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Employment Paper

Cambridge South ConsortiumIssues and Options 2 – Joint Consultation on Development Strategy andSite Options on the Edge of CambridgeFebruary 2013

Cambridge South ConsortiumIssues and Options 2 – Joint Consultation on Development StrategyFebruary 2013

Quality Assurance

Site name: Issues and Options 2 – Joint Consultation on Development Strategy andSite Options on the Edge of Cambridge

Client name: Cambridge South Consortium

Type of report: Employment Paper

Prepared by: Karen Beech BSc (Hons) MSc MRTPI

Signed

Date 18 February 2013

Reviewed by: Neil Waterson BA (Hons) DipTP MRTPI AIEMA

Signed

Date 18 February 2013


Table of Contents

Executive Summary ................................................................................................................................... 1

1 Introduction ........................................................................................................................................ 2

Purpose of the Report ........................................................................................................................ 2

Background to the Proposals.............................................................................................................. 2

Structure of the Report ....................................................................................................................... 3

2 Contextual Considerations ................................................................................................................. 4

Importance of Cambridge to the UK Economy .................................................................................... 4

3 Employment Growth ........................................................................................................................... 7

Introduction ........................................................................................................................................ 7

Cambridge City Historic Growth and Demographic Change ................................................................ 7

Cambridge City Economic Projections ................................................................................................ 7

Cambridge City Employment Growth ................................................................................................ 10

Cambridge City Employment Land Supply ........................................................................................ 12

South Cambridgeshire Historic Jobs Growth and Demographic Trends ............................................ 15

South Cambridgeshire Economic Projections ................................................................................... 16

South Cambridgeshire Employment Target Options ......................................................................... 18

South Cambridgeshire Meeting Employment Needs ......................................................................... 19

South Cambridgeshire Employment Land Supply ............................................................................. 21

Conclusions ..................................................................................................................................... 26

4 Conclusions ..................................................................................................................................... 29


1

Executive Summary

The Greater Cambridge area is widely seen as an economic success story and is identified as one of the

places most likely to lead the UK back to growth.

The NPPF emphasises the importance of supporting growth and economic development and requires local

planning authorities to 'proactively drive and support' sustainable economic development to deliver the

homes, business and industrial units, infrastructure and thriving local places that the country needs.

It is vital that the policies within the Local Plans seek to positively facilitate job growth within Cambridge

City and South Cambridgeshire as far as possible given the strategic importance that the local economy

has to the UK's future economic prospects in seeking to lead the Country back to growth.

The Councils should seek to adopt an aspirational, high growth target which provides the greatest prospect

of the local economy fulfilling its significant potential as a globally significant high-tech cluster.

The current evidence in relation to future jobs growth projections suggests that the various higher growth

scenarios would result in between 19,000 and 22,000 new jobs in Cambridge and around 30,000 jobs in

South Cambridgeshire. Of the various employment growth scenarios it is therefore considered that the

High Growth Options (20,000 jobs in Cambridge and 29,200 jobs in South Cambridgeshire) are the most

appropriate.

However, since certain growth scenarios suggest potential for higher levels of job growth the Councils

should not seek to unduly limit employment growth to this level given the strategic importance of the local

economy. These figures should therefore be regarded as a minimum target with appropriate flexibility

provided through the allocation of a range of suitable employment sites to meet a range of potential needs

in line with the NPPF requirements.


2

1 Introduction

Purpose of the Report

1.1 This Employment Paper has been produced by Bidwells, on behalf of the Cambridge South

Consortium, to support their submission in response to the Issues and Options 2, Part 1 – Joint

Consultation on Development Strategy and Site Options on the Edge of Cambridge. The

Consortium are currently promoting a proposal through the Cambridge City and South

Cambridgeshire District Local Plans for a large employment-led, mixed use urban extension on

land to the south of the Addenbrooke's Access Road, east of Hauxton Road and west of Shelford

Road, Cambridge, known as Cambridge South (Broad Location 5).

1.2 This Report provides a critical analysis of Cambridge City Council's (CCC) and South

Cambridgeshire District Council's (SCDC) current evidence base in relation to employment needs.

It seeks to examine the various forecasts and assess the adequacy of these in calculating

employment needs for each of the Districts during the Plan period to 2031. It also seeks to

examine the way that the Councils have interpreted the forecasts and background evidence in

developing options for consultation and whether the options adequately respond to the assessment

carried out by the Councils.

Background to the Proposals

1.3 The draft conceptual proposals for the Cambridge South site envisage the development of an

employment-led mixed use new neighbourhood on the land. The proposal will comprise;

Approximately 45 hectares of office/research and employment development (science

park);

Around 1,250 market, affordable and key worker dwellings;

Retail hub and community facilities;

New primary school;

Public open space;

Strategic landscaping;

Highways and other supporting infrastructure.

1.4 The site straddles Cambridge City and South Cambridgeshire District Council boundaries. It

currently falls within the Cambridge Green Belt and would require revisions to the Green Belt

boundary to facilitate the development. It is envisaged that the site would help to meet both

Councils’ future housing and employment land supply requirements for the period up to 2031.


3

Structure of the Report

1.5 This Report is structured as follows:

Section 2 considers the strategic importance of the Greater Cambridge economy;

Section 3 considers job growth projections and future requirements and the extent to which

these are reflected in the growth options contained in the consultation document;

Section 4 provides conclusions in relation to these issues.


4

2 Contextual Considerations

Importance of Cambridge to the UK Economy

2.1 The Greater Cambridge area is widely seen as an economic success story both in the context of

the UK Economy and also in terms of its international significance. Over the last 50 years it has

increasingly developed into a strong, diverse and dynamic economy that is at the forefront of the

Knowledge Economy with one of the world's most advanced and concentrated technology clusters.

2.2 The economic success associated with the Cambridge Phenomenon has resulted from Cambridge

benefiting from a unique mix of characteristics including:

The presence of successful, highly regarded Universities acting as a source of leading

academic research and learning and providing a world class pool of academic talent;

The presence of world class research institutions at the forefront of scientific innovation;

The presence of a strong mix of innovative companies;

The presence of angel investors keen to invest seed-capital funding and promote high-

technology business start-ups;

The growing presence of a network of support for entrepreneurship and innovation;

The availability of science parks promoting high technology clusters;

An attractive environment providing a good quality of life.

2.3 The foundation of the area's success is Cambridge University which is consistently ranked among

the top five universities in the world. The University's outstanding international reputation and track

record for scientific research and innovation over hundreds of years is underlined by the fact that

the University has had 88 Nobel prize winners amongst its affiliates, more than any other university

in the world, with laureates in every Nobel category.

2.4 The University is also one of the largest employers in the East of England directly employing over

11,700 people in 2004 and a further 65,000 indirectly. According to the 2004 report 'The Impact of

the University of Cambridge on the UK Economy and Society' the University directly and indirectly

contributes over £25bn to the economy.

2.5 Cambridge University, along with Anglia Ruskin University, also provide a large pool of academic

talent and highly skilled labour. Between them they have over 30,000 students including 10,000

post-graduate students from around the world at any one time. Partly as a result, both South

Cambridgeshire and Cambridge City have one of the highest skilled workforces of any area in the

Country with over 40% of the working age population being educated to NVQ Level 4 or above.


