Employment and Economic Development

lm and television studios. EE1 - Employment and Economic Development Strategic Approach to Employment Land 1) The council will seek to facilitate the growth and forecasted change of business development over the plan period by promoting the supply of office and industrial space across the district to meet any identified shortfall. A range of types and sizes of employment sites and premises will be encouraged throughout the district to meet the needs of the local economy. Proposals for business development should be of a high-quality design and in keeping with the surrounding environment. Designated Employment Areas 2) Within designated Employment Areas, as defined on the policies map, the council will support the delivery of additional industrial floorspace and the intensification of office and industrial uses within these locations, subject to there being no unacceptable impact on the surrounding highway network or local amenity. 3) Proposals for non-employment uses on designated employment areas should only be permitted where: a) There would be no unacceptable impact on amenity; b) There would be no hindrance to the site’s operation as a key employment area. 4) Sites allocated as having potential for mixed use development may provide for mixed use development including, but not limited to business, industrial and storage or distribution; residential or community uses. Outside Designated Employment Areas 5) Outside the Designated Employment Areas, office and industrial development will be supported where: a) The type, scale and intensity of the proposed business activity is appropriate to the locality and accessibility of the site; b) The proposed use would not harm the amenity or operation of neighbouring uses. 6) Outside the Designated Employment Areas, the redevelopment of employment land to other uses will be supported where the site has been allocated for an alternative use or where it can be demonstrated that: a) There is no reasonable prospect of the site remaining in employment use; b) Opportunities to reconfigure or reuse the site to retain its current use have been exhausted; c) The site has been actively but unsuccessfully been marketed at a realistic rate for a 12-month period; and where there is up-to-date evidence demonstrating there is no longer a need for the employment use; d) The proposed alternative use would not adversely affect the efficient operation or economic function of other employment uses or businesses in the locality; e) The proposal does not substantially prejudice the overall supply of employment land over the plan period. 7) Proposals for creative industries and the expansion of Leavesden Studios will be supported where they are in accordance with local and national policy. Reasoned Justification: 6.6 The economy of the South West Hertfordshire functional economic market area (Dacorum, Hertsmere, St Albans, Three Rivers and Watford) is highly dependent on professional services as well as construction, retail and hospitality. These sectors provide the gr eatest opportunity for economic growth in the future. Three Rivers specifically has a strong TV and Film sector (at Leavesden Studios and Langleybury) and a high concentration of knowledge-based industries, and growth of these sectors should be encouraged. The significant concentration of small businesses in professional services and ICT suggest a need for flexible and affordable workspace to support the growth of these businesses. 6.7 The influence of surrounding areas on the economy of Three Rivers is significant. This is demonstrated for example by the high levels of out -commuting from the district, reflecting proximity to the London job market and to other larger centres such as Watford and Hemel Hempstead. 6.8 There has been a slight increase in unemployment in the area between 2016 and 2022, although the difference is within the margin of error and remains below the national average. 6.9 The study identified high levels of out -commuting from the district which could limit the labour supply. The growth levels planned for in the Local Plan will provide a boost to the labour supply. 6.10 Three Rivers has a predominantly office -based economy with different market conditions in comparison to the rest of the South West Hertfordshire region. This has meant that while office space vacancies have risen from 2019 to 2023, availability has fallen and remains much lower than other areas. As of July 2023, there was 162,000 sqm of available office space in South West Hertfordshire, of which 124,000 sqm was identified as vacant. There is also a further 36,000 sqm of office space with planning permission in the form of commitments. As such, the Economic Study concludes there is not a need to identify additional sites for office development. In terms of office space need, the Economic Study recommends that in Three Rivers any loss of office space be resisted due to low vacancy rates and increasing labour supply. 6.11 The main employment locations in Three Rivers offer very high -quality office space in large floorplates. This, together with the highly skilled workforce in Three Rivers, has attracted a number of headquarters to the district. The majority of this office floorspace is spread across the existing allocated employment sites which should be retained to ensure that Three Rivers remains an attractive destination for businesses and to keep a check on the existing high levels of out -commuting by Three Rivers’ residents. While there is not a need to identify additional sites for office development, there may still be demand for office space, particularly from smaller sized businesses which should be supported. 6.12 The South West Herts Economic Study (2024) sets out that demand for industrial and storage & distribution space in South-West Hertfordshire is strong, driven mainly by demand for large scale storage & distribution space which increased during the pandemic. The study identifies a need for 413,400 sqm of storage & distribution space between 2021 and 2041. After taking account of the existing employment land supply, the study considered two employment land scenarios. In Scenario 1, there is no need to identify additional employment sites over the 2021-41 period. In Scenario 2 (which is the preferred option), there is a shortfall of 9.5 hectares across South - West Hertfordshire. There are no local need figures identified for individual authorities and the study f ound that there are no suitable sites identified in Three Rivers to address that shortfall. 6.13 A non -immediate Article 4 Direction was confirmed in March 2024 to remove permitted development rights regarding the change of use from class E use (commercial, business and service uses) to C3 use (dwellinghouses) on the five employment areas (Croxley Business Park, Maple Cross/ Maple Lodge Employment Area, Tolpits Lane Employment Area, Kings Langley Employment Area and Leavesden Park Employment Area) and four town/district centre locations (Rickmansworth Town Centre, Chorleywood District Centre, Abbots Langley District Centre and South Oxhey District Centre). 6.14 Three Rivers is the home of Leavesden Studios which is a key asset for the district and the wider South West Hertfordshire area. As such, it is key to the growth of creative industries across the functional economic market area. There is still significant growth potential at the site and there will likely be a significant growth in demand for studio space over the next 15 years. The South West Herts Economic Study (2024) recommended that land should be safeguarded for the expansion of Leavesden Studios and in particular support applications for studio space up to a maximum size, support new industrial developments or changes of use where they are linked to film and TV production and look favourably and act quickly on applications for new set builds. Retail 6.15 Centres within Three Rivers play an important role in supporting local communities by providing for day to day needs and contributing to the economy of the district. There is competition between centres and with larger nearby town centres at Watford, Hemel Hempstea