Overview

This chapter sets out the council’s policies for employment, business and industry in the borough. It aims to protect, provide and consolidate appropriate employment sites to meet the needs of businesses in the borough. The policies are supported by research commissioned by the council to identify future demands for employment land in the borough over the lifetime of the Plan. Much of the borough’s employment is located within town centres and the support and development of town centres is one of the council’s objectives. Chapter 11 covers town centres and retailing (A1 uses) whilst this chapter focuses on ‘industrial land’ covering land use classes B1, B2, B8 or similar, sui generis uses.

Employment opportunities in Barnet are linked to three main locations:

• The borough’s town centres;
• The Cricklewood railway lands; and
• Employment sites comprising a range of offices, light industry, general industry and distribution activities.

The Cricklewood railway lands represents the primemost opportunity for regeneration in the borough. This is recognised in the Mayor’s London Plan, which identifies Cricklewood as one of North London’s ‘Opportunity Areas’. The regeneration of Cricklewood is one of the key objectives of this UDP (see Part I of this Plan). A significant proportion of Barnet’s employment is also located in industrial sites and business parks across the borough. These provide for a range of accommodation suitable for uses falling within:

• Use class B1 – office/light industry;
• Use class B2 – general industry; and
• Use class B8 – storage and distribution activities.¹

Offices located elsewhere in the borough also provide significant employment. 

National Planning Context

The government’s objectives for the development of industrial and commercial land are set out in Planning Policy Guidance Note 4 – Industrial and Commercial Development (1992). PPG4 states that planning authorities should:

• Ensure that speculative developers, who provide premises suitable for small firms, are allowed to contribute to the expansion of the economy and employment;
• Aim to ensure that there is sufficient land available which is readily capable of development and well served by infrastructure;
• Ensure there is a variety of sites to meet differing needs;
• Include policies for the type of condition or planning obligation that might be imposed or sought in a particular situation;
• Provide positive policies for small businesses;
• Recognise that it may not be appropriate to separate industry and commerce, especially small scale developments, from the residential communities for whom they are a source of employment and services; and
• Not seek unreasonably to restrict commercial and industrial activities of an appropriate scale which would not adversely affect residential amenity.

Planning permission should normally be granted unless there are specific and significant objections, such as a relevant development plan policy, unacceptable noise, smell, safety and health impacts or excessive traffic generation. The fact that an activity differs from the predominant and use in any locality is not sufficient reason in itself for refusing planning permission.

Similarly, PPG4 states that planning authorities should consider carefully whether particular proposals for new development may be incompatible with existing industrial and commercial activities. Incompatibility of uses can cause difficulties for the occupiers both of new and existing development. For example, where residential development is proposed in the vicinity of existing industrial uses, the expectations of the residents may exceed the standards applied by the planning authority and may give rise to pressure to curtail the industrial use.

PPG13 – Transport states that mixed use development can provide very significant benefits in terms of promoting vitality and the diversity of land use, and in promoting walking as a primary mode of travel. Planning policies should produce a broad balance at the strategic level between employment and housing, to minimise the need for long commuting.

Regional Planning Policy Context

One of the six objectives of the London Plan is to make London a more prosperous city, with strong and diverse economic growth. A net increase in jobs in London of 636,000 is predicted to occur between 2001 and 2016, although some sectors such as manufacturing, public administration and utilities are expected to decline. The overall strategy in the London Plan is to encourage development in:

• Opportunity Areas;
• Areas of Intensification; and
• Town centres and other locations well served by public transport.

This spatial strategy is supported by the integration of policies aiming for significant improvements in access, services and sustainability in suburban areas, and the management and promotion of Strategic Employment Locations as reservoirs of London’s industrial capacity.

Section 3B of the London Plan describes the current economic context of the city, compares the supply and demand for office floorspace and their policy implications and includes policies addressing manufacturing, warehouse distribution, ‘growth sectors’ and barriers to employment. The London Plan’s spatial and land use policies are linked to the Mayor’s Economic Development Strategy, prepared by the London Development Agency (LDA), which provides further context and guidance on London’s potential for economic growth.

