0.00 11.20

Former Dewhirst, Ystalyfera 1.50 0.00 1.50 36 Neath Abbey Wharf 2.97 11.74 14.71 46.92 13.84 60.76 4 . Current Situation and Trends

4.0.23 Whilst a large number of the UDP sites have a large amount of land available and undeveloped, the existing UDP allocations were proposed for allocation in the Pre-Deposit Plan as a number of the sites are brownfield land, have already been prepared for development and are considered to be unsuitable for re-allocation for sensitive uses (largely due to flood risk).

4.0.24 The UDP employment allocations have been assessed and their suitability determined for allocation in the LDP. A background document entitled 'Employment Land Review' presents the findings of the study - this is supported by a report undertaken by Peter Brett Associates (2012) 'Assessment of Economic Growth and Employment Land Provision.' The aim of the Employment Land Review was to gain an understanding of the quality, distribution and quality of existing employment sites within Neath Port Talbot and consider the suitability of the sites to meet the need for employment land over the period of the LDP. This included assessing UDP employment allocations, existing employment areas and candidate sites submitted for employment purposes. Deposit LDP - Economy & Employment Topic Paper (August 2013)

37 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 4.1 Economic Growth and Employment Land Provision

4.1.1 In 2012, the Authority, jointly with the City and County of Swansea, commissioned Peter Brett Associates (PBA) to undertake an Economic Assessment and Employment Land Provision study. The purpose of the study was to provide the evidence base for the Deposit Plan, to address concerns regarding the perceived over-allocation of employment land proposed in the Pre-Deposit Plan, to clarify the inter linkages between housing and employment and assess the projected economic and population growth expected over the LDP period.

4.1.2 The assessment forecasted the level of economic growth expected over the plan period, using national projections and adjusting these to take account of the local economy, industries and proposed regeneration strategies. Using this projected level of growth, the study then assessed how changes to the economy equated to requirements for employment land and the number of houses that would be required to accommodate the labour supply.

4.1.3 The study highlighted that there have been levels of low economic activity and unemployment among the working age population over recent years, indicating a relatively large untapped labour force and therefore suggesting the objective should be to increase the rate of economic activity amongst the working age population. This, combined with younger generations obtaining higher education standards than previous generations, could indicate a shift from the traditional, declining sectors of mining and manufacturing to higher knowledge based sectors. This shift will be further supported by the new Swansea University Science and Innovation Campus and improved infrastructure in the area, including the new Peripheral Distributor Road (PDR) 'Harbourway',Port Talbot.

4.1.4 The key findings of the Peter Brett Report are summarised below:

Neath Port Talbot is dominated by industrial employment compared to neighbouring Swansea and the regional and national averages. The steelworks dominate as the major employer in the County Borough - in 2011 it directly employed some 3,000 workers at its Port Talbot plant.

Neath Port Talbot is underrepresented by Information and Communication and Financial and Insurance sectors which offer high value employment. The area is overrepresented by mining, quarrying, utilities and manufacturing.

The employment sector in Neath Port Talbot is dominated by B Space Employment - Neath Port Talbot has nine percentage points more B-space jobs than is typically found across Wales. Furthermore, 27% of employment is in use class B2 / Industrial, 15% B1 / Office Employment and 5% B8 / Warehousing. 38 4 . Current Situation and Trends

Overall economic growth in Neath Port Talbot has stagnated over the last 10 years although the rate has fluctuated year on year - the overall net growth in Neath Port Talbot was only 1% between 1998 and 2008 compared with 14% in South Wales and Wales.

Neath Port Talbot is characterised by a higher than average proportion of small to medium sized businesses than the wider areas of South Wales, Wales and Great Britain as a whole. Furthermore, Neath and Port Talbot Spatial areas have considerably smaller proportions of micro businesses and larger proportions of small - medium sized businesses than the Valley areas. As a result the provision of suitable space (typically 200 sqm to 500 sqm units) should dominate.

The economic activity rate in Neath Port Talbot is 4% lower than the Welsh average at 69% of those aged 16-64 and 5% of those aged 65+. This compares to the Welsh average of 73% of those aged 16-64 and 8% of those aged 65+ (June 2010 - June 2011). Similarly, in 2010, 10% of economically active working age residents in Neath Port Talbot were registered as unemployed. Deposit LDP - Economy & Employment Topic Paper (August 2013) There is a net outflow of commuters from Neath Port Talbot. In 2010, approximately 62% of Neath Port Talbot's working residents were working within the County Borough, 24% were commuting to work in Swansea and 4% were commuting to work in Bridgend.

The population in Neath Port Talbot is ageing with the number of working age residents set to decline over the LDP period. This will have an impact on economic growth.

The skill levels in Neath Port Talbot are relatively low with 16% of the Working Age Population (WAP) having no qualifications. This is likely to improve over the LDP period as 8 of the 11 secondary schools in Neath Port Talbot were in Band 1 and 2 of the Welsh Government's banding scheme which assesses the relative performance of secondary schools.

There is high demand for smaller units within the County Borough (typically 500sqft) and a number of Industrial Estates which have these smaller units are fully let (, Glynneath, Cwmgors and Endeavour Close). Furthermore, there is a significant waiting list and a short turnover period.

The economic downturn has severely impacted on the large quantum of both office and industrial space - much of the industrial space in Swansea and Neath Port Talbot is considered to be unfit for modern purposes and will require investment or redevelopment to attract new inward investors. 39

Discussions were held with local agents who indicated that rental levels of approximately £5 to £5.50 per sqft can be achieved on Grade A industrial premises however in order to justify speculative build, developers need to secure approximately 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit £7 per sqft. Public sector support is therefore required to plug the £1.50 to £2 per sqft in viability - particularly so in Neath Port Talbot where little speculative demand occurred pre-recession.

In Neath Port Talbot there is little demand for office space. In contrast the total industrial floorspace stock in the County Borough increased between 2002 and 2012.

Forecast of Economic Growth

4.1.5 Peter Brett Associates used Experian Economics to provide two growth scenarios (EE Adj) and (EE Adj+) which range from 1,789 to 3,850 jobs respectively covering 15 year Plan period. As explained in the Study, the model is largely top down and reflects macro changes consistent with Experian Economics 2012 macroeconomic forecast at the national and regional level by sector and then allocating this growth at the local authority level. In order to reflect local circumstances, 'bottom up' adjustments have been made to ensure that the model reflects future initiatives and economic sectors which are considered to have potential for driving the growth rate. The EE (adj+) model is based on the ONS 2008-based projections (made consistent with the latest mid-year estimates) which is the same source as the 2008 based population projections produced by the Welsh Government.

4.1.6 The projected level of economic growth was then converted into a requirement for employment land for B-Class Uses (B1 (Office); B2 (General Industrial) and B8 (Warehousing/Storage) which would be needed to meet the LDP's employment needs and aspirations over the LDP period.

4.1.7 The main findings included:

Once adjusted for local circumstances and trends up, to 3,847 jobs are projected to be created over the LDP period. The majority of these jobs will be non B-space jobs (e.g. Retail, health services) with growth mostly through sui generis uses and town centre services like education and health.

Table 4.15 : Neath Port Talbot B-Space Employment, 2010 - 2026

EE (adj +) Total Change 2010-2026

2010 2026 No. %

Industrial jobs 9,280 9,245 -35 9,280

Warehousing jobs 5,832 6,414 583 5,832

40 Office jobs 9,960 10,640 680 9,960

B-space jobs 25,072 26,299 1,228 25,072

Non B-space jobs 25,065 27,684 2,619 25,065

All Jobs 50,137 53,983 3,847 50,137 4 . Current Situation and Trends

NB - Figures may not sum due to rounding.

Source: PBA Report (2012)

4.1.8 This will lead to a requirement of 20 hectares (ha) of land:

Table 4.16 : Neath Port Talbot B space Requirements, 2010 - 2026

EE (adj +)

Sqm Ha

Industry -1,107 -0.3

Warehousing 23,359 5.8

Offices 12,172 3.0

Regional Waste Plan (RWP) allocation for land 11.4

All B space land requirements 20.0 Deposit LDP - Economy & Employment Topic Paper (August 2013)

Source: PBA Report, 2012

4.1.9 Away from the M4 there will be very little demand for business space over the LDP period - PBA therefore recommend that no allocations are made for employment uses in the Valley areas.

4.1.10 These land requirements reflect only changes based on net new jobs over the plan period - they do not account for what might be required to meet gross demand for space through natural churn.

Employment Led Housing Projections

4.1.11 The Economic Assessment and Employment Land Provision study was commissioned to ensure that the housing and employment strategies in the LDP are aligned. As PBA stated in the report 'to under provide or over provide [for housing] is likely to result in unsustainable travel flow because economically active residents have to travel further to find work, or working age residents from outside the county borough have to commute in'. (PBA, 2012:114). Adopting a growth strategy that focuses on an economic led scenario is more robust, using job growth and economic activity rates to influence the plan's requirement for employment land and the number of houses that will be required. 4.1.12 In order to align the population/housing and employment strategies, the Deposit 41 Plan will need to make provision for the required number of residential units needed to meet the required labour supply (refer to PBA Report for explanation on the economically active to working age population and working age to total population ratios).

4.1.13 As part of this assessment broader economic objectives have been taken into account including the objective to improve the economic vibrancy of the County Borough by increasing economic activity and reducing the level of unemployment. Furthermore, 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit the growth strategy has taken into account the projected reduction in average household size to ensure that the housing needs of both existing and new residents can be met over the LDP period.

4.1.14 Hence, there are a number of assumptions which have to be considered in order to identify the likely dwelling requirements related to the economic scenario which are:

Percentage of the working age population who are economically active; Percentage of working age population and a percentage of the total population; Unemployment; Non-household population; Reduction in average household size; Commuting levels and flows e.g. Containment rate.

4.1.15 These assumptions are explained in detail in the PBA report and are summarised below:

Baseline data

4.1.16 The Welsh Government's 2008 based population and household projections have been used for the projection's baseline information for population, households and economically active residents. It is considered the most appropriate starting point to conform to the WG's view that the 2008 based projections be used as the starting point for the consideration of housing requirements.

Table 4.17 : Employment Led Household Projections - baseline data

Baseline data:

Economically active 2011 59,775 Calculated by applying the average economic activity rate of 68.3% (2010-2011) to the Working Age Population (WAP) in 2011.

Working age population 87,519 As projected by the WG 2008-based population projections

Population 2011 139,266 As projected by the WG 2008-based population projections

Households 2011 64,241 As projected by the WG 2008-based household projections

Source: PBA Report, 2012 42 Projections

4.1.17 As discussed in the PBA report, and summarised in Table 4.18 below, data from a number of sources was utilised in order to calculate the population required to meet the projected level of economic growth. 4 . Current Situation and Trends

4.1.18 In addition to basing the growth strategy on the projected level of economic growth and the projected reduction in average household size wider policy aspirations and interventions were also included with the overall objective to improve the economic vibrancy of the County Borough, ensure consistency with the wider region's goals and address the Authority's key issues by achieving the LDP's vision and objectives.

4.1.19 PBA identify in their report that the dominance and past decline of manufacturing and mining in the authority has left a legacy of relatively low economic activity among Neath Port Talbot's working age residents and relatively high levels of unemployment. There remains a relatively large untapped labour force within Neath Port Talbot and the LDP should aspire to move the economic inactive residents who are able to work, along with the unemployed, into employment. Furthermore, the current economic situation and recession has led to a higher rate of unemployment over recent years.

4.1.20 The LDP therefore aspires to achieve the longer term Welsh average for unemployment and economic activity and this policy intervention will form part of the employment led household projections.

4.1.21 This will be achieved by working in partnership with internal and external Deposit LDP - Economy & Employment Topic Paper (August 2013) stakeholders. There are a number of development projects in the pipeline which could fuel the local economy and boost economic activity such as Coed Darcy, Baglan Bay, completion of the Peripheral Distributor Road (PDR) 'Harbourway' and various other regeneration schemes. Harbourside will include an R&D Village which will be a catalyst for other developments. Major developments along Fabian Way include the Science & Innovation Campus for Swansea University and the regeneration of the former Visteon site into a film studios. These projects will be of a particular benefit to the manufacturing and construction industry, which are particularly prominent within Neath Port Talbot.

