Central Bedfordshire Pre-submission Local Plan (January 2018)

12 Employment and Economy

12.1 Overview

12.1.1 Central Bedfordshire has a strong, high performing economy with record levels of employment growth which has beed consistently delivered. Moving forward, it is expected that we will continue this strong economic performance reflecting national economic conditions and Central Bedfordshire's key role within the Cambridge-Milton Keynes-Oxford Arc.

12.1.2 Central Bedfordshire Economic Insight (CBEI) identifies that there are a significant number of active enterprises (over 11,500) within Central Bedfordshire and that in 2014 our five year survival rate for new businesses was higher than national, regional and SEMLEP rates. We have a dynamic and diverse economy with key sector strengths in High Performance Technology, Research and Development; Transport and Logistics; the Visitor Economy and Agriculture and Food. Our strategic location and excellent transport links as well as our high quality natural and historic environment support a growing economy.

12.1.3 The area is home to world leading companies such as Rockwell Collins, Lockheed Martin, Nissan Technical Centre Europe, Amazon, Whitbread, Superdrug and The Jordan and Ryvita Company. The largest employer in the area is Central Bedfordshire Council, when taking into account all education/school based employment. Other large employers in the area include Cranfield University and airport, Millbrook Proving Ground, Woburn Enterprises, Kier and the RSPB. There are also a number of smaller and micro-businesses within our key sectors and across Central Bedfordshire which also make a significant contribution to the local economy.

12.1.4 Tourism is an important, rapidly growing sector and job creator within Central Bedfordshire and attractions such as the Woburn Estate, ZSL Whipsnade Zoo, Center Parcs, Wrest Park and the Shuttleworth Collection contribute significantly to the local economy.

12.1.5 The Council is fully supportive of the movement towards a low carbon economy and there are a number of businesses that have a vested interest or operate within the green economy. In our area the Green Economy is diverse, and the Council will continue to support the creation of opportunities for the development of new technologies, industries, transportation and services and will seek to support business growth in the low carbon economy.

12.1.6 Central Bedfordshire benefits significantly from good transportation access. The M1 and the A1 corridors run north to south through Central Bedfordshire, which provide businesses with direct access to London and the strategic road network whilst the A5, A6, A507 and the A421 create a robust internal transportation network providing local residents with access to employment opportunities across the whole area. Accessibility has been improved due to the opening of the A5-M1 link road, and will be further enhanced following the delivery of other major road infrastructure projects including the A421 improvements, M1-A6 link road, upgrade and improvements to the A1 corrodor. The Oxford to Cambridge Expressway and the central section of East West Rail as outlined within the November 2017 NIC Report, will further enhance connectivity within and across Central Bedfordshie and open up further opportunities for economic growth.

12.1.7 In order for Central Bedfordshire to achieve its economic potential, the Council is taking a positive enabling approach to creating the right conditions for our existing businesses to flourish and to attract new inward investment that supports and enhances the existing employment offer within Central Bedfordshire. The overall aim being to create a place of national and international significance where people choose to live, work and visit, and where companies choose to invest.

12.1.8 The Council has identified a number of priority sectors which experience high growth across Central Bedfordshire. These are:

• High Performance Technologies, Research & Development (R&D)
• Agri-Food
• Visitor Economy
• Transport and Logistics

12.1.9 In addition to these high growth sectors, the Council is also supporting the sectors of health and social care and construction, which are identified nationally as critical in terms of employment opportunities but are experiencing challenges..

12.1.10 The Council will be supportive of growth proposals within these sectors and will monitor and review progress throughout the plan period through the Annual Monitoring Report.

12.1.11 The Central Bedfordshire Functional Economic Market Areas (FEMA) and Employment Land Review (ELR) (May 2016) identifies that, based on past trends; a minimum of 23,900 jobs might be expected within the area up to 2031. This is based upon the Experian economic forecast which estimates future trends based upon past information. However, there are a range of economic forecasts that could be considered, and the forecasts produced can be volatile. There are a number of local "real-world" factors that also need to be considered that suggests a higher jobs target is achievable than that suggested through economic modelling. These factors include our historic annual delivery of 2,180 jobs per annum (2010-2015) and our aspiration to realise fully the area's economic potential.