The demand and supply of offices in London is crucial to future growth in jobs, and although over 75% of office floorspace is found within Central London and East London, some growth is expected in suburban locations. Of all the sub-regions, North London is forecast to have the smallest demand for office floorspace. With only a few exceptions, the stock of buildings in suburban London is losing its attraction as a location for strategically important, office based employment uses. It will therefore be necessary for planning policies to focus on a few types of key location, such as strategic office centres, business parks and town centre office quarters. However, government guidance emphasises mixed use development and therefore employment-generating development should include housing, particularly affordable housing, in order to promote sustainable development.

Whereas manufacturing industry has declined in the UK, London still retains a range of jobs, such as high value-added and design-led manufacturing, that have strong links with the research and information sectors found in London’s universities and medical research establishments. The London Plan refers to Strategic Employment Locations that will be promoted by the LDA, London boroughs and their partners for industrial development. They comprise two types of areas – Preferred Industrial Locations and Industrial Business Parks – the latter being for businesses requiring a high quality of environment.

Wholesale distribution is important in order to store and deliver high value and high volume goods hroughout the region to meet the need for high quality services.

There are a number of emerging sectors that need to be taken into account in planning London’s growth economy. These include ‘e-businesses’, creative concerns and environmental industries, which each place different demands on land and building supply. It is likely that more businesses ill require good access to public transport, information and telecommunications infrastructure and a skilled and flexible workforce. The London Plan aims to improve the balance between people and jobs, and to do this will involve close working between the various agencies dealing with skills and employment, discrimination, health, housing and other aspects of sustainability.

Section 5E of the London Plan sets out the strategic priorities for the North London sub-region that is comprised of the boroughs of Barnet, Enfield, Haringey and Waltham Forest. It notes that economic performance in the sub-region has been varied in recent years, with some strong employment growth, principally in Barnet. The London Plan proposes there should be around 47,000 additional homes and 26,000 new jobs created in North London by 2016, with development focused on the Cricklewood and Brent Cross Opportunity Area (where 5,000 new jobs are indicated) and the two Areas of Intensification at Mill Hill and Colindale (with about 500 jobs likely to be created at each location).

Borough Context

Since 2005, under the new planning system in which the Local Development Framework (LDF) gradually replaces the UDP, the council has been required to produce each year an Annual Monitoring Report (AMR). This document sets out key contextual characteristics, issues, challenges and opportunities facing Barnet. For up-to-date information on employment, business and industry please refer to the AMR.

Barnet’s AMR in 2005 set out the following indicators:

• Amount of Floorspace Developed for Office Use
• Employment Land Available in Barnet
• Amount of Employment Land Lost to Residential Development
• Amount of Completed Office Development
• Amount of Completed Office Development in Town Centres
• Economic Activity in Barnet
• Employment by Occupation
• Job Seekers Allowance Claimants by Age and Duration
• Jobs Density
• Employee Jobs in Barnet
• Employers by Number of Employees
• VAT Registered Business in Barnet
• Industrial and Warehousing Land in North London
• Industrial Land Supply.

An assessment of the future demand for employment land in Barnet has been undertaken on behalf f the council (Assessment of Employment Land Demand in Barnet), which provides a forecast of the demand for land in each of three key economic sectors – manufacturing, warehousing and business services. The findings from the 1999 study predict a fall in demand for manufacturing land, and increases in demand for land for distribution (warehousing), business services and research and development (small business accommodation) uses.

Notes: ^(a) This figure is based on 1997 data.
Source: LBB and Londonomics (1999) Assessment of Employment Land Demand in Barnet

On the basis of this assessment, it is predicted that there will be a fall of 1.47 hectares of manufacturing land by 2015, equivalent to an 8.7% decline from 1994. For distribution, an additional stock of 1.40 hectares of land will be required by 2015, while the space devoted to business services and research and development land will need to increase by 4.25 hectares (equivalent to 34,007m2 of floorspace) by 2015. Business services and R&D normally require small business accommodation, which can be located in office buildings with individual serviced units or in business parks.

