Chapter 3: Economy

Background

3.1 The Borough has a strong and diverse economy with a range of employment opportunities, which have resulted in a very low rate of unemployment (1.9% at December 2004). The healthy economy is one of the key factors that enhances the quality of life for Borough residents. However, the buoyancy of the local economy can bring its own problems in the form of a shortage of premises and staff recruitment difficulties.

3.2 One of the key aims of the Local Plan is to ensure that the best use is made of existing sites and buildings to meet the current and future employment needs of the Borough. This will enable the local economy to flourish, providing a sufficient range of opportunities for local residents and contributing to the future sustainable growth of the regional and national economy. At the same time the Local Plan will seek to avoid the need for commuting, either into or out of the Borough, and to avoid the overheating of the local economy. The Plan should also anticipate a changing workplace and the growing influence of technology in all that we do. Research shows that homeworking, self-employment and e-commerce will play an increasing role in the economy.

3.3 The Borough’s economic policy direction comes from national (PPG4 and PPS6), regional (RPG9 produced by the South East England Regional Assembly and the Regional Economic Strategy (RES) produced by the South East England Development Agency) and strategic sources (the Hampshire County Structure Plan). Over the next 10-15 years these encourage the following:

• A mixed economy

• A range of sizes and types of units to encourage future economic growth

• The active encouragement of the growth of hi-tech businesses, enterprise hubs and clustering

• The identification of a hierarchy of retail centres in the Borough and the definition of the boundaries of these centres

• A sequential approach to the selection of sites for new retail development

• The maintenance and enhancement of the vitality and viability of the shopping centres in the Borough.

3.4 In a regional context, the Borough of Basingstoke and Deane has been recognised as having links with other parts of the region outside Hampshire. RPG9 recognises Basingstoke as part of the ‘Western Policy Area’ where pressures exist in terms of labour market issues, housing and property markets. Within this area, the Borough is recognised as being part of the Thames Valley sub-region. This is also the case for the emerging South East Plan, which identifies part of the Borough as being within the Western Corridor and Blackwater Valley sub-region. The Regional Economic Strategy also advocates a sub-regional approach to addressing economic issues. The guidance set out within the RES and the RPG provides support for the approach already taken by this Borough Council, forming linkages as appropriate both within Hampshire (particularly the districts in Northern Hampshire) and outside Hampshire with the Thames Valley and the Blackwater Valley authorities. To help facilitate these linkages, this Council has become a member of the Thames Valley Economic Partnership.

3.5 The policies contained in this chapter reflect the guidance set out above, and, where appropriate, interpret it to reflect local circumstances. To help understand the factors affecting the need for economic development in the Borough, consultants were commissioned to help establish future policy direction and inform land releases on retail and employment issues. These resulted in a Retail and Leisure Study (published August 2000), and a subsequently updated Retail Study (November 2004) and an Employment Land Issues Study (published July 2001), which was also subsequently updated (March 2004). The findings of these studies are not repeated here, but are reflected in the policies set out below.

Public Consultation

• 80% of respondents to the Borough Council’s Community Strategy consultation felt that working to ensure a range of local job opportunities for all those who want to work was either important or very important.

• The importance of a strong local economy was also raised as an issue by a number of respondents to the Local Plan Issues Report, particularly with regard to supporting local business and proving the need for any additional employment land before allocating it. Other economic issues raised by respondents were:

• Maintaining a strong rural economy

• Redeveloping employment land for housing

• Providing premises for local firms.

3.6 The responses to these consultations are reflected where possible in the land use policies set out below. This chapter contains policies on the following topics:

• Employment

• Retail and leisure

• Tourism

Employment

Employment Areas

Policy EC1 Employment development and redevelopment proposals will be permitted within the boundaries of the Employment Areas defined on Inset Maps 1, 2 and 13.

Policy EC2 Proposals to re-use land within the defined Employment Areas identified on Inset Maps 1, 2 and 13 for alternative uses will be permitted where it can be demonstrated that this would provide an ancillary use to the main employment use; or would not harm the operation of the local economy and the availability of employment land; and would not prejudice or conflict with the operation of adjacent employment sites; and would not reduce employment opportunities to the extent that additional car-based commuting would result. For residential proposals, it will be necessary to demonstrate that: the site is easily accessible to employment, education, retail, community and other facilities by a choice of attractive means of transport other than the private car; and opportunities to include a mix of uses, including employment on the site have been fully explored.

