The 2024 National Planning Policy Framework (‘NPPF’) requires local planning authorities to identify sites for commercial development which meet the needs of a ‘modern economy’. This means analysing the growth potential and site requirements for data centres, gigafactories, laboratories, and freight and logistics hubs.
The Government, at paragraph 86c of the NPPF, has introduced a specific requirement to consider four forms of commercial development required as part of building a ‘modern economy’, including:
- Laboratories
- Gigafactories
- Digital infrastructure (including data centres)
- Freight and logistics
Each of these land uses has its own location, market need and supporting infrastructure requirements, and therefore planning implications. Some are likely to be located close to existing facilities or within clusters of adjacent industries, while others will reflect access to infrastructure and market drivers as pre-conditions for new clusters to emerge.
The pattern of market requirements and related supply chains may cut across conventional Functional Economic Market Areas (‘FEMAs’) and require more strategic planning approaches to be applied across local autority areas.
Furthermore, many of the land uses are subject to rapid changes in technology and so there is a need for flexibility and agility in policies and site allocations to support the growth of modern economy land uses. All of these factors mean conventional approaches to forecasting employment land needs may be less applicable, and there is a need for a more bespoke approach to identify potential locations where growth can be accommodated.