Strategy

One of the priorities identified in Barnet’s Community Strategy is to foster an “enterprising” economy. Actions to achieve this objective will include:

• Ensuring through this UDP that there are adequate sites and buildings provided for employment use;
• Progressing the development of the Cricklewood, Brent Cross and West Hendon Regeneration Area; and
• Encouraging a regulated evening economy in appropriate locations.

Employment land in Barnet is a principal source of jobs for the borough’s residents, hosting as it does a range of light industry, general industry, offices, storage businesses and distribution activities. However, the stock of industrial floorspace in the borough is declining, and there is continuing pressure to redevelop industrial land for higher value development. Furthermore, forecasts of future employment land demand in Barnet identify significant increases in the amount of employment land required by the year 2015. Therefore, a key aim of this Plan is to protect employment land from further redevelopment and to consolidate and promote business and industry on these sites.

In terms of the types of industrial uses, the council seeks to encourage those for light industry and office development (use class B1). This will help to meet the increasing demand for small business accommodation in Barnet – by 2015, the expected growth in employment in business services and research and development will result in a predicted increase in floorspace requirements of 34,007m². Due to associated transport requirements, logistics uses of class B8 (transport, storage and distribution) are encouraged in specific locations, such as adjacent to main transport routes and on parts of the Cricklewood railway lands.

The council has identified sites within town centres where offices (use class B1) are encouraged in conjunction with other uses, as part of mixed use schemes (for more information, see the “Town Centres and Retailing” chapter). Where appropriate, the council will encourage B1 use class development as part of mixed use schemes on other sites. Where it can be demonstrated that retention of a site for office use is infeasible in the short, medium or long-term, alternative uses will be considered.

The council’s overall objectives for employment are as follows:

• To safeguard Barnet’s key employment areas from redevelopment or re-use for other activities, and to promote the consolidation of business/industry on such sites.
• To enable the development of premises for small and starter businesses (use class B1) so as to meet the projected increased demand.
• To provide appropriate locations for storage and distribution uses (use class B8).

In order to achieve the objectives outlined above, the council has identified the following strategic policies for employment-related land use in the borough.

• Policy GEMP1
• Policy GEMP2
• Policy GEMP3
• Policy GEMP4
  

Primary Industrial Sites and Business Parks

Table 10.2 provides a list of the Primary Industrial Sites and Business Parks in Barnet, and Map 10.1 shows their locations. Industrial Business Parks are suitable for research and development (use class B1(b)) and light industry (use class B1(c)). This designation can also allow high technology office development. Industrial Estates comprise a mix of light industry, general industry and storage and distribution activities (use classes B1, B2, and B8); Business/Technology Parks are concentrations of offices, research and development and light industry (use classes B1(a), B1(b) and B1(c)).

Retention of Industrial Sites and Business Parks

A key threat to Barnet’s economic base is the high price of land in the borough, which tends to favour retail and residential development. As a consequence, landowners of industrial sites or business parks may wish to take advantage of high land prices by selling their sites for such higher-value development. Various employment-generating sites have already been lost to retail and residential development since 1991, including the former Schweppes factory at The Hyde, and CAV Lucas in Long Lane. Between 1991 and 1999, 64.2% of the total stock of vacant industrial land in the borough was lost to non-employment uses (which amounted to a fall from 41.2 hectares to 15.5 hectares).

Although these trends reflect national changes in employment patterns, away from the manufacturing sector, overall employment in other sectors is growing. Employment growth in distribution (warehousing), and in particular in business services, is projected to take place in Barnet in the future. An assessment of employment land-demand performed on behalf of the council projects that growth in these sectors will result in significant demand for such land up to 2015, and concludes that the overall requirements for industrial land (i.e. including land for manufacturing uses, and for warehousing) will remain the same as now, at approximately 78 hectares. Given that there is currently little vacant employment land in Barnet it is important that the borough’s stock of industrial land is retained.

