Publication (Regulation 19)

4 Growing the South Warwickshire Economy Comment

South Warwickshire is the gateway to the West Midlands, benefitting from direct access to London via the M40 and the Chiltern mainline. It is situated only 10 miles from Birmingham, and HS2 will provide direct access to the North. Due to its location, businesses within South Warwickshire are well placed to capitalise on a wide range of economic opportunities, not only from the West Midlands but from the East Midlands, Southeast and Southwest of England. South Warwickshire is traversed by the A46 which is a key strategic route connecting the Humber Ports with the cities of the Severn Estuary. It is therefore important that the SWLP provides appropriate support and protection to existing employment assets and community facilities, as well as create the environment for new economic opportunities to flourish.

4.1 A Low Carbon Economy

4.1.1 Economic development will play a vital role in driving the UK's transition to net zero. It is predicted that by 2050, there could be up to 1.18 million jobs in low-carbon and renewable energy sectors, and this offers great opportunities to the area given our access to research and talent. The SWLP will encourage low-carbon sectors to South Warwickshire to ensure that the area is well positioned to benefit from this growth and opportunity.

Policy Justification

4.1.2 The NPPF states that Plans should take a proactive approach to mitigating and adapting to climate change.

4.1.3 In 2019, Warwick and Stratford-on-Avon District Councils both declared a climate emergency. Both have committed to reduce district wide emissions by 55% by 2030. A joint 'Climate Change Action Programme', agreed by both Stratford-on-Avon and Warwick District Councils in November 2021, sets out ambitions and how we will achieve them. This requires the rapid decarbonisation of emission sources which falls outside of the jurisdiction of local authorities.

4.1.4 A further report published in 2021 showed that emissions arising from energy use in non-domestic buildings and industrial processes represented 22.5% of the total carbon footprint of the South Warwickshire area.

4.1.5 The SWLP will enable a shift to a low carbon economy within the area in the following ways:

• Businesses will be supported to reduce their carbon footprint.
• Economic development within Stratford and Warwick Districts will maximise the economic opportunity presented by the transition to net-zero and the need to adapt to a changing climate.
• Business resilience will be increased through the provision of climate change adaptation measures.

4.2 Safeguarding our Economic Assets

4.2.1 In addition to the Major Investment Sites listed in Policy DS.10, other important economic assets in South Warwickshire include:

• Silicon Spa ~ It is the home of the gaming industry. This extends from Leamington out to the surrounding areas of Southam and Warwick employing over 2,000 highly skilled people.
• Automotive ~ Home to the UK's automotive industry. Coventry and Warwickshire have a reputation for being a world class centre for advanced manufacturing and engineering. Aston Martin, JLR and Lotus have a major presence in South Warwickshire. Manufacturing accounts for over 40% GVA in Stratford.
• Food and Drink ~ Food and drink is important to the economy and Warwickshire is well known for its quality restaurants, locally produced artisan food and drink, farm shops delicatessens and café culture.
• Highly Skilled Workforce ~ South Warwickshire has a well-qualified and skilled workforce which attracts businesses. Warwick and Stratford have a higher-than-average population with NVQ4 qualifications and above.
• Bowls England ~ The HQ of Bowls England is in Leamington, and each year hosts the National Bowls Championships.
• Shakespeare's Birthplace ~ A popular attraction for overseas and UK visitors and is situated in the heart of Stratford-upon-Avon.
• Castles and Country Estates ~ South Warwickshire is home to a number of significant country estates as well as Warwick and Kenilworth castles, both of which are major tourist attractions.
• Royal Shakespeare Company ~ It is a major British theatre company employing over 1,000 staff and producing around 20 theatrical productions each year.
• Cotswolds National Landscape ~This is the third largest protected landscape in England which is popular with walkers and visitors to the area.
• Agriculture  ~ Warwickshire is home to a diverse range of farming, food and drink businesses and is approximately 70% agricultural land. Agriculture is important as it contributes to the local economy, local communities, protects the local environment and is a large employer to local people.

4.2.2 It is critical that South Warwickshire safeguards its existing employment uses in order to support economic growth, and the Policy below sets out how existing employment will be protected in planning terms.

