Meeting documents

Purpose and Aim of the Report

This Information Sheet provides a summary of the Office of the Deputy Prime Minister (ODPM) commissioned research paper, Planning for Economic Development (May 2004).   As part of the PPG4: Industrial, commercial development and small firms (November 1992) review the OPDM commissioned consultants to ‘explore current practice and issues involved in planning positively for economic development’ in order to improve the approaches to and understanding of planning for economic development.

The research seeks to address economic regeneration as a ‘lower priority and profile to other major areas of the planning system, notably housing and retail development’. With this research the ODPM has sought to provide a proactive framework to introduce a culture of positive, proactive planning for economic development which has not been firmly embedded within the planning system.  

The Challenge for all Local Authorities

The report sets out a marker for all local authorities to note. It states, that ‘the practice and culture of planning for economic development can be characterised as being at a turning point.  To help realise the role of the planning system in facilitating economic development and meeting business needs, future guidance must clearly set out the ways and means by which the systems can do this…’.

The Practice of Planning for Economic Development: the Reports Key Findings

Summarised under a number of headings, some of the reports key findings are outlined below:  

Strategy and Policy Development: (a) set out in the LDF how economic development policies will support the implementation of other economic strategies and initiatives; (b) encourage closer working between planners & economic development specialists; (c) identify the role & scope of sub-regional planning in planning for economic development; and, (d) encourage planning to develop policies for different types of firms or groups of firms, including local businesses/small firms & different sectors.

Allocation of Employment Land: (a) provide guidance (to) planning authorities on the criteria that should be used in assessing need and allocation of employment land; (b) undertake quality assessments; (c) de-allocate or change the use of allocated employment land if there is no reasonable chance of the site coming forward for development; (d) ensure that economic development considerations form an important part of the process of determining planning applications; (e) provide clear advice on the use of S106 agreements to support planning  for economic development and economic objectives; and, (f) set the role of Supplementary Planning Guidance in supporting economic development, including ways it can be used on a site by site basis.

Monitoring: (a) recommend the establishment of indicators to monitor the effectiveness of adopted economic development policy and strategies; (b) recommend the closer sharing of intelligence between planning and economic specialists, including economic development units, in monitoring for economic development.

Business Consultation: (a) set out the expectation of planning in engaging with the business community.

Good Practice and ‘other’ Recommendations:  (a) Identify good practice in joint working between planners & economic development specialists; the use of S106 agreements; engaging with business; the monitoring of planning for economic development; and, assessing need & allocation of employment land; and, (b) training be offered to planning officers to improve their understanding of business needs.

Issues for Wycombe District: Policy Development

The Economic Regeneration Best Value Review pre-empted and picked-up on the broad thrust of the report, summarised in the Final Report (to Cabinet/Scrutiny Committee) in April of this year. This Review also outlined the work undertaken by the Service in developing key performance indicators (in 2004/05) as part of Local Government Association / Audit Commission pilot.

In addition to the ongoing close working with Research, that has seen the production of the Economic Fact Files, work on the Audit Commission National Pilot for Economic Regeneration KPI’s and Economic Trends (within Development Trends) this approach has promoted closer co-operation between Planning Policy and Business Development in developing the new Wycombe Development Framework.  This includes the jointly-commissioned research into the Economy Study (October 2004) and the ERKE (Knowledge Economy) Project (ongoing).  From these documents a number of economic development and planning policies are being investigated further, in part as a response to the research recommendations including:  

Next Steps

To continue to review the guidance of the report and apply, where appropriate, its findings.  It is anticipated that the thrust of the report will also, as it suggests, form the basis of the new Planning Policy Statement (replacing PPG4) when it is published (as a draft) we anticipate in 2005.

Officers of the Business Development Service have also undertaken a GAP Analysis to assist them in their own planning for economic development work.  This will, in part, help when officers are preparing the economic development strategy for the District in 2005.

Planning for Economic Development on the Web

A copy of the ODPM’s planning research papers is available on their website by going to:  http://www.odpm.gov.uk/stellent/groups/odpm_planning/documents/page/odpm_plan_028803.pdf