CHAPTER 6 - COMPETITIVE BUSINESS INFRASTRUCTURE

INTRODUCTION

6.1 Ensuring that a competitive business infrastructure is in place in Middlesbrough means bringing forward land and premises to support the retention and expansion of existing businesses, promoting enterprise and attracting inward investment. Unlike other parts of the Tees Valley, Middlesbrough does not have the same degree of over-supply of land and premises for business and industry that can constrain values and stifle developer investment.

6.2 The poor quality and choice of existing accommodation and sites remains a significant constraint on economic growth. The growth of Teesdale in the 1980s/90s was in part fuelled by the relocation of a number of businesses from Albert Road. The town has lacked the sites to compete with Teesdale and other business parks across the region. This picture is changing. The Council’s proposals for Riverside Park are attracting developer interest and there is potential to re-profile this location to compete with other high quality industrial sites in the sub-region. In addition, Middlehaven affords the opportunity to create, for the first time, a high quality business location in Middlesbrough as part of wider mixed use development proposals. Together with proposals in the neighbouring boroughs of Stockton and Redcar & Cleveland, these will help create an employment land portfolio that will contribute to the city-scale assets needed to develop a competitive business infrastructure to drive forward a prosperous city region.

ECONOMIC STRATEGY

6.3 The development of the LDF economic strategy will assist in focusing investment and economic development to those locations, opportunities and initiatives that will contribute to achieving economic prosperity. This will be achieved by the Council working with its partners to focus development efforts on a limited number of key employment sites. It recognises that the achievement of a city-scale infrastructure cannot be achieved within the confines of the boundary of one authority alone. All of the authorities of the Tees Valley have complementary roles to play in providing for the employment needs of the city region. In Middlesbrough this means that for the period to 2023, these will be:

Greater Middlehaven, which will have a focus on B1 (business) uses rather than general industry, in accordance with the mixed use masterplan for the site;
Riverside Park, where a programme of access improvements to the Hartington Interchange and a new direct link to the A66 and a new riverside walk is proposed. Riverside Park will retain a focus as a high quality industrial location but will benefit from its proximity to Middlehaven;
Greater Hemlington, which will also have a B1 focus as part of mixed use development proposals. It is anticipated that around 25 hectares of business space will be provided alongside new housing and community facilities; and
Middlesbrough town centre, a key driver of the local and city region economy. Almost 90% of all jobs within Middlesbrough are now within the service sector. The town centre will therefore be a focus for office and other service sector developments within the city region.

Achieving high and sustainable levels of economic growth is one of the spatial objectives of the plan, and achieving full employment is identified in the spatial vision. This will only be achieved if there is sufficient employment land in the right locations and of the right quality to attract new businesses.

6.4 The draft RSS identifies a requirement for 185 hectares of employment land within Middlesbrough for the period 2004 to 2021. This land is divided between brownfield mixed use sites (100 ha) and general employment sites (85 ha). Middlesbrough’s current employment land supply is made up from a number of industrial estates of various sizes and quality. In order to support the achievement of the spatial vision it is important that the needs of all forms of employment are catered for including small-scale employment generating uses in those locations where they can meet a proven local need. Some flexibility is built into land supply to allow for this. It is important in these instances to limit the amount of additional land that comes forward to no more than 10% over the draft RSS land supply. Where such proposals come forward they will need to be justified. What is lacking in Middlesbrough, however, is a supply of high quality, serviced and accessible land. The LDF will need to provide a wide ranging portfolio of employment sites that will enable the town to compete for regional, sub-regional and local investment, and which reflects its status at the centre of the Tees Valley city region.

POLICY CS7 ECONOMIC STRATEGY

The Council will support and encourage those employment proposals that assist in delivering economic prosperity and developing Middlesbrough’s role as part of the heart of a vibrant and prosperous Tees Valley city region. In doing so, regard will be had to the ability of any proposal to contribute to:

the achievement of the priorities identified in policy CS1;
implementation of a comprehensive strategy of environmental, management and business improvements in the town centre aimed at raising investment confidence and strengthening the role of the service sector;
the successful regeneration of an area. Particular emphasis will be given to improving access to skills, training, education and employment opportunities; and
developing greater innovation to stimulate increased business start up rates and levels of entrepreneurship.

To assist in the delivery of this strategy provision is made for approximately 185 ha of employment land for the period 2004 to 2023 as follows:

	2004-2011	2011-2016	2016-2023	TOTAL
General employment land	35 ha	25 ha	25 ha	85 ha
Brownfield mixed use land	40 ha	40 ha	20 ha	100 ha

The majority of this requirement will be accommodated in the following strategic locations:

Greater Middlehaven (brownfield mixed use land) – approximately 100 ha;
Riverside Park (general employment land) – approximately 35 ha;
Middlesbrough town centre (office and commercial development) – approximately 10 ha;
Greater Hemlington (general employment land – to be provided as part of a mixed use scheme) approximately 15 ha; and
East Middlesbrough (general employment land) approximately 15 ha.

Outside of these locations a sequential approach will be applied to site selection with priority being given to those utilising previously developed land which contribute to the implementation of the economic strategy identified above and which:

will not result in the total employment land supply exceeding the draft RSS requirement by more than 10%; and
are of a scale and nature appropriate to the location.

EXISTING EMPLOYMENT LAND AND PREMISES

6.5 Government guidance encourages the re-use of land and premises for housing and mixed use development, in circumstances where there is an oversupply of employment land, or sites are no longer appropriate for such uses. At the same time, the priority given to previously developed land in finding sites for housing can lead to pressure for re-using employment sites even when they are in active use. The premature loss of employment land can harm local firms (who may find it difficult to find suitable replacement sites), lead to a loss of local employment, create pressure for development in unsuitable locations and increase the need to travel to work. The availability of local employment that is suited to the skills of the local workforce is particularly important given the high levels of unemployment and worklessness in Middlesbrough. Many of these existing sites are well located to serve the needs of these communities and assist in the regeneration of deprived areas.

6.6 This policy approach puts reasonable checks in place to ensure land and premises are not lost prematurely. As well as applying to established industrial estates, distribution and business parks, it also covers other appropriate employment sites and buildings. Where the continued viability of a site for B1, B2 or B8 use is in question, it will be necessary to demonstrate that there is no market, or show that physical/operational constraints make it no longer suitable for business use.

POLICY CS8 EXISTING EMPLOYMENT PROVISION

The Council will resist the loss of land and premises currently in, or last used for, employment purposes to other uses. Other than on sites allocated for alternative uses within the Local Development Framework exceptions will only be made where it can be demonstrated that:

continued use of the site for B1, B2 or B8 purposes is no longer feasible, taking into account the site’s characteristics and existing/potential market demand; or
continued use of the site for B1, B2 or B8 purposes gives rise to unacceptable environmental or accessibility problems particularly for sustainable modes or transport; or
an alternative use or mix of uses offers greater potential benefits to the community in meeting local business and employment needs, or in delivering the Council’s regeneration agenda.