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2.6 The area also benefits from leading, internationally respected research institutions such as The

Babraham Institute, The Sanger Institute (Wellcome Trust), the Cambridge Research Institute and

the Cambridge Institute for Medical Research. This, in turn, has attracted a number of global

organisations such as Nokia, Microsoft and Toshiba to establish research and development

facilities in close proximity to the University and the research institutions.

2.7 As a result of the combined strength of its Universities, research institutions and the growing

cluster of high-technology enterprises, the Greater Cambridge Economy has grown in significance

over the last 30 years and Cambridge has now become one of the UK's most successful cities and

an important asset for the UK Economy attracting investment in knowledge intensive industries that

otherwise might not come to the UK at all. Cambridge University is now looking to grow its post-

graduate activity, which will further fuel the Cambridge Phenomenon.

2.8 The City and surrounding area perform strongly in relation to a range of economic indicators. The

Greater Cambridge area now hosts approximately 27,500 businesses employing more than

700,000 people, contributing £15 billion to the economy and attracting over 20% of the venture

capital in the UK . The most recent research by CCCRG suggests that there are now in the region

of 1,500 technology firms within the City alone, employing around 48,000 people. These include a

number of high-tech firms of global significance, including:

ARM - leading designers and licensers of semi-conductor microchips, employing over

2,000 people worldwide with Headquarters in Cambridge employing 850 people;

Autonomy – specialising in IT infrastructure software it was recently sold to Hewlett

Packard for £7.1 billion;

Cambridge Silicon Radio – specialising in the development of wireless technology, it had a

turnover in 2009 of £400m and employed 1,400 people worldwide with its Headquarters

based in Cambridge;

Domino – specialising in inkjet printing it employs 2,000 people worldwide and had a

turnover in 2009 in excess of £200m.

2.9 A number of these have been founded on links with the University either as direct spin-outs or

having been started by Cambridge alumni.

2.10 As a result of its dynamic high-technology focussed economy, the Greater Cambridge area has

been identified one of the places most likely to lead the UK back to growth.

2.11 Yet whilst the area currently performs well in terms of its competitiveness, there are many threats

and challenges facing the area's economy which suggest that the continued success of its


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economy cannot be taken for granted. The Cambridge hi-tech cluster and the hi-tech businesses

within it operate within an international context and are increasingly having to compete with a

growing number of hi-tech clusters globally. These include both the traditional clusters such as

Silicon Valley in California and Boston, along with new, emerging clusters in developing

economies, particularly in China and other parts of Asia. Many of these competing clusters enjoy

distinct competitive advantages in comparison to Cambridge with many enjoying state support,

more favourable legislation and policy frameworks and, in a number of cases, cheaper labour.

2.12 As a result, hi-technology businesses within the Cambridge cluster must compete with these other

global clusters for business and investment as well as the talented workers to help to drive

business success in the first place.

2.13 The continued competitiveness of the Cambridge hi-tech cluster is particularly important since the

Coalition Government expects the development of the Knowledge Economy to play an increasingly

key role in helping to diversify the UK Economy and lead the UK back towards economic growth.

The important role of the Knowledge Economy in this regard is set out clearly within the

Government's Plan for Growth published in March 2011 which highlights the need to encourage

growth in knowledge-intensive sectors such as healthcare and life sciences, advanced

manufacturing, digital and creative industries and professional and business services.

2.14 The significance of the Knowledge Economy to the UK's ongoing economic prospects and global

competitiveness is highlighted by The Work Foundation in its report 'A Plan for Growth in The

Knowledge Economy' in June 2011. The report highlights the contribution of the Knowledge

Industries to UK GDP growth and growth in GVA over the last 40 years and emphasises the extent

to which the sector has significantly outperformed other sectors of the economy in this regard.

Between 1987 and 2006, the value of the UK's knowledge based service exports grew from less

that £13billion to just under £90billion whilst employment in knowledge-intensive market based

services increased by 93 per cent between 1979 and 2010 compared to 13% across all sectors.

2.15 It is therefore clear that, given the continued and growing importance of the Knowledge Economy

to the UK's future economic prospects in the 21st Century and given the importance of the Greater

Cambridge economy and associated hi-tech cluster to the UK Knowledge Economy, it is essential

that appropriate plans and policies are put in place to facilitate the sustainable growth of the

Cambridge economy. Whilst this clearly needs to be managed in an effective manner such that the

quality of the area's historic and natural environments are maintained, it is nonetheless essential to

the UK's national economic interests that the local authorities and their strategic partners within the

area develop appropriate policies to deliver sustainable development in the Cambridge area.


7

3 Employment Growth

Introduction

3.1 This Section considers the potential job growth requirements for Cambridge City and South

Cambridgeshire in more detail.

Cambridge City Historic Growth and Demographic Change

3.2 In order to inform the consideration of projections of future population, household and employment

growth it is first beneficial to consider the historic context. Table 3.1 below sets out population,

household and employment change in the City since 1991.

Table 3.1: Historic Growth Patterns in Cambridge

Population Households Dwellings ResidentWorkforce

Total Jobs

1991 106,000 39,600 41,700 41,860 84,200

2001 109,900 42,700 44,500 49,200 95,500

2011 121,300 48,500 49,300 54,800 95,900

Change 1991-2001 3,900

(3.7%)

3,100

(7.8%)

2,800

(6.7%)

7,340

(17.5%)

11,300

(13.4%)

Change 2001-2011 11,400

(10.4%)

5,800

(13.6%)

4,800

(10.8%)

5,600

(11.4%)

400

(0.4%)

Change 1991-2011 15,300

(14.4%)

8,900

(22.5%)

7,600

(18.2%)

12,940

(30.9%)

11,700

(13.9%)

3.3 It is evident from the Table above that Cambridge experienced jobs growth of 13.9% between 1991

and 2011 with numbers increasing from 84,200 to 95,900.

Cambridge City Economic Projections

3.4 As part of their consideration of future job growth requirements for the City to 2031, Cambridge City

Council has had regard to various economic forecasts for the Plan period. The two main economic

forecasting models which have been considered are:

East of England Forecasting Model produced by Oxford Economics;

Cambridge Econometrics Forecasting Model.

3.5 As part of the forecasting models, a range of scenarios have been tested, particularly with regard

to the Cambridge Econometrics Model. A summary of the findings of the two models is produced


8

in the Table below including figures for both Cambridge and South Cambridgeshire since some of

the City's main employment sites (e.g. Cambridge Science Park) fall within South Cambridgeshire.

