Apportionment of new employment floorspace in South
Hampshire
Summary
The South East Plan requires that provision be
made for 2 million square metres of new employment floorspace in
South Hampshire during the 20 years 2006 - 2026. The Plan splits
this overall figure between South East Hampshire and South East
Hampshire, and also by employment type (offices, manufacturing,
warehousing). There is a need to apportion these totals amongst
individual PUSH authorities
in order to enable the preparation of Local Development Documents.
Moreover, there is a need for continuity of new floorspace supply
throughout the 20 year Plan period if the PUSH economic
growth targets are to be achieved. The PUSH planning and
economic development officers have completed an interim
apportionment and those interim figures are set out in Tables 6 and
7 in the attached report. There remains a need to explore the
possibilities for transferring some sites between employment types
and time periods in order to further improve the continuity of
supply of new floorspace. Some wholly new sites for employment
development need to be identified later in the Plan period. The
next step is for each authority to explore these matters and to
report back to PUSH by 30
November 2007 in order that PUSH can finalise
the apportionment process this winter. To assist that work, it is
intended to commission a study of the types and locational
requirements of the substantial forecast need for new warehousing
space.
Introduction
The importance of land for economic
development
The amount of employment land
required
The existing supply of employment
land
Comparing supply and requirements at
sub-regional-level
The timing of floorspace
requirements
Apportioning employment land
requirements
South West Sub-area
Next Steps
Introduction
1 Policy
SH6 of the Draft South East Plan states that land will be provided
in South Hampshire to accommodate 2 million square metres of
business floorspace. The policy then sets out how much
floorspace is required in the South West and South East areas by
type of activity (offices; manufacturing; storage and distribution)
and by type of land, including that required within the two
SDAs.
2
Individual
PUSH
authorities
will need to make employment land allocations in their Local
Development Documents (LDDs) which in combination
provide for the required 2 million square metres of
floorspace. To assist in this process, PUSH Planning and
Economic Development officers have been working together on
apportioning the 2 million figure amongst individual authority
areas. This will help inform the preparation of
LDDs and
provide a vital input to the PUSH Delivery
Plan. This report sets out the conclusions of the work which
Leaders are asked to approve.
3 This
report was also considered by the PUSH Planning and
Sustainability Panel two days ago on 24 September. Their
comments will be reported orally to this Leaders meeting.
The importance of land for economic development
4 The
PUSH strategy is
based on a rising level of economic growth that is over and above
that which might be expected without any intervention. Although
many of the decisions that will determine the performance of the
South Hampshire economy will be taken by businesses in the private
sector, the public sector role – to create the conditions that will
foster economic growth – will be critical. The DTZ “Economic Drivers and Growth”
report identified three key areas where public sector interventions
would be required to support the aspirational growth of the
sub-regional strategy:
- Skills
- Enterprise, innovation and business
support
- Land, property and infrastructure
- The above three themes now form the basis of
the PUSH strategy and
business plan.
5 The
provision of land for economic development is critical to the
success of the PUSH strategy.
The scope of the actions required range from acquiring as full an
understanding as possible of the future requirements for sites and
premises to bringing sites forward for development both through the
planning process and ensuring investment and delivery on the
ground. The quality of sites available, together with their type
and location, is just as important as the sheer quantity of
floorspace available to the market or progressing through the
planning pipeline. A full portfolio of sites will be required to
provide the certainty that business needs to release investment.
All of these issues will be kept under review by PUSH with an
Employment Land Report produced annually.
The amount of employment land required
6 The aim
of improving South Hampshire’s economic performance with the target
of achieving GVA
growth of 3.5% by 2026 will require around two million square
metres of additional business floorspace. The scale, location and
type of this floorspace, derived by PUSH either
directly from the DTZ
report or using a similar methodology, is expressed in policy terms
in the draft South East Plan (Policy SH6). The panel who conducted
the Examination-in-Public of the South East Plan accepted the
employment floorspace figures in the policy and commended “the
rigour and transparency of the background work undertaken in this
sub-region, which provides a clear audit trail between these
floorspace estimates and the GVA target sought”. The Policy
SH6 figures are shown in the table below.
