Cornwall Employment Land Review - The Truro and Kenwyn...

Cornwall Employment Land Review Last updated: 21/03/2011 The Employment Land Review is a technical document that will inform the preparation of Cornwall Core Strategy Development Plan Document and will form part of its evidence base. It is due to be considered by the Councils Planning Policy Advisory panel on 21 January 2011.

The purpose of an Employment Land Review is to enable local authorities to assess the future demand for and future supply of employment space, assess the suitability of existing and proposed employment space in terms of its ability to meet future demand, develop appropriate future policy guidance to inform the Local development Framework and improve systems for monitoring outcomes and reviewing employment policies and programmes.

The study’s approach follows government guidance on undertaking Employment Land reviews and the requirements of Planning Policy Statement 4: Planning for Sustainable Economic Growth.

The principle focus of the study is upon the ‘B class’ employment uses, namely office, light industrial, general industrial and storage and distribution uses. The study also provides a brief analysis (and projections) of other employment uses such as retail, tourism, healthcare and education however these are likely to be subject to other detailed studies where appropriate.

The study initially undertakes a review of the current and recent economic trends in Cornwall and a review of the commercial property market before providing an overview of the major future economic drivers within Cornwall and the extent to which they may impact upon demand for employment land.

A review of 269 employment sites has been undertaken including an assessment of the quality and suitability of existing and potential employment sites. The consideration of a number of different economic

growth scenarios is then translated into future possible employment land needs and this is compared to the existing stock of potentially available land before identifying the amount and type of additional land that may need to be allocated. A review of the future growth requirements of the non B class sectors is followed by recommendations on future planning policy and other measures to support economic growth before finally providing recommendations on developing a framework for monitoring future employment land provision in Cornwall.

As well as at a County level employment needs have also been assessed at a sub regional level. The Travel to Work Areas defined by the Office for National Statistics (ONS) based upon the 2001 census have been used, with focused analysis for the Cornwall part.

APPENDIX 1: LIST OF CONSULTEES AND/OR WORKSHOP ATTENDEES

• Property Market

Alan Treloar, Vickery Holman

Carl Jenkin and Nick Seaton-Burridge, Scott Burridge Commercial

Tim Smart, Alder King

Rob Redgrave, Miller Commercial

• Economic/Regeneration Bodies

Sandra Rothwell, SWRDA

Bill Radmore, CPR Regeneration

Colin Jarvis, Matthew Vowels, Jim Cooper and Miles Carden, Cornwall

Development Company

Tim Dwelly, Live/Work Network

Steven Horscroft, Iain Thomson, Roger Radcliffe and Steven Vinson, Cornwall

Council (Economic Development and Estates Management)

Martin Cookman, John Rudge, Ben Bassett and Catherine Thomson, Cornwall

Council (Planning)

• Business Organisations

Thelma Sorensen, Cornwall and Isles of Scilly Economic Forum

Tony Roche, Newquay Cornwall Airport

John Richings, Enterprise Cornwall

• Developers/Landowners

Andy Cook, Ease Developments

Robert McGuffie, Priority Sites

Terry Murch, MIDAS Developments

Russell Dodge, Business Location Services Ltd

1140410V1 1

Introduction

This appendix summarises the findings from a business survey undertaken by Nathaniel

Lichfield and Partners to inform the Employment Land Review being carried out for Cornwall

Council.

A postal and electronic survey of businesses was conducted in October/November 2009 in

order to gain a better understanding of the growth aspirations, site/property requirements

and constraints of firms within Cornwall and what factors are most important to their

remaining in the local area. The survey questionnaire was distributed to a range of

companies based on information supplied to NLP by Business Link and the Chamber of

Commerce.

The Business Link data was grouped into three broad geographical areas (East, Central

and West) and then by employee numbers (2-4, 5-9, 10-25, 26-50, 51-100, 101-249 and

249+). A total of 300 individual businesses were randomly chosen on a weighted basis

using this information and by two-digit SIC codes to ensure a representative sample of

businesses in terms of location, size and activity. The information available from the

Chamber of Commerce was significantly less detailed and therefore after a data cleaning

exercise to remove duplicate companies and non B class businesses, a total of 50

randomly selected companies were identified and contacted by email inviting responses

via an online questionnaire.

Despite the limitations of the Chamber of Commerce data, this approach allowed a

reasonable representation across the main business locations and sectors in the county.