Table 3.2: Comparison of Employment Growth Projections 2009-2031

2001 2011 2021 2031 2011-2031

Cambridge

EEFM 2012 Lost Decade 95,500 95,900 105,400 112,500 16,600

EEFM 2012 Baseline 95,500 95,900 111,300 118,000 22,100

EEFM 2012 High Growth 95,500 95,900 113,700 123,000 27,100

CE Low 98,490 102,720 106,100 111,880 9,160

CE Baseline 98,490 102,720 108,500 117,460 14,740

CE Population-led 98,490 102,720 115,400 122,270 19,550

CE High 98,490 102,720 110,700 122,410 19,690

South Cambridgeshire

EEFM 2012 Lost Decade 68,200 83,100 90,900 99,900 16,800

EEFM 2012 Baseline 68,200 83,100 98,400 107,900 24,800

EEFM 2012 High Growth 68,200 83,100 101,300 114,400 31,300

CE Low 68,080 81,200 88,400 95,200 14,000

CE Baseline 68,080 81,200 91,300 103,500 22,300


CE High 68,080 81,200 94,000 110,400 29,200

Cambridge & South Cambridgeshire

EEFM 2012 Lost Decade 163,700 174,200 196,300 205,300 33,400

EEFM 2012 Baseline 163,700 174,200 209,700 225,900 51,700

EEFM 2012 High Growth 163,700 174,200 215,000 237,400 58,400

CE Low 166,570 183,920 194,500 207,080 23,160

CE Baseline 166,570 183,920 199,800 220,960 37,040


CE High 166,570 183,920 204,700 232,800 48,880

3.6 The job growth forecasts for Cambridge for the period between 2011 and 2031 range from

approximately 9,160 jobs (458 per annum) to 22,100 jobs (1,105 per annum) between the various

forecasts, a difference of approximately 13,000 jobs. In order to provide a more robust evidence


9

base in this regard, further economic forecasting should be undertaken in order to provide further

sensitivity testing of potential economic growth scenarios and their implications. Nonetheless, it is

evident that the Council's highest option in relation to employment targets of 20,000 new jobs is

below the highest potential jobs growth scenario.

3.7 Whilst the assumptions about future job growth over the next few years may be open to question in

view of the on-going economic difficulties, it is, however, important that policies seek to positively

facilitate job growth within the Greater Cambridge Area as far as possible given the strategic

importance that the local economy has in seeking to lead the UK back to growth. Consequently, in

considering the results of these models and the various scenarios tested in order to establish

appropriate job growth targets for the Plan period, the Council should seek to adopt an aspirational

target which provides the greatest prospect of the local economy fulfilling its significant potential as

a globally significant high-tech cluster. Such an approach is essential to enable the local economy

to effectively compete against other global clusters and thereby help to lead the UK economy back

to growth, recognising its national importance.

3.8 This is particularly important given that the NPPF emphasises the need for the planning system to

help build a strong competitive economy which secures economic growth, creates jobs and

prosperity in a manner which builds on the Country's inherent strengths and responds to global

competition. In particular, the NPPF's requirement for Local Planning Authorities states they should

plan proactively to meet the development needs of businesses and support the economy and

encourage sustainable economic growth. This needs to be given considerable weight in developing

an appropriate job growth strategy as part of the Local Plan. Indeed, the NPPF specifically

highlights the need to plan positively for the location, promotion and expansion of clusters in

knowledge-driven high technology industries.

3.9 Moreover, it is also important to bear ion mind that the various employment projections are based

on differing assessments of job growth within the City over the previous ten years since 2001. This

is because in the absence of any 2011 Census data the projections are based on 2001 Census

data and subsequent estimates of job growth in the intervening period. In this regard, there are

disparities between the various assessments of employment change over this period depending

upon whether consideration is given to Annual Business Inquiry (ABI) or Annual Population Survey

(APS) data.

3.10 This is particularly important given that some of these measures suggest that job growth during the

previous ten years has been very limited. To some extent, this reflects the reduction in employment

between 2007 and 2010 as a result of the recession, wiping out earlier gains between 2001 and

2007. Nonetheless, we consider that these figures should be treated with significant caution given


10

that, for instance, they suggest that employment growth across many high technology sectors has

actually shrunk and will continue to shrink up to 2031 which would not seem to correlate with actual

evidence on the ground.

3.11 Furthermore, one of the concerns with the estimates of population growth since 2001 and indeed,

future employment growth, is that the figures are blurred and distorted by the boundaries between

Cambridge City and South Cambridgeshire and the fact that a number of key employment sites

serving the City such as the Science Park, actually lie within South Cambridgeshire. It is for this

reason that we consider that trends in employment growth need to be considered across the two

districts and that projections for future employment growth for the City (and indeed South

Cambridgeshire) need to have close regard to one another.

3.12 Of the various employment growth scenarios considered by Cambridge City Council, we consider

that scenarios A (EEFM 2012), E (Cambridge Econometrics Population-Projection-led) and G, the

Cambridge Econometrics Population High Forecast should be given the most weight in light of the

considerations highlighted above. This is particularly the case given the concerns highlighted

above with regard to the potential underestimate of job growth over the Plan period between 2001

and 2011. Moreover, we consider this to be more in-line with historic job growth trends between

1981 and 2001. This is also in-line with previous targets of 20,000 jobs or 1,000 jobs per year over

the Plan period between 2011 and 2031 established within the draft review of the East of England

Plan however, given the aspirational nature of the former growth targets, we consider that this

should be regarded as a minimum level of employment provision

Cambridge City Employment Growth

3.13 We will now seek to review the high growth job scenarios in more detail and the associated

variations between different industrial sectors in order to establish whether any further conclusions

can be drawn with regard to the potential nature of future job growth and its implications for

employment land supply.

3.14 In determining the nature and extent of future commercial floor space and employment land

requirements it is first necessary to look at the employment forecasts in more detail in order to

establish the forecast changes within the different employment sectors. The EEFM 2012 high

growth scenario provides employment forecasts for the period from 2011 to 2031 in relation to

each of the 41 Standard Industrial Classification (SIC) codes. These are set out within Table 3.3

below.


11

Table 3.3: EEFM Employment forecasts for Cambridge City 2001 to 2031

Sector 2001 2011 2021 2031 2011-31

Agriculture 0.1 0.1 0.1 0.1 0.0

Mining & Quarrying 0.0 0.0 0.0 0.0 0.0

Food Manufacturing 0.2 0.1 0.1 0.1 0.0

General Manufacturing 2.5 0.5 0.4 0.3 -0.2

Chemicals 1.3 0.1 0.1 0.1 0.0

Pharmaceuticals 0.7 0.5 0.3 0.2 -0.2

Metals 0.2 0.2 0.2 0.1 -0.1

Transport 0.1 0.1 0.1 0.1 0.0

Electronics 1.4 1.5 1.1 0.8 -0.7

Utilities 0.2 0.2 0.2 0.2 0.0

Waste & Remediation 0.2 0.4 0.3 0.3 -0.1

Construction 2.6 2.1 2.5 2.7 0.6

Wholesale 3.6 2.3 1.6 0.9 -1.4

Retailing 8.3 9.3 11.1 11.2 1.9

Land Transport 2.2 2.0 2.3 2.4 0.4

Water and Air Transport 0.0 0.0 0.0 0.0 0.0

Hotels & Restaurants 5.7 5.5 6.5 6.6 1.6

Publishing & Broadcasting 2.6 2.2 2.3 2.3 0.1

Telecoms 1.0 0.8 0.9 0.9 0.1

Computing 3.3 3.9 5.3 6.4 2.5

Banking & Finance 2.8 1.3 1.1 0.8 -0.5

Real Estate 0.9 1.5 2.1 2.4 0.9

Professional Services 7.2 8.6 12.4 14.3 5.7

R&D 3.5 3.7 4.2 4.2 0.5

Business Services 3.4 3.6 5.0 5.5 1.9

Employment Activities 1.7 2.7 3.8 4.2 1.5

Pubic Admin & Defence 3.9 2.7 2.5 2.5 -0.2

Education 22.0 23.3 24.9 26.8 3.5

Health & Social Work 10.1 13.2 15.4 16.8 3.6

Arts & Entertainment 1.6 1.9 2.5 2.7 0.8

Misc. Services 2.1 2.1 2.3 2.3 0.2

TOTAL 95.5 95.9 111.3 118 22.1

NB: EEFM baseline forecast. All Figs in '000s

3.15 It is evident from the above table that the main sectors of growth are likely to be in education,

professional services and computing services. In addition, there is also forecast to be significant