Table 1: Scale, location and type of
employment development (Policy SH6)
|
All figures are square metres of
floorspace
|
|
|
South West
area
|
South East
area
|
PUSH
total
|
|
B1 Offices
|
680,000
|
535,000
|
1,215,000
|
|
B2 Manufacturing
|
93,000
|
123,000
|
216,000
|
|
B8 Warehousing
|
294,000
|
240,000
|
534,000
|
|
Total
|
1,067,000
|
898,000
|
1,965,000
|
7 B1
offices account for more than 60% of the total floorspace
requirement, reflecting the DTZ forecast that business services
will be the key area of growth in the South Hampshire
economy. The small B2 manufacturing requirement (11%)
provides for the development principally of advanced manufacturing
in which the area has a particular strength. The B8
warehousing requirement (27%) reflects the DTZ predicted growth in the
transport and logistics sector that arises from a nationally
expected increase as well as the sub-region’s international gateway
role based on the ports of Southampton and Portsmouth and
Southampton airport.
The existing supply of employment land
8 There is
already a substantial supply of sites which are already earmarked
for employment development because they have planning permission or
are allocated in adopted Local Plans for that purpose. These
are referred to from hereon as ‘existing sites’. The proposed
employment allocations at the two SDAs are also classified in
this report as ‘existing sites’ because they are, effectively,
allocations in the draft South East plan. Many
PUSH
authorities also envisage further sites being formally allocated in
their forthcoming Local Development Documents (LDDs). As they
are subject to decisions by the Members of those authorities and
then testing through the LDD statutory process,
those are referred to in this report as ‘possible sites’.
9 All
these sites need to be classified in relation to the types of
employment development specified in the draft South East Plan
Policy SH6. Some sites are allocated specifically for one of these
three types of employment development, but this is uncommon.
So for most sites an assumption/judgement has been made on the
employment use (B1 offices; B2 Manufacturing; B8 Warehousing) or
combination of uses for which each site will be
developed. As explained later, there is some flexibility to
alter these categorisations in order to ensure there is sufficient
provision across the PUSH area for
each type of employment development.
10 The estimated
floorspace which these sites could accommodate in each authority’s
area is shown in Tables 2 and 3 below.
Table 2: Existing and ‘possible’
sites in South West Sub-Area
|
Area
|
B1
Offices
|
B2
Manufacturing
|
B8
Warehousing
|
Total
|
|
Existing sites
|
|
|
|
|
|
Southampton
|
108,607
|
63,683
|
24,687
|
196,977
|
|
Eastleigh
|
158,224
|
103,195
|
46,800
|
308,219
|
|
N/NE of Hedge End SDA
|
45,880
|
8,140
|
19,980
|
74,000
|
|
New Forest (part)
|
7,693
|
12,782
|
26,889
|
47,364
|
|
Test Valley (part)
|
109,314
|
0
|
992
|
110,306
|
|
Sub-Total (existing)
|
429,718
|
187,800
|
119,348
|
736,866
|
|
Possible sites
|
|
|
|
|
|
Southampton
|
299,000
|
0
|
0
|
299,000
|
|
Eastleigh
|
0
|
0
|
0
|
|
|
N/NE of Hedge End SDA
|
0
|
0
|
0
|
|
|
New Forest (part)
|
0
|
0
|
0
|
|
|
Test Valley (part)
|
17,000
|
0
|
0
|
17,000
|
|
Sub-total (possibles)
|
316,000
|
0
|
0
|
316,000
|
|
Grand total
|
745,718
|
187,800
|
119,348
|
1,052,866
|
11
In the South West Sub-area (see table above)
both Eastleigh and Test Valley currently have more office space
available than Southampton. The Eastleigh figure includes the major
allocation at the Northern Business Park and other sites within the
Strategic Employment Zone, while Test Valley includes the Adanac
site off the M271. Substantial office development is also expected
at the N/NE of Hedge End SDA. Southampton, however,
includes a very substantial figure for “possible” office
development, largely comprising major sites at West Quay Road and
Central Station, which is nearly three times its current available
space.