Overall, of the 350 questionnaires sent out 65 responses were received. After reviewing

three of the questionnaires were identified as not relevant due to their non B class nature

of business. Therefore a total 62 responses have been analysed. The response rate for

the survey was about 20%, which is typical for a postal survey of this type. The response

rate from each broad geographical area reflected the weighted questionnaires sent out

(Central 39%, West 30%, East 30%). Only one response was received where it was

impossible to identify the broad location of the business.

The aim of the survey was to identify key issues and general trends rather than permit

detailed quantitative analysis. Whilst the number of responses received is just about

adequate to form a statistically valid sample for the survey as a whole, this would not

apply within individual sectors or locations and the analysis focus on the broad issues

identified across the study area.

Analysis of Results

Profile of businesses

Of those businesses which responded to the questionnaire, 42% are in the manufacturing

sector, 32% are in the business services sector, 11% are in the distribution sector, 10% in

financial sector, 2% in warehousing sector and 8% are classified as other (Question 1). It

should be noted that some respondents identified two primary business activities and

therefore the percentage totals over 100.

Responses have been received across a variety of business premises as shown in Table 1

below. Only 52 out of the 62 respondents answered this question. Of those who answered

‘other’, responses included ‘at home’, ‘at the harbour’ and ‘at the docks’.

1140410V1 2

Business Location %

Industrial estate 18

Business/office Park 7

Town centre offices 12

Individual urban site 4

Rural location 11

Other (please specify)

11

Table 1 Question 4: What type of location does your business occupy?

Markets Served

A high proportion of the responses were from companies serving local (73%) and national

(45%) markets with 29% serving international markets (Question 2). As it can be seen from

these figures, almost half of responses received indicated that businesses are serving

more than one market.

Length of time based in Cornwall

Nearly half (47%) of respondents have been at their present location for less than 10 years

while a further 28% have been in the same location for between 11 and 20 years (Figure

1). A slightly lower proportion of firms (23%) are very long established on their sites having

been there for more than 20 years. It is notable that one of the firms has been on the

same site for nearly 130 years.

0

5

10

15

20

25

30

0-5 6-10 11-15 16-20 21-25 26+ skipped

Figure 1 Question 5: How long has your business been in its present location? (Percentage)

Size of premises

42 responses expressed the size of their premises in terms of floorspace (sq.m). The

average size is 51sq.m but 31 responses were below the average, which was showed by

five businesses, which occupy more than 1,000sq.m.

A further seven responses expressed the scale of their property in terms of land area (ha).

The average area recorded was 86ha, although this was significantly showed by one site of

526ha. It is unclear whether this response is correct or if it should have been recorded as

a floorspace figure. The average site size excluding this reply is 13ha.

1140410V1 3

Current and future suitability of premises

The majority (66%) of respondents indicated that they had broadly the right amount of

space for their current requirements (Question 10). A quarter of respondents (26%) stated

that they had too little space and only 8% noted that they had too much space (Figure 2).

Too much space

8%

Too little space

26%

About the right

amount of space

66%

Figure 2 Question 10: How well do you current buildings and site meet your space requirements?

Question 11 asked what proportion of the respondent’s site is vacant. Of the 54

responses, 34 (63%) stated that there was no vacant or surplus space on their site; 24

(70%) of whom had previously stated (at question 10) that their current buildings and site

meet their space requirements and 10 (30%) had previously commented that the current

buildings and site do not meet their space requirements. Of the three other respondents

who stated that they had too little space, one had 5% surplus land, one had 50% and one

had 75% all of which are in the manufacturing and distribution sectors.

Cornwall as a business location

In general, most respondents were satisfied with the quality of the location/premises from

which they operated with over half rating it good or excellent and a further third rating it as

average. Only 15% of respondents rated the site or premises as below average or poor

(Figure 3).

0

5

10

15

20

25

30

35

40

Poor Below Average Average Good Excellent

Figure 3 Question 6: How would you rate the quality of the location/premises from which you operate? (Percentage)

1140410V1 4

Reasons for considering a premises or site poor or below average include poor access to

A30 and A38, poor quality finishes and servicing, and age and condition of buildings. Poor

access and building condition are also the main issues raised for those who rated their

sites/premises as average. Other reasons include a lack of parking provision, proximity to

residential development and outdated facilities such as IT connections and disabled

access. The main responses for those scoring the site as good and excellent include

access, parking provision, central location, refurbishment of buildings/ quality of interior,

attractiveness of locality, pleasant working environment and proximity to facilities.

Question 12 of the survey asked respondents for their main reasons for locating in

Cornwall. While there were a wide variety of responses to this question, the key ones

include the owner being resident in Cornwall, availability of local workforce, availability of

premises, proximity of customers and cost factors.