12

growth in health and social work (reflecting the likely growth associated with the Addenbrooke's

20:20 Vision), along with other business services, employment activities, retail and the hotels and

restaurants sectors.

3.16 Conversely, these forecasts suggest that there is likely to be further contraction in the more

traditional economic sectors such as agriculture, manufacturing and other production related

industries.

3.17 In general terms, these forecasts therefore suggest that there will be a growing need for significant

further office and R&D floor space over the Plan period to 2031 since the key sectors of likely

growth, professional, business and computing services, would all operate from office and R&D floor

space. In total these service related sectors are forecast to create at least 13,000 net additional

jobs alone. In this context, we consider below the extent and nature of office and R&D floor space

availability both in terms of existing provision and also having regard to future commitments and

pipeline supply within the Greater Cambridge area.

Cambridge City Employment Land Supply

3.18 There are currently a significant number of undeveloped employment land commitments in the

Cambridge area, either with planning permission or that are allocated within the Cambridge Local

Plan. However, it is essential that employment land commitments within the development plans

are appropriate in terms of their scale, nature and location with current levels of demand likely to

be sustained or even increased.

3.19 The location of new employment development is a critical factor since location is a fundamental

consideration for businesses. In this regard, there is clear market evidence to show that the

majority of office and R&D occupiers want commercial accommodation in locations in or close to

Cambridge. Such locations ensure that they accessible for employees such as those graduating

from the University and other young professionals whilst also ensuring good access to London.

Such companies also wish to be located in close proximity to other like-minded companies helping

to maximise business development opportunities.

3.20 There are currently a large number of office and R&D business parks around the wider Sub-region

that are remote from and have poor accessibility to Cambridge. As a result, these outlying business

parks have struggled to attract R&D and related companies as they are deemed too remote for the

University graduate population and other young professionals and/or have poor access to London.

3.21 To continue to attract these global companies, it is essential that appropriate land in close proximity

to Cambridge is allocated for future employment opportunities. This is also required to keep

existing companies in Cambridge giving them the possibility of expansion close to their existing


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premises. This must encompass a range of uses from pure office to laboratories to hybrid

buildings where all of these functions can be accommodated together with manufacturing and

distribution. The manufacturing and distribution elements can however afford to be slightly further

from Cambridge.

3.22 Bidwells research suggests that average annual take up in the Greater Cambridge office and

laboratory markets stands at circa 53,000 sq m (570,000 sq ft) over the last 10 years approximately

30% of which has been in Cambridge itself. In addition, there has been approximately 23,000 sq m

(250,000 sq ft) of industrial take up per annum over this period. In comparison, supply levels for

office, R&D and industrial space have fallen to very low levels and in all three sectors there is very

little Grade A accommodation remaining in the right locations. This is causing increasing concern

to companies seeking significant levels of business space. There are concerns that there is likely to

be significant shortages of suitable commercial accommodation in Cambridge area in due course

unless significant additional land allocations are made in commercially desirable locations.

3.23 As a result of these growing shortages, this is likely to lead to occupiers either remaining in poorer

quality accommodation, which ultimately could restrict their growth potential or they will take

surplus space that is on the market on a short term basis while looking at potential pre-let

opportunities that are in close proximity to Cambridge.

3.24 Assuming combined take-up levels for office and R&D business space of circa 53,000 sq m

(570,000 sq ft) continue (which Bidwells consider will be sustained and may even increase in the

coming years as the economic recovery gathers pace), the remaining good quality and well located

existing stock would be eradicated in the next few years. There is already evidence of this in the

office and industrial markets. The average take up of 53,000 sq m of office and R&D / laboratory

space per annum represents circa 13 hectares of land per annum, at average build densities of

4,000 sq m per hectare. Whilst demand is currently focussing on the existing available

accommodation, it will shortly focus on the land that can deliver the accommodation in the

preferred locations.

3.25 Table 3.4 below sets out the various B1a / B1b employment land commitments within Cambridge

based on Development Plan and other commitments listed within the Council’s 2008 Employment

Land Review. These have been updated to reflect current circumstances (April 2012) based on

Bidwells market knowledge. Whilst on the face of it, there would appear to be a pipeline supply of

201,948 sq m of B1a and B1b floor space in the City alone (equivalent to circa 11 years supply)

there are issues with a number of these allocations which suggest that this is a misleading indicator

of deliverable supply.


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Table 3.4: Employment Land Commitments in Cambridge

Site B1(a) Floorspace (sq

m)

B1(b) Floorspace (sq

m)

Comments

CB1 18,500 (net) 0 7.757 sq m Pre-let to Microsoft

Academy House 3,902 0

Botanic House 3,600 0 Pre-let to Mills & Reeve

West Cambridge 0 40,320 Occupiers restricted to commercial research and

research institutions.

Cambridge Biomedical

Campus

0 95,626 Restricted to biomedical and biotechnology

research and development.

North West Cambridge 0 40,000 Occupiers to be restricted to commercial research.

Total 22,402 175,946

3.26 However, as can be seen above, some of the pipeline supply of employment floor space already

pre-let and therefore no longer available to the market. As such, the total pipeline supply of

deliverable and available B1a/b employment sites in the City is 190,591 sq m.

3.27 Moreover, this lack of land is further pressurised as the vast majority of the remaining space is

highly constrained in terms of the nature of the activity and/or user. Of the remaining available

space in or around Cambridge, approximately 146,000 sq m (77%) is on the University sites at

West and North West Cambridge or at the Cambridge Biomedical Campus where there are

restrictions on the nature of the uses and the occupants imposed both through the planning

restrictions and other restrictions imposed by the owners.

3.28 The Cambridge Biomedical Campus has a very strict user requirement, being restricted to

biomedical and biotechnology uses by the outline planning permission. Additionally, approval is

required from Addenbrooke's for any proposed occupants. This therefore significantly limits the

number of companies that can consider the campus as a potential location.

3.29 Both the West Cambridge and the North West Cambridge sites are owned and managed by

Cambridge University. Cambridge University imposes its own strict user requirements on

companies wishing to locate to the site. As a result of the University's approach to the development

of the sites, the campus is ultimately likely to be mainly restricted to commercial research

companies and organisations with very close associations with the University. Therefore the West


15

Cambridge Campus will not be suitable for the majority of companies looking at locating in the

Cambridge area.