4.1.22 All these developments have positive job implications which the Council is actively involved in through the Enterprise and Employment function.

4.1.23 Through the Swansea Bay Partnership, the Council will be more actively involved in promoting inward investment opportunities than it has been in recent years which will again have a positive effect in improving economic activity.

4.1.24 Furthermore, the Authority will continue to be pro-active in encouraging the inclusion of community benefit clauses in public sector procurement activities which will:

Identify opportunities with the potential to create local jobs; Provide apprenticeship opportunities for young people; Develop skills within the construction and associated sectors; Create supply-chain opportunities for local companies. 43 4.1.25 This approach has already been successfully adopted on a number of local projects and will be used with the contractors delivering other projects including the Swansea University Science and Innovation Campus, the Pen-y-Cymoedd energy project, Residential Care Homes and the upgrading of housing stock by NPT Homes. 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 4.1.26 There are also a number of ESF-funded projects which specifically address economic inactivity and unemployment - these include Want to Work, COASTAL, Genesis and South West Workways which are all scheduled to come to an end over the next eighteen months.

4.1.27 Jobs and Growth will feature strongly in the next round of European funding which will be in place from 2014 – 2020 and improving economic activity levels will be a target.

4.1.28 Discussions are underway with WEFO and WG to extend projects such as Workways in order that the job successes can be replicated under the new funding round.

4.1.29 The Welsh Government’s Jobs Growth Wales programme which provides opportunities for young people to gain access to employment will also be having an effect on unemployment figures for 18-24 year olds – an age group which is the target of policies for both Westminster and Welsh Governments.

4.1.30 The above schemes and projects will enhance employment levels in the medium term while the strengthening of the long term economy will result in continued progress post 2016. However, wider national trends and programmes will also affect employment and economic activity within the County Borough including changes to the benefit system.

44 4 . Current Situation and Trends

Table 4.18 : Employment Led Household Projections

EE Adj+ Scenario (3,850 jobs)

Net gain of jobs (minus 3,658 National rule of thumb for double jobbing 5% for double jobbing allowance)

Net change in -1,913 Calculation based on a reduction of unemployment from unemployment 9.7% to the long term Welsh average of 6.5%

Economically active 2026 61,520 Calculation based on economically active population 2011 plus job growth to 2026 and minus change in unemployment by 2026

Working age population 84,274 Calculation based on increasing the ratio of economically active to WAP to long term Welsh average of 73%

Total population 2026 146,309 Calculation based on ratio of WAP to total population at Deposit LDP - Economy & Employment Topic Paper (August 2013) 2026 (WG 2008 based population projections identified rate of 57.5% in 2026)

Private households 143,091 Calculation based on 2.2% non-household population in population 2026 2011 Census (Welsh average)

Total number of 72,268 Based on reduction in average household size to 1.98 as households 2026 projected by WG for NPT (WG 2008 household projections)

Number of additional 8,027 Net additional households between 2011 and 2026 homes 2026 assuming a 1:1 ratio of households to homes

Population change 7,043 Calculation to illustrate indicative population growth

Source: PBA Report, 2012

4.1.31 The employment growth scenarios (EE adj) and (EE adj +) indicate a population increase equating to 2,387 to 7,043 persons over the LDP and a housing requirement of 5,927 to 8,027.

4.1.32 The chosen aspirational employment growth scenario (EE adj +) matches the Authority's policy objective of improving the economic vibrancy of the County Borough and anticipated changes in the demographic profile indicate that net out commuting in Neath Port Talbot will reduce by over 700 over the Plan period (from 6,837 to 6,114 45 residents). This is because it is anticipated that the growth in working residents will be lower than the projected growth in jobs. 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.19 : Labour Balance Summary

2011 2026 Change

Housing 64,241 72,268 8,027

Population 139,266 146,309 7,043

Working Age Population 87,519 84,274 -3,245

No. Of Employed Residents 54,467 57,399 2,932

No. Of jobs 50,137 53,983 3,846

Net Commuting Balance (-ve = 6,837 6,114 -723 incomutting; +ve = outcommuting)(1)

Share of working residents 14% 12%

1. This is the subtraction of employed residents from jobs after allowing for some double jobbing (not shown, but is assumed to be 5% of all jobs)

Source: PBA Report, 2012.

4.1.33 To conclude, the PBA report identified a requirement of 20ha of B-Space employment land, which equates to a need for 8,027 new dwellings over the LDP period 2011-2026.

46 4 . Current Situation and Trends

4.2 Employment Land Review and Allocations

Employment Land Review

4.2.1 In tandem with the Peter Brett report an Employment Land Review (ELR) was conducted in order to ensure sufficient and the most suitable land is allocated for employment uses, to meet the need identified in the Economic Study.

4.2.2 The aim of the Employment Land Review was to gain an understanding of the quantity, distribution and quality of existing employment sites within Neath Port Talbot and consider the suitability of the sites to meet the need for employment land over the period of the LDP.

4.2.3 Based on the findings of the PBA Report, it is evident that the proposed allocations in the LDP Pre-Deposit Plan would lead to a substantial over-allocation of land. PBA have advised that the Council should 'seek to further reduce the quantum of surplus land that is being planned in order to not confuse the market or undermine future viability of suitable land development in Neath Port Talbot.' (PBA 2012:104). Away from the M4 corridor there is anticipated to be little demand for business space over the plan period and the addition of further allocations in these areas 'may only depress values further and undermine market Deposit LDP - Economy & Employment Topic Paper (August 2013) confidence.' (PBA 2012:104). Subsequently, PBA recommend that no allocations are made for employment uses in the Valleys.

4.2.4 It is also recommended that 'in considering the allocation of employment land it is important that requirements should be focused on where demand is expected to be strongest, and also for supporting the delivery of planning objectives to delivering stronger, more resilient communities (by reducing unemployment), and by managing future development to ensure that communities have an appropriate balance of jobs (based on job densities).'(PBA 2012:104)

4.2.5 As part of the Employment Land Review the following sites were identified and reviewed in-line with guidance and advice from PBA:

UDP allocations;

Sites submitted as part of the candidate sites process;

Existing employment estates.

Allocation of Employment Land

4.2.6 The PBA report highlighted a requirement for 20ha of B space over the plan period, 47 which includes 11.4ha for waste and 8.6ha for other B-space use. Excluding the requirement for waste, the amount of floorspace required is 34,000sqm and PBA base this requirement on a plot ratio of 0.4, which equates to the 8.6ha identified.

4.2.7 PBA (2012:139) state 'Because planners need to make land allocations in development plans, which are normally controlled by site area (as opposed to floorspace) it is sometime necessary to translate floorspace into land. As a general ‘rule of thumb’ 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit RTP adopts a 40% plot ratio, which is equivalent to 4,000 sqm per hectare. However, a 40% ratio is probably reasonable for most industrial and warehouse sites, but for offices densities it may be considerably higher, at some sites, especially in town and City Centres. Therefore, where possible, the 40% ratio should be replaced by site-specific figures which take account of local circumstances.'

4.2.8 As quoted above, a plot ratio of 0.4 is a reasonable standard to assess general industrial land against. There are some developments within NPT that have been built using a plot ratio of 0.4, such as the Amazon development. However, Amazon is a specialist, unique development and this type of development has not been replicated elsewhere within the County Borough and more generally, a large proportion of development within Neath Port Talbot has seen development at a plot ratio of 0.25. A ratio of 0.25 is more suited to smaller workshops and units and this is where a high amount of demand is likely to be over the plan period. Therefore, it is considered appropriate to consider what the floorspace requirements would be for a plot ratio of 0.25, based on recent trends and the local context.

Table 4.20 Plot Ratios Relating to B-Space Requirements

Plot Ratios B Space Plus RWP Total Requirement (Waste)

PBA requirements of 34,400spm using plot 8.6ha 11.4ha 20ha ratio of 0.4

PBA requirements of 34,400spm using 13.76ha 11.4ha 25.16ha alternative plot ratio of 0.25

4.2.9 Using the plot ratio of 0.25, there would be a requirement for an additional 5ha of employment land over the plan period. Not to restrict or constrain the type of development that may come forward over the LDP period, there maybe merit in considering allocating an additional 5ha to allow development of smaller units at ratios traditionally seen in Neath Port Talbot. This would allow greater flexibility and could accommodate all types of development.

Net Requirement for Employment Land

4.2.10 The PBA study uses a basedate of 2010 and calculates the projected net change in employment land over the LDP period from this date. The approach assumes that any existing employment land at the basedate, 2010, can be re-used for employment uses, therefore assuming any employment land at 2010 will remain in employment use, as 48 stated, 'Importantly, the land requirements set out above reflect only net changes based on net new jobs over the plan period', (PBA, 2012:125), and also states, 'it is recommended that occupied and available employment sites within existing established and active employment areas in Swansea and Neath Port Talbot should continue to be available for employment uses, to meet local churn and to provide for local choice for all investors'. (PBA, 2012:5). 4 . Current Situation and Trends

4.2.11 Since 2010, Neath Port Talbot has seen a number of losses to the employment land stock that have not been factored into the PBA study. These areas of employment land were assumed to remain in employment use when calculating the future requirements for employment allocations over the LDP period. Two large scale examples of stock losses include the former Zetec Site on Fabian way, which has been converted to a film studio and the former TRW Factory in Resolven, which is currently operating as a market under a temporary consent. These losses equate to approximately 42,500sqm of employment floorspace, which based on a plot ratio of 0.4, equates to a loss of around 10ha of employment land, and at a plot ratio of 0.25, this would equate to around 17ha of employment land.

4.2.12 Furthermore, the Strategic Regeneration Area identified at Harbourside, involves the re-development of a large area of brownfield, industrial land. The scheme involves a mixed use development comprising of residential, retail and employment. Bringing forward this development, will result in the loss of approximately 40,000sqm of employment floorspace. Dependent on the plot ratio adopted, using the 0.4 plot ratio, this lose equates to approximately 10ha of employment land and using a 0.25 plot ratio equates to approximately 16ha of employment land. Deposit LDP - Economy & Employment Topic Paper (August 2013) 4.2.13 As the PBA report assumes employment spaces and jobs in 2010 will remain, there is an assumption that these jobs and employment space will need to be made up elsewhere in the County Borough, indicating a need to ensure there is space to accommodate these losses on other land whilst not undermining the net requirement of 20ha of employment land identified for net change in the PBA report. Therefore, there needs to be sufficient scope within the amount of employment land included within the Plan to deal with the net change of B-space employment, as the requirement of 20ha is over and above what was available/in use in 2010. If there is not sufficient scope to accommodate the loss of employment land, there is potential for a vast amount of employment land and jobs to be lost from Neath Port Talbot.

4.2.14 The stock losses since the 2010 base date, combined with the future loss of employment provision at Harbourside equates to a total of approximately 20ha (if PBA's recommended 0.4 ratio is used it equates to a higher rate if the 0.25 ratio is used). The PBA report does state that, 'Strategic Regeneration Areas represent the physical diversification of the local economy and are likely to result in a net loss of employment land, but importantly deliver a net increase in jobs and as a minimum maintain existing employment levels'. (PBA, 2012:133). Therefore, the stock loss at Harbourside, whilst may result in the loss of actual floorspace, this has been considered within the PBA report. However, more recent stock losses of 10ha have not been considered.

4.2.15 Based on the above, whilst the PBA report suggests a requirement of 20ha, if recent stock losses of 10ha are considered, this would take the requirement to 30ha. In 49 addition, if a lower plot ratio is used for future growth, as indicated in table 4.9, this would take the requirement to 35ha. To allow flexibility and not to restrict development in Neath Port Talbot, it maybe more appropriate to allocate land in the region of 30ha to 35ha as this may more appropriately suit the needs of the County Borough and allow stock losses 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit and varied plot ratios to be accommodated without having a detrimental impact on the market. This would provide sufficient flexibility to accommodate future development without undermining market demand.

Employment Allocations

4.2.16 The PBA report recommends the policy approach that is being taken in the LDP which allocates Baglan Bay as a Strategic Employment Allocation and Coed Darcy and Harbourside as Strategic Regeneration Areas. The ELR assessed these allocations in great detail to determine their suitability and the amount of land that should be allocated at each location.

