Summary of the Torbay Economic Development Needs Assessment (EDNA) March 2024.
Torbay Council commissioned the Strategic Planning Research Unit of DLP consultants to carry out an economic development land needs assessment (EDNA) across Torbay for the period 2022-40. This updates the assessment carried out by Peter Brett Associates in 2013, It will form part of the evidence base for the Local Plan Update, but is not policy in its own right..
The EDNA provides an assessment of how much land/floorspace is needed within the traditional employment use classes:
Former Class B1 light industry/office/high tech now fall within Use Class E(g).
The EDNA considers a number of different factors including past completions, economic forecasts, the Economic Growth Strategy and wider market influences. It uses these to model likely the likely demand for labour and land. It assesses Torbay as forming a relatively self-contained Functional Economic Market Area (FEMA).
The past completions trend scenario is based on the average annual gross floorspace completions for the period 2016/17 to 2021/22 multiplied by the 18-year plan period and converted to a land requirement by applying a 40% plot ratio (i.e. 1ha of land delivers around 4,000 sq. m of employment floorspace).
The labour demand local growth scenario is based on a local jobs growth forecast, which DLP used as the basis for a wider growth scenario. This scenario incorporates sector specific adjustments to reflect anticipated growth trends, trends in working from home, and a flexibility margin to account for losses and provide choice and flexibility in the market. DLP’s growth scenario forecasts an increase in 6,730 jobs in Torbay over the 2022-40 period (across all sectors rather than just E(g), B2 and B8 uses). The growth projections rely on the standard method local housing need (LHN) and recommends that no uplift to LHN is necessary to support the EDNA’s growth scenario. The implications of not meeting LHN is beyond the remit of the EDNA and would require further modelling.
The employment land requirement for both the past completions trend scenario and labour demand local growth scenario by land use type are summarised in the table below. This assumes that 1 ha yields around 4,000sq.m. of floorspace, (i.e. 40% plot coverage).
| Land Requirement, 2022-2040 (ha) | Office (E(g)(i)/(ii)) | Industrial (E(g)(iii)/B2) | Storage & Distribution (B8) | Total |
|---|---|---|---|---|
| Past Completions Trend Scenario | 4.9 | 14.2 | 1.3 | 20.4 |
| Labour Demand Local Growth Scenario | 5.6 | 5.4 | 3.2 | 14.1 |
The past completions trend scenario presents a more positive outlook, particularly in relation to the requirement for light industrial processes (E(g)(iii)) and general industrial (B2) uses. There is also no evidence to suggest that the past completions trend would not continue, particularly in light of the supply-side interventions that have recently been confirmed, including the Levelling-Up Funding which has recently been awarded for the extension of Brixham harbour and fish market (expected to produce an additional 150 jobs) and a new Electronics and Photonics Production Park (expected to deliver a further 100 jobs in the medium-term).
The EDNA therefore recommends that an employment (Class E(g), B2 and B8) land requirement of 20 hectares for the plan period is justified by the evidence.
The EDNA assesses that around 20,200sqm (equal to around 5ha) of employment floorspace is already allocated or has planning permission (“pipeline sites”) which means that an additional 15.4ha of employment land should be identified to meet future needs in the Local Plan. Some of this may be met by existing allocations being carried forward (subject to updated assessment of their deliverability etc. being undertaken) and through the introduction of new allocations. If some of the “pipeline” sites do not deliver employment, then other sites would need to be identified.
There is currently a comparatively large shortfall of ‘Industrial’ land. However, it is noted that there is flexibility within the E(g) use class and as such any sites allocated for or in use as offices may be converted to E(g)(iii) ‘industrial processes’ uses, and vice versa.
The EDNA recommends that sites should be allocated for ‘flexible’ industrial use (e.g. a mixture of E(g)(iii)/B2/B8). This notes that given the nature of the Torbay economy and the likely scale of sites, any B8 floorspace delivered is likely to be smaller-scale, ancillary B8 rather than large scale distribution hubs.
It may also be beneficial to consider an element of office floorspace within mixed use employment allocations, particularly given the need for high quality office floorspace (including that needed to support research and development uses) and the recent loss of some of the older quality stock to residential use through permitted development.