Economic development

Vision

The Best City Ambition is our overall vision for the future of Leeds focussed on improving outcomes across the 3 Pillars of health and wellbeing, inclusive growth and zero carbon. The Inclusive Growth Strategy sets out how Leeds City Council alongside other key stakeholders can work together to grow the Leeds economy ensuring that everyone in the city contributes to, and benefits from, growth to their full potential, setting out twelve "big ideas".

The council is committed to meeting the current and future employment requirements of Leeds and the wider Leeds City Region to support the continued growth of job opportunities for local people, whilst addressing global and national challenges which are directly and indirectly shaping and influencing employment land and availability across the city.

To realise this ambition, LLP 2040 will focus on:

1. Health and wellbeing: Encouraging the delivery of employment opportunities within mixed-use and accessible developments across Leeds to create well-designed places that supports good health and wellbeing for all parts of the city.
2. Inclusive growth: Reshaping our economic development policies to support an inclusive, diverse and thriving federal economy in order to maximise our potential to deliver a wide range of job opportunities across the city that are accessible and available to all, recognising the importance of a highly skilled workforce and supporting the local training and skills necessary for this.
3. Zero carbon: Supporting and encouraging the development of sustainable and flexible buildings and taking advantage of opportunities to support the transition to a low carbon economy, as well as directing jobs close to communities to encourage sustainable methods of transport.

The updated NPPF (2021) specifies LPAs should set out a clear economic vision which positively and proactively encourages sustainable economic growth, setting criteria and allocating strategic sites to meet anticipated needs whilst simultaneously offering a flexible approach to meet those needs and working practices not anticipated.

NPPG provides further guidance in that LPAs should prepare a robust evidence base to understand existing business needs and which should be kept under review to reflect local circumstances and market conditions, which also assists in forecasting future need of employment land and allocating appropriate land to deliver this.

Current issues

Current employment land requirements are set out within the adopted Core Strategy (as amended) and run until 2028 being based on evidence prepared in 2010. There is a need to look ahead at employment needs and requirement over the next 15-20 years as part of a wider economic development strategy which will require an update to the evidence base. Work is currently underway in updating this evidence base incorporating a range of qualitative and quantitative methodologies (including workshops with commercial stakeholders) to provide context on the current employment market and help forecast future employment requirements and needs. Preliminary conclusions from this suggest that the land required to meet current and future employment supply needs would be greater than the current supply position of available employment land, and so likely require the identification of additional land.

The existing Local Plan contains a series of site allocations as part of the UDPR (2006), AVLAAP (2017) and Site Allocations Plan (2019). A review of sites is therefore necessary to ensure that the sites allocated in the Local Plan for employment uses remain fit for this purpose and are deliverable, particularly those allocated within the UDP or based on planning permission that have since expired. Consideration also needs to be taken into HS2 safeguarded land (which accounts for approx. 50ha of allocated land) and the continued uncertainty surrounding this.

The economy has significantly changed at both the national and global levels since Leeds' economic development policies and allocations were first adopted, and thus LLP 2040 would need to consider issues and associated implications – such as the Covid-19 pandemic, Brexit, supply chain interruptions, cost of living and energy crisis and other changes to economic markets and trends.

Employment sectors also need to be considered as part of LLP 2040, with an approach needed to cater and encourage a diverse economy whilst also being flexible and preparing for any uncertainties or changes. The Core Strategy currently sets broad requirements and allocations for the two 'general employment' land (mainly industrial & warehousing uses) and 'office' uses. One option could be to identify the needs of specific economic sectors (such as logistics, modern manufacturing, research and development, creative industries etc) in relation to land requirement and size, type and location of sites to help support the sustainable growth of such sectors. There will also be an overlap with the consideration of minerals and waste management needs since these are important elements of a successful economy.

LLP 2040 would also need to consider the implications of changes to Permitted Development rights and the formation of Class E, which allows for changes of use of some employment premises to other commercial and residential uses without the need for planning permission. This has the potential to result in a greater loss of existing employment premises across the city, and a new approach to protect and safeguard such land to ensure economic growth is not impeded may need to be explored.

Tourism (leisure and business) also forms an important part of Leeds' economy. The UDP includes a number of saved policies relating to tourism development which support the retention and enhancement of existing visitor attractions and facilities and the creation of new ones. Specific support is given for leisure and tourism facilities at Elland Road, Middleton Broom/Middleton Park, Parlington, Royal Armouries (Clarence Dock), Dick Lane (Pudsey) and Barrowby Hall (Garforth). Support is also given to appropriate waterways related leisure developments. Significant changes have taken place to the city, its attractions and facilities, and the visitor economy since the adoption of these policies in 2001 and the implications of this for planning policy could be explored.

What might new policy do to address this?

LLP 2040 would need to review its current supply of employment land and forecast future demand to prepare for any expected growth in job opportunities and necessary employment land based upon up-to-date and robust evidence. This may involve the allocation of new sites to provide this, as well as a review of existing sites to ensure these remain fit-for-purpose and are likely to be delivered. This would need to account for any necessary growth in employment land, as well as the loss / replacement of existing employment premises as a result of older stock becoming obsolete or changing to other uses.

Qualitative methods are being used to help better understand the type of sites which may be required as well as understanding specific sectoral needs, and the site allocations process and current policy / targets may need updating to reflect this. For example, further distinction may need to be made between the needs for different sectors (e.g. logistics, research and development, modern manufacturing & creative industries) and the Plan might set out site and policy requirements which may need to be achieved for the site to be sustainably developed for its preferred use. However, a flexible and pragmatic approach would need to be taken to account for any uncertainty and changes to the market, which may also need to be considered in any new policy wording, as well as to support and not hinder the growth of new and emerging employment sectors.

A new spatial approach may also need to be taken, in order to guide employment development in the right places. This would need to consider the specific requirements of employment uses (i.e. good access to the Strategic Road Network for logistic uses), and the importance of focusing development in areas which are well-connected and accessible to ensure job opportunities are available to all and support inclusive growth across the city. As part of this, consideration could be given to expanding the 'centres first' approach taken for office developments and guiding office developments towards Leeds City Centre and areas which are well-connected and accessible.

it is important to recognise the role that existing employment areas, such as industrial estates, have in meeting economic needs and providing local job opportunities.  One option to help address this could be considered, for example through identifying safeguarded employment areas (based on strategic or local importance) alongside a criteria-based approach. This would need to be balanced against the need to be flexible and not sterilise land in one specific use unnecessarily.

In relation to tourism development, there is a need to reconsider how the tourism potential of Leeds can best be supported through the planning system. This will need to be aligned with revised local priorities within the inclusive growth pillar, and the associated strategy for culture. As part of this, consideration would need to be made of the opportunities and requirements in relation to tourism development across Leeds, and the role that a new or updated planning policy could have in supporting this.

What do we need to get there?

External work is currently underway (by Mott MacDonald) to undertake a strategic review of employment land which will begin the process of updating the evidence base required for LLP 2040. This will help forecast future employment land needs and requirements, as well as to help provide understanding of existing supply and market trends and context, which will then inform land supply requirements and allocations over the next Plan Period.

A review of all existing employment sites will be required to establish whether they remain suitable, available and deliverable to meet future employment needs. In addition, a 'Call for Sites' process will be required to identify options for future economic development locations, which will need to be considered in identifying any future site allocations.

A Tourism Study will be required. This will need to review of tourism requirements and opportunities across Leeds, with consideration being made of the role that the planning system could have in directing and supporting potential opportunities for growth in this sector.

Have your say

The consultation runs for 6 weeks from Friday 10 February until Friday 24 March 2023.