Lambeth Employment Study. Final Report

Transcription

1 Lambeth Employment Study Final Report JOB NUMBER: DOCUMENT REF: Document2 2 Final RC / RS DV RC JB 20/12/04 1 Final RC / RS DV RC JB 24/09/04 0 Draft Final RC / RS DV RC JB 13/08/04 Originated Checked Reviewed Authorised Date Revision Purpose Description

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3 CONTENTS 1. INTRODUCTION 1-1 Background 1-1 Report structure POLICY CONTEXT 2-1 Introduction 2-1 GVA grimley employment demand study SOCIO-ECONOMIC APPRAISAL 3-1 Introduction 3-1 Employment structure 3-1 Population and labour Market 3-14 Business structure 3-20 Deprivation 3-26 Key issues FORECASTS OF EMPLOYMENT DEMAND 4-1 Introduction 4-1 Employment demand 4-1 Industrial land release BUSINESS SURVEY 5-1 Introduction 5-1 Objectives of business survey 5-1 Business characteristics 5-3 Business premises information 5-5 Local linkages 5-6 Expansion and relocation plans 5-7 Perception of lambeth as a business location ANALYSIS OF KIBA CHARACTERISTICS 6-1 Assessment of proposed KIBAs 6-1 Evaluation of individual KIBAs 6-3 No change KIBA 21 Coldharbour Lane estate and adjoining sites 6-40 ii

4 KIBA 22 Loughborough Road 6-42 Summary of key findings CONCLUSIONS AND RECOMMENDATIONS 7-1 Introduction 7-1 Summary of demand features 7-1 Summary of supply features 7-4 Implications of demand-supply balance 7-7 Policy Evaluation and recommendations 7-10 List of Tables Table GLA Population and Economic Forecasts 2-3 Table SPG Criteria (Paragraphs ) 2-6 Table Workplace Employment in Lambeth Table Employment Growth Rates (annual average % pa) 3-2 Table Digit SIC Employment in Lambeth (Data where Available) 3-7 Table 3.4 Estimates of B Use Class Employment in Lambeth Table Industrial Sector Employment in Lambeth 3-11 Table Warehousing Sector Employment in Lambeth 3-11 Table 3.7 Industrial and Warehousing Property Market Indicators 3-12 Table 4.1 Lambeth Employment Change Table 4.2 Lambeth Total Employment Table 6.1 KIBA Size and Vacant Land 6-60 Table 6.2 Summary of KIBA Premises 6-61 Table 6.3 Estimated KIBA Floorspace 6-63 Table 6.4 Access to strategic road network 6-65 Table 6.5 Estimated Floorspace by Use class 6-68 Table 6.6 Approximate age of building stock 6-69 Table 6.7 Condition of premises (%) 6-71 Table 6.8 Range of business premises by KIBA 6-73 Table Opportunities for Change in KIBAs 6-74 iii

5 1. INTRODUCTION 1.1 Atkins was commissioned by the London Borough of Lambeth (LBL) to undertake an economic and employment study to inform the review of the Lambeth Unitary Development Plan (UDP). The revised deposit version of the Plan was issued for consultation in July 2004 with the UDP public inquiry programmed for March Having regard to the results of the consultation process, the key aims of the study are to: ensure that employment policies contained in the emerging UDP reflect the economic and regeneration needs of Lambeth; ensure the emerging employment policies are supported by robust and defensible evidence; and ensure compatibility with Government and GLA guidance and advice. 1.2 This study has been conducted in accordance with the recently issued Guidance Notes by ODPM on Employment Land Reviews. BACKGROUND 1.3 LBL s emerging plan promotes a flexible approach to the development of existing sites in the Borough, encouraging mixed-use schemes in most cases. The fundamental exception to this relates to the protection of Key Industrial and Business Areas (KIBAs) in the Borough. The Council has adopted a strong policy approach to ensuring that KIBAs are retained for employment uses (B Use Class activities and other uses commonly founding in industrial areas). Therefore, LBL proposes a balanced and pragmatic approach to employment land policy which has regard to: the need to ensure that the UDP provides sufficient choice, flexibility and competition in providing dedicated employment sites and premises as required by PPG4 and other Government guidance; 1-1

6 the increasing emphasis placed by Government and the GLA on the merits of mixed-use development and the need to allow obsolete employment sites to be considered for alternative uses including residential 1 ; and the importance of providing local job opportunities for local communities. 1.4 Employment land policies contained in the emerging Plan were informed by a Borough-wide study undertaken by GVA Grimley in The study confirmed that most of the Borough s employment sites classified as KIBAs were justified from the perspective of the local property market and economic need. 1.5 In accordance with the brief, this study revisits the work carried out by GVA Grimley having particular regard to reviewing: the appropriateness of the KIBA policy approach in light of the up-todate economic, regeneration and policy context; the criteria used to define KIBAs; the existing allocation of KIBAs in the Borough through a comprehensive assessment of each site; and the need for specific policy measures to assist in implementing employment policies and providing clarity for prospective developers. REPORT STRUCTURE 1.6 This report is set out in six additional sections, namely: 1 For example, see PPG3 review statements and LDA Supplementary Planning Guidance on Industrial Capacity. 1-2

