Jason Rockett is managing director of enterprise parks agency Potter Area
A yr into Labour’s time period, we’ve been reflecting on how their agenda is reshaping the commercial and logistics sector—and what nonetheless must occur.
It’s been a yr of each challenges and cautious optimism. There have been ongoing hurdles, with Nationwide Insurance coverage will increase, tax pressures and chronic funding gaps all making life tough for builders and buyers alike. In Yorkshire, the place industrial house is already in brief provide, these challenges really feel particularly acute.
The planning system stays the only largest barrier to unlocking growth potential throughout the nation; at Potter Area we not too long ago waited almost two years for approval of a scheme of small industrial items on our present and well-established enterprise park. Now we have seen indicators of progress over the previous 12 months that the federal government is listening. The ambition behind the governments planning reform recognises the urgency of accelerating planning selections. Nonetheless, the governments initiatives to unlock planning have to be replicated at an area and regional degree. Authorities must act extra decisively which requires higher useful resource, collaboration with key stakeholders and native politicians having a greater understanding of the planning course of. With out it, we gained’t unlock the event the nation wants. Regional mayors may play a key function in breaking the political impasse, particularly in the event that they work collaboratively to align planning priorities and infrastructure supply.
The present sample is to see small to mid-box industrial hubs disappearing from city centres, typically changed by residential developments.
Whereas we recognize and welcome the necessity for extra housing, the difficulty with that is that for each new residence constructed, there’s a requirement for 109 sq. ft of business land to satisfy infrastructure wants comparable to employment, provide chain and logistics*. This perception emphasises the necessity for coordination throughout residential and business planning.
Energy availability is quick turning into a vital difficulty for industrial builders. With out entry to dependable and reasonably priced vitality, plans for brand spanking new, sustainable websites merely stall. The federal government’s dedication to double onshore wind, triple photo voltaic, quadruple offshore wind by 2030** as a part of the push to a zero‑carbon electrical energy system by 2030, and internet‑zero by mid‑2050, is welcomed not just for the local weather however for controlling prices and nationwide vitality safety. The personal sector stands able to ship, however we want sooner grid upgrades and extra joined-up considering between nationwide schemes and native implementation.
The sectors championed in Labour’s Industrial Technique, like defence, life sciences, clear vitality and superior manufacturing would require prime quality, properly positioned and sustainable industrial property if they’re to drive success for the UK globally. Builders and buyers will goal to reply to this chance however challenges like energy availability and labour shortages have to be addressed strategically and collaboratively. Whereas the I&L sector is recognised within the Industrial Technique, general, it’s underplayed how a lot of an important function it performs because the spine of the UK economic system and chargeable for 7% GVA.***
Trying forward, we’re optimistic that the subsequent section of the commercial technique will embrace a very joined-up method. Coverage readability on Digital Planning Zones, for instance, may unlock sooner regeneration whereas making certain important logistics house can be thought of. Alongside this, Chancellor Rachel Reeves introduced the introduction of the “British Industrial Competitiveness Scheme” from 2027, it will reduce electrical energy prices for 7,000 energy-intensive companies.**** This has been a long-standing ask from the {industry}, so though it’s not instant, it’s nice optimistic progress to see the federal government performing on this.
Finally, we have now a possibility to see our sector flourish and energy sustainable progress with the precise coverage combine. Authorities has an actual probability to form thriving regional economies for years to return and depart a long-lasting impression for the subsequent era. We’re hopeful about what yr two may deliver.
* Potter Area’s BIG Issues in SMALL Containers report 2024
** https://lordslibrary.parliament.uk/renewable-energy-costs/
*** Potter Area’s BIG Issues in SMALL Containers report 2024