Policy Justification

4.2.3 Warwick District Council and Stratford-on-Avon District Council commissioned Iceni Projects to undertake The South Warwickshire Affordable Business Study (2026) to inform the emerging South Warwickshire Local Plan. The purpose of the study was to assess the delivery, demand, and policy framework for affordable business space across the two districts. This Study also included specific policy recommendations relating to the protection of existing employment sites.

4.2.4 This policy aims to contribute to a sufficient, diverse and well-located supply of land and premises to support economic growth, business investment and job creation over the plan period. This accords with the NPPF (2024) which states at paragraph 85 that “Planning policies and decisions should help create the conditions in which businesses can invest, expand and adapt. Significant weight should be placed on the need to support economic growth and productivity, taking into account both local business needs and wider opportunities for development.

4.2.5 Permitted development rights currently allow for a certain amount of flexibility for Class E employment uses, with the change of use from E(g) uses to some other use classes permitted without the need for planning permission. While this Policy cannot control for such permitted uses, this Policy does apply to the loss of employment outside of such permitted development rights.

4.2.6 A number of existing employment allocations from the SDC Core Strategy (2016) and WDC Local Plan (2017) are also carried forward in this Plan, these are set out within Policy DS.5.

Policy Justification

4.2.7 South Warwickshire has a significant visitor and leisure economy and the SWLP seeks to support the growth of this important sector. The provision of a wider range of tourist and leisure attractions across South Warwickshire, taking advantage of its charm and heritage, would help to support the local economy.

4.2.8 Stratford-upon-Avon is home to the world’s most important Shakespeare heritage sites, including those managed by the Shakespeare Birthplace Trust, and is the only place in the world where people can experience the entire Shakespeare story. It is also the home of the internationally renowned Royal Shakespeare Company.

4.2.9 South Warwickshire also has many other historic assets that operate as visitor attractions, such as castles in Warwick and Kenilworth, Stoneleigh Abbey, the country houses of Compton Verney, Charlecote, Packwood and Baddesley Clinton and the canal network, as well as the regency buildings and parks of Royal Leamington Spa.

4.2.10 Other notable visitor attractions include Stratford Butterfly Farm, the British Motor Museum and Hatton Country World.

4.2.11 South Warwickshire’s cultural assets and visitor facilities should be supported to grow and improve in ways that maintain their attractiveness and
integrity; this will be the case particularly for those assets associated with the historic environment. The SWLP seeks to enable the maintenance and improvement of leisure facilities, including supporting appropriate opportunities for culture and tourism. Wherever possible, these should be located in existing or replacement buildings, especially when located outside of settlements.

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 be an appropriate proportion, subject to the viability of individual sites.

4.3 Supporting our Changing Town Centres

4.3.1 Across South Warwickshire, town centres play a major role in serving local communities, supporting economic growth and encouraging investment. They also form an important part of the areas identity and character and are focal points for retail, commercial, cultural, leisure, community and civic activities. Thriving town centres support local economic growth and encourage investment. Changes in consumer habits such as the growth of internet shopping and the impacts of the Covid pandemic are changing the traditional composition of our high streets. It is therefore essential that the Local Plan sets a policy framework that is flexible enough to maintain and enhance the ongoing vitality and viability of our town centres.

4.3.2 The SWLP aims to maintain the vitality and viability of our town centres by supporting proposals that enhance their respective roles in the town centres hierarchy. Proposals will also be encouraged that help to diversify the range of uses in town centres, making them more attractive to residents, employers, shoppers and visitors alike. It is also important to ensure that opportunities to improve the quality of our town centre environments by enhancements to the public realm are considered as part of future development proposals or town centre enhancement programmes including the work of the Transformation Framework for Leamington Town Centre

Policy Justification

4.3.3 Ensuring that town centres remain as the focus for new development is important in maintaining local economic growth and encouraging investment. It is also fundamental in achieving sustainable patterns of development within South Warwickshire. This policy is consistent with Government guidance that aims to make town centres the focus for new development to ensure their continued vitality and viability.

4.3.4 It is important that within the town centres there remains a defined and vibrant core where it is important to maintain a concentration of E Class Uses, including retail necessary to preserve the vitality of the centre. New retail proposals will be encouraged and supported in the Primary Shopping Areas defined on the Policies Map.