7 Section 2 Policy Context: provides a review of key policy documents which are important in shaping future employment and regeneration policies in Lambeth; Section 3 - Socio-Economic Conditions: provides an assessment of the structure of the local economy highlighting economic opportunities and regeneration needs in light of sub-regional, regional and national trends; Section 4 Forecasts of Employment Demand: sets out a quantitative appraisal of future demand for employment and employment land and premises in Lambeth; Section 5 Analysis of Business Needs: provides a summary of the results of the Lambeth business survey; Section 6 KIBA Analysis: describes the findings of our assessment of the existing supply of KIBA sites in the Borough; Section 7 Conclusions and Recommendations: addresses the implications of the KIBA demand-supply balance, highlighting our policy recommendations particularly in respect of the need for change to the revised deposit UDP. 1-3

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9 2. POLICY CONTEXT INTRODUCTION 2.1 This section provides a brief review of the strategy and policy context for employment land considerations in Lambeth. It includes a review of the GVA Grimley employment study carried out for LB Lambeth in PPG3 Supporting the delivery of new housing 2.2 In February 2003, the ODPM issued a consultation paper which proposes a revision to PPG3 on supporting the delivery of new housing on sites not allocated for that use. The proposed addition indicates that some local authorities have quantities of employment land allocations which are too large to be taken up over the period of the development plan. This excess supply of employment land is in some cases a wasted resource when it could be considered for housing development. This is particularly the case where the land or premises is no longer suitable for employment use and local authorities are insufficiently inflexible in considering re-use for housing. 2.3 The proposed modification to PPG3 requires local planning authorities to review all their non-housing allocations and to consider whether some of this land might be better used for housing or mixed-use developments. Where reviews have not been undertaken, planning applications for housing on employment land sites should be treated favourably unless it can be demonstrated that that there is a realistic prospect of the allocation being taken up for its stated use. PPG4 2.4 PPG 4 notes that policies within development plans should provide for choice, flexibility and competition in allocating land for industry and commerce. The guidance recommends that planning authorities should be realistic in their assessment of the needs of business. 2-1

10 GLA London Plan 2.5 The London Plan sets out to support and develop London s economy through a series of strategic policies. Policy 3B.1 recognises the importance of providing a range of premises of different types, sizes, and costs to meet the needs of different sectors of the economy and firms of different types and sizes and to remove supply side blockages for key sectors. Specifically, Policy 3B.3 states that boroughs should seek to rejuvenate office-based activities in the Central Activities Zone which includes part of Lambeth. Policy 3B.4 identifies the Central Activities Zone and the Opportunity Areas to provide increases in office floorspace development within mixed use development. 2.6 The London Plan recognises the importance of the Waterloo as an Opportunity Area. Additionally, Vauxhall/Nine Elms/Battersea is also identified as an Opportunity Area and both of these areas fall within Central Activities Zone. Policy 5B.1 states that the strategic priorities for Central London include the need to identify capacity to accommodate new job and housing opportunities and appropriate mixed-use development. This is particularly important in relation to the Central Activities Zone and Opportunities Areas. 2.7 Policy 5B.4 identifies the Opportunity Area within Central London and provides direction on the scale and content of overall development. In keeping with the strategic locations of the Opportunity Areas, developments will be expected to maximise residential and non-residential densities and to contain mixed uses. The general policy directions to be followed in planning frameworks for the opportunity areas have been identified in the LP which include the indicative estimates of housing and employment growth. Up to 2016, the GLA estimate the 39 hectare opportunity area at Waterloo will provide up to 15,000 new jobs and 500 new homes. Similarly, for the Vauxhall/Nine Elms/Battersea Opportunity Area GLA estimate the 78 hectare area will provide up to 7,600 new jobs and 1,500 new homes by This scale of development will have a significant impact on the Borough s employment growth up to The London Plan identifies the importance of manufacturing and wholesale distribution which is embodied in Policy 3B.5 which seeks to promote and manage Strategic Employment Locations (SEL) throughout London. The Wandsworth Road / Stewarts Road and Bondway KIBAs form part of a wider SEL designation. 2-2