12
Space for future manufacturing in the South West Sub-area is also
found predominantly in Eastleigh and to a lesser extent in
Southampton. Again the Eastleigh sites include the Strategic
Employment Zone while Southampton includes the former Vosper
Thorneycroft site at Woolston.
13
There are B8 warehousing sites currently available in each of the
authorities in the South West with major allocations/permissions in
the Strategic Employment Zone, the North/North east of Hedge End
SDA, Test
Lane in Southampton and Marchwood in the New Forest.
Table 3: Existing and ‘possible’
sites in South East Area
|
Area
|
B1
Offices
|
B2
Manufacturing
|
B8
Warehousing
|
Total
|
|
Existing sites
|
|
|
|
|
|
Portsmouth
|
123,473
|
44,869
|
51,655
|
219,997
|
|
Fareham
|
22,275
|
13,013
|
2,026
|
37,314
|
|
N of Fareham SDA
|
72,000
|
16,600
|
32,400
|
121,000
|
|
Gosport
|
66,474
|
9,066
|
13,266
|
88,806
|
|
Havant
|
74,414
|
44,022
|
32,428
|
150,864
|
|
Winchester (part)
|
159,135
|
62,032
|
33,443
|
254,610
|
|
East Hampshire (part)
|
4,982
|
1,000
|
500
|
6,482
|
|
Sub-Total (existing)
|
522,753
|
190,602
|
165,718
|
879,073
|
|
Possible sites
|
|
|
|
|
|
Portsmouth
|
15,554
|
0
|
0
|
15,554
|
|
Fareham
|
0
|
0
|
0
|
0
|
|
Gosport
|
189,720
|
0
|
30,000
|
219,720
|
|
Havant
|
18,217
|
6,132
|
3,065
|
27,414
|
|
East Hampshire(part)
|
1,250
|
0
|
0
|
1,250
|
|
Sub-total (possibles)
|
224,741
|
6,132
|
33,065
|
263,938
|
|
Grand total
|
747,494
|
196,734
|
198,783
|
1,143,011
|
14 In the
South East Sub-area (Table 3 above), the largest
supply of future B1 offices floorspace is in Winchester District,
which mainly comprises outstanding planning permissions at Solent
Business Park (Whiteley) and the allocation at the West of
Waterlooville
MDA
. In contrast, Fareham
Borough (setting aside the proposed SDA) currently has very
little future B1 offices space.
15 Winchester District
also has the largest amount of space for B2 manufacturing uses –
largely at Solent 2 (Whiteley) and at Segensworth.
Portsmouth, Havant and Fareham (including the SDA) also have substantial
space for future development for this use.
16 Portsmouth
currently offers the most space for new B8 warehousing, with a
considerable supply in Havant and Winchester Districts. There
is virtually none in Fareham until the SDA comes on stream in 2016
or thereabouts.
17 HMS Sultan – a
‘possible site’ in Gosport – could provide additional space for all
three types of employment development although this is not expected
to be available until 2017 at the earliest.
Comparing supply and requirements at sub-regional-level
18 A comparison
between the supply of existing sites and the South East Plan
requirements (Table 4 below) during 2006-2026 shows that there is a
substantial shortfall of B1 offices space in the South West
Sub-area and a shortfall of B8 warehousing space in both
areas. Also in both areas, the available space for new B2
manufacturing development substantially exceeds what is
required.
Table 4: Comparison of existing
sites and requirements in South West and South East Sub-areas
(square metres of floorspace)
|
|
B1
Offices
|
B2
Manufacturing
|
B8
Warehousing
|
|
South West Sub-area
|
|
|
|
|
Existing supply
|
430,000
|
188,000
|
119,000
|
|
Requirement
|
680,000
|
93,000
|
294,000
|
|
Surplus (+) or shortfall
(-)
|
-250,000
|
+95,000
|
-175,000
|
|
South East Sub-area
|
|
|
|
|
Existing supply
|
523,000
|
191,000
|
166,000
|
|
Requirement
|
535,000
|
123,000
|
240,000
|
|
Surplus (+) or shortfall
(-)
|
-12,000
|
+68,000
|
-74,000
|
NB: The figures in this table exclude
‘possible sites’.