Expansion and Relocation Preferences

The third section of the questionnaire looks at the future needs of businesses in the area.

54% of respondents stated that they did not anticipate that their space requirements

would increase over the next five years, while 45% considered that they would.

A total of 55 people responded to question 15 which asked if the business was to expand

whether they would prefer to expand on the existing site, to relocate within Cornwall or to

relocate outside of Cornwall. The significant majority of those responding wished to either

stay on their existing site or to relocate within Cornwall. Some respondents provided these

as an either/or option. Only three responses indicated that they would consider relocating

outside of Cornwall.

For those who wished to relocate within Cornwall, the majority of respondents identified

towns within central Cornwall namely Truro, Falmouth and St Austell. Other respondents

stated Wadebridge and Bodmin (in the East) and Hayle and Penzance (in the West). Those

who wished to relocate outside of Cornwall identified Wales and the South Coast.

0

10

20

30

40

50

60

Expand on existing site Relocate within Cornwall Relocate outside of Cornwall

In considering whether there are adequate sites/premises to expand or to relocate, Table

2 shows that the majority of people think that there are adequate sites within the local

area (65%) and elsewhere in Cornwall (75%) should they wish to relocate.

1140410V1 5

Adequate sites/premises

(number of responses) Yes (%) No (%)

On your existing site (52) 50 50

Within the local area (46) 65 35

Elsewhere in Cornwall (36) 75 25

Table 2 Question 16: Are there adequate sites/premises to expand/relocate?

Regarding barriers to local expansion, a wide range of responses were received but

typically focused on:

• Skills shortage;

• Suitability of premises;

• Costs of premises; and,

• Planning restrictions and Section 106 requirements.

Others also commented that the general economy, minimum wages, health and safety

requirements, lack of support from regional development agency, cost of moving, lack of

vision by local authority and poor road access.

Question 18 asked respondents about the factors that would improve their businesses

ability to operate in the local area, responses included:

• Availability of skilled workers;

• Better broadband connection;

• Transport improvements including public transport and flights increased number of

direct flights into Newquay;

• Improvements to road access; and,

• Wider choice of premises.

Main Findings

The main points emerging from this initial analysis of responses which are of relevance for

the Employment Land Review can be summarised as:

i two thirds of firms have adequate premises and site to meet their space requirements;

ii the majority of firms have reasonably good premises adequate to their needs;

iii approximately a half of businesses expect to expand in space terms in the short term,

despite the recessionary conditions in which the survey took place;

iv the significant majority of expanding firms want to stay within Cornwall; and,

v there is some evidence to suggest that there are barriers to expansion although the

majority of respondents considered that there are suitable premises/sites available

within the local area and Cornwall more generally.

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SA37

W93W92

SA94

St. Austell

Saltash & Torpoint

Launceston

Bude

Wadebridge

Truro, Redruth & Camborne

Falmouth & Helston

Penzance

L9

B1

FH3

FH4

FH2

FH6FH8

W89

W90

L12

L10L11W91

FH5

FH7

ST26ST27

ST29

ST23

SA53

SA35

SA50 SA54

SA40

SA34

SA38

SA42

ST22

PZ16

PZ17

PZ19PZ

18

PZ20PZ14 PZ

21

PZ13

PZ15

SA36 ST28

ST30

SA51

ST32

ST25

ST31

ST33

SA45SA43

ST24

SA52

SA49

SA48 SA

47

SA55SA58

SA39

SA46

SA62

SA56

SA57

SA63SA61

SA44

SA41

SA59

SA60

TCR66

TCR79

TCR82 TCR64

TCR68

TCR87

TCR77

TCR84TCR85

TCR83

TCR78

TCR67TCR

71

TCR73

TCR75

TCR81

TCR80

TCR72

TCR88

TCR69

TCR74

TCR76

TCR65

TCR86

Key

Travel to Work Area

Cornwall Local Authority Boundary

MAr

GIS30644-002

1:360,000 @ A3

November 2010

Cornwall County Council

Plan 7.2 Overview of employment sites with undeveloped land

Cornwall Employment Land Review

GIS Reference: S:\WE30644 - Cornwall Employment Land Review\WE30644 - Cornwall Employment Land Review - Undeveloped Employment Sites - 17.06.2010.mxd

Employment Site with undeveloped land!

