Surrey Heath Functional Economic Area Analysis Draft Report Client: Surrey Heath Borough Council October 2014 Berkshire House 252-256 Kings Road, Reading RG1 4HP T: 0118 938 0940 M: 07881 348 244 E: [email protected] Wessex Economics Ltd Berkshire House 252-256 Kings Road Reading RG1 4HP T: 0118 938 0940 Contact: [email protected] Table of Contents Executive Summary.............................................................................................................................................................................1 1. About this Report .......................................................................................................................................................................... 4 2. The Geography of Surrey Heath and the Blackwater Valley ......................................................................................................... 8 3. Employment in Surrey Heath and the Blackwater Valley ........................................................................................................... 14 4. The Functional Commercial Property Market Area .................................................................................................................... 17 5. The Functional Labour Market Area ........................................................................................................................................... 22 6. Industry Clusters ......................................................................................................................................................................... 30 7. Retail and Service Sector Geographies........................................................................................................................................ 35 8. Conclusions and Recommendations ........................................................................................................................................... 38 Appendix 1: Ward Level Definition of the Blackwater Valley .......................................................................................................... 41 Surrey Heath Functional Economic Area Analysis 2014 Executive Summary 1. Surrey Heath Borough Council (SHBC) has recently started work on updating its evidence base on economic development needs. National Guidance requires that, in so doing, the Council considers the needs of the ‘functional economic area’ within which the Borough is located, and works with other local authorities to meet the identified needs of this functional economic area. 2. National Planning Guidance contains advice on the factors to be considered in defining a functional economic area. This report follows the Guidance examining a number of ways in which a functional economic area may be defined, and then identifying the geographies relevant to Surrey Heath Borough. 3. This report examines the economic geography of Surrey Heath Borough and the surrounding area, focusing first on settlement patterns and communication networks (the urban geography of the area) and employment patterns; then on the commercial property market; then the labour market; then sectoral/business clustering; and lastly on retail geographies. 4. Surrey Heath has a population of around 86,100 people. Around two-thirds (65% ) of the population of the Borough live in Camberley and Frimley and the smaller settlements that form part of the Blackwater Valley, also referred to as the Aldershot-Farnborough Built Up Area. Other settlements are concentrated in the east of the Borough, closer to London and characterised by high levels of commuting into London or adjacent Boroughs in the A3 and M25 corridors. 5. The Aldershot-Farnborough Built Up Area is the 29th largest urban area in England and Wales, with only Rushmoor Borough being wholly within the Built Up Area. 6. There are strong housing market ties within the Blackwater Valley area, and collectively the Blackwater Valley is a major centre of employment, with around 138,200 jobs, these being concentrated in Camberley (Surrey Heath Borough) and Farnborough and Aldershot (Rushmoor Borough). There is also a large industrial area in Ash Vale which lies within the Blackwater Valley but is within the Guildford administrative area. The scale and concentration of jobs in these areas has a major bearing on travel to work patterns in the Blackwater Valley and surrounding areas. 7. A central role of Local Planning Authorities is to ensure provision of adequate land for businesses and other employment creating activities. Work published by Enterprise M3 LEP identifies that there is a distinct local property market associated with the Blackwater Valley, which includes the western, more urbanised parts of Surrey Heath Borough. The eastern part of Surrey Heath Borough aligns more closely with the Upper M3 market area and Woking which is part of the Guildford-Woking property market area. 8. The Enterprise M3 study clearly identifies a cluster of strategic employment sites in the Blackwater Valley Property Market Area. This is a strong indication that the primary functional economic area that Surrey Heath relates to is the Blackwater Valley. However, in labour market terms the eastern part of the Borough is orientated to the east and south. Development proposals for the former DERA site in Chertsey which is on the border of Surrey Heath and Runnymede, will be a major driver in future years of employment growth is approved and would have a significant impact on travel to work patterns if fully developed. Page | 1 Surrey Heath Functional Economic Area Analysis 2014 9. Surrey Heath falls within the 2001-defined Guildford–Aldershot Travel to work area. This large area covers the territory of seven entire local authorities; Surrey Heath, Spelthorne, Woking, Guildford, Waverley, Rushmoor, and Hart; it also covers a small part of Bracknell Forest. It is probable that the broad extent of this area will be the same once the 2011 Census data is analysed, though it is likely that the 2011 London TTWA, once mapped, will extend further into West Surrey than previously. 10. Surrey Heath’s strongest labour market ties are with Rushmoor. In terms of in-commuting, its next strongest ties are with Hart and Bracknell Forest, followed by London; while in terms of out-commuting its strongest ties are with London, then Rushmoor, then Guildford and then Woking. These patterns of commuting point to the need to work closely with Rushmoor and Hart, but also to relate to Guildford and Woking. The eastern part of the Borough has a stronger orientation to London, Guildford and Woking than the western part of the Borough. 11. The Enterprise M3 LEP area has a very strong technological base; and relatively speaking it is the northern and eastern parts of the LEP area which have the greatest concentration of R&D and major technology businesses. The National Planning Policy Framework requires local authorities to plan positively to support the development of clusters; this is therefore of particular relevance to Surrey Heath and the Blackwater Valley; and to the proposals for the DERA site at Chertsey, given the scale and nature of the proposed development. 12. The LEP will work with partners on cluster development initiatives. This makes sense since supplier networks are widely spread across the Enterprise M3 LEP area, and the LEP operates across this geography. Individual local authorities need to focus on working with local business around practical operational issues and to plan positively to ensure supply of employment sites and supporting infrastructure to enable growth. 13. Patterns of retail expenditure reinforce the conclusion that the Blackwater Valley operates as a number of centres. This implies the need to co-ordinate planning between the Blackwater Valley authorities on retail and leisure issues. The eastern part of the Borough is different, being equidistant between Camberley, Woking and Bracknell town centres. 14. Wessex Economics make the following recommendations regarding joint working: There is an absolute requirement for Surrey Heath Borough Council to work closely with Rushmoor Borough Council, and Hart Borough Council. These three authorities are the major players in the area covered by the Blackwater Valley commercial property market and need to adopt a co-ordinated approach to bringing forward sites and premises for business and on retail and leisure planning. For the ‘core authorities’ covering the Blackwater Valley – Rushmoor, Surrey Heath and Hart - it would be very desirable also to include Waverley Borough Council in this process. Farnham is functionally part of the Blackwater Valley, and, although at present there are not any significant sites identified for employment purposes in Farnham, these might emerge through the Local Plan process. It will be important for Surrey Heath Borough Council to work closely with Runnymede Borough Council specifically in relation to the proposals for the former DERA site at Chertsey, given the scale of this proposed development and its location straddling the border between the two authorities. Runnymede Borough Council will take the lead on planning issues since the largest area of the site is their area. Surrey Heath Borough Council should expect to engage with adjacent authorities on the eastern part of the Borough on employment land, retail and leisure issues since the eastern part of the Borough is Page | 2 Surrey Heath Functional Economic Area Analysis 2014 functionally