The timing of floorspace requirements
19 The PUSH strategy is
“front-loaded” in terms of job growth, with productivity increases
driving GVA growth in
the later part of the plan period. This means that the requirement
for employment floorspace is also likely to be weighted towards the
earlier years.
20 This means that the
simple comparison of total 20 year floorspace requirements and
supply (Table 5) may mask substantial variations over the 20 years
with a surplus of supply in one period and a shortfall in
another.
21 The DTZ work which was the foundation
for the policy figures in Policy SH6, did not split the 20 year
floorspace requirements into time periods. So it was necessary for
PUSH
officers to calculate floorspace requirement figures for the
separate time periods 2006-2011, 2011-2016 and 2016-2026. For this,
a very simple methodology based on the employment growth trajectory
of the
DTZ
forecasts was
used based on the principle that “front-loading” of the
PUSH
strategy in terms of employment growth will mean that the
requirement for employment floorspace is also likely to be weighted
towards the earlier years. This front-loading allocates 30% of the
2006 to 2026 floorspace requirement into the first five years up to
2011, 25% into the second five years up to 2016, and 45% into the
remaining ten years of the plan period up to 2026 – shown in Table
5 below.
Table 5: Floorspace requirements by
phasing period
|
All figures are square metres of
floorspace
|
|
|
|
|
|
|
|
South West area
|
2006 - 2011
|
2011 - 2016
|
2016 - 2026
|
2006 - 2026
|
|
B1 offices
|
204,000
|
170,000
|
306,000
|
680,000
|
|
B2 manufacturing
|
27,900
|
23,200
|
41,900
|
93,000
|
|
B8 warehousing
|
88,200
|
73,500
|
132,300
|
294,000
|
|
Total
|
320,100
|
266,700
|
480,200
|
1,067,000
|
|
|
|
|
|
|
|
South East area
|
2006 - 2011
|
2011 - 2016
|
2016 - 2026
|
2006 - 2026
|
|
B1 offices
|
160,500
|
133,800
|
240,700
|
535,000
|
|
B2 manufacturing
|
36,900
|
30,700
|
55,400
|
123,000
|
|
B8 warehousing
|
72,000
|
60,000
|
108,000
|
240,000
|
|
Total
|
269,400
|
224,500
|
404,100
|
898,000
|
22 One important point
arises from the above estimates of the floorspace requirement.
Whilst the annual floorspace requirements for the whole 2006 to
2026 period are broadly similar to the completion rates achieved in
the recent past, the estimates for the phasing periods (based on
the "front-loaded" employment growth trajectory) paint a rather
different picture (see chart below).
23 The requirements
estimated for the immediate period up to 2011 reveal a difficult
challenge for
PUSH
and at the same
time presents an opportunity. The challenge will be to bring sites
forward for development more quickly than in the recent past
(although the development rates envisaged are lower than were
achieved in the 1988 to 1995 period). The extent of this challenge
is highlighted by reports that the building and construction sector
in the area is already working at full capacity. However, the
opportunity this presents is two-fold. First, success in this area
would demonstrate the effectiveness of
PUSH
not only in
developing ideas and strategies but also in delivery, achieving
results on the ground. Secondly such success would also
create a buzz factor in the sub-region; a sense that South
Hampshire really means business, which might impact on market
sentiment and the general perception of the area both amongst the
existing community as well as potential investors from outside.
However it is regarded, success in meeting this employment
floorspace target is essential to achieving the PUSH
strategy.
Apportioning employment land requirements
24 The PUSH Economic
Development and Planning Officers have, through a dedicated sub
group and a series of technical analyses and workshops, explored
the inter-relationships of land supply and requirement by
authority, by floorspace type and by time period (2006-2011,
2011-2016 and 2016-2026). Considerable advances have been
made towards identifying floorspace requirements for each
authority, for each floorspace type and for each time period
(amplifying Policy SH6), but the work has gone as far as it is
possible to go at this stage.
