DD2018 London Industrial Land Demand Study

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.

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.

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.

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.

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.

6.1 The proceeding sections of this report indicate that:

6.1.1 the decisions requested of the Director (in accordance with the GLA’s Contracts and Funding Code) fall within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to, the promotion of the economic development and wealth creation;

6.1.2 in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people (further details on equalities are set out in section 3 above) and to the duty under section 149 of the 2010 Act to have due regard to the need to eliminate unlawful discrimination, harassment and victimisation as well as to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not ;

• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

• consult with appropriate bodies.

6.2 The services required must be procured by TfL Procurement who will determine the detail of the procurement strategy to be adopted in accordance with the Authority’s Contracts and Funding Code.

Officers must liaise with TfL Procurement in this regard and to ensure all necessary contract documentation is put in place and executed between the successful bidder and the GLA before commencement of services.