DD2018 London Industrial Land Demand Study

Type of decision: 
Director's decision
Code: 
DD2018
Date signed: 
01 July 2016
Decision by: 
Fiona Fletcher-Smith, Executive Director of Development, Enterprise and Environment

Executive summary

Approval of expenditure of up to £60,000 is sought to procure and commission a consultancy study to analyse the demand for industrial land and related uses in different parts of London and explore relationships with the wider south east. The study will review the London Plan benchmarks of industrial land release to other uses and roll these forward to 2016-2041 on a consistent, pan London demand/supply basis. The study will also undertake a series of scenarios relative to the baseline benchmarks to explore the potential for further release of industrial land in London and associated impacts. The work will inform a full review of the London Plan, preparation of Local Plans/Opportunity Area Planning Frameworks and support co-ordination of industrial land supply with the wider south east.

 

Decision

The Executive Director of Development, Enterprise and Environment approves expenditure of up to a total of £60,000 to lead, procure and commission specialist technical services to undertake the London Industrial land Demand Study.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    The importance of informing the preparation of development plans with robust assessments of the existing and future demand of land available for economic development is set out in the Government’s National Planning Policy Framework (NPPF)  and associated practice guidance .  

1.2    The current London Plan  and associated Supplementary Planning Guidance (SPG)  underscore the need to ensure a sufficient stock of land and premises to meet future demand for different types of industrial and related uses (such as logistics/ distribution, waste management, utilities and land for transport functions) in different parts of London, including for good quality and affordable space.

1.3    The research will analyse the demand for industrial land and related uses in different parts of London and explore relationships with the wider south east. The study will review the London Plan benchmarks of industrial land release to other uses and roll these forward to 2016-2041 on a consistent, pan London demand/supply basis and undertake a series of scenarios relative to the baseline benchmarks to explore the potential for further release of industrial land in London and associated impacts.

1.4    This project will assess the different aspects of demand for industrial land in London taking into account the recent Industrial Land Supply and Economy Study (See DD1301) published by the GLA in March 2016. The Industrial Land Demand study will be led by the GLA Planning team in the Directorate of Development Environment and Enterprise in collaboration with the Regeneration team, Economic and Business Policy unit and Transport for London. 
 

Objectives and expected outcomes

2.1    The London Industrial Land Demand study contains two interrelated parts:

2.2    Part A: Industrial land demand analysis – This part will analyse the short, medium and long term demand and supply dynamics for industrial land and related uses in different parts of London and explore relationships with the wider south east. 

2.3    Part B: Potential demand/supply scenarios and associated industrial land release benchmarks – This part of the study will review the existing London Plan and Supplementary Planning Guidance benchmarks of industrial land release to other uses and roll these forward to 2016-2041 on a consistent, pan London demand/supply basis. It will undertake a series of scenarios relative to the baseline benchmarks to explore the potential for further release of industrial land in London and associated impacts.

2.4    The outputs of the study will inform: (a) a full review of the London Plan and its associated Land for Industry and Transport Supplementary Planning Guidance (SPG) – in conjunction with the associated Industrial Land Supply and Economy Study; (b) preparation of Local Plans; (c) work on Opportunity Area Planning Frameworks/Area Action Plans and (d) co-ordination with the wider south east of England. The study will also support the work of the GLA in addressing its growth and regeneration agenda.
 

Equality comments

3.1    No adverse equalities impacts are identified. The study supports the equalities objectives of the London Plan and will provide evidence to inform policy and guidance to improve London’s economic base and sustainability, secure access to a range of employment opportunities and improve transport access. The release of industrial land to other uses will support objectives to deliver housing, social infrastructure and where appropriate, strengthen town centres. The evidence assembled in this study will therefore contribute to wider equalities issues across these subject areas.

 

Other considerations

a) key risks and issues 

4.1    The contract will be managed in line with standard GLA risk management procedures.

4.2    If the study were not carried out it would:

•    undermine the implementation of London Plan policy 4.4 which seeks to ensure rigorous approach to industrial land management to ensure a sufficient stock of land and premises to meet future needs of different types of industrial and related uses
•    undermine the Mayor’s evidence base to support examinations into a full review of the London Plan and work with boroughs on Local Plans and Opportunity Area Planning Frameworks as well as co-ordination of industrial land supply with the wider south east
•    risk sub-optimal investment to support London’s industrial areas, businesses and wider employment.

b) links to Mayoral strategies and priorities 

4.3    The study will inform the implementation and review of the London Plan. It will support London boroughs in the preparation of Local Plans and partnership working by the GLA, boroughs and others on Opportunity Area Planning Frameworks. The study will inform collaboration and co-ordination with wider south east planning authorities and support regeneration and business policy initiatives including those associated with the London Enterprise Panel (LEP).

c) impact assessments and consultations

4.4    Impact assessments are carried out as part of the preparation of reviews and alterations to the London Plan. A separate impact assessment is not required for this research study. Consultation on the project specification has taken place within the GLA and with Transport for London (TfL). Further collaboration with London boroughs will take place during project implementation including sharing draft outputs for verification and presentation of findings.
 

Financial comments

5.1    Approval is being sought to procure and commission specialist technical services to undertake the London Industrial Land Demand study. 

5.2    The estimated total cost of this work is up to £60,000. The costs will be met from the 2016-17 London Plan Programme Budget and will be complete in 2016-17.
 

Planned delivery approach and next steps

Activity

Timeline

Procurement of contract

July/August 2016

Delivery Start Date

August 2016

Interim Report Date

October 2016

Delivery End Date

December 2016

Final evaluation and Project closure

January 2017