3.30 These restrictions place further pressures on the lack of land and premises available for

commercial R&D and related companies. In this regard, out of the 190,000 sq m pipeline supply of

Grade A B1a/B1b floor space premises and commitments, only circa 22,500 sq m could potentially

be available to the open market on a pre-let type basis.

South Cambridgeshire Historic Jobs Growth and Demographic Trends

3.31 In order to inform the consideration of projections of future population and employment growth it is

first beneficial to consider the historic context. Table 3.5 below sets out population and

employment change in the District since 1991.

Table 3.5: Historic Growth Patterns in South Cambridgeshire, 1991-2011

Population Resident Workforce Total Jobs

1991 121,900 77,000 52,800

2001 130,600 81,800 68,200

2011 148,800 89,100 83,100

Change 1991-2001 8,700

(7.1%)

4,800

(6.2%)

15,400

(29.2%)

Change 2001-2011 18,200

(13.9%)

7,300

(8.9%)

14,900

(22%)

Change 1991-2011 26,900

(22.1%)

12,100

(15.7%)

30,300

(57.4%)

3.32 It is evident from the Table above that the District has seen significant jobs growth over the last 20

years despite this period including two recessions (1991-92 and 2008-09). Jobs growth over the

period has exceeded both the District growth in the population and the District growth in the labour

force with growth of approximately 1,600 jobs per year over the last 20 years. As a result, the

previous imbalance between housing and employment in the District has been largely redressed

and there now appears to be a more sustainable balance between homes and jobs within the

District.

3.33 Whilst there have clearly been fluctuations in job growth over the last 20 years, particularly during

the 2008-09 recession, it is worth noting that the South Cambridgeshire economy still managed to

add 4,000 new jobs over the last four years, equivalent to 1,000 jobs per annum. This level of job


16

creation has comfortably exceeded the more pessimistic expectations within the Cambridgeshire

Development Study of 2009, reflecting the relative resilience and dynamism of the local economy

and the fact that this is driven by globally facing companies at the forefront of science and

innovation.

3.34 In considering appropriate job growth targets for the future it is also instructive to consider previous

employment targets. These are summarised in the table below.

Table 3.6: Summary of Historic Job Growth Targets

Development Plan PlanPeriod

TotalRequirement

AnnualRequirement

Comments

2003 Cambridgeshire

Structure Plan1999-2016 No job-growth

targetN/A Provision for 196 hectares of Employment

Land.

2007 SouthCambridgeshire CoreStrategy

1999-2016 No job-growthtarget

N/A Provision for 193 ha hectares ofEmployment Land.

2008 East of England

Plan (RSS14)2001-2021 17,610 880 Based on RSS Sub-regional target

disaggregated for South Cambs by 2008Employment Land Review.

Draft RSS Review 2011-2031 21,200 1,060 Figures based on CambridgeshireDevelopment Study. Draft RSS neverexamined and has no formal status.

South Cambridgeshire Economic Projections

3.35 As part of the consideration of future job growth requirements for the District to 2031, the Council

has had regard to various economic forecasts. The two main economic forecasting models which

have been considered are:

East of England Forecasting Model (EEFM) produced by Oxford Economics;

Cambridge Econometrics Local Forecasting Model.

3.36 As part of the forecasting models, a range of scenarios have been tested, particularly with regard

to the Cambridge Econometrics Model. A summary of the findings of the two models is produced

in the Table below.


17

Table 3.7: Comparison of Employment Growth Projections 2009-2031

2001 2011 2021 2031 2011-2031

EEFM 2012 Lost Decade 68,200 83,100 90,900 99,900 16,800

EEFM 2012 Baseline 68,200 83,100 98,400 107,900 24,800

EEFM 2012 High Growth 68,200 83,100 101,300 114,400 31,300

CE Low 81,200 88,400 95,200 14,000

CE Baseline 81,200 91,300 103,500 22,300

CE Population-led 81,200 91,100 104,400 23,200

CE High 81,200 94,000 110,400 29,200

3.37 The job growth forecasts for South Cambridgeshire for the period between 2011 and 2031 range

from approximately 14,000 jobs (700 per annum) to 31,300 jobs (1565 per annum) between the

various forecasts, a difference of approximately 17,000 jobs. In order to provide a more robust

evidence base in this regard, additional economic forecasting should be undertaken by the Council

to provide further sensitivity testing of potential economic growth scenarios and their implications.

Nonetheless, it is evident that the Council's highest option in relation to employment targets of

29,200 new jobs is below the highest potential job growth scenario set out in Table 3.3 of 31,300

dwellings.

3.38 While the assumptions about future job growth over the next few years may be open to question in

view of the on-going economic difficulties, it is however, important that policies seek to positively

facilitate job growth within the Cambridge area as far as possible, given the strategic importance

that the local economy has in seeking to lead the UK back to growth. Consequently in considering

the results of these models and the various scenarios tested, in order to establish appropriate job

growth targets for the Plan period the Council should seek to adopt an aspirational target which will

provide the greatest prospect of the local economy fulfilling its significant potential as a globally

significant high-tech cluster. Such an approach is essential to enable the local economy to

effectively compete against other global clusters and will thereby help to lead the UK economy

back to growth, recognising its national importance.

3.39 This is particularly important given that the NPPF emphasises the need for the planning system to

help build a strong and competitive economy which secures economic growth, creates jobs and

prosperity in a manner that builds on the Country's inherent strengths and responds to global

competition. In particular, the NPPF's requirement for Local Planning Authorities states that they

should plan proactively to meet the development needs of businesses and support the economy


18

and encourage sustainable economic growth. This advice should be given considerable weight in

developing an appropriate job growth strategy as part of the South Cambridgeshire Local Plan.

Indeed, the NPPF specifically highlights the need to plan positively for the location, promotion and

expansion of clusters in knowledge-driven high technology industries.

3.40 Moreover, it is also important to bear in mind that the various employment projections are based on

different assessments of job growth within the District over a ten year period from 2001. This is

because, in the absence of any 2011 Census data, the projections are based on 2001 Census data

together with subsequent estimates of job growth in the intervening period. In this regard, there are

disparities between the various assessments of employment change over this period depending

upon whether consideration is given to Annual Business Inquiry (ABI) or Annual Population Survey

(APS) data.

3.41 It is considered that of the various employment growth scenarios used by the Council, the EEFM

2012 High Growth scenario and the Cambridge Econometrics High Growth Forecast should be

given the most weight in light of the considerations highlighted above. Moreover, the level of job

growth in these scenarios is in line with historic job growth trends between 1991 and 2011, despite

this being a period with two recessions. This is also accords with previous targets of 20,000 jobs

or 1,000 jobs per year over the Plan period, between 2011 and 2031, established within the draft

review of the East of England Plan. However, given the aspirational nature of the former growth

targets, it is considered that these scenarios should be regarded as a minimum level of

employment provision.