12.1.12 As the FEMA for Central Bedfordshire is complex and overlaps with neighbouring authorities, we also need to consider any unmet economic needs arising from neighbouring authorities, and in line with the NPPF and the Duty to Cooperate, the Council has sought to ensure that economic growth within Central Bedfordshire is complementary to that in neighbouring areas. To this end, Central Bedfordshire has committed to helping meet the unmet economic needs arising from Stevenage.

12.1.13 Paragraph 160 of the NPPF also highlights the benefits of councils working closely with Local Enterprise Partnerships (LEPs) particularly in relation to prioritising infrastructure investment, for example, through the Local Growth Fund. The South East Midlands Local Economic Partnership (SEMLEP) Strategic Economic Plan (2017) sets out the intention to ensure that the South East Midlands economy not only continues to thrive, but contributes even more to the success of UK plc.

12.1.14 Whilst the ELR identifies a minimum of 23,900 net new jobs up to 2035, wider economic conditions and historical performance indicates jobs growth could exceed this target. The Council will therefore support growth within our key sectors, ensuring that local and national business needs are catered for. This will be achieved through a series of enabling and positive policies, reflective of market demand balanced against sustainability. The ambition to deliver sustainable growth is essential, and without this minimal level of job creation the longer term economic future of the area could be significantly hindered.

12.1.15 Our approach to greater economic growth across Central Bedfordshire is further supported by the National Infrastructure Commission final report (November 2017) which re-emphasised that new east-west transport links present a once in a generation opportunity to secure the area's future success, and that to succeed in the global economy, the UK must build on its strengths. The arc connecting Cambridge, Milton Keynes and Oxford, which crosses through the north of Central Bedfordshire, could be Britain's Silicon Valley – a globally recognised centre for science, technology and innovation. Central Bedfordshire Council is therefore actively engaged and working collaboratively with neighbouring authorities and partners to secure future, economic-led growth across Central Bedfordshire and the wider strategic corridor in order to achieve the Governments ambitious growth proposals.

12.2 Portfolio of Employment Land

12.2.1 In order to ensure the delivery of sustainable development, jobs should be provided where market demand has been identified, with a specific consideration of meeting local business needs, supporting a diverse range of employment opportunities for Central Bedfordshire residents. Employment generating uses will therefore be delivered through the extensive portfolio of employment land across Central Bedfordshire, which consists of :

• existing permitted land;
• allocated employment land (as identified on the Policies Map);
• key employment sites (as identified on the Policies Map);
• established (non-key) sites in employment use;
• existing Significant Facilities as identified in Policy EMP6;
• allocations to meet national strategic warehousing and distribution needs; and
• mixed use allocations

12.2.2 This approach will deliver sustainable patterns of development and will be attractive and responsive to market demand over the plan period, as well as seeking to balance labour supply and demand.

12.2.3 If market demand for B-uses exceeds supply, the Council will consider the potential benefits in terms of job creation and local need of bringing forward the delivery of further employment land. Additional locations for the delivery of employment generating uses will be considered where it is appropriate to do so.

12.3 B-Uses and Non B-Uses

12.3.1 Employment uses are classified as either B or non B-uses as set out within the Use Classes Order. When allocating land for the delivery of employment generating uses, local plans typically identify sufficient land to accommodate the B-Use element which includes offices, industrial and warehousing/distribution. Non B-Uses, such as retail, leisure and public services are much more subject to market demand and tend to grow in line with population growth. However, the Council recognises that B and non-B employment generating uses can also be complementary and that there may be opportunities to consider their co-location where appropriate.

12.3.2 Within Central Bedfordshire it is anticipated that a minimum of 11,200 (47%) new jobs will be from B-Uses and approximately 12,700 (53%) will be delivered through non B-Uses.

12.4 Supply of Sites

12.4.1 Central Bedfordshire has a broad range and quality of existing employment sites and premises supporting business in a wide range of activities. These sites in both urban and rural locations perform a crucial role in maintaining a steady level of employment land stock and contributing significantly to the local economy. The map overleaf identifies the broad distribution of existing and established employment sites across Central Bedfordshire.

12.4.2 In order to continue to support the growth of the local economy, enable the growth of key employment sectors and create the right conditions for future investment, the employment land stock needs to be maintained and responsive to market demand. Availability and choice in the range and size of land and premises across Central Bedfordshire will be required to enable new business start-ups, to meet local demand for existing businesses to grow, and to encourage new inward investment from national and international businesses.