25 The existing supply
situation produces a number of deficits and surpluses many of which
have been resolved although a number remain unresolved at this
stage. The means of achieving alignment included:
- transferring existing sites between
floorspace types, e.g. B2 manufacturing to B8 warehousing
- transferring existing sites between time
periods, e.g. post 2011 to pre 2011
- relying on increased densities as existing
sites are redeveloped
- allocating new sites
26 This completed work
(referred to from here on as the ‘interim position’) provides a
platform for employment land reviews by individual authorities as
part of their
LDF
preparation, including further changes to the time period in which
sites will be developed, examining further the potential for
altering the employment types on particular sites, and/or
investigating the provision of additional sites.
27 An interim
apportionment figure for each time period is shown in the middle
columns in table 6 and 7 below. These are heavily influenced by the
existing supply of sites. The total for each time period does not
match the total requirement for the PUSH area for
that time period.
28 The next step is
resolve those disparities by apportioning the additional
allocations amongst the individual time periods, at the same time
addressing as far as is possible, the surpluses of supply over
requirement in the early years. It is proposed that this task
should be undertaken initially by each authority individually,
reporting back on their conclusions later this year so that
PUSH can finalise
the apportionment work across all authorities. This is explained in
more detail in the ‘Way Ahead’ section below.
29 It is proposed that
Leaders should confirm these interim/provisional figures in order
to provide some guidance to PUSH authorities
in drawing up their LDD documents notably their
Core Strategy Issues and Options consultation document.
South West Sub-area
30
The interim position in this sub-area is set out in Table 6 below.
A key feature of the office supply position is the bringing forward
of the ‘possible sites’ in Southampton These sites envisage
very substantial development in the city centre at West Quay Road
and Central Station i.e. a proposed new office quarter. Broadly the
supply of office floorspace in the sub-area as a whole
matches the requirement. There is a small “surplus” of
manufacturing space and a rather larger deficit of warehousing
space. Altering the position in any use class for the period up to
2011 is constrained by the short timeframe which remains. This
means that little if anything can be done in such a limited period
for the deficit remaining in warehousing. It is also of note that
since achieving rates of development equivalent to the requirements
will mean a faster rate than has been seen in the recent past, the
nominal “surplus” of manufacturing space may not come to fruition.
A solution considered appropriate in this sub-area is to consider
switching some of the B2 manufacturing “surpluses” to B8
warehousing, to help reduce the deficits there. However, even after
such transfers there is a need for new warehousing allocations post
2016, possibly in Eastleigh or Southampton.
31
PUSH should take
this opportunity to urge all its member authorities to investigate
whether they have any B2 manufacturing sites that could suitably be
transferred to B8 warehousing. More generally there is also a
challenge for all PUSH authorities
to explore opportunities for new warehousing sites post 2016
subject to these fitting with the PUSH vision and
strategy.
32
The scale of some of the sites and their deliverability,
considering the capacity of the construction sector and the
timescales involved, also remains an issue that has been
incorporated into the interim position. Sites such as the Strategic
Employment Zone in Eastleigh, where a very substantial amount of
floorspace was originally phased to be completed in a single five
year period, are considered to be more realistically deliverable if
phased over a longer period. Doing so can contribute to meeting the
requirements for floorspace by more evenly distributing the supply
as well as providing for expected completion rates more akin
to those of past years. There could also be a role for the
HEP
Investment,
Land and Property Group in validating the phasing assumptions and
practical deliverability of all the strategic employment sites.