South Cambridgeshire Employment Target Options

3.42 Based on the employment projections discussed above, Paragraph 5.5 of the Consultation

Document sets out three options for the jobs target for the emerging Local Plan;

Table 3.8: Summary of Employment Options

Option Reference Total Requirement2011-2031

AnnualRequirement

Comments

Lower jobs growth 14,000 700 This level of growth would be

even lower than growth

experienced between 2007-2011

Medium jobs growth 23,100 1,200

High jobs growth 29,200 1,500 Accords with historic levels of job

growth


19

3.43 With regard to the employment options it is considered that the High Growth Scenario – 29,200jobs has the most merit based on the evidence currently available, and given the strategic

importance of the Cambridge economy.

3.44 As noted above, it is vital that the policies within the Local Plan seek to positively facilitate job

growth within Cambridge as far as possible given the strategic importance that the local economy

has to the UK's future economic prospects in seeking to lead the Country back to growth.

Consequently, the Council should seek to adopt an aspirational, high growth target which provides

the greatest prospect for the local economy fulfilling its significant potential as a globally significant

high-tech cluster. Such an approach is essential to enable the local economy to effectively

compete against other global clusters and thereby help to lead the UK economy back to growth.

3.45 However given that historic job growth in the District has exceeded this level and that certain

growth scenarios suggest the potential for higher levels of job growth, the Council should not seek

to unduly limit employment growth to 29,200 jobs given the strategic importance of the local

economy. The level should therefore be regarded as a minimum target with appropriate flexibility

provided through the allocation of a range of suitable employment sites to meet a range of potential

needs in line with the NPPF requirements.

3.46 It will be important for the Council to update its evidence base in relation to employment projections

when more employment data becomes available from the 2011 census to ensure that the Plan is

based on up-to-date, reliable evidence.

South Cambridgeshire Meeting Employment Needs

3.47 The High Growth job scenarios and the associated variations between different industrial sectors

have been assessed in more detail in order to establish whether any further conclusions can be

drawn with regard to the potential nature of future job growth and the implications for employment

land supply.

3.48 In determining the nature and extent of future commercial floorspace and employment land

requirements, it is first necessary to look at the employment forecasts in more detail in order to

establish the forecast changes within the different employment sectors. The EEFM 2012 high

growth scenario provides employment forecasts for the period from 2011 to 2031 in relation to

each of the 41 Standard Industrial Classification (SIC) codes. These are set out below;


20

Table 3.9: EEFM High Growth Employment forecasts for South Cambridgeshire 2001 to 2031

Sector 2001 2011 2021 2031 2011-31

Agriculture 1.1 1.8 1.6 1.4 -0.4

Mining & Quarrying 0.0 0.1 0.0 0.0 -0.1

Food Manufacturing 0.9 0.9 0.8 0.7 -0.2

General Manufacturing 3.7 1.6 1.0 0.6 -1.0

Chemicals 2.8 1.0 0.8 0.7 -0.3

Pharmaceuticals 0.2 0.9 0.8 0.7 -0.2

Metals 1.0 0.8 0.7 0.6 -0.2

Transport 3.8 2.8 2.3 1.8 -1.0

Electronics 1.9 1.9 1.6 1.3 -0.6

Utilities 0.0 0.0 0.0 0.0 0.0

Waste & Remediation 0.2 0.5 0.4 0.4 -0.1

Construction 4.1 5.7 7.5 8.9 3.2

Wholesale 4.9 10.3 12.6 13.6 3.3

Retailing 2.5 3.9 4.8 5.2 1.3

Land Transport 1.6 1.4 1.7 1.9 0.5

Water and Air Transport 0.0 0.1 0.1 0.1 0.0

Hotels & Restaurants 2.5 3.4 4.2 4.6 1.2

Publishing & Broadcasting 1.2 0.8 0.9 0.9 0.1

Telecoms 1.1 0.1 0.1 0.1 0.0

Computing 4.2 4.0 4.9 5.6 1.6

Banking & Finance 0.5 1.0 1.2 1.3 0.3

Real Estate 0.6 1.0 1.5 1.8 0.8

Professional Services 7.7 8.3 12.5 15.2 6.9

R&D 3.1 7.6 13.4 17.9 10.3

Business Services 2.1 3.3 4.8 5.6 2.3

Employment Activities 0.3 0.7 1.1 1.3 0.6

Pubic Admin & Defence 2.3 3.2 3.2 3.3 0.1

Education 3.3 5.3 5.5 6.1 0.8

Health & Social Work 7.2 6.8 6.7 7.7 0.9

Arts & Entertainment 1.2 1.0 1.3 1.6 0.6

Misc. Services 2.0 2.9 3.3 3.4 0.5

TOTAL 68.2 83.1 101.3 114.4 31.30

3.49 It is evident that the main sectors of growth are likely to be in construction, wholesale, professional

and business services and, in particular, Research & Development. In addition, there is also


21

forecast to be significant growth in computing services, retail and the hotels and restaurants

sectors.

3.50 Conversely, these forecasts suggest that there is likely to be further contraction in the more

traditional economic sectors such as agriculture, transport, manufacturing and other production

related industries as well as electronics.

3.51 In general terms, these forecasts suggest that there will be a growing need for a significant amount

of additional office and R&D floorspace over the Plan period to 2031 since many of the key sectors

of likely growth, professional, business and computing services, along with Research and

Development will all operate from office and R&D floorspace. In total, these office and laboratory

based sectors are forecast to create at least 23,000 net additional jobs alone under the High

Growth forecasts. Based on established employment densities, this would suggest a need for at

least 300,000 sq m of R&D floorspace and 130,000 sq m of B1a floorspace without considering the

need for choice and competition in provision and the need to replace existing poor quality stock.

In this context, the extent and nature of office and R&D floorspace availability both in terms of

existing provision and also having regard to future commitments and pipeline supply within the

Cambridge area is considered in more depth below.

South Cambridgeshire Employment Land Supply

3.52 There are currently a significant number of undeveloped employment land commitments in the

District, either with planning permission or that are allocated within the South Cambridgeshire Local

Development Framework that are remote from and have poor accessibility to Cambridge.

However, many of these outlying business parks have struggled to attract R&D and related

companies as they are deemed too remote for the University graduate population and other young

professionals and, or, have poor access to London.

3.53 It is therefore essential that employment land commitments within the development plans are

appropriate in terms of their scale, nature and location with current levels of demand likely to be

sustained or even increased. The remote location or user restrictions on these allocations mean

that there is likely to be a significant shortage of suitable commercial accommodation in the

Cambridge area in due course, unless significant additional land allocations are made in

commercially desirable locations.

3.54 The location of new employment development is critical and there is clear market evidence to show

that the majority of office and R&D occupiers want commercial accommodation in locations close

to Cambridge. Such locations ensure accessibility for employees, such as those graduating from

the University and other young professionals, whilst also ensuring good access to London.


22

Companies also wish to be located in close proximity to other like-minded companies helping to

maximise business development opportunities.

3.55 In order to continue to attract these global companies, it is essential that appropriate land in close

proximity to Cambridge is allocated for future employment development. This will help to keep

existing companies in and around Cambridge, giving them the possibility of expansion close to

their existing premises. Land allocated for employment must encompass a range of uses, from

pure office to laboratories to hybrid buildings where all of these functions can be accommodated

together with manufacturing and distribution.