Site Reference:

Newham Dev. Vacant Area (ha) 0

Total Area (ha) 25.321

Newham Industrial Estate

Newham

Truro

Undeveloped Land (ha) 0

Average Age of buildings: 3

Average Quality of buildings: 3

Noise and other obvious pollutants: 3

State of the external areas and public realm 3

Parking, internal circulation and servicing 1

Ease of access to site: 1

Adjacent land uses constraining operations or quality of uses on site:

5

Perception of the wider environmental quality:

3

Local facilities for work force: 3

Ease of access to main road network: 4

Proximity to rail, sea or air freight: 3

Access by public transport: 3

Strategic Access

Accessibility

SCORE (out of 60):- 35.5[Scoring: 5 = very good, 1 = very poor]

Quality of the wider environmentQuality of existing portfolio and internal environment

Market Segment of Existing Developed Sites:- General Industrial/Business Area

Newham is a large fragmented site with a mixture of office & industry uses. Many of the units have no on-site unit number.

There is an empty plot in the Truro Technology Park area.

The site has varying quality of the public realm and noise levels. It is closely located to Truro port and therefore has potential for sea freight.

Site Reference:

Treliske Dev. Vacant Area (ha) 0.31


Treliske

Truro

Undeveloped Land (ha) 0

Average Age of buildings: 3

Average Quality of buildings: 4

Noise and other obvious pollutants: 4

State of the external areas and public realm 4

Parking, internal circulation and servicing 3

Ease of access to site: 2


3

Perception of the wider environmental quality:

3




Access by public transport: 5

Strategic Access

Accessibility

SCORE (out of 60):- 39[Scoring: 5 = very good, 1 = very poor]

Quality of the wider environmentQuality of existing portfolio and internal environment

Market Segment of Existing Developed Sites:- General Industrial/Business Area

Access to the site can be an issue as congestion at Oak Lane junction and Treliske roundabout. There are good public transport links as the site is located close to Truro park and ride.

Site Reference:

Treliske Medical Park Dev. Vacant Area (ha) 0


Treliske

Truro

Undeveloped Land (ha) 2.772


4

Perception of the wider environmental quality: 5




Site Access; layout of the internal estate road system:

4

Topography, size and shape: 3

On-site environmental issues: 3

Contamination/land instability/on-site structures:

3

Amenity of adjacent occupiers: 4

Access by public transport: 5 Previously developed in whole or part 4

Quality of the wider environment

Strategic Access

Site Development Constraints

Sequential Test and Brownfield/Greenfield

TOTAL SCORE (out of 60):- 44

[Scoring: 5 = very good, 1 = very poor]

Accessibility

ALLOCATED SITES

The main issue relating to this site relates to access as entrance to the site can get very congested at tiimes.

1133500v1

Employment Forecasting Methodology

Scenario 1: Baseline Forecast

Forecasts of employment growth for Cornwall’s eight 2001 TTWAs up to 2026 were obtained

from Experian Business Strategies in October 2009. Using Lower Level Super Output Area

(LSOA) data, these were adjusted to exclude those parts of the Travel-to-Work Areas (TTWAs)

that lie within Devon, as follows:

TTWA

Bude (derived from Bude & Holsworthy TTWA)

Falmouth & Helston

Launceston (derived from Launceston TTWA)

Penzance

Saltash (derived from Plymouth TTWA)

St Austell

Truro, Redruth & Camborne

Wadebridge

The total job change for each TTWA between 2009 and 2026 was calculated and then broken

down into non-B and B class jobs. The B class employment was further divided into the three

main B use classes, i.e. office (B1(a/b)), manufacturing (B1(c)/B2) and distribution (B8). The

non-B and B class proportions were based on 2007 ABI data for Cornwall, which sets out

existing employment by four-digit SIC code. The definitions of each use class by SIC code are

set out below.

Use Class SIC Code

B1(a/b) 22.11-22.15

65-67

70-74

75.11-75.14,

B2/B1(c) 15.1-37.2 (excluding 22.11-22.15)

50.20

50.40

45.33-45.45

B8 51

60.24

63.11-63.12

63.21

64.11-64.12

Non-B All others not listed above

The job changes by main B class were then converted to floorspace using ODPM guidance

ratios as follows:

• B1 offices: 1 to 20 sq m

• B2/B1(c): 1 to 31 sq m

• B8: 1 to 40 sq m (small scale strategic distribution assumed)

The floorspace figures converted to a land requirement assuming a plot ratio of 0.4 i.e. one

hectare can accommodate 4,000 sq m of floorspace.

1133500v1

Nb. For any “negative” floorspace requirements (i.e. where an overall job decrease is forecast

for 2009-2026), the land requirement was assumed to be 0ha.