11 GLA Population and Employment Forecasts 2.9 A range of population, household and employment forecasts have been undertaken on behalf of the GLA. These have provided an input to the London Plan. The results of these forecasts are summarised in Table 2.1 below. Table GLA Population and Economic Forecasts Indicative Forecast Source London Employment % 14% SDS Technical Report 8 London Employment % pa 0.93% Central Sub-Region Employment % 14.5% Central Sub-Region Employment %pa 0.97% Office growth Central Sub-Region 2.5m sqm. SDS Technical Report 21 Population London % 10% SDS Technical Report 5 Population Lambeth % 12.5% Population Lambeth ( 000) 34,000 Households Lambeth ( 000) 16,000 Source: GLA 2.10 Table 2.1 indicates that the average employment growth in London Boroughs between 2001 and 2016 is expected to be just under 1% per annum. Population growth in Lambeth is expected to take place at a rate with is significantly higher than that forecast for London as a whole. Indeed, Lambeth is expected to experience the highest absolute increase in households of all London Boroughs In addition to the forecasts summarised in Table 2.1 above, additional employment projections have been published by the GLA for the period up to These indicate that employment in London will expand by an average of 1% per annum between 2003 and For the remainder of the forecasting period ( ), the rate of growth is projected to be 0.75%. 2 GLA (September 2003): Working Paper 4 Long Term Employment Projection for London. 2-3

12 Industrial Capacity Draft SPG 2.12 In September 2003, the Major of London issued draft SPG on industrial capacity in the capital. The SPG aims to supplement the policies of the London Plan. The primary aims of the draft SPG are to: Ensure that there is an adequate stock of industrial employment capacity to meet the future needs of different types of industry in different parts of London, including that for good quality and affordable space; and Plan, monitor and manage the release of genuinely surplus industrial land so that it can better contribute to strategic and local planning objectives, especially those to provide more housing and particularly affordable housing. In appropriate locations where it can contribute to town centre renewal, offices, leisure and retailing as well as high density housing will be appropriate The plan-monitor-manage approach to planning for industrial land aims to bring demand and supply into closer harmony. It also allows for the stock of premises to be managed so that it provides a competitive offer for different types of occupier The draft SPG highlights the success of the SEL Framework 3 in protecting London s principal industrial locations. However, it also acknowledges that the Framework could run the risk of fossilising land as industrial when there is no longer demand for this use. The requirement (of the SPG) is to monitor closely demand and supply relationships and to review the framework in light of these aims to keep the framework in tune with market requirements and broader planning objectives. Policy SPG2 (Strategic Employment Locations Framework) requires UDPs to identify components of the SEL Framework and promote these sites as the prime industrial locations for industrial activity in London. The differing offers of PILs and IBPs should be managed to meet the different types of industry appropriate to each Other than as part of a strategically co-ordinated process of mixed-use intensification, the draft SPG states that development of non-business uses within the SEL should be resisted except where they provide local, small 3 Strategic Employment Locations. 2-4

13 scale, walk to services for industrial occupiers (e.g. workplace crèches). This does not raise implications for Lambeth, however, with regard to smaller industrial sites, which lie outside the SEL Framework, the SPG seeks to protect such sites for industrial activity where they continue to meet industrial requirements. However, it also recognises that historic policy was unrealistic in seeking to prevent the transfer to other uses. The SPG advocates a more flexible, criteria-based approach to industrial capacity. UDPs should demonstrate that there is local demand for these sites to remain in industrial use. SPG3 stated that UDPs should: protect locally important, viable industrial sites, which lie outside the SEL Framework after testing them in the light of evidence of local and strategic demand and against the criteria in paragraphs These sites should be identified on UDP proposals maps The criteria approach distinguishes between strategic factors, site characteristics and industrial demand factors. These are summarised in Table 2.2 below. 2-5

14 Table SPG Criteria (Paragraphs ) Strategic Factors Site Characteristics Industrial Demand Factors Meets short term and/or strategy demand for industrial development; Forms part of larger area of existing industrial activity; Supports clusters of industrial activity; Meets needs of new or emerging industry; Well located to take advantage of existing or proposed infrastructure; Offers potential for the provision of small industrial units serving local residential and commercial areas; Contributes to local employment objectives and local economic diversity. Well located in relation to the strategic highway network or local highway network, causing minimal traffic impact in residential areas; Offers potential for transport of goods by rail or water; Located within or adjacent to a town centre (for high trip generating uses); Well located in relation to public transport facilities (for high trip generating uses such as offices, leisure and retail); Offers potential for 24-hour working, or provides facilities for bad neighbour without detriment to residential amenity; Office potential for space intensive activities; Provides lower cost industrial accommodation suitable for small, start-up or lower-value industrial uses or other businesses important to the local economy; Provides sufficient space for adequate parking and turning space for goods vehicles. Adequately marketed at realistic prices for a reasonable period (normally at least two years) and with potential for industrial redevelopment where this is required to meet the needs of industrial users; Has been vacant for a considerable period (normally two years, and up to five years of generally strong demand), without realistic prospect of industrial re-use. 2-6