3.56 Bidwells research suggests that average annual take up in the Greater Cambridge office and

laboratory markets stands at circa 53,000 sq m (570,000 sq ft) over the last ten years, the majority

of which has been in South Cambridgeshire. In addition, there has been approximately 23,000 sq

m (250,000 sq ft) of industrial take up per annum over this period, the vast majority of which has

been in South Cambridgeshire. In comparison, supply levels for office, R&D and industrial space

have fallen to very low levels and in all three sectors there is very little Grade A accommodation

remaining in the right locations. This is causing increasing concern to companies seeking

significant levels of business space. There are concerns that there is likely to be a severe shortage

of suitable commercial accommodation in the Cambridge area in due course unless significant

additional land allocations are made in commercially desirable locations.

3.57 The growing shortage is likely to lead to occupiers either remaining in poorer quality

accommodation, which ultimately could restrict their growth potential or they will take surplus space

that is on the market on a short term basis while looking at potential pre-let opportunities that are in

close proximity to Cambridge.

3.58 Assuming combined take-up levels for office and R&D business space of circa 53,000 sq m

(570,000 sq ft) continue (which Bidwells consider will be sustained and may even increase in the

coming years as the economic recovery gathers pace), the remaining good quality and well located

existing stock will be eradicated in the next few years. There is already evidence of this in the

office and industrial markets. The average take up of 53,000 sq m of office and R&D / laboratory

space per annum represents approximately 13 hectares of land per annum, at average build

densities of 4,000 sq m per hectare. Whilst demand is currently focussing on the existing available

accommodation, it will shortly focus on the land that can deliver the accommodation in the

preferred locations.

3.59 Tables 3.10 and 3.11 below sets out the various B1a / B1b employment land commitments within

South Cambridgeshire based on Development Plan and other commitments listed within the South

Cambridgeshire and Cambridge City 2008 Employment Land Review. These have been updated


23

to April 2012 to reflect current circumstances based on Bidwells’ market knowledge. Whilst on the

face of it, there would appear to be a maximum potential pipeline supply of 449,192 sq m of B1a

and B1b floorspace in the District alone (equivalent to circa 15 years supply) there are issues with

a number of these allocations which suggest that this is a misleading indicator of deliverable

supply.

Table 3.10: Employment Land Commitments in South Cambridgeshire (Restricted Sites)

Site B1(a)Floorspace

(sq m)

B1(b)Floorspace

(sq m)

Comments

Granta Park 0 53,698 User restricted to science related R&D.

Babraham Institute 0 13,935 For specific user

Welcome Trust, Hinxton 0 0 For specific user

Melbourn Business Park 0 4,181

Hattons Road, Longstanton 0 12,500

North West Cambridge 0 40,000 Subject to user restrictions. Some of this

floorspace will be accommodated within

Cambridge City boundaries.

Total 0 124,314


24

Table 3.11: Employment Land Commitments in South Cambridgeshire (Unrestricted Sites)

Site B1 Floorspace(sq m)

Comments

Cambridge East 92,000 Will not come forward before 2031

Orchard Park 18,000 Part of site now redeveloped for alternative uses.

IQ (Cambridge Research Park) 40,728

Cambourne Business Park 39,892

Northstowe 116,000 Delays in site coming forward due to A14 capacity

constraints likely to limit potential in period up to

2031.

Former Bayer Crop Science Site, Hauxton 4,000 Unlikely to come forward in full

Mill Farm, Swavesey 14,258 Restricted to B1a / B1b

Total 324,878 Approximately 100,000 sq m is no longer deliverable

whilst 116,000 sq m at Northstowe is subject to

delivery constraints. Only circa 100,000 sq m of

deliverable floorspace for period to 2031.

3.60 However, as can be seen above a significant proportion of the pipeline supply of employment

floorspace is made up of developments at Cambridge East, of which only a very small proportion is

likely to come forward before 2031 due to the decision of Marshalls to remain at their current site,

as well as at Northstowe where development is likely to be delayed in coming forward as

uncertainty continues with regard to when the necessary improvements to the A14 will take place.

Additionally, other sites such as Orchard Park are being developed for alternative uses. As such,

the total pipeline supply of deliverable B1a/b employment sites is realistically considered to be in

the region of approximately 280,000 sq m (equivalent to circa 9 years supply). This compares with

a minimum requirement of 430,000 sq m to accommodate projected office and R&D related

employment growth to meet the High Growth projections.

3.61 Moreover, much of the pipeline supply of commercial floorspace is located in more peripheral

locations, with limited remaining pipeline supply in occupiers' preferred locations on the Cambridge

fringe. The locations either in or close to Cambridge will continue to attract most of the

occupational interest that arises in and around the City, particularly for offices and laboratory

space. Based on the above figures, it is estimated that there is only capacity for approximately

50,000 sq m of Grade A B1 floorspace in locations on the edge of Cambridge within the District.


25

3.62 This lack of land is further pressurised as the vast majority of the remaining space is highly

constrained in terms of the nature of the activity and, or, user. Of the remaining available space on

the edge of Cambridge, virtually all is located on the University site at North West Cambridge,

where there are restrictions on the nature of the uses and the occupants, both through the planning

restrictions and other restrictions imposed by the owners.

3.63 The North West Cambridge site is owned and managed by Cambridge University who impose strict

user requirements on companies wishing to locate to the site. As a result of the University's

approach to the development of the site, the campus is ultimately likely to be mainly restricted to

commercial research companies and organisations with very close associations with the University.

Therefore the North West Cambridge site will not be suitable for the majority of companies looking

at locating in the Cambridge area.

3.64 These user and occupancy restrictions place further pressure on the lack of land and premises

available for commercial R&D and related companies. In this regard, out of the 280,000 sq m

pipeline supply of Grade A B1a/B1b floorspace premises and commitments, only circa 220,000 sq

m could potentially be available to the open market on a pre-let type basis.

3.65 In more peripheral locations further from Cambridge, there is significant remaining capacity

including:

Cambridge Research Park (IQ) – 26 acres – circa 40,000 sq m (430,000 sq ft);

Buckingway Business Park – 7 acres – 13,000 sq m (140,000 sq ft);

Cambourne Business Park – 25 acres – 39,000 sq m (420,000 sq ft);

Granta Park – 24 acres – 50,000 sq m (540,000 sq ft);

3.66 All these Parks have proved difficult to let during the last five to ten years. This is simply due to

their location and occupiers have, time and again, proved that they will only look at these locations

as a last resort. Unimplemented land allocations on these Parks will always be viewed as

secondary as they do not meet companies’ location criteria.

3.67 Because of the lack of interest, all of these Parks are now trying to self-style themselves as

something different to attract interest in the land. Cambridge Research Park is trying to become a

B1c Park for the high tech/mid tech R&D companies looking to invent, manufacture and distribute

their products. It is likely to become more industrial in appearance and will accommodate more

'space hungry' requirements where cost is an issue. Granta Park is pursuing a more specialist

laboratory approach and trying to create a laboratory cluster, which will only appeal to particular


26

R&D type companies. Buckingway Business Park is industrial in nature and proposals are in

place, subject to planning, for a single distribution unit of circa 14,000 sq m (150,000 sq ft).