Baglan Bay

4.2.17 The employment allocation at Baglan Bay forms part of a larger area which was allocated in the UDP as a strategic employment site. A large proportion of the site area allocated within the UDP has already been developed to form Baglan Energy Park and Brunel Way, which have become well established modern business areas. There are a number of existing, established uses on the site, and the developed area will be safeguarded within the LDP. The remaining, undeveloped site, has been assessed in the ELR.

4.2.18 The further regeneration of the Baglan Bay Area is a long-term development proposal which will be delivered over the LDP period and beyond, with the regeneration of the whole of the Baglan Bay area a longer term aspiration for Neath Port Talbot to provide sustainable regeneration, allowing Neath Port Talbot to prosper and make use of the major investment the area is seeing, such as the PDR. The site has been developed in part, which demonstrates the viable and commercial attractiveness of the site, and progress has already been made in bringing the remainder of the site forward for development. The Baglan Energy Park Link Bridge will be developed over the plan period, and will create a through road to connect the two phases of the Energy Park. The development will improve accessibility and become more attractive to potential investors.

4.2.19 The site area assessed for allocation within the LDP is 75ha, which, if allocated for B-space would represent an over-allocation in relation to the identified need of 20ha by PBA.

4.2.20 However, whilst the site identification appears to be an over supply of employment land, PBA go on to explain that, 'Baglan Bay represents an all or nothing option and in this context is considered to be an acceptable mismatch of supply and demand'. (PBA, 2012:106). This is due to several reasons, including the strategic long term nature of the 50 site, its unsuitability for alternative uses and as the site has no defensible boundaries and it cannot be readily subdivided into smaller parcels for allocation. PBA also explain that, 'it is not considered suitable for alternative use because this will undermine its market attractiveness for employment. The large scale of the site is not considered a weakness since infrastructure and marketing will be required for this site irrespective of whether they are small or large. The focus on this site and other regeneration areas will still avoid dispersing public sector resources and market focus and also safeguard well located future employment space that is less suited to alternative uses'. (PBA, 2012: 105). 4 . Current Situation and Trends

4.2.21 The PBA report does go on to state that the division of sites in deliverable phases may help to better focus delivery interventions that might need to be secured over the long term. For this reason, and based on an assessment of the amount of B Space that is likely to be required over the plan period and through analysis of previous trends and detailed discussions with the land owner, St.Modwens, 11ha is allocated for B Space use.

4.2.22 The PBA report also states that non B-space sectors will grow more substantially than B-space jobs within Neath Port Talbot over the plan period - 'non B-Space requirements which have been identified could potentially be accommodated on employment land.' (PBA, 2012:75). Baglan Bay could meet the anticipated growth in the energy sector and is potentially the most suitable location for this type of development. Baglan Bay therefore also has the potential to deliver employment uses outside the traditional B use classes and adequate flexibility and scope is therefore required within the allocation.

4.2.23 To allow the allocation to be flexible and to best suit the needs of businesses and other sectors, such as the energy sector, specific parcels of land have not been allocated for each use at this stage. Instead, 75ha is identified in the plan, of which 11ha

will be brought forward for B Space uses. A masterplan of the area is currently being Deposit LDP - Economy & Employment Topic Paper (August 2013) developed and the development of the site will be closely monitored.

Junction 38 (M4), Margam

4.2.24 In addition to the allocation at Baglan Bay, the ELR has also assessed Junction 38, Margam as a potential Strategic Employment Allocation. The site is strategically located off the M4, with excellent transport links that will be further improved with the completion of the PDR (Harbourway). The PDR is one of the most high-profile, major infrastructure developments seen in Wales since the construction of the M4 and the allocation of J38 has the potential to create a number of spin-off opportunities to make efficient and effective use of the PDR.

4.2.25 The site is owned by the Welsh Government (WG) who intend to bring the site forward for primarily B1, B2 and B8 uses following completion of Harbourway. Areas of the site are also currently being marketed via WGs Property Database and WG have confirmed that there has been interest from developers for part of the site. A site information pack was prepared in June 2011 which provided an indicative layout of the site which showed the total area of the site as 9.2ha, with the developable area being 6.2ha.

4.2.26 There are a number of existing employment uses within the vicinity of the site, including a biomass plant. 4.2.27 Allocating both Baglan Bay and Junction 38 as Strategic Employment Sites would 51 allow choice and flexibility. Of the sites, Baglan Bay is to be developed by the private sector and J38 by the public sector, through the Welsh Government. Allocating sites to be developed by both sectors will provide a greater assurance of deliverability and provide more diversity in available employment land and provide greater choice for developers. 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 4.2.28 Whilst, greater choice and flexibility is given by both allocations, PBA have advised that the LDP should reduce surplus employment land in order to not confuse or undermine the market. The size of allocation at J38 has been reduce from 27.2ha in the UDP to 6ha in the LDP and the amount of overall employment land in Neath Port Talbot as a whole has been greatly reduced from the UDP to the LDP. Therefore, the amount of land and the size of the sites should not undermine market interest as both areas are unlikely to be suitable for other land uses with the PDR opening up the whole area to provide a catalyst for employment growth along the M4 corridor.

4.2.29 The PBA report also states that,‘The PDR passes by a number of key employment sites including Port Talbot Docks, Baglan Bay and Baglan Energy Park, these areas will become key gateways to Port Talbot, with potential for unlocking existing major development opportunities that could attract inward investment.' (PBA, 2012:70).

4.2.30 ‘Significant regeneration schemes are planned and/or underway at Coed Darcy, Port Talbot Docks and Baglan Bay, which will help instil local confidence and potentially open up high quality space for inward investment'. (PBA, 2012:71). The LDP therefore needs to allocate areas with the potential to attract and maximise the level of future investment into Neath Port Talbot. It is considered these locations with their strategic locations and development potential are able to do this.

Strategic Regeneration Areas

4.2.31 Strategic Regeneration sites at Coed Darcy and Harbourside provide opportunities for large scale redevelopment and regeneration of significant areas of brownfield land which will be developed over the LDP period and beyond. The sites will make a significant contribution to delivering the LDP strategy, promote economic growth, meet the objectives of the plan. They are strategically located in the urban areas of Neath and Port Talbot and are proposed for mixed use development which will allow significant regeneration to take place bringing wider benefits to Neath Port Talbot.

4.2.32 The PBA report states, 'Coed Darcy Urban Village and Port Talbot Docks (Harbourside) should be allocated as Strategic Regeneration Areas. They should be self sustaining in employment terms and we would recommend that the council seeks to ensure that they continue to provide employment as part of any regeneration proposals'. (PBA, 2012:105).

4.2.33 The site is to be developed as an urban village with a number of other uses to complement the housing provision in order to form a sustainable community where residents can access facilities and services within the development including employment opportunities. In line with the existing planning consent, uses are restricted to B1 use class 52 only. 4.2.34 The redevelopment of Harbourside involves the sustainable, regeneration of an extensive area of brownfield, industrial land. A masterplan has been developed for the area, which incorporates a number of uses including residential, employment, retail and leisure. A number of parcels have already been developed, including a Research and Development Facility. The site is strategically located and the development will be 4 . Current Situation and Trends

complemented by the redevelopment of Port Talbot Parkway and the PDR. Due to the sustainable nature of the development, its location close to the town centre and due to air quality issues within the vicinity of the site, uses have been restricted to the B1 use class.

4.2.35 Restricting the use class to B1 on both areas will make the site more sustainable and support PBAs recommendation that the sites should be self-sustaining in terms of employment.

Conclusions of the Employment Land Review

4.2.36 The Employment Land Review concludes that the following sites should be allocated for employment uses in the LDP:

Table 4.21 Employment Allocations in LDP

Allocation Size of Allocation

Baglan Bay 75ha, of which 11ha is allocated for B use

Junction 38 (M4), Margam 6ha Deposit LDP - Economy & Employment Topic Paper (August 2013)

Land within Coed Darcy SRA 4ha

Land within Harbourside SRA 11ha

Total B Space Allocations 32ha B Space

4.2.37 The allocation of all these sites does represent an over allocation of employment land when compared to the findings of the PBA report. The total amount allocated for B uses is 32ha, compared to the identified requirement by PBA of 20ha. However, as discussed in table 4.9 and under the section, 'Net Requirement of Employment Land', based on alternative site ratios and stock loses since the PBA study, providing for 30ha to 35ha of B Space maybe more appropriate to Neath Port Talbot and would allow flexibility and sufficient scope to deal with changes in employment land and provision over and above those identified by PBA. The sites would also capitalise on major infrastructure planned for the area, including the PDR, Baglan Energy Park Link Road, Southern Access Road and the completion of Ffordd Amazon.

4.2.38 Furthermore, the PBA Report states that the Swansea University Science and Innovation Campus will trigger spin off activity demand for office space in the area, 'the proposed development of the new Swansea University Campus at Fabian Way could help to stimulate spin off activity in the local area, which will help in attracting new skills to Neath Port Talbot'. (PBA, 2012:60). This has already started with the new Baglan Bay Innovation 53 Centre and R&D development at Harbourside. The University Campus is one of the most fundamental, high profile developments to take place in Neath Port Talbot and the exact impacts and spin offs are as yet unknown, however, providing additional land for B and non B uses, will allow the area to capitalise on the benefits the university development can bring. 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 4.2.39 The plan allocates the whole area at Baglan Bay, 75ha, of which 11ha is allocated for B Class Use. PBA have stated that this would not undermine the market attractiveness and would not have a negative impact on the supply of employment land as the area will be developed as a longer term aspiration. This supports the allocation of the whole site as it mentions the importance of the Energy Park in attracting investment into the growing energy sector. Full allocation, availability of land and new infrastructure will strengthen Neath Port Talbot’s position in attracting market interest in growing economic sectors.

4.2.40 The allocation of Baglan Bay, Coed Darcy and Harbourside present major regeneration schemes for the County Borough and with the development of the PDR, allocation of these areas have the potential to promote economic growth by attracting investment into Neath Port Talbot. Furthermore, allocation Junction 38 of the M4 provides further choice and flexibility to potential investors to the area. Therefore, allocating Baglan Bay and Junction 38 as strategic employment sites and Coed Darcy and Harbourside as Strategic Regeneration Areas will maximise market interest and provide wider benefits of regenerative and infrastructure developments.

Safeguarded for Employment Use.

4.2.41 The ELR identified a number of existing employment sites that are to be safeguarded for employment uses over the LDP period. These existing employment areas have been identified due to their existing function and valuable contribution to the overall employment provision in Neath Port Talbot. These areas are essential in supporting the natural churn in the economy and provide on-going opportunities for businesses and economic development across the County Borough.

4.2.42 A number of these have land available within the proposed site boundaries and appropriate infill development will thus be supported in these locations;

Alloy Industrial Estate, Pontardawe Baglan Energy Park, Port Talbot Baglan Industrial Estate, Port Talbot Croeserw Industrial Estate, Afan Valley Crynant Business Park, Dulais Valley Cwmgors Workshops and Industrial Estate, Amman Valley Endeavour Close, Port Talbot Fabian Way, Neath Former Compair/GMF Factory, Ystalyfera, Swansea Valley Workshops, Afan Valley Glynneath Village Workshops, Neath Valley 54 Kenfig Industrial Estate, Port Talbot Llewellyn's Quay, Port Talbot Lonlas Village Workshops, Neath Neath Abbey Business Park, Neath Neath Abbey Wharf, Neath Melincryddan CMB / Milland Road Industrial Estate, Neath Vale of Neath Supplier Park, Neath Valley 4 . Current Situation and Trends

Employment in the Valleys

4.2.43 Due to their topography and distance from the main centres of population the Valley communities have suffered from decline and a lack of investment. There are communities that are vulnerable to further economic decline, deprivation and out migration.

4.2.44 In terms of employment, the Valley areas have seen relatively low levels of market investment over recent years. That said, there are existing businesses within the Valleys that provide a positive economic function and have continued to thrive despite low market demand and other challenges faced by Valley communities.

4.2.45 Farm diversification to tourist related activities has been one such success providing additional visitors to the area and creating jobs. Furthermore, workshop units within certain communities have seen high occupation rates, particularly for smaller units.