3.7 It is necessary to provide a framework within which proposals for alternative uses within employment areas can be considered. The criteria within Policy EC2 provide the basis for considering through the development control process whether proposals are acceptable, having regard to economic, sustainability and environmental considerations.

3.8 Applicants should submit an economic assessment as part of any application. This should include information about loss of employment, loss of floorspace and the impact on the number of years supply up to 2011. More details on the policy criteria and the evidence required will be set out within a guidance note.

Office and Hi-Tech Employment Uses

Policy EC3 Proposals for office and high-tech use will be permitted on the following sites. Development for employment uses outside B1(a) and B1(b) of the schedule to the use classes order will not be permitted at these locations unless the proposal is to meet the needs of an existing occupier/employer or exceptional circumstances can be demonstrated: Beggarwood Lane Hampshire International Business Park Chineham Business Park Viables Business Park Basing View Proposals to re-use these employment sites for alternative uses will be subject to Policy EC2.

3.9 New opportunities, including appropriate ancillary uses at the above locations will be progressed through Action Plans.

3.10 The Employment Issues Study concluded that there is considerable potential within the Basingstoke economy to target particular sectors whilst maintaining a mixed economy. This scope is largely due to Basingstoke’s locational advantages such as strategic access close to the Blackwater Valley and the Thames Valley.

3.11 The sector identified as having the most potential is Information Communications Technology (ICT), which despite the downturn in the early 2000’s is still considered an appropriate long-term direction for specialist growth. Promoting hi-tech initiatives at all the locations set out above would assist in providing a range of accommodation for local businesses. It is recognised that these employment areas already include uses outside B1(a) and B1(b) and the policy would permit development to meet the needs of existing employers / occupiers. In addition, the Policy recognises that there may be exceptional circumstances where other employment uses may be justified, where alternative uses may be permitted, subject to the requirements of Policy EC2.

Loss of Local Employment Opportunities

Policy EC4 The loss of sites in employment use, including employment allocations within settlements outside of Basingstoke Town to other uses will not be permitted unless: a marketing exercise for a period of 12 months concludes that there is no realistic demand for the site; or an appropriate level of alternative provision already exists in the settlement or can be provided in an acceptable alternative location; and iii. the relevant criteria contained in Policy EC2 can be satisfied.

3.12 Businesses can provide important local employment opportunities and can reduce the need for out-commuting to jobs. Additional pressure has been placed on existing employment sites in rural areas given the Government agenda of favouring the redevelopment of brownfield sites such as those previously within employment use for residential development over the development of greenfield sites. The Borough Council will seek to protect both urban and rural employment sites from alternative uses through the implementation of Policy EC4. Where proposals are received to change the use of an employment site to an alternative use, the Borough Council will seek evidence that the site has been marketed for the employment use.

Live/Work Units

Policy EC5 Live Work Units will be permitted on suitable sites in the Borough. These will be most appropriately located: on existing employment sites that are situated outside of the designated employment areas; or on employment sites that adjoin residential areas; or on new sites that adjoin employment areas; or in residential areas. The work area must usually be suitable for a full range of B1 uses and the Borough Council will apply conditions and seek to enter into legal agreements to ensure that the work areas are retained as employment uses in perpetuity.

3.13 Live work units can provide valuable accommodation for start-up businesses in that housing and business facilities are combined in one unit, enabling cost savings. Live work units can have sustainability benefits such as reducing the need to travel, diversifying the economic base, increasing vitality and improving security.

3.14 Live work units are increasingly proposed by developers in an attempt to offset any opposition from the Borough Council to residential schemes that involve the loss of employment sites. Where a scheme is proposed that would result in a net loss of employment, applicants will be asked to provide appropriate marketing information to prove that there is not a demand for employment land on the site. The applicant should also undertake an assessment of the implications of any loss of employment in the location.