The council’s assessment also identifies that there will be a considerable increase in demand for small business accommodation – for example in 1998, there were some 14,232 people employed in companies with between one and four employees in Barnet. An increase of 34,007m2 of floorspace will be required to meet the expected rise in demand. While a proportion of this could, in theory, be accommodated within the existing vacant office stock in the borough, in 1999 the council’s Industrial and Commercial Property Register identified only 12,522m2 of vacant office floorspace. Thus there would still be a shortfall in the supply of small business accommodation relative to anticipated needs of some 21,485m2, which strengthens the need to retain all of the borough’s industrial sites, business parks and other employment sites.

A firm and concise policy framework, resisting redevelopment of industrial sites and business parks for non-industrial/business use, is required in Barnet, which is a borough that is over-dependent on he service sector. Such a policy framework will convey a clear message to landowners and developers that redevelopment of the borough’s Primary Industrial Sites, Business Parks and other sites that have a reasonable prospect of productive industrial use, will not be permitted. It will also assist in improving the viability of businesses and industries on these sites. The borough’s Primary Industrial Sites and Business Parks (as listed in Table 10.2) are all considered to be equally important to the local economy, and redevelopment for non-industrial or non-business uses on these sites will not be permitted.

Sites other than the Primary Industrial Sites and Business Parks can provide important services and employment at a sustainable, local level, thereby reducing the need to travel or commute. On such sites, where there is a reasonable prospect of productive use, there will be a similar protection afforded against loss to non-industrial and non-business uses. This protection will apply to slightly less desirable sites that could, or do, provide affordable premises for small firms and growing business sectors. Such a site may be redeveloped or re-used if there is no interest expressed in its use as an industrial site in its current form for a period of at least 18 months, and it has been actively marketed for such re-use or redevelopment, although other relevant considerations detailed in this chapter will also apply. Its partial loss as a contributor of jobs to the local economy can be allowed if the site is developed for mixed use (residential and business), preferably for use by small firms, and with an equivalent amount of floorspace or employment numbers being generated or an improved quality of jobs resulting.

The retention of some employment sites, where activities cause unacceptable nuisance to local residents or cause highway safety problems, might not be ideal. In such cases, the sites should be developed, as a priority, for new business units (policies in the “Town Centre and Retailing” chapter clarify appropriate locations for retail uses) that cause less harm locally.

Employment sites of sufficient size which are generally accepted as being redundant can be developed for housing in part, in order to release capital for the development of modern industrial premises (use class B1). Mixed employment-and-housing schemes are a sustainable form of development, as they reduce the need for people to travel to work. Affordable housing provision (see Policy H5) will apply to the residential component of any such schemes.

Consolidation of Employment Land

The improvement of the competitiveness of the local economy is a key aim of the council, together with the creation of jobs in the local economy which meet local needs. Industrial and business sites in Barnet are a principal source of jobs for the borough’s residents, and host a range of light industry and offices (use class B1), general industry (use class B2) and storage and distribution activities (use class B8). Such sites make an important contribution to the competitiveness of both the local and regional economy. The consolidation and promotion of business and industry on these sites will contribute towards the continued development of a healthy and stable economy in Barnet.

Industrial Business Parks

The North London Business Park is identified in the Mayor of London’s London Plan as an Industrial Business Park, suitable for research and development or ‘hi-tech’ activities and light industry (use classes B1(b) and B1(c)). The site enjoys a high quality environment. General industry (use class B2) and storage and distribution activities (use class B8) would be less suitable on the site because of the potentially detrimental impact they would have on residential amenity and highway conditions. For these reasons, and to support the continued development of a high quality Industrial Business Park, the council considers it necessary that preference should be given to applications for this site for use class B1 developments of high environmental quality. Given the present low accessibility of this site by public transport, it is important that any significant development proposals include measures aimed at minimising the volume of traffic likely to be generated. Policies in the “Movement” chapter, plus Policy 3C.2 of the London Plan, will have particular application. The council has produced a planning brief for NLBP to enable the protection and consolidation of its employment functions and greater flexibility over the mix and type of uses.