15 2.17 For other industrial sites not shown on UDP Proposals Maps and lying outside the SEL Framework, SPG4 states that local authorities should develop criteria-based policies to manage the release from or retention in industrial use. Such policies should take account of demand and the criteria set out in the SPG. The policy also highlights that sites released from industrial use should meet strategic as well as local needs: the first priority should be to meet the need for housing including affordable housing. Increasing capacity for town centre related development is also considered important in appropriate locations The SPG highlights that there will be sub-regional differences in the demand for and supply of industrial space. Lambeth is grouped with other boroughs in Central London where limited transfer 4 of poorer industrial sites could be supported by market evidence and broader economic indicators The SPG encourages boroughs to develop criteria-based policies which seek to retain sites in industrial use which are considered to be most important for industrial users. These will generally include the better quality industrial sites, but may also include poorer quality sites which provide scope for low cost industrial accommodation for which there is demand. Guidance on the selection of criteria is given in respect of: strategic factors; site characteristics; and industrial demand factors SPG5 (Industrial Capacity and Mixed Use Development) allows for the redevelopment, intensification and selective support for higher density, mixed uses in appropriate locations so long as this does not compromise the strategic and local reservoirs of industrial capacity The guidance states that Preferred Industrial Locations (PILs) and some appropriately located sites outside the SEL framework will continue to provide the most sustainable home for industrial uses which would not benefit from being mixed with other activities. However, some industrial uses can be less onerous on potential neighbours can offer greater scope for mixed and more intensive forms of development. These might include activities that place a higher premium on value added rather than volume and those with higher 4 Limited transfer is a category intermediate between restrictive transfer and managed transfer. 5 Includes adequate marketing at realistic prices for a reasonable period (normally at least two years) and has been vacant for a considerable period (normally at least two years, and up to five years in areas of generally strong demand). 2-7

16 employment densities. Good public transport access is highlighted as a prerequisite for more intensive forms of development The SPG identifies the edge of town centres and locations where industrial developments can be closely integrated with a wider mix of surrounding uses as appropriate for mixed use and intensified development. This may include the accommodation of industrial uses on lower floors of mixed use developments (vertical integration). In some cases, there may be scope to redevelop and upgrade some PILs in appropriate locations (e.g. on the periphery of PILs near stations or town centres). It is noted that complementary, sensitive relocation arrangements are likely to be necessary to avoid loss of industrial employment of different types through the redevelopment process It is highlighted by the SPG that the need to increase housing provision, especially affordable housing, will an important priority on permissible mixed use redevelopments. Leisure, retail, civic and other town centre uses will also be appropriate if the mixed use development can be integrated with broader proposals for town centre renewal. However, other than to provide small scale, local convenience services, such uses will not be appropriate outside town centres. However, provision should be made for small scale, walk to facilities, particularly A1 and A3 uses and specialist services like crèches, which serve the needs of people working within industrial areas. Such provision is likely to be particularly important in larger industrial areas, including SELs Mixed-use development should only be permitted where it will support the central policy objective of ensuring an adequate stock of industrial employment capacity and the wider objective of encouraging better use of land such as that which can be brought about by mixed use redevelopment Policy SPG5 states that boroughs and other partners should: identify strategically recognised industrial sites or parts of sites which have good public transport accessibility, especially those within or on the edge of town centres, for industry led, higher density, mixed redevelopment. This redevelopment should not incur a significant net loss of industrial employment capacity or compromise the offer of wider areas as competitive industrial locations. 2-8

17 establish robust and sensitive industrial relocation arrangements to support redevelopment where necessary. where necessary improve provision of small scale, walk-to amenities and services including crèches, which serve the needs of people working within industrial areas In seeking to improve the quality and variety of industrial capacity in London, SPG6 encourages boroughs to: enhance the operating environment within and around all viable industrial areas; secure low cost premises to meet local needs; encourage redevelopment of industrial areas to enhance their offer as competitive locations attractive to modern industry; seek imaginative design and investment solutions which do not entail a net loss of industrial employment capacity and make more efficient use of space; secure planning agreements to achieve DLP objectives depending on local circumstances; and make provision for demand for difficult neighbour industrial uses (normally within PILs) SPG7 (Small Industrial Enterprises) encourages boroughs to protect industrial sites which meet demonstrable demand for lower cost industrial accommodation and promote the provision of small businesses and start-up companies. Authorities should also seek to secure provision of small and affordable industrial units in appropriate locations as part of larger mixed-use schemes Recognising the importance of storage and distribution industries to the London economy, SPG8 requires provision to be made for large scale distribution activities in environmentally acceptable PILs with good access to the strategic road network, and generally resist it elsewhere. Smaller warehouse facilities and mixed industrial / warehouse units should generally be accommodated with the SEL framework in line with strategic road capacity. Industrial and Warehousing Land Demand in London 2.29 In August 2004, the GLA published a research report on industrial and warehousing land demand in London. It was highlighted that the research was carried out primarily to inform the emerging strategic and local employment land policy context in London. This includes: 2-9

