FEMAplan - Lichfields

FEMAplanDefining Functional Economic Market Areas

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When planning for economic growth, the Government states through its Planning Practice Guidance (PPG) that economic needs should be assessed in relation to relevant Functional Economic Market Areas (FEMAs), that is, the spatial level at which local economies and markets actually operate. This reflects the practical way in which labour, housing, property and consumer markets function across administrative boundaries and the recognition that economic markets and flows operate across a much wider geography.

This guidance places a specific requirement and duty upon local planning authorities and their partners to consider the most appropriate spatial scale across which to assess and plan to meet economic needs. This requires a clear understanding of the economic geography within which local economies operate and compete.

Whilst there is no ‘standard’ approach to defining a FEMA, the PPG identifies a number of factors or ‘themes’ to take into account and Nathaniel Lichfield & Partners (NLP) has drawn upon this guidance to develop the FEMAplan framework for assessing the scope and nature of FEMAs (see Figure 1).

This has been applied through a number of post PPG studies across the country and incorporates a comprehensive range of indicators including:

• Spatial economic profile, to explore the clustering of business sectors.

• Labour market and travel-to-work flows, to examine the relationship between where people live and work.

• Commercial property markets with their clustering of customers, supply chains, competitors and proximity to key transport infrastructure.

• Housing markets as geographical areas sharing similar housing characteristics and patterns of demand.

• Consumer and service markets as the spatial area from which users of goods and services are drawn.

• Transport and connectivity and their important influence upon travel to work, housing and property market relationships.

• Economic governance, much of which has been established on the basis of strategic linkages and historic economic relationships.

FEMAplan builds upon NLP’s strong track record and market leading expertise in assessing local economic needs and analysing complex economic intelligence and trends to help our clients develop robust, evidence-driven strategy and policy.

Figure 1: NLP FEMAplan Framework

Defining Functional Economic Market Areas

How FEMAplan can help

Indi

cato

rs &

Inpu

tsPP

G T

hem

e

• Employment and sector mix

• Productivity and innovation

• Population growth

• Labour market and skills

• Business and sector clustering

• Commuting flows

• Resident and workplace population

• ONS travel to work areas

• Labour self containment

• Type and distribution of space

• Development rates and trends

• Vacancy and rents• Occupier ‘area

of search’• Competitor

locations

• Migration and commuting flows

• Housing market signals

• Existing housing evidence (e.g. SHMA)

• Population growth

• Retail and leisure catchments

• Cultural participation

• Existing retail and leisure evidence/study

• Audit of infrastructure

• Strategic and local transport connections

• Journey times• Transport

investment• Broadband

connectivity

• Local Authority boundaries

• Local Plan and policy areas

• Local Enterprise Partnerships

• Other economic partnerships and bodies

“Needs should be assessed in relation to the relevant functional area, i.e. the functional economic area in relation to economic uses”

Planning Practice Guidance para. 008

“There is no universal approach to defining FEMAs. Ideally, FEMAs would be defined on the basis of several markets or catchment areas which best reflect the drivers of the local economy”

CLG Functional Economic Market Areas: An Economic Note (2010)

Functional Economic Market Areas

Spatial Economic Profile

Travel to Work Areas

Commercial Property

Market Areas

Housing Market Areas

Consumer Market Areas

Transport and Infrastructure

Networks

Economic Governance and

Partnership Areas

Sta

ge in

Evi

denc

e B

ase

Dev

elop

men

t

Define the FEMA Identify Economic Needs

Spatial and Sectoral Strategy

Pur

pose Understand the economic

geography of an areaObjective assessment of economic and business needs

Shaping the approach to delivering growth

Wha

t ca

n th

is In

form

? • Economic strategies

• Duty to cooperate discussions

• Identify key economic partners to work with

• Identify study area for economic needs assessment

• Economic Growth Assessment/Employment Land Review

• Alignment with wider evidence base (e.g. retail study, SHMA)

• Planning policies

• Local Plan policies and Site Allocations

• Devolution strategies (including City Deals and Growth Deals)

• LEP Investment Plans

• Infrastructure Plans

• Enterprise Zones

FEMAplan

FEMAplan informs the first phase of economic evidence and strategy development. NLP’s WORKspace and GROWTH DRIVER frameworks are designed to objectively assess economic needs and consider the spatial and sectoral strategy associated with delivering this growth.

Why use FEMAplan?

FEMAplan draws on NLP’s extensive experience of harnessing the power of data and spatial analytics to evidence, and then advise on strategy and policy development to inform a range of different applications (see Table 1 above).

It provides a flexible tool for local authorities, groups of authorities and Local Enterprise Partnerships to define patterns of economic activity and demand and can be adapted to suit the type and scale of analysis required. We use our package of innovative tools and polished graphics to produce clear and accessible outputs that are underpinned by robust evidence.

GROWTH DRIVERSupport for LEPs to Realise their Potential

• Consider undertaking a FEMA study collectively with key economic partners and/or neighbouring authority areas.