The Rural Economy

3.15 Declining agricultural employment and a reduction in local job opportunities are two key issues facing rural areas. In response to this, the Borough Rural Strategy supports the need to sustain existing and encourage appropriate new rural businesses – if possible through the conversion of rural buildings for industrial and business development

3.16 The shift away from food production to a multi-purpose countryside must be managed in a way that retains the character of the rural area whilst maintaining a thriving countryside. Increasingly, agricultural businesses wish to diversify into new areas by converting or re-using existing farm buildings for non-agricultural purposes, such as workshop uses, offices, and various forms of leisure and tourism. This issue is recognised in the Borough Rural Strategy which sets out a number of actions that will be taken to aid farmers wishing to diversify. The Borough Council supports the use of Whole Farm Plans in providing supporting justification for development proposals.

The Re-Use of Buildings in the Countryside

Policy EC6 Proposals for the re-use of buildings in the countryside will be permitted provided that: They reuse or sympathetically adapt a suitable building; and Commercial or community re-use (where re-use is not proposed for these purposes) is shown not to be possible; and The site is in a sustainable location.

3.17 Although proposals will be encouraged where they enable access by public transport, walking and cycling, proposals should not be rejected where they give rise to only modest additional daily vehicle movements, in comparison to other uses that are permitted on a site, and where the impact on minor roads is not significant.

Farm Diversification

Policy EC7 Development which forms part of a farm diversification scheme will be permitted provided: It benefits the economy of the rural area of which it is part; and The buildings are appropriate in scale, form, impact, character and siting to their rural location. Wherever possible new or replacement buildings should be located within or adjoining an existing group of buildings; and It does not generate traffic of a type or amount inappropriate for the rural roads affected by the proposal or require improvements to these roads which could be detrimental to their character.

3.18 Changing trends in the agricultural industry have led increasingly to farmers looking into different ways of supplementing their farm incomes through some form of diversification. The objective of diversification is to allow the primary agricultural unit to be retained whilst being supported by other forms of income.

3.19 Further guidance on diversification issues and potentially suitable uses will be outlined in a Supplementary Planning Document on Farm Diversification to be adopted by the Council.

Tourism

Rural Tourism

Policy EC8 Proposals for tourism development within the countryside that improves or extends the range of tourist facilities, including tourist accommodation will be permitted, provided that this: would result from the conversion of a suitable rural building; or forms part of a farm diversification scheme; or is an extension to existing facilities, of a scale appropriate to its location. Applications for small scale camping and touring caravan sites will be subject to the above criteria and additionally need to show that: There is a proven need for this type of development; and They can be sited unobtrusively and landscaped to minimise their impact.

3.20 The tourism industry is important to the economic success of the Borough, safeguarding existing and generating new jobs and contributing towards a living countryside. The significance of tourism and the key areas of local concern are set out in a tourism strategy prepared by the North Hampshire Joint Tourism Committee. Further information is outlined in tourism strategies produced by Hampshire County Council, the South East England Tourist Board and the Regional Spatial Planning Strategy for Tourism (published by SEERA). The development of tourism must, however, be sensitive to the environment in which it lies and not reduce the attractiveness of the countryside or negatively affect the amenity of local residents.

Retail Development

3.21 The Borough is generally well served with shops and a significant amount of the total retail floor space has been constructed over the last 30 years to serve the increased population resulting from rapid large-scale housing development. However, residents in the Borough have easy access by road and rail to regional shopping centres outside the Borough such as Reading, Southampton, Guildford and London. To ensure future competitiveness, a large proportion of Basingstoke Town Centre has been redeveloped to considerably enhance the existing retail and leisure provision. Festival Place opened in October 2002.

Definition of the Retail Hierarchy

3.22 PPS6 states that a range and hierarchy of centres, from city centre, through town centre, district centre to local centre should be defined in Local Plans. The definitions of these and their location within this Borough are set out overleaf, and reflect the advice in PPS6. The boundaries of all the town centres, district centres and local centres are defined on the proposals map.

Table 2: The Borough’s Retail Hierarchy

Type of Location	Definition	Location in the Borough
Town Centre	Provide a broad range of facilities and services and act as a focus for both the community and for public transport. The size of centre will influence the range of activities and its function. The scale of development possible and the opportunities available will differ from place to place.	Basingstoke
District Centre	Groups of shops, separate from the town centre, containing at least one supermarket and non-retail uses such as banks, building societies and restaurants.	Whitchurch, Overton Tadley, Brighton Hill and Chineham
Local Centres*	Local centres are small groupings usually comprising a newsagent, a general grocery store, a sub-post office and occasionally a pharmacy, hairdresser and other small shops of a local nature. Other facilities could include a hot-food takeaway and launderette.	Kingsclere
Local Parades	These provide walk-in access for all residential areas for day-to-day convenience goods shopping needs, complimenting facilities in the defined centres and free-standing foodstores. They are generally defined as groupings of three or more Class A1 units.	All over the Borough
Out of Centre Locations	A location that is clearly separate from a town centre, but not necessarily outside the urban area.	Hatch Warren Retail park, Brighton Hill Retail Park, retail warehouses along Winchester Road

* New local centres may come forward as part of some of the larger development allocations set out in policy D3.