12.4.3 The 2016 Functional Economic Market Assessment and Employment Land Review (ELR) Study identifies that in quantitative terms there is sufficient existing supply of land in Central Bedfordshire to satisfy demand, but that there is a short term need to provide both sites and premises to meet local business growth. Furthermore, due to Central Bedfordshire's strategic location and excellent transport connections, there is also a strong case for contributing to meet national demand for warehousing logistics sector operations at major strategic transport locations, specifically along the M1 corridor.

Figure 2 - Distribution of Existing Key Employment Sites and allocations (including mixed-use)

12.4.4 Central Bedfordshire already has a number of existing and established employment areas which will continue to contribute to the local economy and job creation. However, in order to maintain a sustainable approach to the delivery of employment land and premises, be responsive to local market conditions and ensure a continued range of choice and quality employment sites across Central Bedfordshire, there is a need to provide additional and alternative land to accommodate employment generating uses. In line with guidance set out within the NPPF, it is also important that the local plan is responsive to market demand. To meet objectives of the plan, new employment land allocations will be delivered as part of mixed-use developments as well as stand alone employment sites, meeting both local and national need.

12.4.5 The 2016 ELR identifies that in the short term, Central Bedfordshire is undersupplied, and that whilst the pipeline of employment land is large, supply of market ready sites is limited. Furthermore, the current identified oversupply, does not consider qualitative deficiency in the supply.

12.5 Strategic Warehousing and Logistics^[15]

12.5.1 Growth in the logistics and distribution sector (recognised as one of the key growth sectors by the Council) and an increased focus on larger strategic warehousing facilities now means that locations with good accessibility to the motorway network, airports and freight hubs, including rail, have become a key focus for operators and developers. Market analysis undertaken as part of the 2016 ELR shows that demand for space is likely to originate from outside Central Bedfordshire and the FEMA, and as strategic warehousing is highly footloose, it is attracted to the area due to the key strategic connectivity, particularly the M1 corridor. The provision of land for strategic uses within Central Bedfordshire is therefore likely to attract national footloose demand.

12.5.2 The ELR also identifies that should the strategic warehouse sector be constrained within Central Bedfordshire, by only providing sufficient land to meet the job forecast, the evidence suggests that logistics will continue to displace local demand on other sites. Strategic logistics demand will still be attracted to the Central Bedfordshire portfolio and local demand will remain unsatisfied.

12.5.3 For market reasons there are strong grounds to provide specific strategic B8 land within Central Bedfordshire. By making provision for strategic distribution and warehousing alongside mixed use allocations and existing employment sites, it will have the effect of enabling Central Bedfordshire to be responsive to market demands whilst also retaining existing sites for local industrial employment uses. Set within the context of the wider Cambridge-Milton Keynes-Oxford Arc, and proposals set out within the Industrial Strategy White Paper (November 2017) this approach also enables Central Bedfordshire to be pro-active in ensuring strong foundations for future growth aspirations.

12.5.4 In order to allow for market friction, choice and the natural turn-over of premises (churn), as well as for windfall losses, the 2016 ELR identifies that within Central Bedfordshire, a surplus pipeline of 20% of the built stock should be maintained throughout the Plan period.

12.5.5 Further additional new-build allocations will be considered favourably to maximise the economic impact of key infrastructure proposals including East West Rail and A1 Corridor improvements if the proposed allocations are built and occupied and there is an identified market demand.

12.6 Employment Sites and Uses

12.6.1 Overall Central Bedfordshire has a broad employment offer. In order to maintain and expand this diversity, support existing business growth and to attract inward investment of both large and small businesses, the Council has adopted a flexible approach to employment provision.

12.6.2 So as to maintain a diverse portfolio of employment sites for B1 to B8 uses, in relation to the above identified portfolio of land, permission will generally be granted for B Class uses. Through the portfolio of employment sites, the Council will seek to ensure a mix of tenure, type and size of premises to support business and jobs growth, including the provision of freehold sites offered to occupiers addressing the findings of the ELR. The Council will also seek to ensure that appropriate steps are taken to enable the sites to come forward to attract appropriate interest from developers and occupiers. This may include, but is not limited to, servicing, provision of access, marketing and other such steps as required in order to bring forward or accelerate development.