Scenario 2: Past Employment Trends

The Past Employment Trends scenario was based on Experian Business Strategies

employment data between 1997 and 2007. The numbers of jobs for each TTWA for 1997-

2007 were extrapolated forward for each year from 2008 to 2026 (n.b. where the trend was

negative, this was assumed to be 0 jobs).

The figures were translated into B-class sectors and converted into floorspace and land

requirements as per Scenario 1.

Scenario 3: Past Take-Up Rates

Valuation Office Agency (VOA) data was obtained which set out the net change in employment

floorspace across Cornwall from 1998 to 2008, for offices, factories and warehouses. Data

was not available on a TTWA basis.

From this data, an annual change in employment space figure was calculated for each B class

use. Assuming this rate of change will apply in the future, this was then multiplied by 17 to

provide figures for the period 2009 to 2026.

The floorspace figures were then converted to land requirements using the method set out in

Scenario 1.

Scenario 4: Labour Supply

ONS 2006-based sub-national population projections for Cornwall were obtained to provide

the estimated population growth for 2009 to 2026. Data was not available on a TTWA basis.

NOMIS was then used to obtain the proportions of the total population in Cornwall which are

of a working age and economically active. These proportions were applied to the total

population figure to derive an estimate of the growth in the number of economically active,

working people in Cornwall over 2009 to 2026.

2007 ABI data for Cornwall was then used to estimate the proportions of jobs in each main B

class. This was adjusted for out and in commuting using 2001 Census data to provide an

estimate of the proportion of people resident in Cornwall working outside the County and of

the numbers of people commuting from outside Cornwall to work in the County.

The above approach provided an estimate of the likely available labour supply between 2009

and 2026. Floorspace and land requirements were calculated as per Scenario 1.

Categorisation of B and Non B Uses by Sector

Experian Sector Uses

Office, Industrial

or Non-B?

Considered in

Report?

NLP Category

Agriculture, Forestry &

Fishing Agriculture, Forestry & Fishing Non-B Yes

Agriculture

and Fishing

Oil & Gas Extraction Oil & Gas Extraction Non-B No -

Other Mining Iron, uranium, other metal ores Non-B Yes Minerals

Food, Drink & Tobacco Food, Drink & Tobacco Industrial Yes B-class

Textiles & Clothing Luggage, footware, clothes,

other textiles Industrial Yes B-class

Wood & Wood

Products Wood & Wood Products Industrial Yes B-class

Paper, Printing &

Publishing Paper, Printing & Publishing

Industrial &

Office Yes B-class

Fuel Refining Fuel Refining Industrial Yes B-class

Chemicals Pharmaceuticals, pesticides,

paint etc Industrial Yes B-class

Rubber & Plastics Rubber & Plastics Industrial Yes B-class

Minerals Glass, ceramics, stone,

concrete Industrial Yes B-class

Metals Metals Industrial Yes B-class

Machinery &

Equipment Machinery & Equipment Industrial Yes B-class

Electrical & Optical

Equipment Electrical & Optical Equipment Industrial Yes B-class

Transport Equipment Transport Equipment Industrial Yes B-class

Other Manufacturing Furniture, Recycling Industrial & Non-

B Yes

B-class and

waste

Gas, Electricity &

Water

Power stations, network

maintenance, reservoirs Non-B Yes Power

Construction Construction of buildings Industrial & Non-

B Yes Construction

Wholesaling

Vehicle sales & maintenance,

petrol filling stations, trade

counters

Industrial & Non-

B Yes

Retailing Shops and auxiliary functions Non-B Yes Retail

Hotels & Catering Hotels, restaurants, bars,

nightclubs Non-B Yes

Part Tourism

& Leisure

Transport Cargo handling, taxis, bus &

trains, haulage, travel agencies

Industrial & Non-

B Yes Transport

Communications Post, Couriers &

Telecommunications

Office &

Industrial Yes

Banking & Insurance Banks, Insurers and auxiliary

functions Office Yes

Business Services Legal, accounting, consultancy,

advertising, industrial cleaning Office Yes

Other F&Bs

Real estate, hire of vehicles &

machinery, research &

development

Office Yes

Public Admin. &

Defence

Local & County Councils, Civil

Service, Quangos, NGOs,

military installations

Office & Non-B Yes

Includes

Public

Administration

Education Schools, universities,

nurseries, language schools Non-B Yes Education

Health Hospitals, GPs surgeries, care

homes, vets, dentists, Non-B Yes Health

Other Services

Cinemas, churches, refuse

disposal, theme parks, sports

facilities, libraries, museums,

theatres

Non-B Yes

Includes

Sports,

Waste, part

Tourism &

Leisure

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