Logistics development

The Savills Blog

Planning White Paper fails to recognise the importance of the industrial & logistics sector

In launching the ‘Planning for the Future’ White Paper, the Housing Secretary, Robert Jenrick, set out how the reforms would simplify the system, while giving more emphasis to quality, design and the environment, and would support recovery from the pandemic.  

The white paper then focuses on the means to achieve the Government’s target of 300,000 new homes a year, but when it comes to the industrial and logistics sector, there is silence.

Missing is an appreciation of the importance of this sector and how the proposed zonal system of growth, renewal and protected zones could address it. While centrally set ‘binding’ housing targets are proposed for housing delivery, there is no suggestion of setting targets for industrial and logistics development, despite the British Property Federation estimates that 21 million sq ft of logistics space will be required each year based on population growth and well-publicised challenges faced by the sector in delivering larger national/regional distribution centres.

It is unclear why the white paper is silent on the subject. The National Planning Policy Framework provides strong policy support for delivering 'a strong, responsive and competitive economy'. Yet there is a deep-rooted inability of the planning system to respond to the scale and locational requirements of the sector.

The emphasis in the White Paper on use of local design guides and codes further raises concerns about how the proposed planning reform will support industrial and logistics development.   

Part of the issue is the need to change perceptions of the role and importance of the sector to the economy and the quality of jobs it creates. The sector provides a range of pathways to work and is increasingly tech-driven, which relies on a range of skills. Savills estimates logistics now supports almost two million jobs and directly contributes £78 billion GVA.

The reality is that it is unlikely online sales will drop back to pre-Covid-19 levels and businesses remain focused on ensuring robust supply chains in response to the current pandemic and Brexit. The reforms set out in the White Paper will not make it more difficult to bring industrial and logistics sites through the planning system, but neither will they make it easier. 

  • This blog first appeared in Estates Gazette

 

Further information

Contact Emma Andrews

Contact Savills Planning

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