4.2.46 A number of sites within the Valley Spatial Areas have been safeguarded for employment within the LDP, as detailed above. Sites such as Crynant Business park, Alloy Industrial Estate and Cwmgors Workshops have experienced high occupancy rates and continued demand for units. The LDP protects these existing employment sites and also support future development through plan policies and criteria. Deposit LDP - Economy & Employment Topic Paper (August 2013)

4.2.47 While the sites identified for safeguarding have experienced high occupancy rates, there are a number of other employment areas allocated within the UDP that have a number of vacant premises and it is unclear whether these sites will attract employment uses over the LDP period. A number of sites have therefore been de-allocated since the UDP.

4.2.48 There are no new employment allocations proposed within the Valley areas, based on the outcomes of the PBA report which recommends no allocations are made as there is expected to be very limited demand for business space over the plan period. It recommends that a flexible approach to business development is adopted in the Valleys, where development is encouraged and supported where proposals are in sustainable locations, with good access to public transport and priority given to previously developed sites in centres of population.

4.2.49 In addition to the safeguarding of existing employment areas and the flexible approach to new sites, the provision of small business units needs to be supported based on the existing demand.

4.2.50 PBA state that there is high demand for smaller units (typically 500sqft) within the Valley areas as a number of existing employment estates are fully let and often have waiting lists and low turn around rates. In 2008, the largest proportion of businesses within the Valley communities contained between 1 and 10 employees, as indicated in the 55 following table; 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Table 4.22 Percentage of business units by size - sub areas of Neath Port Talbot 2008

Sizeband Neath NPT Port NPT (%) Wales Great (%) Valleys Talbot (%) Britain (%) (%) (%)

1-10 employees 79.6 85.9 77.1 81.3 83.8 85.0

11-49 employees 15.9 11.5 18.6 15.1 12.5 11.5

50-199 employees 3.9 2.2 3.7 3.2 3.0 2.8

200+ employees 0.6 0.4 0.7 0.5 0.7 0.7

Source: Annual Business Inquiry, 2008

4.2.51 Neath Port Talbot County Borough Council's Estates department let a number of smaller workshops within the Valley areas including Glynneath Village Workshops, Cwmgors Village Workshops, Crynant Business Park and Glyncorrwg Village Workshops.

4.2.52 The demand for these workshops, in particular smaller units, is quite high at the present time, and more generally do see fairly high occupancy rates, although occupancy rates sometimes vary year to year based on economic and other conditions.

4.2.53 As of August 2013, the occupancy rates for Authority owned estates in the Swansea and Neath Valley were between 90-100%, whilst the Glyncorrwg Workshops in the Afan Valley had occupancy rates of between 80-90%. These estates comprise of units ranging from 500-1000 square feet. At present there is a significant high demand for the 500 square foot units in Glynneath and Crynant. In Crynant all of the 1000 square foot units are currently occupied and only a 2500 square foot unit remains vacant. There are a high number of local residents who often take up or enquire about these premises.

4.2.54 In relation to Gurnos (4)and Cwmgors there are larger units at these estates all of which are fairly new (circa 10 years old). Gurnos is currently fully occupied and has six 1000 square foot units and 4 large 2500 square foot units. There have been several enquiries made for this estate.

4.2.55 Cwmgors workshops has various sizes ranging from 500 - 5000 square feet and again these are all fully let.

4.2.56 PBA state that there is likely to be a demand for smaller workshops in the Valley 56 communities over the life of the LDP. Due to funding shortages and the uncertainty of future budgets within the local authority, there are no existing plans to expand the Authority owned portfolio of small business units in the County Borough.

4 The Gurnos Industrial Estate is located outside of Neath Port Talbot's administrative boundary, however, is still managed by the Authority 4 . Current Situation and Trends

4.2.57 Live work units are one mechanism which would encourage the construction of both new dwellings and workshops in the Valley communities. National policy identifies that Local Authorities should encourage the growth of self employment and micro business in rural areas by adopting a supportive and flexible approach to home working. Allowing development of live work units outside of settlement limits will encourage small scale development in the Valley areas and provide opportunities for employment development in a sustainable manner.

4.2.58 The concept of a live work unit is to achieve units which are specifically designed for dual use, combining both residential and employment space. Such units would provide an important source of small business start up and will provide a source of local employment, encourage entrepreneurship and reduce the need to travel. This approach will therefore be one mechanism for promoting development in the Valleys and achieve the LDP's strategy of reinvigorating the Valleys.

4.2.59 Live work units will be permitted outside of settlement limits, however to meet the sustainability aims of the LDP will be required to be immediately adjacent to the settlement limit. As the promotion of such units is a relatively new concept in Neath Port

Talbot, the level of build under this mechanism in unknown and therefore difficult to predict Deposit LDP - Economy & Employment Topic Paper (August 2013) the number of units that will be achieved over the plan period. As such, a figure for the number of live work units achieved will not feature in the distribution of overall housing provision in the LDP (table 5.3 of the Deposit LDP), instead, the implementation of this policy will be monitored closely over the LDP period.

4.2.60 It is anticipated that from adoption of the LDP, up to the first review (4 year period), that between 1 and 3 units will be achieved per year, therefore a figure of between 5 and 10 units by the first review of the LDP has been included within the monitoring framework. The figure has been set at a relatively small scale level as the concept of live work and the policy approach to their development may take a considerable amount of time to be recognised and pre-application discussions as to the acceptable form of live work units may require some considerable discussion to ensure that the use is viable and the business use does not cause detriment to the existing area or neighbouring land uses

City Regions

4.2.61 In July 2013, Swansea Bay was launched as Wales' first City Region, to boost investment and job opportunities. The Swansea Bay City Region includes the Local Authority areas of Pembrokeshire, Carmarthenshire, City and County of Swansea and Neath Port Talbot.

4.2.62 The concept of the City Regions is to create a central business area and remove administrative boundaries to provide a more efficient labour market, provide better prospects 57 for job creation and attract additional inward investment.

4.2.63 In terms of a regional approach, the PBA report considers the requirements of both Neath Port Talbot and Swansea and states that the economic profiles of Swansea and Neath Port Talbot are quite distinct, largely due to the historical industrial development 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit of each area. Due to their proximity to each other, whilst distinct, are largely complementary, however, traditionally Swansea has dominated in terms of the numbers of jobs and draw in a high percentage of economically active residents from Neath Port Talbot.

4.2.64 The employment land requirements for the LDP and the economic strategy adopted for the LDP uses a growth scenario based on the outcomes of the PBA report which considers employment from a regional perspective, in terms of the future requirements for Neath Port Talbot and Swansea. It is considered the allocations contained within the Deposit LDP will support the City Regions approach as they will continue to complement Swansea and the wider Swansea Bay area whilst providing a regional flexibility. Such flexibility will include supporting growth in the knowledge based economy, through the new Swansea University Science and Innovation Campus, new infrastructure and through providing sites, such as Baglan Bay which could accommodate growth in new employment sectors, such as the energy sector. This concept also supports the Wales Spatial Plan's (WSP) aspirations and the Economic Growth Strategy for South West Wales (2013-2030).

4.2.65 The concept of City Regions in Wales is a fairly new approach to economic development and the launch of the Swansea Bay City Region has only just taken place, therefore, the exact way in which the new approach will influence development and the timescales are unknown. The emergence of the City Region will be monitored alongside the LDP and the employment policies adopted.

58 4 . Current Situation and Trends

4.3 Tourism and Other Growth Sectors

Tourism

4.3.1 Areas of Neath Port Talbot are rich in natural resources, cultural heritage and natural beauty. Such areas, located in close proximity to the Brecon Beacons have presented a number opportunities for tourism development. Over the past ten years Neath Port Talbot County Borough Council has secured investment in tourism infrastructure and it is a growing sector in the local economy and now offers a wide range of tourism attractions and facilities.

Table 4.23 : Key Tourism Indications 2006-2011(STEAM report 2011)

2006 2007 2008 2009 2010 2011

Expenditure (£'s 84.5 87.6 87.6 92.7 91.1 92.0 millions)

Tourist days 1,804 1,822 1,820 1,925 1,851 1,872

(thousands) Deposit LDP - Economy & Employment Topic Paper (August 2013)

Tourist numbers 1,356 1,350 1,341 1,443 1,355 1,374 (thousands)

Total employment in 1,483 1,554 1,561 1,628 1,602 1,585 the tourism sectors (direct and indirect, FTE's_

4.3.2 Neath Port Talbot attracts a greater proportion of day visitors to the region than seen in Wales overall. In 2011, 56% of visitors to Neath Port Talbot were day visitors. A key objective of the Tourism Action Plan is to convert the day visitors into staying visitors so accommodation is taken up within the Local Authority and as a result more money is spent in the local economy.

4.3.3 Since 2002 there has been a 269% increase in bedstock within the County Borough. As the table below identifies the majority of the tourist accommodation is located within the Afan Valley, followed by urban Neath and urban Port Talbot.

59

60 eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit urn iuto n Trends and Situation Current . 4 Table 4.24 :Bed Stock Summary (June 2012)

Non serviced Serviced Caravan/Campsite Bedstock

Overall Graded Spatial Total number of No. Of No.of No. Of total Bedspaces Bedspaces Bedspaces bed Area establishments establishments establishments establishments bed (5) spaces spaces

Afan 24 16 163 6 236 2 360 759 289 Valley

Dulais (1) 6 5 36 0 0 1 80 116 102 Valley

Swansea 23 16 83 7 101 0 0 184 60 Valley

Vale of 9 23 99 1 12 1 20 131 27 Neath

Upper Amman 2 1 5 1 5 0 0 10 5 Valley

Port Talbot 15 3 12 12 621 0 0 633 388 Urban

Neath 12 4 44 7 487 1 225 756 200 Urban

Total 91 68 442 34 1,462 5 685 2,589 1,071

1. The Dulais Valley bedstock figures do not include Call of the Wild Barn accommodation in Abercrave (122 bedspaces - 2 establishments)

Source: Neath Port Talbot Development Action Plan 2011-2014.

5 Accommodation graded as part of nationally recognised grading schemes from Visit Wales or AA) 4 . Current Situation and Trends

4.3.4 In terms of the spatial distribution within the County Borough, each spatial area has a unique tourism portfolio with a range of tourism facilities and opportunities.

4.3.5 The Afan Valley is one of the main tourism destinations for the County Borough due to the presence of the Afan Forest Park which offers world class mountain biking facilities. Recent investment has been seen as part of the Cognation Project, which has created new mountain bike trails and improved facilities which will allow the area to receive national recognition as a mountain bike destination. Growth in the tourism industry and mountain biking has in turn supported a number of accommodation and associated businesses in the area.

4.3.6 The Vale of Neath has also become an important tourism destination due to the improved profile of the Waterfall County and Neath Canal. There are plans to develop the historic Rheola Estate, a 19th Century country estate situated within the heart of the Neath Valley. This tourism led development will see the construction of up to 100 holiday units with an associated leisure complex.

4.3.7 In the Port Talbot spatial area, there are a number and range of activities available including walking, cycling, surfing, sailing, fishing, orienteering, archery and geo-caching. Deposit LDP - Economy & Employment Topic Paper (August 2013) provides a beautiful setting for many outdoor activities, steeped in history,the park is a key destination for visitors. beach has three miles of sandy beach and the seafront has two miles of flat promenade making it very popular with walkers, cyclists and families. The area also provides a gateway to the Afan Forest, and the construction of the Connect2 cycle routes, access and links between the two areas will be improved.

4.3.8 Other spatial areas also offer a number of opportunities, namely the Gnoll County Park and Falls in Neath, Cwm Du Glen, offering spectacular walks in Pontardawe, the Swansea Canal in the Swansea Valley, Amman Valley Trotting Club and gateway to the Black Mountains in the Amman Valley and Cefn Coed Museum, a range of outdoor pursuits and the gateway to Sarn Helen in the Dulais Valley.

