3.2 The council has prepared an Economic Strategy which identifies key issues facing the local economy such as lower than average wages, recent economic under performance resulting from, in part, lack of space for businesses to grow and low productivity, as well as the availability of housing that is affordable. It outlines how the council is taking action to change this and drawing on the principles of Doughnut Economics will seek to transform the Bath and North East Somerset economy to one which is more prosperous, greener and fairer. Through the Economic Strategy, the Council will focus its actions in three broad themes:
- Infrastructure which supports a green and connected future
- Innovation that drives a creative economy
- Opportunity unlocked for everyone so that we are fair and inclusive
As such, the strategy includes a focus on developing Bath and North East Somerset to be a leader in green inclusive growth, upskilling residents and providing them with the opportunity to access and thrive in good work and outlines how the council will work with businesses and enable local organisations to act on new market opportunities.
3.3 For the Local Plan, and in the context of the Economic Strategy, evidence relating to the ‘Future Economic Needs Assessment and Office and Industrial Market Review’ has been prepared examining trends and forecasts in economic sectors and the space requirements to be addressed through the local plan. It notes that the district has experienced relatively weak economic performance over the 20-year historic period compared to both the sub-region and national averages, and it is likely that a lack of supply of suitable employment sites and premises (including industrial, warehousing and offices) has contributed to this position. It reports of firms unable to locate or expand in the area, and some companies having to relocate outside the Bath and North East Somerset area in order to find suitable accommodation. The response to the evidenced requirement for employment space to accommodate key sectors as outlined below will be developed through the Draft Local Plan. Some of this requirement will be delivered on existing commitments (sites with planning permission or allocated in the adopted Local Plan) that will need to be reviewed Options are also outlined at this stage in terms of protecting existing employment land, intensifying some key areas of employment land and providing new space, primarily as part of mixed-use development. Further work and engagement with the business community will need to be undertaken in preparing the Draft Local Plan to ensure that the proposed employment space supply sufficiently addresses the requirements identified.
3.4 Key growth areas for jobs based on the forecasts are in the following sectors:
- Human health and social work employment
- Accommodation and food services (such as hotels, restaurants and bars)
- Information and Communication
- Professional, Scientific and Technical sectors.
The latter sectors in particular are those that can help drive innovation and a more creative economy. In terms of sectors with a significant influence on employment land the evidence suggests there will be some decline in manufacturing and a decline in Transportation and Storage, alongside growth in the sectors outlined.
3.5 Analysis undertaken has highlighted the ongoing need to deliver office, some industrial and warehousing space and hybrid business space suitable for meeting modern occupier requirements, set against low levels of existing supply and historic development. This has created a challenging environment for potential and existing occupiers to fulfil their commercial property requirements within Bath and North East Somerset, and in particular, the city of Bath.
3.6 In terms of office floorspace, the evidence notes that it is also possible that additional floorspace will be released to the market as a result of workplace transition, following the rapid increase in hybrid working brought about by the Covid-19 pandemic. However, there still remains a degree of uncertainty over the long-term trend. Market evidence also indicates a strong preference for high quality modern space, with excellent amenity provision for workers. Additional space released to the market may require refurbishment in order for it to be attractive to modern occupiers. It has been noted that the loss of some of the sub-standard stock can support the market to develop new space, through improved rents and values.
3.7 In terms of industrial floorspace, there is currently a substantial under-supply in Bath City, Rural Areas and the Somer Valley. The evidence notes that given the constraints within Bath City, the Keynsham sub-area is likely to need to play an important role in meeting some demand. Keynsham may also have a role in providing Research and Development space for growth sectors that can’t be accommodated within the city. At the same time as developing new areas, it is acutely important to protect existing industrial estates and sites.
3.8 In relation to warehousing and logistics space, historically there has been a lack of warehousing development activity taking place across Bath and North East Somerset. This is due both to its relative unattractiveness to modern occupiers and constrained land supply in the right locations, with the right access and infrastructure provision.
At the end of this chapter there is an opportunity to comment on the key needs we have identified