Material Planning Considerations: Economic Benefits

Economic Benefits considerations focus on evaluating the positive impacts that a proposed development might have on the local, regional, or national economy. These considerations ensure that new developments contribute to economic growth, job creation, investment, and overall economic stability and prosperity.

Key Components of Economic Benefits Considerations

Job Creation
  • Construction Jobs: Assess the number of jobs that will be created during the construction phase of the development. This includes both direct construction jobs and indirect jobs in related industries.

  • Permanent Jobs: Evaluate the number and types of permanent jobs that will be generated by the development once it is operational. This includes full-time, part-time, and seasonal positions.

Investment and Economic Growth
  • Direct Investment: Calculate the total investment brought into the area by the development. This includes funding for construction, infrastructure improvements, and ongoing operational costs.

  • Multiplier Effect: Consider the wider economic benefits generated by the development, such as increased spending in local businesses, supply chain opportunities, and enhanced attractiveness of the area to further investment.

Local Business Support
  • Retail and Commercial Activity: Assess the impact on local businesses, including increased foot traffic, demand for goods and services, and potential partnerships.

  • Supply Chain Opportunities: Evaluate how the development might create opportunities for local suppliers and service providers, boosting the local economy.

Housing Market Impact
  • New Housing Supply: Consider the contribution of the development to the local housing market, including the provision of affordable housing and the impact on housing availability and prices.

  • Housing Demand: Assess how the development might stimulate demand for housing, potentially leading to further residential development and economic growth.

Infrastructure and Public Services
  • Infrastructure Improvements: Evaluate investments in infrastructure that the development will bring, such as road improvements, public transport enhancements, and utilities upgrades.

  • Public Services Funding: Consider contributions to public services, such as education, healthcare, and community facilities, which can support broader economic development.

Tax Revenue and Fiscal Impact
  • Local Tax Revenue: Estimate the increase in local tax revenues from property taxes, business rates, and other local taxes due to the development.

  • Fiscal Impact: Assess the overall fiscal impact on local government finances, including the cost of providing services to the new development and the revenue generated.

How Economic Benefits Considerations Influence Planning Decisions

1. Economic Impact Assessments (EIA):

  • An EIA may be required to quantify the economic benefits of a proposed development. This assessment helps planning authorities understand the potential economic impacts and weigh them against other considerations.


2. Balancing Benefits and Impacts:

  • Planning authorities must balance the economic benefits of a development with other material considerations, such as environmental impact, residential amenity, and heritage conservation. Significant economic benefits can sometimes justify developments that have other impacts, provided those impacts are mitigated.


3. Policy Compliance:

  • Developments must align with local and national economic development policies and strategies. This includes ensuring that the development supports economic growth objectives set out in the Local Plan, Regional Economic Strategies, and the National Planning Policy Framework (NPPF).


4. Stakeholder Consultation:

  • Input from local businesses, economic development agencies, and other stakeholders is considered to understand the broader economic implications of the development. Their feedback helps shape the evaluation of economic benefits.


5. Long-term Economic Sustainability:

  • Planning authorities consider the long-term economic sustainability of the development. This includes assessing whether the development will continue to provide economic benefits over time and adapt to changing economic conditions.

Importance in Planning Applications

1. Economic Growth and Stability:

  • Developments that provide significant economic benefits can contribute to the overall growth and stability of the local and regional economy. This includes job creation, increased investment, and enhanced business activity.


2. Quality of Life:

  • Economic benefits can improve the quality of life for residents by providing employment opportunities, enhancing public services, and stimulating local businesses.


3. Community Development:

  • Developments that support economic growth can also foster community development by providing funding for community facilities, infrastructure improvements, and public services.


4. Attracting Investment:

  • Successful developments that demonstrate clear economic benefits can attract further investment, creating a positive cycle of economic growth and development.


5. Legal and Policy Compliance:

  • Ensuring that developments provide economic benefits is often a requirement of local and national planning policies. Non-compliance can result in planning applications being refused or challenged.


Conclusion


By thoroughly considering economic benefits in planning applications, planning authorities can ensure that new developments contribute positively to the economy, creating jobs, stimulating investment, and enhancing the overall economic health of the community. This comprehensive approach helps balance development needs with economic sustainability, promoting growth and prosperity while addressing other material planning considerations.

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