Table 6: Interim apportionment for
authorities in the South West Sub-area (square metres of
floorspace)
|
|
Interim
apportionment by time period
|
Provisional total
requirement
|
Difference
|
|
2006 to
2011
|
2011 to
2016
|
2016 to
2026
|
Total
|
|
B1 Offices
|
|
|
|
|
|
|
|
Southampton
|
101,000
|
61,500
|
180,000
|
342,000
|
267,500
|
+74,500
|
|
Eastleigh
|
28,500
|
64,500
|
65,000
|
158,000
|
215,000
|
-57,000
|
|
N/NE Hedge End SDA
|
0
|
0
|
46,000
|
46,000
|
46,000
|
0
|
|
New Forest
|
7,500
|
12,000
|
5,000
|
24,500
|
24,000
|
+1,000
|
|
Test Valley
|
72,000
|
37,500
|
19,000
|
128,500
|
128,000
|
+500
|
|
Total
|
209,000
|
175,500
|
315,000
|
699,000
|
680,000
|
+19,000
|
|
Requirement
|
204,000
|
170,000
|
306,000
|
680,000
|
|
|
|
Surplus(+) or shortfall(-)
|
+5,000
|
+5,500
|
+9,000
|
+19,000
|
|
|
|
B2 Manufacturing
|
|
|
|
|
|
|
|
Southampton
|
14,000
|
49,500
|
0
|
63,500
|
16,000
|
+47,500
|
|
Eastleigh
|
11,000
|
46,000
|
46,000
|
103,000
|
50,000
|
+53,000
|
|
N/NE Hedge End
SDA
|
0
|
0
|
8,000
|
8,000
|
8,000
|
0
|
|
New Forest
|
13,000
|
0
|
0
|
13,000
|
11,500
|
+1,500
|
|
Test Valley
|
0
|
0
|
7,500
|
7,500
|
7,500
|
0
|
|
Total
|
38,000
|
95,500
|
61,500
|
195,000
|
93,000
|
102,000
|
|
Requirement
|
28,000
|
23,000
|
42,000
|
93,000
|
|
|
|
Surplus(+) or shortfall(-)
|
+10,000
|
+72,500
|
+19,500
|
+102,000
|
|
|
|
Transfer to Warehousing
|
-10,000
|
-50,000
|
-10,000
|
-70,000
|
|
|
|
Net Surplus(+) or
shortfall (-)
|
0
|
+22,500
|
+9,500
|
+32,000
|
|
|
|
B8 Warehousing
|
|
|
|
|
|
|
|
Southampton
|
24,500
|
0
|
0
|
24,500
|
70,000
|
-45,500
|
|
Eastleigh
|
0
|
24,000
|
23,000
|
47,000
|
136,000
|
-89,000
|
|
N/NE Hedge End
SDA
|
0
|
0
|
20,000
|
20,000
|
20,000
|
0
|
|
New Forest
|
27,000
|
0
|
0
|
27,000
|
37,000
|
-10,000
|
|
Test Valley
|
1,000
|
5,000
|
25,000
|
31,000
|
31,000
|
0
|
|
Total
|
52,500
|
29,000
|
68,000
|
149,500
|
294,000
|
-144,500
|
|
Requirement
|
88,000
|
73,500
|
132,500
|
294,000
|
|
|
|
Surplus(+) or shortfall(-)
|
-35,500
|
-44,500
|
-64,500
|
-144,500
|
|
|
|
Transfer from Manufacturing
|
+10,000
|
+50,000
|
+10,000
|
+70,000
|
|
|
|
Net Surplus(+) or
shortfall (-)
|
-25,500
|
+5,500
|
-54,500
|
-74,500
|
|
|
33 What has not been
dealt with, even after the potential switching of ‘surplus’
floorspace from B2 manufacturing to B8 warehousing, are the
significant deficits in B8 warehousing pre 2011 and post 2016.
The economic gateways of Southampton Port, Portsmouth Port and
Southampton Airport, represent an integral part of the long term
PUSH strategy.
Additionally to the expected regional wide increase in demand for
warehousing, these gateways create employment growth rates in their
immediate vicinity that tend to be double that of surrounding
areas. They also generate much higher requirements for B8
warehousing space and jobs, that are not necessarily high
productivity or high value added, satisfying their own demand but
not likely to drive up
GVA
.
Consequently, new, large allocations may be required to meet the
deficit, but this is a matter for PUSH to urge the
constituent Local Authorities to be responsible for as part of the
background to all forthcoming LDFs.
34 The scale of some
of the sites and their deliverability considering the capacity of
the construction sector and the timescales involved, also remains
an issue that has been incorporated into the interim position.
Sites such as the Strategic Employment Zone in Eastleigh, where a
vast amount of floorspace was originally phased to be completed in
a single 5 year period, are considered to be more realistically
deliverable if phased over a longer period. Doing so can contribute
to meeting the requirements for floorspace by more evenly
distributing the supply and providing for expected completion rates
more akin to those of past years.
