Affordable Employment Space

Affordable Employment Space This policy applies to development proposals that deliver 1,000 sqm or more of gross employment floorspace, including major mixed-use developments incorporating employment uses. A. Requirement Development proposals will be required to provide affordable workspace as part of the overall employment floorspace of at least 10% of the overall gross floorspace. Affordable workspace should be provided at rents at least 20% below average rents based on recent market analysis and at rates that are genuinely accessible to local businesses, having regard to local evidence of need, the type and size of workspace proposed, and the overall viability of the scheme. Affordable workspace must be secured through planning obligations in perpetuity, unless otherwise agreed by the Local Planning Authority. B. On-Site Provision Affordable workspace should be provided on site as an integral component of the development. On-site provision should be designed, located and managed to ensure that it is fit for purpose, commercially functional and capable of meeting the needs of its intended occupiers, without undermining the operational effectiveness of the wider development. Where it is demonstrated that on-site provision of affordable workspace is not feasible due to site-specific constraints, operational requirements or viability considerations, the Local Planning Authority may accept equivalent off-site provision or a financial contribution in lieu. C. Review mechanism for Exceptional Circumstances Where a proposal does not provide onsite affordable workspace or an equivalent off- site contribution, this must be justified by a robust and transparent viability assessment. The Local Planning Authority may require the inclusion of review mechanisms within planning obligations to enable additional affordable workspace provision or financial contributions to be secured where development viability improves over time. Policy Justification 4.2.7 The purpose of this policy is to support a diverse, resilient and inclusive local economy by securing the provision of affordable workspace within commercial and mixed-use developments. The policy seeks to ensure that new development contributes to meeting the needs of small and medium-sized enterprises, start-ups, creative industries and social enterprises, where such provision is viable (which could include rural locations). 4.2.8 The evidence for this policy is the South Warwickshire Affordable Business Study (2026) which assesses the delivery, demand, and policy framework for affordable business space across Warwick and Stratford-on-Avon Districts. 4.2.9 The study examines issues affecting the supply of affordable premises, identifies gaps in provision, and sets out potential policy responses to support business growth and retention, in accordance with the NPPF para 85 which requires planning policies create the conditions in which business can invest, expand and adapt with significant weight placed on economic growth and productivity. 4.2.10 The study identifies that over 80% of firms in South Warwickshire are micro- businesses (fewer than 10 employees), with figures indicating a strong presence of small, start-up and early-stage enterprises operating on tight margins. 4.2.11 These businesses are the most sensitive to increases in property costs and most reliant on access to affordable and flexible workspace. The area’s business ecosystem is therefore heavily dependent on the continued availability of lower-cost, adaptable premises suitable for SMEs (small medium enterprises) and entrepreneurs. 4.2.12 In consultation with stakeholders SMEs stated suitable “move-on” space is limited and available stock is often priced beyond reach with office occupiers reporting a shortage of high-quality modern workspace, particularly for digital, creative and tech sectors. 4.2.13 The study identified key challenges to South Warwickshire to be: • Constrained supply of quality office and industrial stock • Affordability pressures for SMEs and start-ups • Limited new development due to viability constraints 4.2.14 The purpose of this policy based upon the recommendations of the South Warwickshire Affordable Business Study (2026) is to provide affordable workspaces in a manner that is flexible and viable without imposing blanket discounted rents that may in turn reduce delivery of new space. In combination with other policies within the SWLP which focus on regenerating town centre stock and safeguarding existing employment space, this Policy will help to build a strong, competitive economy for South Warwickshire. 4.2.15 Work undertaken by Aspinall Verdi tested the viability of a number of large-scale industrial employment sites across South Warwickshire, and the potential for these sites to deliver 10% affordable workspace at 60% market rents. 10% is considered to