18 The final version of the GLA Supplementary Planning Guidance on Industrial Capacity (see above); Sub-Regional Development Frameworks; and Development Plan Reviews and Local Development Frameworks The research focused on two key issues: to assess the balance of demand and supply for industrial and warehousing land testing a previous estimate that some 50ha per year London wide could be released to other uses and providing guidance for individual sub-regions and boroughs; and to provide an assessment of current and future requirements for warehousing space, and recommend strategic planning policies for meeting these requirements The report highlights that the occupiers of industrial and warehousing land are drawn from a wide spread of SIC sectors including elements of transport and storage, construction, recycling and refuse disposal. The consultants conclude that: the inclusion of these sectors results in a significant increase in total demand for space compared to traditional estimates; and the additional sectors have better prospects for growth compared to manufacturing Section 3 gives particular consideration to the implications for Lambeth of using a wider definition of industrial and warehousing uses An important conclusion of the Mayor s research is that London performs a high value role within the industrial warehousing sector. It is reiterated that industries which find London a competitive location are those which: Serve London markets. 2-10

19 Are near the end of the physical production process, producing final goods rather than capital equipment or intermediate goods. Produce time-sensitive goods and services. Are high-productivity and high-value-added, but not necessarily hightechnology. Are at the borderline of industry and services, with a tertiary content According to the research, demand for industrial / warehousing floorspace and land is relatively high compared to other parts of London (except in East London). Within London, demand is noted to be most pronounced in Central, West and South London (including Lambeth). Rents throughout London are higher than the national average Whilst the report highlights that net demand for industrial / warehousing land in London has been falling for many years and that the planning system has been reducing supply accordingly, it is emphasised that: the high and rising pressure of demand in large areas of London suggests that, in these areas, there is a risk that the reduction in planned supply may run ahead of the reduction of market demand so that the shift to other uses drives the contraction of industry and warehousing, rather than responding to it (para 11) Although the importance of the warehousing and logistics sector is often underplayed in London and the South East, the report highlights that it provides a vital support to the London economy and supports a wide range of spatial, economic and transport policy objectives for London. Policy Implications 2.37 A range of significant policy implications are highlighted: (i) It confirms that the release of industrial and warehousing land at an average of 50 ha per annum is correct (without the sector being priced out by demand from other uses). However, it is suggested that the scale of release should vary between sub-regions. It is recommended that Borough allocations should be provided by the Sub-Regional 2-11

20 Development Frameworks. Importantly, it is concluded that the contraction of industrial employment is not as significant as it has been in past decades. This reflects the mature stage of industrial restructuring that many parts of London have reached. Indeed, the capital s growing population will place upward pressure on demand within many modern industrial and warehousing sectors. (ii) (iii) (iv) (v) (vi) The consultants preferred scenario redistributes demand from subregions where demand is tight (especially the Central sub-region), to the East where there is a large supply of industrial and warehousing land. However, there is a lack of evidence to suggest that the market can be bent in such a significant way. Furthermore, measures for implementing the redistribution of demand are not identified. Despite the focus for shifting demand to the East, the sub-region accounts for the bulk of land released (67% between 2001 and 2016) 500 ha. The preferred scenario allocates 100% of forecast future net growth in demand in the Central sub-region to the East sub-region. This contrasts with other scenarios which indicate a positive land requirement varying from 36ha to 104ha for the period Whilst it is highlighted that there are limitations to the extent of spatial redistribution.., it is our view that the redistribution effect is unrealistic in market terms. Moreover, the assumptions do not take account of varying market trends within the Central Sub-Region and in particular does not recognise the differences in need between southern Lambeth and Central London. Reflecting high levels of demand and limited supply, the preferred scenario indicates that there should be no release of industrial or warehousing land to other uses in the Central sub-region. However, it is stated that some release may be possible through intensification. The evidenced imbalance between demand and supply in the Central sub-region is inconsistent with the classification of Lambeth for Limited Transfer in the Major s draft SPG. It is stated that the release of 50 hectares per annum in London will be made up of two factors: a fall in occupied land because of industrial decline; and a fall in the existing total of vacant land to bring it is line 2-12