South East Sub-area
35 The interim
position in this sub-area is set out in Table 7. A key
feature is the surplus of floorspace supply in the first five years
in all employment types and also in B1 offices and B2 manufacturing
in the 2011-2016 period. As explained in paragraph 23 above,
achieving a rate of development equivalent to the requirements
would mean a faster rate of development than in the recent past and
in itself represents a considerable challenge; an even higher rate
is highly improbable. Whilst a small surplus is desirable in order
to provide developers with a range and choice of sites, substantial
surpluses are likely to lead to developers cherry picking the
easier/more readily marketable sites which may not be
PUSH
’s top
priorities. Substantial surpluses could also make it more
difficult to defend employment sites against speculative proposals
for alternative uses notably housing.
36 On the other hand,
each authority can provide sound reasons why its own sites should
proceed to development as currently planned, and decisions to defer
development will be difficult. The room for manoeuvre in the
immediate future is also constrained by the bulk of the 2006-2011
supply already having planning permission placing the spotlight on
the few which are only Local Plan allocations. Nevertheless,
either the
PUSH
authorities
must make these difficult choices or the market will do it for them
in the ways described earlier in the previous paragraph. The
‘plan led’ system also points to the authorities addressing the
matter.
PUSH
should
therefore urge constituent authorities to not allocate any new
sites for development before 2011 and to investigate whether any
actions can be taken to reduce the surpluses.
37 In that regard, it is now
nearly 2008 – two years into the 2006-2011 period - so there is a
risk that expectations of site development during this 5 year
period may be optimistic. The PUSH Economic
Development Group is addressing the short term supply of sites and
any actions needed to be ensure they are available and ready for
development.
Table 7: Interim apportionment
for authorities in the South East Sub-area (square metres of
floorspace)
|
|
Interim
apportionment by time period
|
Provisional total
requirement
|
Diffrnce
|
|
2006 to
2011
|
2011 to
2016
|
2016 to
2026
|
Total
|
|
B1 Offices
|
|
|
|
|
|
|
|
Portsmouth
|
37,000
|
86,500
|
60,000
|
183,500
|
135,500
|
+48,000
|
|
Fareham
|
5,500
|
10,000
|
0
|
15,500
|
22,500
|
-7,000
|
|
N Fareham
SDA
|
0
|
0
|
72,000
|
72,000
|
72,000
|
0
|
|
Gosport
|
40,000
|
26,500
|
0
|
66,500
|
66,500
|
0
|
|
Havant
|
30,000
|
21,000
|
23,500
|
74,500
|
74,500
|
0
|
|
Winchester
|
98,500
|
31,000
|
17,000
|
146,500
|
159,500
|
-12,500
|
|
East Hampshire
|
5,000
|
0
|
0
|
5,000
|
5,000
|
0
|
|
Total
|
216,000
|
175,000
|
172,500
|
563,500
|
535,000
|
+28,000
|
|
Requirement
|
160,500
|
134,000
|
241,000
|
535,000
|
|
|
|
Surplus(+) or
shortfall(-)
|
+55,500
|
+41,000
|
-68,500
|
+28,000
|
|
|
|
B2 Manufacturing
|
|
|
|
|
|
|
|
Portsmouth
|
39,500
|
5,500
|
0
|
45,000
|
37,500
|
+7,500
|
|
Fareham
|
6,500
|
5,000
|
0
|
11,500
|
6,000
|
+5,500
|
|
N Fareham
SDA
|
0
|
0
|
16,500
|
16,500
|
16,500
|
0
|
|
Gosport
|
500
|
3,000
|
5,500
|
9,000
|
8,500
|
+500
|
|
Havant
|
10,000
|
18,000
|
21,500
|
49,500
|
46,500
|
+3,000
|
|
Winchester
|
29,500
|
21,000
|
17,000
|
67,500
|
5,500
|
+62,000
|
|
East Hampshire
|
1,000
|
0
|
0
|
1,000
|
2,500
|
-1,500
|
|
Total
|
87,000
|
52,500
|
60,500
|
200,000
|
123,000
|
+77,000
|
|
Requirement
|
37,000
|
30,500
|
55,500
|
123,000
|
|
|
|
Surplus(+) or
shortfall(-)
|
+50,000
|
+22,000
|
+5,000
|
+77,000
|
|
|
|
B8 Warehousing
|
|
|
|
|
|
|
|
Portsmouth
|
50,500
|
1,000
|
0
|
51,500
|
55,500
|
-4,000
|
|
Fareham
|
2,500
|
0
|
0
|
2,500
|
12,000
|
-9,500
|
|
N Fareham
SDA
|
0
|
0
|
32,500
|
32,500
|
32,500
|
0
|
|
Gosport
|
7,000
|
6,500
|
0
|
13,500
|
60,500
|
-47,000
|
|
Havant
|
12,000