Warehousing, Distribution and Freight

Warehousing performs a vital economic function, providing both distribution depots for service-based industries and an important link in the supply chain of manufacturing industries. Barnet’s position on the regional and national transport network makes it an attractive location for warehousing. However, such development often results in high levels of traffic generation and lower levels of employment than other business or industrial developments (e.g. those of use classes B1 or B2). Therefore, the council considers that planning applications for new B8 uses should be limited to locations that have the capacity to deal with the heavy traffic associated with such uses. In order to convey a positive image of the borough, a good quality of design is also necessary where warehousing developments are prominently sited on main through-routes.

The council specifically seeks to encourage the development of rail freight facilities within the borough, to help reduce the need to move goods by road, but also to make the most of the borough’s position on the strategic rail network, and to generate employment. (See the “Movement” chapter.) The council considers that the Cricklewood railway lands are appropriate locations for freight handling.

Offices

Town centres, which have high transport accessibility, are the preferred locations for new office developments as part of mixed use schemes, in line with PPS6. These will make the best use of urban land, encourage high trip-generating uses in areas less reliant on the car for access, and assist in sustaining active and viable town centres. The council has identified sites within town centres where offices (use class B1) are encouraged as part of mixed use schemes (for further details, see the “Town Centres and Retailing” chapter).

The prevailing guidance on the conversion of existing office space to other uses states that development plan policies should:

• Take into account the importance of accommodating future office needs, in terms of both the likely trajectory of future office-market circumstances and the need to maintain a strategic reserve of space;
• Take consideration of the need for a mix of land uses; and
• Make realistic strategic and local assessments of the likelihood of sites being occupied for office use.²

This UDP seeks to retain existing, vacant offices in business use. The council’s assessment of employment land-demand has predicted significant increases in the need for small business accommodation over the period of the UDP. According to the council’s study, an increase of 34,007m2 of floorspace over and above that in use in Barnet will be required by 2015 to meet the predicted increase in demand for small business accommodation, and so the existing office stock in town centres should be retained as a priority for such use (for example, to be used for serviced offices for small firms).

The demand for particular types of office accommodation shifts over time, with changes in the economy. Where it is foreseen that there will be no realistic, productive re-use of office floorspace at a particular site, and it has been actively marketed for 18 months (including as serviced offices with retailing below if in a town centre), the priority for its re-use will be as a mixed use development. This type of development can bring regeneration benefits to a site or area, and help to meet Barnet’s anticipated housing needs. (Further guidance on conversions of premises to residential use is contained in the “Housing” chapter, while guidance on planning obligations is contained in the “Implementation” chapter.)

Small Business

Barnet has the highest level of all the London boroughs of resident population self-employment, while 37% of its workforce are employed by companies with less than 25 employees (Annual Employment Survey 1998). However, a shortage of accommodation for small businesses exists in Barnet and, moreover, a projected increase in demand for such accommodation is forecast to take place during the period of this UDP. The council therefore encourages the development of small business accommodation in the borough.

New Residential Development Adjacent to Industry

Where new housing development is sited adjacent to industrial areas, the council recognises that there is potential for tensions between the two uses. In such an event, the housing developer will be required to incorporate elements, for example, screening and noise attenuation, to mitigate these.

live Work Accommodation

Advances in communications and information technology such as the internet are increasingly enabling people from various sectors of the economy to work from home, thus creating demand for ‘work/home spaces’. Demand for such accommodation is projected to increase significantly over the Plan period as more employees are increasingly able to work from home. In Barnet, there is a particularly strong potential for this kind of property development, owing to the high number of self employed people already living in the borough. As well as meeting a market demand, working from home is more sustainable in terms of reducing the need for people to travel. But particular care will be needed with such development proposals, to prevent the loss of residential amenity.