4.3.5 Primary Shopping Areas (PSA’S) are the locations within our town centres where the main body of retail uses are located and should be concentrated. Development proposals should support the retail function of the PSA. New Class E (a) retail uses are encouraged to locate to in the PSA and support the important retail function of town centres through the provision of a complementary cluster of retail uses.

4.3.6 The Local Planning Authority will promote the continued role and function of its network of town and local centres and will support proposals that positively contribute towards their viability, vitality, character and public realm. Improvements to the public realm are important in terms of creating vitality, the Transformation Framework for Leamington Town Centre will assist this objective.

4.3.7 Across South Warwickshire there is a defined hierarchy of town centres with Leamington Spa and Stratford Town Centres being the most significant due to the quality of the retail offer available as well as the scale of leisure and other main town centre uses to be found. Warwick and Kenilworth are different as they predominantly serve a more localised catchment and therefore perform a different role; as a consequence, they have a significantly lower number of shops and services. Beyond Stratford town centre there is a network of smaller rural towns that are defined in the town centre hierarchy as Local Centres. These include Alcester, Bidford-on- Avon, Henley-in -Arden, Kineton, Shipston-on -Stour, Southam, Studley and Wellesbourne. They function as destinations catering predominantly for the shopping and service needs of their particular local catchment.

4.3.8 Town centres provide important employment opportunities within a range of sectors. It is important to maintain a continued employment role within the town centres to provide employment opportunities in sustainable locations and as part of encouraging a diverse range of uses within town centres in accordance with Government guidance.

4.3.9 The use of upper floors in town centres is important in ensuring that buildings remain in a good state of repair. It will also help in providing opportunities to introduce other uses, such as offices and residential, that can generate positive benefits for the town centre economy. Where proposals that relate to ground floor uses only are submitted, applicants will be expected to show that they have considered how access arrangements to upper floors can be achieved in the future so that buildings may be fully utilised if required. Where upper floors may be considered for residential or office use, this access may need to be independent of the ground floor use. When considering proposals for listed buildings or buildings in conservation areas, applicants must ensure that in achieving access to upper floors the quality of the building and the conservation area is not compromised.

4.3.10 As part of creating diverse and active town centres, it is important that every opportunity is given for people to live within town centres. The continued occupation of flats above the ground floor of premises throughout the town centres has a particular role to play in this. Encouraging greater living in town centre locations can also enhance personal safety by increasing natural surveillance.

4.3.11 The objective of this policy is to protect specific designated employment areas within the town centres, but to allow greater flexibility for other existing town centre employment land and buildings to change uses. The protected areas are those within Royal Leamington Spa and Warwick town centres defined as “Town Centre Employment Areas” on the Policies Map. In the Althorpe Street protected employment area, the Council may consider the introduction of a wider range of uses if they would positively contribute to the wider regeneration aspirations of this area of Old Town.

4.3.12 Maintaining an appropriate network of centres across the South Warwickshire Plan area is important in order to provide easily accessible shops and services to meet the day-to-day needs of residents, as well as being the focus of local community facilities. As a part of this process, it is important to ensure that development proposals do not compromise the hierarchy and that they and that they are of an appropriate scale relative to the intended location. It is also important that future development can be successfully assimilated without harm to the particular character and form of our town centres.

4.3.13 As an integral part of this Local Plan, new residential development associated with the delivery of New Settlements and Strategic Growth Locations will be required to deliver new local retail and service provision necessary to meet the consumer needs of these new developments. Careful consideration of the scale and format of new provision at these locations will be necessary ensure that they are of an appropriate scale and do not undermine the established retail hierarchy.

4.3.14 It should also be noted that the South Warwickshire area also contains a range of valuable neighbourhood centres and local shopping opportunities within its smaller villages and within the built-up areas that typically comprise of a parade of shops and service outlets that are purely of local significance.