12.6.3 Whilst the Council would not wish to see substantial amounts of employment land lost to other uses, it is recognised that non B-uses can make a significant contribution to the local economy and job creation, and that some non B-uses can complement and enhance B-uses. Consideration will be given to non B-use employment generating proposals on allocated and key employment land against a series of criteria which seek to ascertain that such proposals are suitable for the proposed location and will not detrimentally impact upon the delivery of B-uses or the quantity of land available to deliver B-uses. Although the clear economic benefits of residential development are recognised, it does not qualify as an employment generating use for the purposes of Policy EMP2.

12.6.4 In instances where allocated or key employment land is no longer suitable for employment generating uses, detailed evidence should be provided to demonstrate that the site has been effectively marketed for these uses and that no suitable interest has subsequently materialised. For existing and non-key employment sites, evidence will be sought to ensure that redevelopment for B or non-B employment uses is not viable. In these cases the loss of employment land to a non-employment generating use may therefore be the only reasonable option.

12.6.5 Central Bedfordshire has a number of town centres which play a vital role in contributing to the local economy. In order to support the role and function of the town centres, the Council would not generally wish to see inappropriate retail uses located on key employment sites or on land allocated for employment generating activities. However, the Council acknowledges that some retail uses such as 'bulky goods' provision may be more suited to out of centre locations and will need to be assessed on a site by site basis to ensure that any such provision will not detrimentally impact upon the town centres. Chapter 13 provides greater detail in relation to the appropriate location of retail uses within Central Bedfordshire and specifically the town centres.

12.6.6 In line with the Council's growth and enabling aspirations, the Council will seek to consider emerging opportunities and mechanisms to stimulate and support sustainable development, where it can be evidenced that such activities are necessary and would bring forward jobs growth that would not otherwise have happened. The types of activity the Council will consider include, Local Development Orders (LDO), masterplans, planning and development briefs and innovative financing mechanisms to bring forward development.

12.6.7 LDO have already been progressed for the Woodside Industrial Estate, Dunstable and for the Stratton Business Park, Biggleswade (as part of the food enterprise zone) and others will be put forward as appropriate. Their purpose is to make it easier for businesses to grow and expand by relaxing some planning restrictions so that specified works can be undertaken without the need to apply for planning permission. The overall aim is to help businesses to save time and money; thus placing them in a better position to respond quickly to opportunities and contribute towards the economic health of the area.

12.7 Employment proposals within and adjacent to Settlement Envelopes

12.7.1 Central Bedfordshire has a diverse portfolio of employment land which offers a variety in size, type and location of land and premises. Whilst the Council has sought to ensure the range of employment land within Central Bedfordshire is significantly comprehensive to meet the needs of current and future employers, there may be instances where the portfolio of existing sites does not meet the needs of a specific proposed employment use.

12.7.2 In order to promote Central Bedfordshire as a great location for business and to ensure a variety of employment generating uses, the Council will, exceptionally consider proposals for employment uses within or adjacent to Settlement Envelopes to meet identified local need or to support growth in the Council's key employment sectors, where it is evidenced that there are no suitable alternative sites.

Expansion of Existing Businesses

12.7.3 The Council values existing businesses within Central Bedfordshire and supports proposals for expansion which will contribute positively to the local economy and provide new jobs within the area. The portfolio of employment sites within Central Bedfordshire provides a variety of options for existing businesses to relocate to in order to expand.

12.7.4 In some instances, existing businesses may wish to expand either within their existing curtilage or onto land adjacent to their current site rather than relocate to a new location. In some instances, this may necessitate expansion within or adjacent to settlement envelopes in to the countryside. In order to secure the retention and growth of existing businesses, the Council has adopted a flexible approach to business expansion within Central Bedfordshire.

12.7.5 Policy EMP4 applies only to sites that are outside of the Green Belt.

12.8 Education and Skills

12.8.1 Central Bedfordshire is home to a number of high quality schools and leading higher and further education institutions, including Cranfield University, Central Bedfordshire College and Shuttleworth College (part of Bedford College). We recognise that for Central Bedfordshire to fulfil its economic potential, the importance of skills cannot be over-stated. Skills are critical to all employees and employers in all sectors: public, private and the voluntary and community sectors, a key issue highlighted as one of the five foundations which are essential attributes of every successful economy within the Industrial Stretegy White Paper (November 2017).

12.8.2 The Council will seek to support the continued delivery of high quality learning and education within Central Bedfordshire, and will seek to support the development of learning and higher education facilities. We will also seek to work collaboratively with key skills providers outside of Central Bedfordshire, including Bedford College, North Herts College and Milton Keynes College to ensure the needs of our current and future residents and connukities are met.