• Be clear what the purpose of the FEMA analysis is and what it will be used for, whether this be defining the geographical area of analysis for an economic strategy or informing duty to cooperate working with nearby economic partners.

• Is there an opportunity to align the FEMA analysis with other local evidence base studies, such as a SHMA or retail study?

Points to consider

3

Figure 3: Example Travel to Work Area Analysis

Figure 2: Example Property Market Area Analysis

Table 1: The role of FEMAplan in Economic Evidence and Strategy Development

FEMAplanDefining Functional Economic Market Areas

1WORKspacePlanning for Employment Space and Business Needs

2

This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. NLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Nathaniel Lichfield & Partners is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116. Registered office: 14 Regent’s Wharf, All Saints Street, London N1 9RL © Nathaniel Lichfield & Partners Ltd 2016. All rights reserved.

nlpplanning.com

FEMAplan Project

Experience

“The NLP team were highly professional and maintained good communication with officers throughout. We found their final study to be clear, comprehensive and easy to digest. We would certainly recommend them to other local planning authorities.”

Stevenage Borough Council

“We have been impressed with the understanding and analysis of issues across local authority boundaries…we are confident that the final report represents a robust evidence base that will support preparation of our Local Plans.”

Sheffield City Council and Rotherham Metropolitan Borough Council

Contact Us

Read More: You can find out more about NLP and our tools and methodologies at: nlpplanning.com/nlp-insight

BristolAndy Cockett [email protected] 0117 403 1980

LondonCiaran [email protected] 020 7837 4477

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EdinburghNicola Woodward [email protected] 0131 285 0670

NewcastleHarvey [email protected] 0191 261 5685

LeedsJustin Gartland [email protected] 0113 397 1397

Thames ValleyDaniel Lampard [email protected] 0118 334 1920

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London Heathrow

London Stansted

London City

Biggin Hill

M25

A22

M26

A24

A26

A27

M3

A3

A23

M23

M4

A272

Cranleigh

Sutton

Greater London

Royal Tunbridge Wells

Tonbridge

Sevenoaks

Brighton

Lewes

Uckfield

East Grinstead

CrawleyHorsham

Burgess Hill

Haywards Heath

Dorking

ReigateRedhill

Horley

Caterham

CroydonEpsom

Ewell

Guildford

Worthing

Shoreham

Woking

Leatherhead

Banstead

Coast to Capital Local Enterprise Partnership Area

London Gatwick

M3 Corridor

M4 Corridor

London to Brighton Corridor

M25/23 Corridor

Eastbourne

Bognor Regis

Reigate and Banstead Stategic Employment Options Study

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Hertfordshire and Bedfordshire Functional Economic Market Area Study

Client: Stevenage, North Hertfordshire and Central Bedfordshire Councils

M25

M3

M4

A3A339

A34

A4

A322

WOKINGHAM

BASINGSTOKE

READING

NEWBURY

GUILDFORD

WINDSORHEATHROW

LONDONSLOUGH

MAIDENHEAD

FARNBOROUGH

WOKING

Thames ValleyBerkshire LEP

AONB

Greenbelt

Railway

A-Roads

Motorways

University of Reading

Existing Employment Area

Proposed Employment Area

Key Property Market Areas

Town Centre Development

Airport

North ↑

Legend

& READINGNEWBURY

BASINGSTOKE& ANDOVER

BLACKWATERVALLEY

GUILDFORD& WOKING

UPPER M3

UPPER M4

WEST LONDONSLOUGH &

BRACKNELL

A404

A329

Bracknell Forest Functional Economic Area Study

Client: Bracknell Forest Council

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© Ian Miles-Flashpoint Pictures / Alamy Stock Photo

Front Cover Image Credit: © Sandy Young / Alamy Stock Photo

Client: Thames Valley Berkshire Local Enterprise Partnership

A1(M)

A1(M)

A1

A1

A1

A10

A10

A10

A10

A10

A600

A600

A507

A507

A505

A505 A507

A505A421

A421

A421

A418

A4146

A1081

A1081

A505

A5

A5

M1

M1

A5120

A5120

A4012

A4012

A4146

A4146

A5134

A120

A602

A119

A1184

A414

A1198

A1301

A1134

M11

A509

A509

A428

A428

A421

A422

A422

A5

A5

A505

Bedford

Letchworth Garden City

Legend

Main Employment Sites

Principal Study Area

Key Property Market Areas

Motorways

A-Roads

Rail

Airports

Key Settlements

Key Office Areas

Key Industrial Areas

Welwyn Garden City

Gunnels Wood

Pin Green

Works Road Employment Area

York Road

Stratton Business Park

Middlefield Industrial Estate

Blackhorse Road Industrial Estate

Wilbury WayHitchin

Shefford

Arlesey Stotfold

Biggleswade

Royston

Stevenage

Luton

Sandy