Other Growth Sectors

4.3.9 Mining is once again becoming a significant employer, as of July 2011, 950 people were employed within the mineral industry - opencast (312); deep/small mine (496); quarries (55); and railheads/washeries (87). The main focus for the coal industry is the Neath Valley and interest has been expressed by Aberpergwm mine in developing a training resource centre in Glynneath which will further support the mining industry. However, the industry is currently experiencing some difficulties borne out of the current economic climate and will potentially lead to a down turn in activity for a period of time. 61 4.3.10 In the Port Talbot area longstanding proposals remain for a coking coal mine project in the Margam area to supply coal for Tata Steelworks in the Docks - feasibility studies are currently being undertaken on the prospect as are extensive seismic surveys on Margam mountain (which extends into the Bridgend area) to analyse and obtain further information on the potential coking coal seams of the area. The feasibility study will determine if Tata are likely to proceed with an application for development of a deep mine. Initial discussions with Tata indicate that their initial capital expenditure (capex) is 4 . Current Situation and Trends

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit anticipated to be £260mn with a capex expenditure over the life of the project of £400mn. Furthermore, over the life of the project (>24 years), subject to planning permission, 500 employees will be required to support the operation.

4.3.11 As of July 2012 the following projects are of particular note and serve to evidence the importance and continued commitment of the mining industry in Neath Port Talbot:

Selar North Extension OCCS – consent granted to extract 1.2 million tonnes of coal over a 5 year period. Operations commenced in August 2010; Gilfach Quarry – new consent approved in February 2012 for a major extension within the preferred area allocated in the UDP. The proposal is to win 8.42 million tonnes of hard rock over a 20 year period. Gwrhyd Uchaf Building Stone Quarry – approval in principle to extract 26,000 tonnes of sandstone per annum for building stone products over a 10 year period. The new permission has been implemented and is developing the extension area. Aberpergwm Colliery – consent granted in November 2010 for a major extension of surface facilities to incorporate a new coal preparation facility, additional coal handling storage areas, ancillary infrastructure and access arrangements. The development allows for continued expansion of the deep mine to increase production to around 750,000 tonnes per year. Major coal processing facilities currently being constructed; Aberpergwm Mine (Additional Underground Take Area) – consent granted November 2010; Fforest Quarry OCCS Area 2 Extension – consent granted in 2010 and has approximately 2 years life remaining; Coal Bed Methane (Exploratory Boreholes) – consent granted for five separate sites in Margam, Clyne, , Crynant and Abernant; Treforgan Colliery surface - Possible interest in reopening works subject to investigations. Proposed Margam Deep Mine - Tata Steel Europe has carried out extensive seismic surveys on Margam mountain (which extends into the Bridgend administrative area) to analyse and obtain further information on the potential coking coal seams of the area. A comprehensive drilling proposals in anticipated to carry out further site assessment and feasibility. The feasibility study will determine if Tata are likely to proceed with an application for development of a deep mine.

4.3.12 Furthermore, the following two applications were refused planning permission:

Margam Extension OCCS – the WG dismissed the Appeals made by Celtic Energy Ltd on the refusals by both Neath Port Talbot County Borough Council and Bridgend County Borough Council for an extension to the existing opencast. Celtic Energy 62 appealed to the High Court in July 2010 – the application was dismissed. Celtic Energy Ltd subsequently made an appeal to the Court of Appeal however that was also dismissed. Small Mine, Penydarren (near Godre’r Graig) –Refused permission on access and transportation grounds. 5 . Summary of Consultation Responses

5 Summary of Consultation Responses

5.0.1 This section of the paper summarises the main issues and comments raised following:

The formal Pre-Deposit Consultation (September / October 2011); and

The informal Emerging Deposit Plan Proposals Consultation (September / October 2012).

5.0.2 The Pre-Deposit Consultation was the first of two formal consultations on the LDP and focused on the Authority's vision, strategic options, preferred strategy and key policies.

5.0.3 The Emerging Deposit Plan Proposals were discussed at a series of informal meetings with a variety of stakeholder organisations. These included representatives of the many interest and community groups in the County Borough. At the same time all of the information presented at the stakeholder meetings was made available on the Council's website and anyone or organisation that is interested in the future development of Neath Deposit LDP - Economy & Employment Topic Paper (August 2013) Port Talbot was invited to comment.

5.0.4 The Deposit Plan Proposals Report (Sept 2012) set out the emerging picture both in terms of the overall strategy for the LDP and the various topic based policies that were proposed for inclusion within the Deposit Plan. The report was accompanied by the emerging Proposals Map which showed the geographical location of the emerging policies and proposals.

5.0.5 It should be emphasised however that this section does not present a comprehensive and exhaustive list of all comments received, moreover the following seeks only to summarise the main issues raised. Full details of comments received and the Council's responses to those comments are set out in the Initial Consultation Report (ICR)(6)

[1] Growth Strategy

Consideration and clarification should be given of the inter-relationship between housing and employment land allocations within the plan period and neighbouring plan areas. The employment and housing policies need to be more integrated.

The estimates of job growth and economic activity appear to be over-optimistic. It is quite possible that the overall population in NPT will decline, not increase, in the next decade or two. 63

6 Initial Consultation Report (August 2013). 5 . Summary of Consultation Responses

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit [2] Employment Land Review (ELR)

The Pre-Deposit Plan identifies a substantial over-allocation of employment land. A realistic assessment of the amount of land required to deliver the LDP strategy should be undertaken and land allocated accordingly. If it is decided that less land is required than is currently allocated in the UDP, and proposed for allocation in the LDP, then consideration should be given to releasing the land for other uses.

A number of issues were raised as part of the Pre-Deposit Plan consultation process in relation to the potential impact of the proposed allocations on the wider Environment including air quality, vulnerability to flooding and biodiversity.

[3] Tourism

The Local Authority should promote ecotourism and widen the variety of local services to support the tourism sector including cycle routes, transport, countryside management, museums and tourist facilities. A number of specific tourism opportunities were mentioned including the Forestfawr Geopark and the opportunities for water-based recreation based on the canal and river network.

There is a need to ensure that the impacts of tourism do not cause adverse impacts on the environment and character of Brecon Beacons National Park.

64 6 . Issues to be Addressed

6 Issues to be Addressed

Having considered (1) the requirements of National policy and guidance, (2) the matters that have emerged from the evidence base and (3) the responses received to the formal Pre-Deposit stage consultation (Sept'11) and the more informal emerging Deposit Plan Proposals consultation (Oct'12), this section of the paper considers in more detail the key requirements and issues that the LDP has to address.

Pre-Deposit Plan

6.0.1 The following issues were identified in the Pre-Deposit Plan in relation to the Economy and Employment in Neath Port Talbot:

There are high levels of commuting out of the area to access employment and facilities;

There are higher than average levels of unemployment particularly amongst the younger generation;

The valley communities are losing people, jobs and services and are increasingly Deposit LDP - Economy & Employment Topic Paper (August 2013) becoming dormitories with residents travelling elsewhere for an increasing range of facilities, services and employment;

There is a need to encourage the growth of small businesses, especially within the Valley communities.

Matters arising from National Policy and the Pre-Deposit Consultation

6.0.2 In addition to the issues which the Plan has to address there are a number of requirements detailed in National Policy and issues raised as part of the Pre-Deposit Plan which need to be considered as part of the process of formulating the Deposit Plan.

1. As part of the LDP process an Economic Study and Assessment should be undertaken in order to broadly assess the anticipated employment change by broad sector and land use over the LDP period. This will enable the Local Authority to identify targets on land provision for the employment uses (Classes B1-B8) and to show net change in land/floorspace for offices and industry/warehousing;

2. An Employment Land Review should be undertaken in order to ensure sufficient land is allocated for employment uses to meet the need identified in the Economic Study and Assessment. The study should ensure that the LDP provides the right amount of land and qualitative mix of sites to meet the market demand for economic development uses. The following principles, enshrined in PPW, will need to be considered when determining the 65 suitability of sites for allocation;

New development should be located / implemented in accordance with sustainability principles preference should be given for the use of previously developed land, proximity to existing urban developments, good accessibility and good quality telecommunications for key employment allocations; 6 . Issues to be Addressed

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit A number of issues were raised as part of the Pre-Deposit Plan consultation process in relation to the potential impact of the proposed allocations on the wider Environment including air quality, vulnerability to flooding and biodiversity. These issues will be considered as part of the site assessment process and the proposed allocations will be assessed as part of the SA / SEA and where appropriate the HRA process. Furthermore, a masterplan will be produced for the proposed Strategic allocations which will seek to ensure development does not have a detrimental impact on biodiversity;

The Local Authority should seek to provide the right amount of land and qualitative mix of sites to meet the market demand for economic development uses;

Consideration should be given as to whether existing employment allocations, or sites in urban areas with extant but unimplemented permissions for commercial or retailing, would be better used for housing / mixed use developments or no longer designated for development - the LA should control and manage the release of unwanted employment sites to other uses;

Mixed use development should be promoted in and adjoining existing settlements where appropriate;

Consideration needs to be given to issues such as the phasing of development and availability of infrastructure;

Existing employment sites should be identified and supported by policies relating to their future development in order to protect them from inappropriate development;

The LA should work collaboratively with neighbouring Local Authorities to ensure the Employment Land review is undertaken at an appropriate strategic level and to ensure that development takes place in the most appropriate locations in Wales even if that is outside of the Local Authority boundary.

3. The interrelationship between housing and employment strategies needs to be strengthened and clarified.

4. A holistic approach towards the economy should be adopted and the LDP needs to make provisions for the needs of the entire economy (including non B class uses such as retail, leisure, health and public services) in addition to traditional employment land uses 66 defined as B1, B2 and B8. Of particular note, as identified in the Current Situation and Trends chapter of this paper the tourism sector is growing in Neath Port Talbot and has the potential to deliver additional growth and job opportunities over the Plan period. The natural environment provides for a range of tourist attractions including the river and canal network (walking, cycling, fishing and other water-based opportunities), mountain biking, walking, cycling, eco-tourism and also opportunities within the urban areas 6 . Issues to be Addressed

including Aberafan seafront and Margam Park. The Plan therefore needs to adopt a holistic approach to tourism. Sites will be allocated for tourism purposes and any policies relating to the provision of tourism will have regard to the effects on the National Park and, where appropriate, the SAC at Pontneddfechan.

5. In primarily residential areas, policies should not unreasonably seek to restrict commercial and industrial activities of an appropriate scale – provided there are not likely to be any adverse effects on residential amenity, landscape quality and the environment.

6. The LDP will need to ensure sufficient B2 land is allocated to meet the requirements of the Regional Waste Plan(7)

Deposit Plan

6.0.3 Peter Brett Associates (PBA) were appointed to carry out an Economic Assessment and Employment Land Provision for Swansea and Neath Port Talbot. As a result of this study more detailed information was collected on the economy of Neath Port Talbot resulting in the modification of the key issues to reflect the most up-to-date trends and data: Deposit LDP - Economy & Employment Topic Paper (August 2013)

Key Issues:

Sufficient land needs to be provided over the LDP period to meet the requirements of businesses.

Economic growth in Neath Port Talbot has stagnated over the last 10 years.

There are low levels of market demand in the Valley areas.

Other Issues;

1. Over the past ten years Neath Port Talbot County Borough Council has secured investment in tourism infrastructure and is a growing sector in the local economy, particularly in the Afan Valley due to the presence of Afan Forest Park. The majority of visitors are day visitors – opportunities remain to convert these into staying visitors who will make a greater contribution to the local economy.

2. There is a net outflow of commuters. In 2010 some 62% of Neath Port Talbot’s working residents were working in the County Borough. Some 24% were commuting to work in Swansea and a further 4% in Bridgend. 67 3. Neath Port Talbot is dominated by industrial employment and is overrepresented by mining, quarrying, utilities and manufacturing compared to the national average. The steelworks in Port Talbot dominate as the main employer in the County Borough and directly employ over 3000 people.

7 For further information on the LDP strategy for waste see the Deposit LDP Waste Topic Paper (August 2013) and Waste Strategy and policies within the Deposit Plan. 6 . Issues to be Addressed

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 6.0.4 As can be seen from the revised list of key issues they remain broadly the same as the issues that emerged at the Pre-Deposit stage of the plan preparation process, however, more detailed information and data has been used to provide further evidence.

68 7 . Objectives

7 Objectives

7.0.1 The objectives are at the centre of the LDP, they emerge from the vision and key issues and form the basis for future policy development.