3.68 The peripheral parks have therefore struggled to attract interest but are now pushing themselves

towards niche markets, where they perceive that there is an opportunity to exploit the success of

Cambridge and provide accommodation that cannot be replicated easily, closer to the centre of

Cambridge.

Conclusions

3.69 There is therefore very clear evidence that neither Cambridge City nor South Cambridgeshire have

sufficient pipeline employment land allocations of the right type and in the right location to

accommodate the levels of demand expected going forward. If Cambridge is to maintain national

and global importance as an R&D centre, it is essential that further land allocations are made in

areas close to Cambridge which will attract the type of companies that made the Cambridge area

the successful place that it currently is. It is of national importance that the correct land allocations

are made sooner, rather than later, to allow the growth of well-established Cambridge companies

and also attract new companies, where new research can be fostered with the University, which

will ultimately lead to the continued success of the University itself.

3.70 There is therefore a growing need within the Cambridge area for additional, more flexible

commercial space which is more readily able to respond to market demand. In particular, there is

demand for flexible B1(a)/B1(b)/B1(c) floorspace to reflect the fact that hi-tech companies often

require premises which incorporate office / administrative elements and manufacturing elements as

well as R&D functions. Current supply is highly restricted and unresponsive to such requirements.

3.71 In addition, there is a need for both larger premises to meet the needs of the larger firms and for

small incubator / supported floorspace to meet the needs of start-up and early stage R&D

companies. This is essential for the Cambridge area to maintain its place as a premier R&D

location in the UK economy.

3.72 Indeed, the need for more flexible commercial floorspace which can be used for B1(a), B1(b) and

B1(c) purposes is highlighted by Segal Quince Wicksteed (SQW) in their Cambridge Cluster at 50

Report published in 2011. This Report sets out a series of deficiencies in the supply of

employment space currently available within the market and the extent to which this is holding back

the ability of the commercial property market within Greater Cambridge to respond to the relevant

needs of the area's hi-tech sector.

3.73 The 'Agenda for Action' section of the Cambridge Cluster at 50 Report highlights the fact that the

overly restrictive nature of planning policy within both Cambridge City and South Cambridgeshire


27

has held back the potential growth of the hi-tech sector in a number of respects and that whilst, on

the face of it, there is a reasonable supply of future employment land in the planning pipeline, much

of this is highly restricted.

3.74 The Report draws a series of conclusions and associated actions in relation to these issues. In

summary, these are:

over the last 20 years most new business space developed in the Cambridge area has

been restricted to R&D related uses (B1(b) uses). It suggests that, given the importance of

financial, business and professional services to the future employment growth in the Sub-

Region in future more open B1 permissions should be granted. In particular, it suggests

the development of more B1 open space in and around Cambridge whilst maintaining

restrictions on science parks to R&D uses (B1(b)).

Planning policies (including science park use conditions and local user restrictions)

discriminate against headquarter functions located in Cambridge despite the fact that HQ

facilities provide a high proportion of high value jobs and help retain wealth in the local

area. It therefore suggests the removal of constraints on HQ functions within the

Cambridge area regardless of whether they are HQs of local firms or inward investments.

There is a shortage of genuine business incubation/innovation centre space in Cambridge,

particularly in relation to bio-incubator space with work laboratory facilities. It therefore

suggests that further incubator/innovation centre space should be planned for.

Finally, it identifies that manufacturing space within the Greater Cambridge area is in very

short supply. This further reduces the potential for successful hi-tech firms within the area

to manufacture their products within the area reducing potential benefits to the local

economy. It therefore suggests that further manufacturing space should be made

available. Moreover, the current caps on high value manufacturing facilities that can be

developed, which currently limit these to 1,850 square metres, should be removed since

these discriminate against large scale, high value manufacturing.

3.75 Bidwells would highlight that from experience current employment land within the local market and

within the development pipeline is far to inflexible to meet the ongoing demands of hi-tech

businesses and their operations cannot always be neatly defined within the particular use classes,

since their activities will often involve a degree of research and development activity along with

office/administrative and manufacturing activities alongside these R&D activities. Consequently,

these restrictions and the limitations of the use of particular floorspace to B1(a), B1(b) or B1(c) are

often completely unresponsive to the needs of dynamic, hi-technology companies that operate


28

within the Cambridge area. This puts the companies at a disadvantage in comparison to other hi-

tech competitors across the globe.

3.76 In conclusion, there is a strong need for additional, well located sites to come forward to provide

significant employment allocations to satisfy on-going demand close to Cambridge. In particular,

there is a need for further significant allocations of B1 employment development close to

Cambridge to provide for the ongoing needs of hi-tech companies and related business service

companies seeking high quality, flexible office and R&D space. Such allocations will be essential

for the Cambridge area to maintain its place as a premier R&D location in the UK economy.


29

4 Conclusions

4.1 The Greater Cambridge area is widely seen as an economic success story both in the context of

the UK Economy and also in terms of its international significance with one of the world's most

advanced and concentrated technology clusters. As a result of its dynamic high-technology

focussed economy, the Greater Cambridge area is identified as one of the places most likely to

lead the UK back to growth.

4.2 Moreover, the NPPF emphasises the importance of supporting growth and economic development

and requires local planning authorities to 'proactively drive and support' sustainable economic

development to deliver the homes, business and industrial units, infrastructure and thriving local

places that the country needs. It emphasises that 'every effort should be made objectively to

identify and then meet the housing, business and other development needs of their area and

respond positively to wider opportunities for growth'.

4.3 It is therefore vital that the policies within the Local Plans seek to positively facilitate job growth

within Cambridge City and South Cambridgeshire as far as possible given the strategic importance

that the local economy has to the UK's future economic prospects in seeking to lead the Country

back to growth. Whilst this clearly needs to be managed in an effective manner such that the

quality of the area's historic and natural environments are maintained, it is nonetheless essential to

the UK's national economic interests that the local authorities and their strategic partners within the

area develop appropriate policies to facilitate and deliver the sustainable growth of the Greater

Cambridge area.

4.4 Consequently, the Councils should seek to adopt an aspirational, high growth target which

provides the greatest prospect of the local economy fulfilling its significant potential as a globally

significant high-tech cluster. Such an approach is essential to enable the local economy to

effectively compete against other global clusters and thereby help to lead the UK economy back to

growth.

4.5 The current evidence in relation to future jobs growth projections suggests that the various higher

growth scenarios would result in between 19,000 and 22,000 new jobs in Cambridge and around

30,000 jobs in South Cambridgeshire. Of the various employment growth scenarios it is therefore

considered that the High Growth Options (20,000 jobs in Cambridge and 29,200 jobs in South

Cambridgeshire) are the most appropriate. However, since certain growth scenarios suggest

potential for higher levels of job growth the Councils should not seek to unduly limit employment

growth to this level given the strategic importance of the local economy. These figures should

therefore be regarded as a minimum target with appropriate flexibility provided through the


30

allocation of a range of suitable employment sites to meet a range of potential needs in line with

the NPPF requirements.


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