21 with the minimum required for proper operation of the market. It is our view that such transfer supply opportunities in Lambeth are extremely limited which, in part, supports the need for proactive policies for protecting the remaining supply of employment land in the Borough. The evidence for this in provided in the proceeding Sections of this report. (vii) (viii) It is important to allow sufficient industrial and warehousing land for churn and intensification. There is a need to combat physical decay and meeting changing occupier requirement. It is suggested that the public sector take a strong lead in facilitating redevelopment and intensification (particularly areas which are underutilised). This process may lead to more jobs and in some cases, more housing. It is recommended that Strategic Employment Location should include the identification of three to four Strategic Logistics Parks. Proposed Changes to Draft SPG 2.38 A critical conclusion is made in respect of the draft SPG, particularly with regard to potential changes. It is highlighted that there are Boroughs which appear under pressure for industrial / warehousing land. Consequently, it is suggested that it may be appropriate for some Boroughs to be reclassified in terms of industrial land release. Lambeth is identified as a Borough which may be moved from Limited to Restrictive It is also recommended in the report that the qualitative criteria outlined in the draft SPG should include two additions: An industrial/warehousing site might be deemed viable if it can be developed at normal industrial/warehousing land values (as set by benchmarks for the sub-region), adjusted for any abnormal costs or other particular characteristics. This would help distinguish activity that is not competitive in London from activity which is driven out by higher value land uses. If a site needs infrastructure or reclamation which cannot be paid for by industrial/warehousing land values, this might constitute an argument against protecting it for purely industrial/warehousing use. 2-13

22 2.40 Within the context of London-wide trends, Section 3 of this report analyses in more detail the implications of the report for future employment land policy in Lambeth. Lambeth UDP 2.41 The Lambeth Unitary Development Plan was formally adopted in August 1998 and provides the land-use planning framework for the London Borough of Lambeth up to The unemployment rate in Lambeth in 1997 was 14.4%, which is well above the national average and the Council were concerned that 72% of those employed in the borough lived outside Lambeth. Therefore, the maintenance and creation of a varied mix of employment is a high priority for the Borough of Lambeth and plays an important role in its economic regeneration. Policy EMP3 of the adopted UDP sort to identify specific areas for commercial and industrial improvement and states that, the Council will continue to implement the provision of the Inner Urban Area Act 1998 on industrial and commercial improvements areas declared and to keep under review the need for further areas Policy EMP4 of the adopted UDP states that, the Council will seek to develop employment opportunities through identifying and promoting suitable sites.. promoting schemes which bring redundant sites and buildings into use.. promoting mixed use development Policy EMP6 of the adopted UDP states that, permission for the development of land or buildings currently, or last, in employmentgenerating use for nor non-employment use, will normally be refused Similarly, Policy EMP7 of the adopted UDP states that, the Council will normally resist the loss of land and buildings currently, or last, in B1 business or B2 industrial use to uses outside of the B1 and B2 Use Classes Policy EMP8 of the adopted UDP states that, 2-14

23 the Council will encourage the relocation, expansion and intensification of employment generating uses in areas where they already predominate, such as the Council s designated Industrial and Commercial Improvement Areas Policy EMP9 of the adopted UDP states that, the Council will consider the development of suitable vacant or under-used land or buildings for employment purposes and permit change of use for non-employment to employment use Policy EMP10 of the adopted UDP states that, B1 business use will normally be permitted on employment sites where development is within Council s preferred office locations.development is below 400sq.m. redevelopment is proposed on existing office site.. or other employment sites provided the ground floor is suitable for the full range of uses within the B1 use class Policy EMP11 of the adopted UDP states that, the Council has identified a number of sites it considers suitable for general industrial development. General industry will be permitted on these sites and other sites the Council considers suitable for general industry Policy EMP12 of the adopted UDP states that, all new employment generating development will be expected to relate satisfactorily to existing development and be acceptable with regard to the Council s other land use policies and standards and the need to safeguard residential amenity. High standards of design, amenity and landscaping will be required Policy EMP 6 ensures employment protection of land or buildings in employment generating uses and seeks to invest in the future. However, exceptions to retention may be considered where the land or buildings are not suitable for continued employment use on environmental, amenity or transport grounds; there is no realistic prospect for the site to be used for employment generating uses in the foreseeable future or there is little demand to develop land or buildings for employment purposes within a certain location With regards to new employment uses, it is recognised that the Borough does not have a strong industrial base and manufacturing industry will continue to 2-15

24 decline. However, the Council does place a high priority on attracting and retaining industrial uses as they are perceived to provide employment opportunities best suited to the skills of the Borough s workforce and unemployment The priority for Industrial and Commercial Improvement Areas is to sustain a range of employment generating uses B2: General Industry, B8: Warehousing and B1: Business Uses but not at the detriment to the local environment (Policy EMP 10). Proposals for redevelopment of employment sites for nonemployment uses would be considered in accordance with the criteria outlined in EMP 6 if the site where either not capable of accommodating an acceptable employment development or no effective demand for employment uses had been demonstrated Policy EMP12 ensures that the local environment is not adversely affected through the development of employment activities and proposals would have to adhere to amenity, design and transport considerations such as car workshops or petrol filling stations. Where redevelopment proposals would mean the removal of an existing business is the only solution, suitable relocation would be necessary as outlined in EMP 1 in order to ensure continued viability of firms important to the local economy. Lambeth UDP First Deposit 2.54 The Lambeth Deposit Replacement UDP was issued for consultation in January The Core Strategic Policies contain a number of changes compared to the Adopted UDP Part A (Core Strategic Policies) of the draft UDP states in Policy 1 that the strategic priorities for development and regeneration will be: maximising the opportunities for residents and others from Lambeth s location at the heart of a world city, through improved employment opportunities The key objectives of the proposed policies relating to employment under section 4.12 Opportunities to Work are to: ensure good quality employment premises are protected and the creation of new ones assisted; 2-16