Pre-Deposit Objectives

7.0.2 The following objective was included in the Pre-Deposit Plan in relation to the Economy and Employment:

Promoting a Sustainable Economy

Support a thriving, sustainable, diverse economy which provides a range of good quality, accessible job opportunities, encourages local businesses to grow and the tourism industry to flourish.

Deposit Objectives

7.0.3 In order to better reflect the revised key issues, take account of the comments received at the Pre-Deposit stage and improve clarity for the Deposit Plan, the following Deposit LDP - Economy & Employment Topic Paper (August 2013) specific objectives are proposed.

7.0.4 A holistic approach to the economy will be applied in the LDP with a focus not only on employment land but also on the provision of employment opportunities. The LDP will seek to:

Realise the diverse potential and opportunities available for sustainable economic development along the Coastal Corridor to foster economic growth, with Coed Darcy, Swansea University Science and Innovation Campus, Baglan Bay and Harbourside being the anchors for growth.

Reinvigorate the Valley areas and improve economic prospects, recognising the role of Glynneath and Pontardawe in delivering sustainable growth.

To promote and protect a diverse portfolio of employment land and employment opportunities to meet the needs of residents and businesses and stimulate economic growth.

Improve and strengthen the economic base of Neath Port Talbot to increase economic activity, reduce the unemployment rate in line with the Welsh average and negate some of the impacts of a reduced working age population. 69 7.0.5 Furthermore, reflecting the importance of the tourism industry as a growth sector over the Plan period the LDP will seek to:

Provide a holistic approach to tourism development to capitalise on Neath Port Talbot's growing tourism industry, specifically growth in the Neath and Afan Valley to support the local economy. 7 . Objectives eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit

70 8 . Strategy Development

8 Strategy Development

8.1 Pre-Deposit Strategy

8.1.1 The following Employment and Economic Development Strategy was identified in the Pre-Deposit Plan:

8.1.2 The existing (UDP) employment commitments will be more than sufficient to meet the job needs generated by the moderate growth option and will also enable the County Borough to continue to fulfil its regional role within the Swansea Bay and travel to work areas. The distribution of employment and types of employment will continue to be heavily influenced by the role of Swansea and Cardiff and the County Borough's strategic location along the M4 corridor. It is thus anticipated that employment land in Neath Port Talbot will help meet the need of adjoining authorities, with regards to the regional need,with a particular focus on large employers, heavy industry and manufacturing. The allocation of strategic employment sites at Baglan Bay, Coed Darcy and Fabian Way will create new opportunities for a wide range of larger scale employment including those focused on the knowledge economy. Deposit LDP - Economy & Employment Topic Paper (August 2013) 8.1.3 When assessed against past build rates and the needs of the population, employment land is over supplied in the valleys. However, much of the land is brownfield, already prepared for development or unsuitable for re-allocation for more sensitive uses (largely due to flood risk). As a result it is proposed to carry these UDP allocations forward while recognising that innovative forms of employment, including tourism, leisure and recreation may be appropriate uses.

The strategy will:

1. Support business and economic activity and promote the creation of a wider range of employment opportunities across the County Borough.

2. The County Borough will continue to meet the regional need for larger employment sites; strategic employment sites reflecting this role will be allocated in the LDP. Economic opportunities will thus be focused on locations adjacent to the M4 corridor, including Coed Darcy, Fabian Way, Baglan Bay and Port Talbot Docks, which will draw maximum benefits.(8)

3. Promote Research and Development opportunities to build on University's presence at Baglan and the proposal to site Swansea University's Science and Innovation Campus at Fabian Way. This offers the platform on which to build the County Borough's knowledge-based economy. 71 4. Compliment this offer with an increasing emphasis on providing opportunities for office and service based industries together with Small and Medium sized Enterprises.

8 The new Harbour Way will link Port Talbot Docks to the M4 and open up areas of previously developed land for regeneration and redevelopment 8 . Strategy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 5. Encourage the creation and growth of Small and Medium sized Enterprises with particular emphasis in the Valleys. The drawing of settlement limits will enable land to be released for the development of small businesses, live-work units and new housing allowing working from home. The operation of businesses within residential areas will need to be carefully balanced to ensure that residential amenity is not adversely affected and to ensure that residential areas do not lose their residential character.

6. Support rural enterprises and farm diversification.

7. Maximise employment opportunities offered by coal. Coal has emerged as a major source of employment and in the Upper Neath Valley underground mines are providing an increasing amount of employment.

8. Consider sites appropriate for hazardous and bad neighbour uses.

9. Support the tourism and leisure led opportunities offered by the County Borough.

8.1.4 The importance of the tourism sector in delivering growth in the Valley communities was recognised in Chapter 8.3: Areas-based Spatial Strategy for The Valleys. The Pre-Deposit Plan stated that 'reflecting its dramatic landscape, surrounding countryside and proximity to the Brecon Beacons National Park, many of the future job opportunities will be provided from the tourism and leisure industries. The tourism and leisure potential offered by the County Borough will be supported and enhanced, which will include the following;

Afan Valley building on walking and cycling based tourism;

Improved linkages with the Brecon Beacons National Park and the further promotion of the Waterfall Country in the Upper Vale of Neath;

Tourism and leisure opportunities in the Valley areas based on activity, culture and countryside;

Support for mixed-use tourism led proposals at Rheola and Cefn Coed;

Promote natural heritage across all the Valleys;

Development of activity based tourism across all the Valleys;

The canal system will be promoted as a local and visitor resource. This will work 72 towards providing an integrated Swansea Bay Waterway Network comprising the Neath, Tennant and Swansea Canals. 8 . Strategy Development

8.2 Deposit Strategy

8.2.1 At the Pre-Deposit stage, the overall Preferred Strategy was for 'Moderate growth with a focus on the coastal / M4 corridor whilst reinvigorating the Valley communities'. This overall strategy was underpinned by a number of topic based and area based strategies.

8.2.2 Having considered the consultation responses, issues and objectives outlined in previous chapters, this section of the paper sets out how the strategy has evolved since the Pre-Deposit stage. Where appropriate, amendments and additions to the strategies are highlighted and explained.

8.2.3 The existing (UDP) employment commitments have been reassessed within the Employment Land Review and sites identified in the Deposit LDP will ensure sufficient land is allocated to meet the projected demand in employment growth over the LDP period. Employment allocations are focused on the areas of high market demand along the coastal corridor which will be able to capitalise on their strategic location and help to meet a regional need.

8.2.4 The LDP will ensure a holistic approach is taken towards the economy and a diverse portfolio of employment land and employment opportunities will be protected and Deposit LDP - Economy & Employment Topic Paper (August 2013) promoted. In order to ensure the market is focused on the most appropriate and deliverable sites a number of the UDP employment commitments will not be allocated in the LDP and they will be released for other uses.

Deposit LDP - Economic Strategy

8.2.5 Over recent years, Neath Port Talbot has experienced low levels of economic activity and high levels of unemployment among the working age population, indicating a relatively large untapped labour force. The LDP Deposit strategy, which encourages economic development therefore seeks to increase economic activity rates and reduce unemployment levels in line with the Council's planned interventions. This, combined with the trend of younger generations achieving improved higher education standards, could indicate a shift from the traditional, declining sectors of mining and manufacturing to higher knowledge based sectors.

8.2.6 This shift is further supported by the development of the Swansea University Science and Innovation Campus at Fabian Way, the regeneration of Coed Darcy and Harbourside and the identification of strategic employment sites at Baglan Bay and Junction 38 (M4), Margam.

8.2.7 In addition to the employment allocations, the LDP also seeks to ensure the needs of existing businesses and residents can be met through the identification of existing employment areas and the development of suitable vacant and previously developed land 73 within these. Furthermore, a more flexible approach to employment growth will be adopted in the Valley communities to reinvigorate the local economy. 8 . Strategy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 8.2.8 Tourism within Neath Port Talbot has become a significant contributor to the local economy and has provided a variety of opportunities, especially within the Valley areas. The LDP strategy and policies seek to support this industry by taking a flexible approach to new tourism proposals and resisting where possible the loss of existing facilities.

8.2.9 Housing and employment allocations are supported by the identification of a retail hierarchy which further embeds the principles of sustainable development and reflects the function of centres in terms of their existing commercial role and retail offer.

Aligning LDP Housing and Employment Strategies

8.2.10 The Deposit Plan's level of growth is based on an economic-led strategy which complements the approach being taken by the City and County of Swansea and addresses the key issues of Neath Port Talbot in order to achieve the LDP vision and objectives. The chosen economic-led scenario is aspirational in its approach and aims to maximise job growth within the local economy. In order to address the key issues of the County Borough, wealth creation through job growth is fundamental to achieving the LDP vision.

8.2.11 This method has enabled the Authority to align its employment and housing strategies to meet the LDP objectives and deliver sustainable development. The joint Economic Study undertaken by Peter Brett Associates (PBA) for the Authority and the City and County of Swansea achieved this by forecasting how economic changes over the Plan period equated to the requirements for employment land and the number of new homes needed to accommodate the projected total population and required labour supply.

8.2.12 This approach has used the Welsh Government's 2008 population and household projections and detailed analysis of underlying trends in mortality and fertility rates and average household size. Based on the aspirational scenario of job growth (taking into account the Authority's aspiration to reduce unemployment and increase economic activity rates in line with the Welsh average), the population growth for the area has been driven by the ratio of working age population to total population. It is considered that this approach makes the projections more robust than purely trend-based projections which do not accurately reflect the Authority's aspirations for the area.

8.2.13 The growth in population and households complements the economic prospects for Neath Port Talbot and the relative performance of the South West Wales economy as a whole reflecting the Wales Spatial Plan aspirations for the Swansea Bay Waterfront and Western Valleys and the recently launched Swansea Bay City Region. The level of housing has been mainly driven by the reduction in average household size, however, it has been promoted and encouraged to a far greater extent than in the past to ensure it meets the needs of the existing population but also encourages an element of migration into the 74 County Borough. The level of growth aims to ensure the County Borough becomes more independent and less reliant on outside sources of labour by improving the economic activity rates of its residents. Further information can be found within the Population and Housing Topic Paper.

8.2.14 Based on the projected economic-led growth scenario of 3,850 jobs for the area, the Plan makes provision for an additional 8,000 new residential units, leading to an increase of approximately 7,000 people and a total population of 146,300 by 2026. This 8 . Strategy Development

approach is aspirational, linked to the local economy and is set to complement the projected growth in economic activity and reduction in average household size in addition to helping meet the need for additional affordable residential units.

8.2.15 Fundamental to delivering economic success is to ensure an appropriate supply, mix and range of high quality employment sites that can support emerging business and employment needs. At the local level, economic growth has stagnated over the last 10 years. This has not been helped by the global recession. In order to meet the aspirations of the 15 year vision, key regeneration schemes and projects such as Harbourside, Coed Darcy Urban Village and Baglan Bay will transform the area by redeveloping previously used, unsightly former industrial land. These projects together with the relocation of Swansea University's Science and Innovation Campus at Fabian Way will attract high-tech industries and widen the skill pool for prospective employers.

Employment Land & Opportunities

8.2.16 The level of employment land has been assessed to ensure it can be delivered within the Plan period. In order to meet the overall vision and strategy for the area, 96 hectares of land is allocated for employment, comprising of 32 hectares for Conventional Deposit LDP - Economy & Employment Topic Paper (August 2013) B Class uses and space to accommodate the needs of the energy sector and ancillary facilities and services which support and complement the wider role and function of B Class Uses. In addition, eighteen existing employment sites are safeguarded for employment purposes.

8.2.17 Baglan Bay provides a large brownfield site which can meet current and future requirements in existing and emerging economic sectors both during the Plan period and beyond. Whilst the site comprises 75 hectares of land, it is anticipated that only part will be developed within the Plan period with 11 hectares allocated for conventional B Class employment uses. A full range of activities and uses can be attracted to the area including energy sector schemes of all sizes and scales. Many energy generating proposals will not fall within any use class, for example, Photovoltaic schemes. Proposals for such uses would not contribute to the projected need of 20 hectares set out by the Economic Assessment and Employment Land Provision Study (9) as this is specifically related to conventional B Class uses (commercial, industrial and storage).