4.3.15 As a consequence of changes to the Use Class Order and the introduction of Class E (Commercial, Business and service) our latest retail study considers that it is no longer appropriate to define and apply Primary and Secondary retail frontage policies. Frontage policies are regarded as out of date and overly restrictive. To encourage necessary regeneration, it is considered more appropriate to enable the growth of a mix of non -retail uses in our town centres that can add significantly to the diversity, vitality and viability of towns and high streets and facilitate the full occupancy of units necessary to underpin vital and vibrant centres. This will allow our centres the flexibility required to respond to the structural changes in shopping and leisure patterns that have occurred. It is however, important that the retail function of our town centres remains an important part of the overall town centre offer.

4.3.16 The South Warwickshire Employment Land Study Update (March 2026) updates the office need requirement for South Warwickshire set out in the HEDNA (2022). The Employment Study Update sets out that there is a residual need for 7.1ha of office land (equivalent to 57,900 sqm of office floorspace) across South Warwickshire up to 2050.

4.3.17 However, the Employment Study Update considers that significant stand-alone allocations for office developments are unlikely to be developed, as rents are considered insufficient to support substantive speculative development. Specific site allocations for office development are therefore not proposed within this policy, with the focus instead being on retaining existing office space and supporting the conversion and repurposing of existing buildings. The provision of a proportion of ancillary office space alongside other employment space is also considered to be appropriate.

4.3.18 The Employment Land Study Update recommends that the SWLP should support the development of office floorspace within town centre sites and the conversion of existing buildings where suitable. Some smaller scale provision may also be delivered through the conversion of agricultural buildings in order to support the rural economy. Such rural development is covered separately by Policy… Rural Economy and Diversification.

4.3.19 Permitted development rights currently allow for a certain amount of flexibility for Class E(g)(i)uses, with the change of use from E(g) uses to some other use classes permitted without the need for planning permission. While this Policy cannot control for such permitted uses, this Policy does seek to safeguard against the loss of existing office uses within town centres where possible. Any proposed loss of such uses will need to accord with the requirements set out in Policy … Existing Employment Sites.

4.3.20 Although not a single site, Leamington Spa is a nationally important economic cluster for the gaming and electronic arts industries. Akin to its approach to Major Employment Sites, the SWLP seeks to support proposals for employment and research use and investment in this sector and related digital and creative industries, particularly within Leamington Spa itself but also in surrounding locations.

Policy Justification

4.3.21 All of the district’s town centres contain a mix of uses and both Royal Leamington Spa and Warwick have a large number of houses and apartments within the defined town centre boundaries. This housing provides opportunities for people to live within the town centres and adds to their overall diversity and vitality, but it does generate pressure where different uses seek to co-exist. It is important that housing is supported within town centres and that the amenity of people living there is protected. Within the predominantly residential areas defined on the Policies Map, it will be important that this residential character is protected. Applications for uses within these areas might include small offices, dental surgeries and nurseries for the care of children. These and other uses may be appropriate within predominantly residential areas, provided that the residential character and appearance of the building / area is not altered. In seeking to maintain the residential character of these areas, the Council will have regard to cumulative impact when considering such proposals. This policy is only concerned with protecting the residential character of defined areas.

4.4 Employment and Road Freight

4.4.1 Employment sites may have a negative impact on the road network where transport considerations are not taken into account from the earliest stage. In addition, the increasing demand for large-scale storage and logistics employment sites has resulted in a concurrent increase in road freight traffic to serve these uses.

Policy Justification

4.4.2 The NPPF states that transport issues should be considered from the earliest stages of plan-making and development proposals, so that:

• Engagement on transport considerations can take place at an early stage with local communities
• the potential impacts of development on transport networks can be addressed;
• opportunities from existing or proposed transport infrastructure, and changing transport technology and usage, are realised – for example in relation to the scale, location or density of development that can be accommodated;
• opportunities to promote walking, cycling and public transport use are identified and pursued; and
• the environmental impacts of traffic and transport infrastructure can be identified, assessed and taken into account – including appropriate opportunities for avoiding and mitigating any adverse effects, and for net environmental gains.

4.4.3 Significant development should be focused on locations which are or can be made sustainable, through limiting the need to travel and offering a genuine choice of transport modes. This can help to reduce congestion and emissions and improve air quality and public health.

4.4.4 All developments that will generate significant amounts of movement should be required to provide a travel plan, and the application should be supported by a vision-led transport statement or transport assessment so that the likely impacts of the proposal can be assessed and monitored.