|
9,000
|
11,500
|
32,500
|
39,500
|
-7,000
|
|
Winchester
|
15,500
|
15,500
|
8,000
|
39,000
|
39,500
|
-500
|
|
East Hampshire
|
500
|
0
|
0
|
500
|
500
|
0
|
|
Total
|
88,000
|
32,000
|
52,000
|
172,000
|
240,000
|
-68,000
|
|
Requirement
|
72,000
|
60,000
|
108,000
|
240,000
|
|
|
|
Surplus(+) or
shortfall(-)
|
+16,000
|
-28,000
|
-56,000
|
-68,000
|
|
|
38 The other main
feature of Table 7 is the shortage of supply in the South East
Sub-area for B8 warehousing development from 2011 onwards and a
substantial shortfall in B1 offices space after 2016. Those
shortfalls might in part be addressed by undeveloped sites being
carried forward from the earlier years of surplus (assuming that
proposals for alternative uses such as housing have been
successfully resisted), but there will also be a need for the
identification of wholly new sites which fit with the
PUSH locational
strategy. For example Portsmouth City Council should consider
whether there is scope for additional office floorspace post 2016,
creating a new office quarter for example, like that just announced
by Southampton City Council. Fareham Borough Council should
do the same on a more modest scale, bearing in mind that the
SDA
will provide
B1 offices space in the Borough from around 2016. All authorities
need to explore opportunities for new sites for all types of
employment development post-2016 and for warehousing from 2011
subject to these sites fitting with the PUSH vision and
strategy.
Next Steps
39 If Leaders
endorse the approach and interim/provisional figures set out in
this report, then PUSH authorities
will be able to use them to inform the preparation of draft Local
Development Documents (
LDDs
). In parallel, they
will be asked to investigate the matters set out in the Sub-area
sections above and to report back to PUSH on their
investigations by 30 November 2007, so that
PUSH
can complete
the apportionment of the South East Plan's employment
floorspace totals. That may require a revisiting of the
‘provisional total requirement’ figures in the final column of the
two tables above. The final figures would then be formulated and
presented to the Joint Committee in early 2008 via the
PUSH
Planning and
Sustainability Panel. This would enable the final figures to be
used in the next stages of LDD preparation.
40 Of the three types
of employment development, the largest requirement for the
allocation of new sites is for B8 warehousing use. Although this
development will not be a major driver of GVA growth in South Hampshire,
adequate provision for future storage and distribution is crucial
nonetheless: it is required in association with the expansion of
South Hampshire's two international sea ports and to service the
consumer spending growth which will flow from the sub-region's
increased economic wealth. Over the last 12-18 months
increasing demand has been identified for storage land and other
uses related to the Port of Southampton. There is little
capacity, particularly in relation to open storage, in the way of
supply. The two largest areas at Marchwood and Totton are
near to capacity. (This is despite the port freeing up land
within its estate through the removal of non-port related uses and
the use of the area around the dry dock for storage.)
However, insufficient is known about the nature and the
locational requirements of this growth in storage and distribution;
a point echoed at regional level by the EiP Panel (Para. 6.89 of their
Report). So it is proposed to commission specialist consultants to
undertake a study of warehousing storage and distribution
requirements in South Hampshire and the suitability of existing
sites. This study would be carried out over the next few months in
order that the findings can be fed into the preparation next year
of the final apportionment figures.
Background Papers:
Draft South East Plan, SEERA 2006.
South Hampshire Economic Drivers and Growth,
DTZ
2005