8.2.18 The land could be attractive to future aspirational industries and sectors (i.e. those not anticipated within the economic growth projections) and the amount of land take up will be monitored as will the employment that is generated, to ensure that the performance of Baglan Bay aligns with other elements of the LDP Strategy (and other national and regional objectives). 8.2.19 Tourism within Neath Port Talbot has become a significant contributor to the local 75 economy and has provided a variety of opportunities, especially within the Valley areas. Given that the Valley communities offer the greatest concentration of tourism facilities, growth in this sector has the potential to be a major regenerative tool. In addition, tourism within the Coastal Corridor is supported to ensure Neath Port Talbot becomes a well

9 Peter Brett Associates (2012) Economic Assessment and Employment Land Provision for Swansea and Neath Port Talbot. 8 . Strategy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit established tourism destination. Attractions in the urban areas such as the Gnoll Country Park, Margam County Park, and Aberavon Seafront will contribute to the tourism economy and support tourism in the Valley areas by promoting Neath Port Talbot as an inclusive tourism destination.

8.2.20 A flexible approach will be taken in the Valleys Strategy Area with appropriate employment and 'live-work' units being acceptable outside of, but immediately adjacent to settlement limits and retail proposals considered at locations outside of designated town, district and local centres. This approach aims to support new and existing employment, create jobs and revitalise the area.

Strategic and Detailed Policy Development

8.2.21 In order to implement the economic strategy at the local level (through the determination of planning applications) the following section translates the high level economic strategy into strategic and detailed policies.

76 9 . Strategic and Detailed Policy Development

9 Strategic and Detailed Policy Development

"Promoting a Sustainable Economy"

Employment

9.0.1 Strategic Policy SP11 Employment Growth

SP 11

Employment Growth

Existing employment uses will be supported and safeguarded and new and expanding employment developments will be encouraged through the following measures:

1. 96 ha of land for employment and business purposes will be allocated for development within the Plan period in the Coastal Corridor Strategy Area to meet

economic development and employment needs; Deposit LDP - Economy & Employment Topic Paper (August 2013)

2. Additional employment provision will be made within the Strategic Regeneration Areas as part of mixed use, sustainable development in these locations;

3. Existing employment areas will be safeguarded for employment uses;

4. Premises in existing appropriate lawful employment use will be safeguarded for employment purposes;

5. Employment uses will be encouraged in principle within settlement limits;

6. In the Valleys Strategy Area, a flexible approach will be taken to employment proposals and 'live-work' units within or immediately adjacent to settlement limits.

LDP Objectives: OB 11 and OB 12

9.0.2 The Economic Assessment and Employment Land Provision Study by Peter Brett Associates (PBA) on behalf of the City and County of Swansea and Neath Port Talbot County Borough Council (2012) identified an anticipated increase of 3850 jobs over the LDP period with a resultant requirement of 20 ha of land for class B uses, this includes an anticipated net need of 34,000sqm of B use class floorspace. In order to meet this 77 requirement the LDP has identified two Strategic Employment Sites at Baglan Bay and Junction 38 (M4) Margam. These sites are located in the Coastal Corridor which is the area of highest market demand with easy access to the strategic road and freight networks.

9.0.3 The strategic employment site at Baglan Bay is made up of some 75 hectares of land, however, it is anticipated that only part of the site will be developed within the Plan period and the area will continue to meet the needs for employment uses and needs of 9 . Strategic and Detailed Policy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit the energy sector beyond the life of the LDP. The site cannot be readily subdivided and allocation for other uses will undermine its market attractiveness for employment. The whole area is therefore allocated in recognition of the longer term aspiration and to aid flexibility. This area of land is made up of 11 hectares of conventional B Class (10)employment uses, part of which could meet the requirements of the Regional Waste Plan. It is anticipated a proportion of the site will be developed for ancillary uses to support the wider function of the employment area and to satisfy the needs of the energy sector.

9.0.4 In addition to this provision, employment uses will be incorporated within the two Strategic Regeneration Areas. Whilst the land at Coed Darcy will provide local employment for residents of the new developments and generally enhance the sustainability of the urban village, Harbourside will provide land for small scale industrial and office users maximising the advantage of proximity to the town centre. Parcels of land have already been developed including a Research and Development Facility and a Justice Centre.

9.0.5 The County Borough has a number of existing employment areas, 18 of which are safeguarded for employment purposes. These sites, together with existing employment land and premises elsewhere will continue to play an important role in supporting the local economy. They will be safeguarded for employment uses wherever appropriate, including broader categories of uses than those within Class B such as ancillary cafés, day nurseries and commercial services which provide employment opportunities and necessary amenities.

9.0.6 In order to help to reinvigorate the Valleys areas, a more flexible approach will be taken, with appropriate employment and 'Live-work' units being acceptable in principle outside of, but immediately adjacent to settlement limits.

9.0.7 Policy EC1 Employment Allocations

78

10 Uses which fall within B1, B2, B8 use class 9 . Strategic and Detailed Policy Development

EC 1

Employment Allocations

The following sites are allocated for employment uses:

Use Class Reference Site Size Permitted

75 ha*, of which EC1/1+ Baglan Bay 11ha is allocated for B1, B2 and B8(11) B Use Class **

Junction 38 (M4), EC1/2+ 6 ha ** B1, B2 and B8 Margam

Land within Coed EC1/3 4 ha B1 Darcy SRA Deposit LDP - Economy & Employment Topic Paper (August 2013) Land within EC1/4 11 ha B1 Harbourside SRA

Key:

+ Preferred Sites for In-Building Waste Treatment Facilities.

* Employment land to meet the needs of the energy sector and any ancillary facilities and services which support and complement the wider role and function of B Class Uses within and beyond the life of the LDP.

** Part of the allocation could meet the requirements for the Regional Waste Plan (RWP).

Baglan Bay Strategic Employment Site

9.0.8 Baglan Bay is a brownfield site and will deliver a substantial number of jobs over the LDP period and beyond. It is a long-term development proposal and progress has already been made in bringing the site forward for development.

9.0.9 The site has strategic access to the mainline railway, the A48 and the M4 and the road links will be further improved with the opening of Harbour Way in 2013 and the Baglan 79 Energy Park link road. The site will provide a range of types and sizes of employment units, including ancillary incubator units associated with the Science and Innovation Campus for Swansea University at Fabian Way, offers scope for manufacturing industries and will help to meet a regional need. Supplementary Planning Guidance will be issued to support the delivery of the Baglan Bay site.

11 Use Classes defined within Glossary 9 . Strategic and Detailed Policy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 9.0.10 The allocation contains 75 hectares of employment land which reflects the site’s clear potential to accommodate large and medium term land requirements and initiatives that will meet the employment needs of the County Borough beyond the Plan period. It is, however anticipated that only part of the site will be brought forward within the Plan period. This area of land is made up of 11 hectares for conventional B Class employment uses with space to meet the needs of the energy sector and any ancillary facilities and services which support and complement the wider role and function of B Class Uses. This matches the PBA analysis of the site which explains that 'it is not considered suitable for an alternative use because this will undermine its market attractiveness for employment. The large scale of the site is not considered a weakness since infrastructure and marketing will be required for this site irrespective of whether they are (sic) small or large.' (PBA 2012: 105). Furthermore, there are no defensible boundaries within the site and it cannot be readily subdivided into smaller parcels for allocation in the LDP.

9.0.11 In addition to conventional employment uses, Baglan Bay would be able to capture very large and mobile investment projects including energy generation and data and technology schemes in emerging sectors. Planning permission exists for a photovoltaic (PV) array at Baglan Bay already and this concept is likely to be extended over the plan period to help meet WG and Council objectives on renewable energy. Energy activity falls under the sui generis land use class and PBA advises that it would not be appropriate to set allocations for mining and energy related uses in the future employment allocations - each case or permissions should be considered on its merits as and when brought forward by the market. Adequate flexibility and scope is therefore provided within the allocation to accommodate such uses e.g. photovoltaic schemes and waste to energy projects.

9.0.12 It is anticipated that the site will be developed over the medium to long term. The site will be closely monitored ensuring that if the anticipated demand for the site were to change, this could be addressed through a review of the Plan.

Junction 38 (M4) Margam Strategic Employment Site

9.0.13 The Strategic Employment allocation at J38 lies to the south of Harbour Way and adjacent to the A48 and M4 and thus benefits from excellent road transport links. The site is near to a number of existing employment and industrial operations.

9.0.14 Harbour Way is nearing completion and will pass to the north of the proposed allocation improving the transport linkages to the site.

9.0.15 It is anticipated that the site will be delivered over the short term.

9.0.16 Both Baglan Bay and Junction 38 (M4) have been assessed and are identified 80 as the preferred locations for in-building waste treatment facilities (See Policy W1). 9.0.17 In addition to the Strategic Employment allocations, the Strategic Regeneration Areas at Coed Darcy and Harbourside will also support employment growth and uses over the LDP period. Uses will be restricted to B1 class to promote sustainable, mixed use development and compliment the predominant residential function of the respective developments. 9 . Strategic and Detailed Policy Development

9.0.18 Policy EC2 Existing Employment Areas

EC 2

Existing Employment Areas

In order to protect the employment function of the County Borough's employment areas, uses on the following sites will be restricted in accordance with Policy EC3:

Reference Site

EC2 /1* Fabian Way

EC 2 /2 Lonlas Village Workshops, Neath

EC2 /3 Neath Abbey Business Park, Neath

EC2 /4 Neath Abbey Wharf, Neath

EC2 /5* Melincryddan CMB / Milland Road Industrial Estate, Neath Deposit LDP - Economy & Employment Topic Paper (August 2013)

EC2 /6* Baglan Energy Park

EC2 /7* Baglan Industrial Estate, Port Talbot

EC2 /8 Endeavour Close, Port Talbot

EC2 /9+ Kenfig Industrial Estate, Port Talbot

EC2 /10* Llewellyn's Quay, Port Talbot

EC2 /11 Croeserw Industrial Estate, Afan Valley

EC2 /12* Glyncorrwg Workshops, Afan Valley

EC2 /13* Cwmgors Workshops and Industrial Estate, Amman Valley

EC2 /14* Crynant Business Park, Dulais Valley

EC2 /15* Vale of Neath Supplier Park, Neath Valley

EC2 /16* Glynneath Village Workshops, Neath Valley

EC2 /17 Alloy Industrial Estate, Pontardawe

EC2 /18* Former Compair / GMF Factory, Ystalyfera, Swansea Valley 81 Key:

* Sites which lie within areas of flood risk identified in TAN 15.

+ Preferred Sites for In-Building Waste Treatment Facilities. 9 . Strategic and Detailed Policy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit 9.0.19 Existing employment areas throughout the County Borough will be protected and future development restricted to employment uses as set out in Policy EC3. This will include vacant land and premises within these employment areas where appropriate infill development will be allowed.

9.0.20 The sites are well located and relate well to existing settlements and infrastructure and could therefore reduce the need for residents to travel further afield to access employment opportunities. Their protection will ensure that a range of sites, in terms of size, location and potential uses, is retained over the Plan period and allow for the needs of existing businesses and 'natural churn' within the economy. A large proportion of this land will accommodate expansion space for indigenous occupiers, for example Inter-tissue uses. The employment land that is genuinely available within these sites is therefore limited as the majority of the land will provide flexibility for existing users.

9.0.21 Policy EC3 Employment Area Uses

EC 3

Employment Area Uses

Within allocated and existing employment areas, unless otherwise specified and where appropriate, uses will be restricted as follows:

Uses within classes B1, B2 and B8;

Ancillary facilities or services which support and complement the wider role and function of the primary employment use;

Commercial services unrelated to class B.

Developments will be required to demonstrate that proposals do not cause any adverse impacts on the overall function of the employment area and neighbouring commercial and residential properties, the proposal can be sustainably justified in this location and is appropriate in scale and form to the role and function of the employment area.

9.0.22 In order to stimulate growth in the economy a wider mix of uses will be permitted on the allocated sites and the existing employment areas. These are likely to be commercial services and complementary uses (other than uses best located in a retail centre). These will be permitted where they will have no adverse impact on the overall function of the 82 estate and neighbouring commercial and residential properties. Acceptable uses may include activities such as commercial vehicle repair and maintenance facilities, crechés and cafés etc.

