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Planning for economic needs – implications of the amended PPG
Amid the flurry of pre-summer recess updates to the Planning Practice Guidance were two new additions on planning for economic needs. The first relates to specific guidance on, “how can authorities assess need and allocate space for logistics?” (new para 31), and second, guidance on the wider question of, “how can the specific locational requirements of specialist or new sectors be addressed?” (new para 32). The addition of logistics within the PPG is perhaps not surprising given it was one of the notable updates made to the revised NPPF published earlier this year. As we have summarised previously, it is welcome to see this critically-important sector being given specific recognition (particularly as the sector is not always universally welcomed at a local level) and this is now reflected in the guidance. Importantly, the PPG emphasises that policies for logistics should be formulated “separately from those relating to general employment land”. However, this has typically not been the case in all local plans. Part of the issue is that logistics space markets and networks often cut across local authority boundaries, with wide functional economic market areas and specific needs in terms of access to the strategic transport network, power capacity and labour supply. This emphasises the need for collaboration between local authorities and also engagement with logistics operators and developers – the sector should embrace this invitation to help plan-makers better understand their current and future needs. Further, research by Lichfields on the ‘last mile’ segment of logistics highlighted that planning is to some extent still catching up with this fast-moving sector, and needs to better understand industry trends. Some 58% of authorities surveyed viewed the lack of an up-to-date local plan as a key barrier to meeting last mile needs. The PPG now points to a broad range of evidence being considered to help determine local logistics needs, including “changes in the local population and the housing stock as well as the local business base and infrastructure availability”. The second addition to the PPG on understanding the locational requirements of specialist or new sectors appears, at face value, to be a recognition that traditional ‘predict and provide’ approaches to employment land forecasting are not without their limitations. The PPG cites high tech, engineering, digital, creative and logistics as examples of such industries, where clustering can drive innovation, productivity and economic growth. These and other fast-growing sectors don’t always fit neatly into traditional B use class definitions, so it’s arguably a rallying call for a more nuanced understanding of the inter-relationships between sectors and space and the factors that drive competitive advantage. More qualitative evidence and engagement with businesses and occupiers in this regard will contribute to better plan-making. Echoing the revised NPPF (see para 81a), there’s also now specific reference in the PPG to the need to take account of policy and evidence contained in Local Industrial Strategies. There are currently 6 Local Industrial Strategies in place nationally, and with more on their way, they will have an increasingly important role to play in setting the direction of policy as well as future public funding to support delivery. Lichfields’ work on a number of Local Industrial Strategies nationally has reinforced how getting land use planning policies right is critical to facilitating local economic ambitions. The challenge now is how to translate broad strategies to enhance regional economic productivity into clear and focused policies in future local plans, and having the evidence in place to back these up. Image credit: DNPBFN SWNS Alamy Stock Photo

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Shifting sands and sea change: How can our seaside towns respond to the productivity challenge?
With the summer holiday season just around the corner, coastal towns up and down the country will be hoping the sun comes out to tempt the great British public to the seaside. It can be easy to forget that many of these coastal communities are in desperate need of regeneration and economic revitalisation, suffering from ongoing decline of their core industries such as domestic tourism, fishing, shipbuilding and port activities, and the challenges of seasonality. Their location on the periphery of the country places them on the periphery of the economy, creating a host of socio-economic problems and in turn, barriers to economic prosperity for their communities. The recent publication of a House of Lords Select Committee report on “the future of seaside towns” provides a timely reminder of the scale and complexity of this challenge, and sets out a series of recommendations for how seaside towns can once again become prosperous and desirable places to live and visit. Reflecting the different stages of evolution of these places, the UK’s seaside economy is far from uniform. Some locations, like Bournemouth and Brighton on the south coast, have benefitted from a model of reinvention that is not available to all. Meanwhile, many smaller coastal towns have seen their unique selling point diminish. Their sense of isolation has left small town, seaside communities overlooked and facing profound economic and social challenges. Blackpool for instance, which tops the seaside destination ‘leader board’ in terms of visitor nights, faces some of the most acute deprivation in the country. The national imperative to drive up productivity and earning power of people across the country – as set out in the government’s Industrial Strategy – provides a further incentive and pertinent backdrop to the Select Committee’s recommendations. Last week saw the publication of a new Tourism Sector Deal setting out how the government will work in partnership with the tourism industry to boost productivity, develop skills and support destinations to enhance their visitor offer. It begs the question: how can Britain’s seaside towns respond to the UK’s productivity challenge and contribute towards national prosperity? The development of Local Industrial Strategies provides the most immediate opportunity for ensuring that the needs of coastal areas are better reflected in local plans to drive economic development, with most well underway via Local Enterprise Partnerships (LEPs) and Combined Authorities. Framed in context of the Industrial Strategy’s five foundations of productivity (ideas, people, infrastructure, business environment and place), there seem to be a number of key areas of opportunity to boost the economic prosperity of our seaside towns: Economic diversification: coastal communities increasingly need to recognise, promote and support diversification of their economies where a sole reliance on tourism is no longer a viable option. Much can be learned from places like Folkestone in Kent, where a new Creative Quarter has been delivered through a regeneration strategy based on the arts, the creative industries, and education. Transport connectivity: is holding back many coastal communities and hindering the realisation of their economic potential. Sub-optimal connections (such as inadequate rail connections and road access via single lane carriageways) can limit the potential for investment in economic diversification, and improvements to transport will be vital in supporting further economic development in isolated coastal communities quite literally at ‘the end of the line’. The forthcoming Shared Prosperity Fund is likely to provide a key source of funding in this regard, alongside the next round of the Coastal Communities Fund. Digital infrastructure: improved digital connectivity presents a significant opportunity to overcome the challenges of peripherality in coastal areas, and would help existing businesses, encourage new businesses, and enable people to work more flexibly from home to achieve the all-important work-life balance; a core part of the offer. Skills and aspirations: limited access to education, in particular to further education (FE) and higher education (HE) institutions, is severely restricting opportunities, denting aspirations for young people in some coastal areas and having a direct knock-on impact on local economic productivity and growth. Recognising that there is never going to be a ‘bricks-and-mortar offering’ of HE in every coastal town, this might necessitate greater scope for flexible access both to FE and HE, such as online, part-time and distance learning. Maximising unique assets: what makes coastal communities different is their unique asset: the coastal and marine environment that surrounds them. Seaside towns that have been most successful at reinventing themselves are those that have identified their own special character and USP. Key to this is a long-term, place-based vision that is supported by local leaders and grounded in each town’s unique assets, whether this be a combination of inherent geography, history, geology and ecology, or created features, such as attractions and culture. Examples of such assets include a university arts centre in Aberystwyth, The Stade historic fishing area in Hastings and a specialist university for the creative industries in Falmouth. The Stade historic fishing beach in Hastings, East Sussex Some of our recent work in the Lichfields economics team has focused on the huge growth potential of our seaside economies and making the case for targeted investment in infrastructure and associated projects to unlock this potential; in locations such as Gosport, Worthing, Southend-on-Sea and Eastbourne. With around half of all LEPs comprising coastal or estuarine areas, it will be interesting to see whether Local Industrial Strategies are embraced as an opportunity for renewed focus on addressing the skills gaps, low wage economies and aspiration challenges faced by many coastal communities. Whether by drawing on existing assets (such as historic infrastructure) or technologies of the future (such as emerging green industries that harness wind and wave power), it’s time for our much-loved seaside towns to play a more meaningful role in the UK’s plan to drive innovation and growth across the country.  

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