25 ensure land and premises are capable of embracing modern work requirements; and seek a range of premises of different types and costs to meet the needs of different sectors, especially SMEs These are set within the context of guiding principles which embrace the aims of: enabling businesses to start up, develop, expand and consolidate within the Borough; and providing Lambeth people with better opportunities to obtain qualifications, skills and training to effectively compete and have access to jobs The draft UDP introduces the allocation of Key Industrial and Business Areas (KIBA) in Policy 22 which is not used in the adopted UDP. These are identified on the Proposals Map and are categorised as either: Key Industrial and Business Areas the Council aims to safeguard for B class uses and other uses falling outside a use class and commonly found in an industrial area (industry, business and warehousing). These are identified on the Proposals Map; or Key Industrial and Business Areas with Major Development Opportunities (which are sometimes allocated as mixed use employment areas and identified on the Proposals Map) the Council aims to enable some residential and other mixed uses on appropriate parts of the site although the predominant use will be employment and at least 50% of the site area of any scheme should be for B1 (a, b or c), B2 and B Proposals for major office use (300sqm+) will be supported (Policy 21) provided they are located in: the Waterloo Office Regeneration Area, on the Albert Embankment (south of Lambeth Bridge) and on sites in and around Vauxhall Cross outside predominantly residential areas; or 2-17

26 major town centres (Brixton and Streatham) Smaller scale office development will be permitted in (Policy 21): district centres; Central London Policy Area and are essential at that location to support the operation of central London activities; local centres with good or better public transport accessibility; or Key Industrial and Business Areas It is acknowledged in the draft UDP that not all employment uses may be in the B Use Class (e.g. art studios, galleries, live-work units). The Council adopts a flexible approach to these activities in order to enhance local economic diversity A strong but flexible policy stance for the protection of employment land is promoted by the draft UDP. This is reflected by: Policy 22 (Key Industrial and Business Areas) Protects KIBAs but may permit other employment uses outside the B Class to allow flexibility and contribute to local economy (uses may include artists studios/rehearsal areas and galleries, employment training, garages and telecommunications); Policy 23 (Protection and Location of other Employment Uses) The Council seeks to retain employment uses outside KIBAs unless certain criteria are met. This includes evidence of: unacceptable environmental problems, continuous vacancy and unsuccessful marketing campaign including price sought; exploration of possibilities to re-use or redevelop land or premises for Work-Live development; substantial other planning benefits and where development of a small part of the site is compensated for; listed building designed for and reverting to residential use; change of use to 100% affordable housing The draft UDP supports the development of work-live/live-work units provided that proposals meet residential amenity standards. Proposals must also have 2-18

27 a minimum of 60% floorspace allocated as workspace. Total internal floorspace must be at least 70 sqm. Under Policy 24 proposals for live-work or work-live development should be on sites suitable for permanent residential accommodation. For Work-Live units development would be permitted on employment sites outside KIBAs or within KIBAs identified with mixed use employment areas only. Where appropriate, the Council will seek an element of affordable housing Policy 25 requires large development proposals to provide mechanisms to aid local training and training facilities provision and to provide information on vacancies which may result in reduced length of commuting and engagement of disadvantaged groups. Lambeth UDP Revised Draft 2.65 The Lambeth Revised Deposit Replacement UDP was issued for consultation in July The structure and broad content of the policies in Section 4.12 Opportunities to Work of the Revised Draft remain unchanged from the First Draft. Some of the changes which have occurred as a result of the consultation process include: Policy 21 the definition of large-scale offices has been increased from 300sqm+ to over 1,000sqm and additional qualitative criteria in the evaluation of large-scale office development has been included; Policy 22 the definition of the scale of employment uses acceptable on Major Development Opportunities in KIBAs has changed from at least 50% of the site area to either at least 50% of the site area or 50% of the replacement floorspace. Policy 23 the criteria for evaluating the appropriateness of loss of employment use floorspace to other uses outside KIBAs has changed to include: further definition of the evidence regarded to assess the prospects for future employment re-use, the provision of modern small business units on the remainder of the site as an alternative to increasing the density of employment use on the remainder of existing sites. 2-19