Retail and Commercial Leisure

Policy EC9 Proposals for retail and commercial leisure uses will be determined in accordance with the current policy and advice in PPS6 and its associated documents.

3.23 Government guidance considers that certain key uses should be located in town centres, in order to promote vitality and viability. Such uses include:

• Retail;

• Leisure, entertainment facilities and intensive sports and recreation (e.g. cinema, health and fitness); and

• Arts and leisure

Accordingly, Policy EC9 will apply in determining planning applications associated with these uses, where this involves:

• New development;

• Redevelopment of existing facilities;

• Extensions to existing facilities;

• Changes of use involving development;

• Renewal of extant planning permissions; and

• Applications to vary or remove existing conditions which would have the effect of creating additional floorspace.

3.24 The revised retail study (November 2004) concluded that it is likely that spending on comparison goods will continue to grow, although not at the levels of the last few years. The study considered that up to 2011 such needs should be met through the intensification of turnover of existing shops – for which significant potential already exists through the purpose-built floorspace that has been introduced to the system in recent years. Close monitoring of the trends up to 2011 will take place.

3.25 However, the retail study also indicated a reduction in the level of trade retention for DIY / hardware shops due to increased competition elsewhere. There is evidence of a probable quantitative need for this provision. The Council will investigate this further by considering specific proposals against PPS6 advice. Up to 2011, the study identified a need for additional convenience floorspace equivalent to a single large supermarket.

3.26 Future policy for the Top of the Town area in Basingstoke Town Centre will be developed through the approved Framework for the area, the aim of which is to develop a viable mixed-use area. The area has a wellestablished character, which distinguishes it from the rest of the town centre. Major changes within the town centre such as the Festival Place development have raised awareness of the importance of maintaining and enhancing the special character of the Top of the Town. Top of the Town is a major resource for the town as a whole, both for the businesses and services which it accommodates and as a reminder of Basingstoke’s heritage.

3.27 In terms of developments for leisure uses, reference should be made to the Council’s Leisure Needs Analysis (2002).

A3, A4 and A5: Food and Drink

Policy EC10 Within town, district and local centres of the Borough, proposals for A3 Restaurant and Cafes, A4 Drinking Establishments and A5 Hot Food Takeaway Uses (including the change of use of existing units) will be permitted, providing that they do not individually or cumulatively with recently permitted or developed schemes, undermine the vitality or viability of the centre or give rise to unacceptable environmental or public safety problems.

3.28 A3, A4 and A5 uses play an important role in meeting the shopping and leisure needs of Borough visitors, and in providing a night time economy. Encouraging a diverse range of town centre uses is a key aspect of maintaining a vital and viable town centre.

3.29 The Council will adopt a flexible approach towards proposals for classes A3, A4 and A5 uses, subject to environmental and public safety concerns which include the effect of noise, odours and disturbance on neighbouring residents and properties. Consideration will also need to be given to the desirability of protecting A1 retail units within town, district and local centres so as to promote vitality and viability. Policy EC10 will also be used as the basis for the consideration or A3, A4 and A5 proposals within neighbourhood shopping parades.

Hotels

Policy EC11 Proposals for new hotels, conference facilities and other serviced accommodation will be assessed against the sequential approach to development set out in PPS6. Preferred locations will be on town centre sites, followed by edge of centre sites, district and local centres and only then out of centre sites in locations that are accessible by a choice of means of transport. The loss of hotels, especially those at the budget end of the market, or their conversion to alternative uses such as residential, will be resisted unless it can be demonstrated that the hotel use is no longer viable or appropriate for its location.

3.30 Hotels, conference facilities and other serviced accommodation play an important role in the local economy by attracting staying visitors, creating jobs, enhancing the image of destinations and representing important business infrastructure.

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