9.0.23 Policy EC4 Protection of Existing Employment Uses 9 . Strategic and Detailed Policy Development

EC 4

Protection of Existing Employment Uses

Proposals which would result in the loss of existing land or buildings in employment use as defined in Policy EC3 and/or within the existing employment areas identified in Policy EC2, will only be permitted where the following criteria are satisfied:

1. It is demonstrated that employment uses are no longer viable or appropriate in this location; or

2. Continued use for employment purposes would have unacceptable impacts on the environment, local amenity or adjacent uses; or

3. The existing space can be redeveloped for employment uses that achieve an increased level of employment combined with other appropriate uses. Deposit LDP - Economy & Employment Topic Paper (August 2013)

9.0.24 It is recognised that development for employment uses on some sites may become unviable over the Plan Period as the economy continues to change. In order to enable flexibility for the appropriate re-use of such sites, the policy aims to provide a basis for assessing applications for the conversion of existing employment areas, land and premises to non employment uses. This will enable the Local Authority to control and manage the release of unwanted employment sites to other uses.

9.0.25 The applicant will be required to demonstrate that employment uses as identified in Policy EC3 are no longer viable or appropriate in that location. The type of evidence required will vary depending on the use and circumstances but may include details of why the land/premises is no longer in use and evidence to show that reasonable efforts have been made to market it for sale or lease for its existing use.

9.0.26 Policy EC5 Employment Uses in the Valleys

83 9 . Strategic and Detailed Policy Development eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit EC 5

Employment Uses in the Valleys

In the Valleys Strategy Area, proposals for employment uses as defined in Policy EC3 outside settlement limits will be permitted where:

1. The site directly adjoins the settlement limit unless the proposal relates to brownfield land; and

2. The site is in a sustainable location and is accessible by sustainable modes of transport; and

3. The site is serviced or can be readily serviced; and

4. Development would have no detrimental impact on the amenities of neighbouring commercial or residential properties, the environment, landscape or highway safety; and

5. The development would be proportionate in scale and form to the role and function of the settlement or area.

9.0.27 National Policy aims to promote rural diversification and identifies that in rural locations new development sites for employment uses should generally be located within or adjacent to settlement boundaries, preferably where public transport provision is established.

9.0.28 The LDP strategy aims to reduce unemployment, increase economic activity and reduce the numbers who commute long distances for work in order to improve the economic vibrancy of the County Borough. A more flexible approach is therefore adopted in the Valleys Strategy Area, allowing employment uses on greenfield or brownfield land adjoining a settlement limit, and on brownfield sites in the countryside generally, subject to sustainability and amenity considerations . The adoption of a flexible approach in the Valleys area will increase the number and range of employment opportunities within communities thus providing the local population with greater access to jobs.

9.0.29 As with the existing employment areas a wider mix of uses than the traditional B1, B2 and B8 use classes will be considered in recognition that the needs of businesses 84 are changing and will continue to change over the LDP period and a more flexible approach within the Valley areas is required.

9.0.30 Policy EC6 Live-work Units 9 . Strategic and Detailed Policy Development

EC 6

Live-work Units

Appropriate live-work units in the Valley Strategy Area will be permitted in accordance with the following criteria:

1. The site lies within or immediately adjacent to the settlement limit; and

2. The percentage split of floor space is no less than 60% work; and

3. The live-work floorspace is adjoining the dwelling floorspace; and

4. The business is carried out by an occupier of the premises; and

5. A business plan is submitted as part of the planning application process which demonstrates the proposed employment use is viable over the long-term; and

6. The development would have no detrimental impact on the amenities of Deposit LDP - Economy & Employment Topic Paper (August 2013) neighbouring properties, the environment or highway safety.

Conversion of live-work units to non-employment uses will not be permitted unless it can be demonstrated that employment use is no longer viable.

9.0.31 Unlike home-working, live-work units are defined as properties that are specifically designed for dual use, combining both residential and employment space. The employment space should be suitable for a range of uses to allow for future change and flexibility without major alteration work. Rather than having a specific use class (e.g. B1 for employment or C3 for residential) the development would be considered sui generis because it is considered one planning unit. Live-work units are important sources of employment floorspace for small businesses and start-up companies, they provide local employment and reduce the need to travel.

9.0.32 In order to ensure their continued employment function a minimum of 60% of the floorspace of the property will be required to be for employment uses. Proposals for live-work units must ensure that the living environment retains an adequate amenity value and that workplace activity does not adversely impact upon the amenity of occupiers of neighbouring residential properties and the operating practices of any commercial businesses. 85 9.0.33 Any change of use of a live-work unit to non-employment purposes will be resisted unless it can be demonstrated that employment use is no longer viable and that there is no potential for the building to be so used. The type of evidence required will depend on the circumstances of the case but may include details of why the building is no longer in 9 . Strategic and Detailed Policy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit employment use, what other employment options have been considered and evidence to show that reasonable efforts have been made to market the premises for sale or lease as a live-work unit.

Tourism

9.0.34 Strategic Policy SP13 Tourism

SP 13

Tourism

The economic prosperity of Neath Port Talbot will be promoted through encouraging continued growth in the tourist sector by:

1. Encouraging high quality, sustainable tourism development;

2. Providing a flexible approach to the development and conversions to tourism facilities;

3. Resisting, where appropriate, proposals which would result in the loss of tourism facilities;

4. Supporting tourism proposals through the allocation of land for tourism development.

LDP Objective: OB 14

9.0.35 Tourism in Neath Port Talbot is a growing industry, providing a vital and valid contribution to the local economy. Over recent years, Neath Port Talbot has seen considerable investment in this industry, which has strengthened tourism infrastructure and increased and improved tourism facilities and services. This, in turn, has seen annual increases in the number of visitors to the area. The Council has a tourism action plan that recognises the contribution of this industry to the local economy and promotes future growth. The LDP supports this by taking a flexible approach to new tourism proposals and resisting where possible the loss of existing facilities.

9.0.36 Policies will allow flexibility in the location of facilities and provide protection to existing facilities where appropriate. Whilst flexibility is applied, proposals will be required 86 to demonstrate they are sustainable in terms of location, accessibility and do not have an adverse impact on the environment.

9.0.37 Policy TO1 Tourism Development in the Countryside 9 . Strategic and Detailed Policy Development

TO 1

Tourism Development in the Countryside

Tourism proposals outside of settlement limits will only be permitted where all of the following criteria are satisfied:

1. It is demonstrated that the proposal is viable and contributes towards the quality and economic sustainability of the tourism industry;

2. It is demonstrated that either the proposal requires a countryside location or it could not be accommodated within an existing settlement;

3. The proposal would not have an adverse impact upon the landscape, ecology, and cultural heritage and would not adversely impact upon the social, economic, environmental or residential amenity of the area;

4. The proposal does not create unacceptable levels of vehicular traffic, cause a Deposit LDP - Economy & Employment Topic Paper (August 2013) detriment to highway safety and access can be provided by a range of transport modes.

9.0.38 This policy offers flexibility in providing new, high quality tourism facilities outside of settlement limits in locations which would not normally be considered for development. Since a large concentration of tourism facilities are located within the Valleys area, allowing development outside of settlement limits will provide scope for the tourism sector to grow and contribute to reinvigorating the Valley communities.

9.0.39 Proposals will be required to demonstrate that they are economically viable, will promote sustainable development and enhance economic growth in the tourism sector. The Valley areas, with their rural setting have the potential to continue to build on the growing tourism industry and can integrate rural diversification into tourism schemes. Evidence required to accompany applications may include business plans and local data, including information on existing and projected visitor numbers for the area and an assessment of the position of the proposed development within the current tourism market.

9.0.40 Certain proposals, by their very nature will require a countryside location and may include activities such as golf, fishing and mountain biking. Such activities will need to be designed in a manner to ensure the environmental impact is fully assessed and is minimised. 87 9.0.41 Policy TO2 Protection of Existing Tourism Facilities 9 . Strategic and Detailed Policy Development eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit TO 2

Protection of Existing Tourism Facilities

Conversions or changes of use of tourism facilities to residential use will only be permitted where it is demonstrated that tourism or other employment generating uses are no longer viable.

9.0.42 Tourism is vital to the local economy, particularly in some Valley areas. In order to protect tourism facilities and minimise any loss of premises or detriment to the local economy, conversions to residential use will be resisted.

9.0.43 Any proposal for the conversion or change of use of a tourism facility to residential use will need to demonstrate that tourism or employment uses are no longer viable and that there is no potential for the premises to be so used. The type of evidence required will include details of why the premises is no longer suitable for tourism use, what other employment options have been considered and evidence to show that reasonable efforts have been made to market the premises for sale or lease for its existing use.

9.0.44 Policy TO3 Tourism Led Regeneration

TO 3

Tourism Led Regeneration

The following site is allocated for tourism led development:

Reference Site

TO3/1 Rheola Estate, Glynneath

9.0.45 Land is allocated for the re-development of an area of brownfield land at the Rheola Estate, Glynneath. This tourism led development will compromise up to 100 units of holiday accommodation, up to 350sq.m retail premises and up to 1000sq.m of leisure complex with associated access, footpaths, ecological improvements, landscaping, boundary treatments and services.

88 9.0.46 The Rheola Estate, designated as a Historic Park and Garden, is situated within the heart of the Neath Valley and retains a rich historic heritage as an early 19th Century country estate. The site comprises the Grade II listed Rheola House set within a picturesque landscape and parkland together with the site of a former Aluminium Works. This brownfield part of the estate and associated areas are allocated for a sustainable tourism-led proposal which will secure the conservation and restoration of the historic estate. 9 . Strategic and Detailed Policy Development

9.0.47 The re-development also provides the opportunity to allow public access to the estate for the local community and visitors and will help to further expand the growing tourism industry in the the Neath Valley. The scheme will benefit the local economy and contribute to the development of the Strategic Growth Area of the Upper Neath Valley.

9.0.48 Policy TO4 Walking and Cycling Routes

TO 4

Walking and Cycling Routes

The following key walking and cycling routes are identified:

Reference Site

TO4/1 Wales Coastal Path

TO4/2 Cognation Mountain Bike Trails Deposit LDP - Economy & Employment Topic Paper (August 2013) TO4/3 Great Dragon Ride Route

Any proposals that would prevent or have any adverse impact on their implementation will be resisted.

9.0.49 The Wales Coastal Path is a continuous coastal path covering the entire shoreline of Wales, improving access for local people and visitors to the area. Within Neath Port Talbot, the route has been divided into two sections with the upland path, approximately 26km long, taking a more inland, high level route and the lowland path, approximately 25km long staying nearer to the coast and the seafront. This choice of routes offers a range of walks with striking views and opportunities to experience nature, and reflects the varying character and features of interest in Neath Port Talbot.

9.0.50 Afan Forest Park has a world class reputation for mountain biking and attracts visitors from across the UK. The Cognation project is a partnership between the Welsh Government, three local authorities including Neath Port Talbot, and Natural Resources Wales. The project invests in mountain bike facilities at a number of locations to improve and renovate existing trails and facilities and create a number of new trails. The Cognation mountain bike trails and associated facilities will maintain and support growth in the tourist industry in Neath Port Talbot generally, but particularly in the Afan Valley. Land is identified for the implementation of the Rookie Trail, Afan Bike Park, Gyfylchi loop and The Wall, 89 Penhydd Trail, Blade Trail and the Margam MTB Trail as identified on the Proposals Map.

9.0.51 The Great Dragon Ride Trail is a route of 472km (293 miles) from North to South Wales that has significant potential to enhance tourism in the County Borough. The trail is suitable for Horseriders, cyclists, and walkers and some 47km (29 miles) lies within 9 . Strategic and Detailed Policy Development

eoi D cnm mlyetTpcPpr(uut2013) (August Paper Topic Employment & Economy - LDP Deposit Neath Port Talbot. It enters the County Borough from the North at Dyffryn Cellwen, heading due South East taking a scenic route through the Vale of Neath, Afan Valley and Margam Forest. The trail ends to the East of Margam Park close to the A48.

9.0.52 Any proposals that would adversely affect the identified routes, for example by preventing their implementation or use, will be resisted unless modifications are made to avoid any adverse effects.

90 Local Development Plan Cynllun Datblygu Lleol

August 2013 ENVT1556 www.npt.gov.uk/ldp