12.8.3 The Council works closely with employers to ensure that local provision is demand-led, meeting the future skills needs of employers to ensure a local skilled workforce that is fit for purpose. This approach is also in accordance with the Central Bedfordshire All Age Skills Strategy (2016-2020) to deliver a flexible and mobile workforce that meets the needs of employers, is able to respond rapidly to economic shifts and will enable Central Bedfordshire to achieve its full economic potential.

12.8.4 The importance of training and apprenticeships is fundamental to the future success of the local economy as is getting people into work and providing them with useable skills. The Council actively encourages the provision of school engagement, careers advice and fairs, training, work experience and apprenticeship opportunities at all levels on development sites throughout Central Bedfordshire, and will seek to work with developers, education institutions and others to ensure this aspiration is realised.

12.8.5 We would also seek to work with developers to ensure that not only are skills and employment opportunities created during construction, but also that these newly acquired skills and opportunities are carried forward and utilised elsewhere within the industry.

12.8.6 The Council will continue to support its residents to prosper, helping all to realise their potential and ensuring that our more vulnerable residents are supported on their pathway into employment.

12.9 Rural and Visitor Economy

12.9.1 The 2011 Census has identified that 38.8% of all people employed in Central Bedfordshire are employed in rural areas. This compares to 17.5% nationally, showing the importance of the rural economy to Central Bedfordshire. In view of this, the Council supports in principle the diversification of agricultural and other land based rural businesses and the development of any related new or converted buildings, providing that they are appropriately designed.

12.9.2 Central Bedfordshire's attractive natural and historic environment is identified as one of the best aspects of the area by local businesses in the Central Bedfordshire Business Survey 2017.

12.9.3 The conservation and enhancement of the historic environment contributes to the creation of distinct high quality places which can result in wider economic benefits trough encouraging tourism, helping to create successful places for business to locate and attracting inward investment.

12.9.4 The visitor economy has 730 businesses in Central Bedfordshire, employing just over 10,200 people in 2015. Tourist attractions range from major facilities such as Centre Parcs, ZSL Whipsnade Zoo and Woburn Safari Park to a raft of historic towns and villages, country houses, outdoor attractions and activities for people of all ages such as the Greensands Ridge. There are also a number of high quality hotels and restaurants across Central Bedfordshire which cater to the needs of those visiting the area for both business and pleasure.

12.9.5 The Council recognises that the visitor economy is a key growth sector and positive policies will help to ensure this opportunity can be taken further, although considerations such as the impact on landscape and the rural road network will continue to be taken into account.

12.9.6 The need to increase hotel provision, self-catering accommodation, conferencing facilities, the provision of low-cost accommodation and increasing the range and choice of food and drink establishments is supported in order to support the growth of this key sector. The Council is willing to be flexible where these can support local services and provide opportunities for rural diversification.

12.9.7 The re-use and adaptation of rural buildings can make a significant contribution to the local economy. Proposals for employment generating uses and tourism activities will therefore need to mindful of the benefits that existing buildings can deliver.

12.10 Significant Facilities in the Countryside and Green Belt

12.10.1 Central Bedfordshire is notable for the presence of a number of significant employment facilities in the countryside and Green Belt. These sites have the potential to provide additional jobs, which would help to meet the employment objectives and aspirations of the Plan. These facilities have been identified as Cranfield University and Technology Park, Shuttleworth College, Millbrook Proving Ground, RSPB, DISC Chicksands, ZSL Whipsnade, Woburn Safari Park, Center Parcs, Toddington Motorway Services Area, Faldo Road Industrial Estate in Barton-le-Clay, Kier at Tempsford and Lockheed Martin, Ampthill.

12.10.2 It is clear that these major sites can make a significant contribution to the local economy and that a number of these also have the potential to attract high technology orientated businesses, creating specialist markets and a cluster effect.

12.10.3 The NPPF is clear about the need to secure economic growth. It recognises that the challenges presented by a low carbon future can still be met while also delivering this core objective. In order to proactively plan for businesses in within the key growth sectors emerging sectors like the green economy, the Council supports the development of innovation, research and development industries, particularly around the existing cluster of high technology centres of excellence of Cranfield University (including the area formerly known as Cranfield Technology Park), Cranfield Airfield and Millbrook Proving Ground.

12.10.4 In the future, major new sites may emerge in Central Bedfordshire which should also be included within the remit of this policy.