28 Lambeth s Economic Development Strategy 2.66 The Economic Development Strategy represents the economic development strand of the Lambeth Community Strategy. It sets out five strategic objectives: SO1 To strengthen business support and develop the business base, particularly in relation to identified growth sectors; SO2 To reduce financial exclusion through a variety of approaches including a radical uplifting of skills accompanied by measures to address barriers to employment; SO3 To facilitate economic growth and local employment through management of property and development process; SO4 To maximise the impact of the public sector for stimulating employment and enterprise; and, SO5 To capitalise on diversity to stimulate employment and enterprise The provision of a range of types, sizes and tenures of business premises is identified as central to satisfying these strategic objectives. Waterloo Development Framework 2.68 The Stage 1 Waterloo Development Framework Consultation Document published In July 2004 follows the identification of Waterloo as a potential opportunity area in the London Plan due to its strategic transport importance and high profile location. The Development Framework addresses the economic and employment changes affecting the Borough, the strategic policy context, character of the place, traffic and pedestrian movement, cultural activities and industries and provides a series of development proposals identifying the development capacity of the area. The Stage 1 report represents the overview, issues and opportunities stage of the development framework study process and the development framework itself is currently under preparation. 2-20

29 2.69 The vision is to achieve the sustainable regeneration of the Framework Area by harnessing and developing the rich and special mix of close knitted residential communities, tourists, visitors and commuters, world-class cultural institutions, small and large national multi-national organisations and companies, specialised shops, restaurants and many others: maintaining and improving a special, safe and healthy world class location at the centre of London which protects its existing residents and businesses and is able to accommodate new high quality development that optimises opportunities benefiting people living and working in the wider area. GVA GRIMLEY EMPLOYMENT DEMAND STUDY 2.70 In May 2001 GVA Grimley prepared an employment demand study to inform the first deposit draft of the Lambeth UDP. The main purpose of the report was to assist the Council in determining the types of employment it should be trying to promote and cater for in the Borough. Of particular importance, the study confirmed that most of the sites designated as proposed KIBAs were justified from a market perspective The report include a series of economic forecasts for Lambeth in terms of output and employment. With regard to the former, it was concluded that growth rates per annum were expected to increase from 1.2% pa in the 1990s to 1.8% pa during 2000 and 2010: much of this growth was stated as likely to occur towards the end of the decade as service activity gathers pace. Prospects for manufacturing were to remain unfavourable, although the pace of decline in output was expected to be moderate. Overall, output growth in Lambeth was predicted to lag behind that of Greater London and the UK For employment, GVA Grimley predicted that total levels would fall over the proceeding five years to around 113,000. The report was more optimistic about the long-term prospects for employment with total employment remaining fairly stable over the period 2005 to 2010 (net fall between 2000 and 2010). Although net change was predicted to be negligible in the latter part of the decade, this would conceal growth in service related activities (particularly retail, cultural and recreational activities, communications and financial and business services) It is important to note that the GVA Grimley quantiative employment forecasts were up to 2010 rather than 2016 which is the planning period for the emerging Lambeth UDP. 2-21

30 2.74 The report s employment demand projections were identified to represent a baseline scenario. As stated above, this scenario resulted in a net fall in total employment between 2000 and The forecasts imply a decline in demand for offices, manufacturing and distribution. It is noted that no account is taken of potential demand from superleague tenants because there is no effective supply to meet this demand GVA Grimley reported that the state of Lambeth s property offer is a major factor in the success of the Borough retaining and capturing businesses in expanding sectors (e.g financial and business services, computer services, marketing, accountancy and consultancy). Consequently, the baseline scenario was augmented by a regeneration scenario which assumed the successful implementation of the key regeneration programmes affecting the Borough (particularly in terms of increasing prestige office supply in the Waterloo area). On the basis of this scenario, it was suggested that the office sector could experience a net addition of 70,000 sqm. over the next decade (10% increase in office stock). This assumes that office accommodation is made available to accommodate some superleague tenants For manufacturing and distribution, the regeneration scenario results in a slower rate of decline compared to the baseline scenario. However, this conceals the possibility of a small rise in the distribution scenario The policy recommendations provided by GVA Grimley highlighted the need to encourage new large-scale office developments to capture demand from superleague tenants (particularly in the Vauxhall-Waterloo area). The point is made that such provision may be either additional office space or replacement of existing stock. As part of the restructuring process, it is highlighted that existing offices uses will continue to be lost to other land uses which may lead to a requirement to supply new office space in appropriate locations With regard to industrial land and premises, it was concluded that there is strong evidence to support the development and application of the KIBA policy. Whilst there has been a major reduction in the stock of industrial floorspace in Lambeth (as in other parts of London), the report highlights that there is still much latent demand for industrial space in the area. This demand is stated to include existing and new SMEs as well as relocating/expanding enterprises elsewhere. Of 31 sites identified as potential KIBAs, GVA Grimley considered that 22 meet their criteria of a KIBA from a 2-22

31 market perspective. A further 6 sites were regarded as having KIBA potential for inclusion in the UDP. The remaining three (Union Workshops, Knollys Road Triange, and the OCS site) were recommended for deletion as KIBAs by GVA Grimley for being in major conflict with their KIBA criteria. 2-23