2.7 Economy

2.7.1 The North Norfolk Economic Development Strategy ¹¹ identifies ten key objectives a number of which have land use implications including, supporting business start ups and business growth, broadening tourism, and retaining a flexible supply of employment land and buildings. If these objectives, and the overall aim ‘to promote the diversification and development of the local economy through the creation of an environment which allows businesses to succeed and to provide a wide variety of employment opportunities for the residents of North Norfolk’, are to be met, it is essential that planning policies provide a positive and supportive framework for employment related development.

2.7.2 Research ¹² undertaken in support of the East of England Plan forecasts that the North Norfolk District could anticipate a growth of 4,000 jobs over the period to 2021. The East of England Plan therefore includes an 'indicative' jobs growth target in North Norfolk of 4,000 extra jobs by 2021 and requires that Local Development Documents should facilitate delivery of this.

2.7.3 It is anticipated that much of this employment growth will be in retail, personal services and social care sectors and the Economic Strategy and other policies of this Plan provide for growth in these sectors. In accordance with the East of England Plan the Council has identified a 'range, quantity and quality' of sites which will be reserved for employment generating developments. The selection of sites is informed by the Employment Land in North Norfolk Study ¹³ which considers the level of employment land supply, historical development patterns and likely future requirements.

2.7.4 North Norfolk has a narrow economic base, with much employment in the agricultural, manufacturing, tourism and social care sectors. Traditional industries such as fishing also continue to play a role. Whilst rates of unemployment in the district are low ¹⁴ there is a seasonal dimension to unemployment and employment opportunities in terms of choice and quality, remain limited.

2.7.5 Rates of economic activity are low compared to national and regional averages, reflecting the large numbers of retired people living in the district and its rural character. With many young people leaving the district for increased employment prospects and because of the high cost of local housing, there is a growing concern that businesses will be unable to recruit and attract staff. There is therefore an aspiration to broaden the economy so as to offer a wider choice of employment opportunities and achieve a more balanced economy and population in the future.

2.7.6 The Rural Economy Study ¹⁵ identified three main trends in the rural area; further rationalisation of farm businesses, a broadening of farm based operations to add value to primary produce and further farm diversification. These are likely to lead to an increased requirement for small specialist enterprises producing high value products and diversification into tourist accommodation, outdoor pursuits and the equine industry.

2.7.7 Whilst there has been a change in the manufacturing base of the district in recent years, with a number of business closures and down-sizing in the traditionally strong sectors of food-processing and engineering, there has been a growth of employment in the plastics, boat-building and marine engineering and wooden products sectors. Many of these are “home-grown” businesses started by North Norfolk residents and it is important to provide land allocations to support future investments of this type.

2.7.8 Historically the commercial property market in North Norfolk, in common with many peripheral rural areas of the country, has been relatively weak, with modest rates of employment related development on green-field sites in recent times. However there has been an intensification of uses within established industrial areas and a turnover of commercial property to the point that many industrial estates / areas are now fully developed. This has informed the Council in seeking to retain redundant employment sites in the expectation that they offer opportunities for future re-use for business related activity. 

2.7.9 Limited capacity in basic infrastructure, such as water and power supply, in certain towns is an important constraint to the economy, and in the past grant funding has been received from EEDA to overcome power supply problems and deliver employment development in North Walsham. Chapter 4 ‘Implementation & Monitoring’ provides further details on infrastructure capacity in North Norfolk.

2.7.10 Analysis of 'Travel to Work' patterns in the District as undertaken on behalf of the Council by Land Use Consultants identified three distinct job search / employment areas as detailed below.

2.7.11 East of the District:- covering North Walsham, Stalham and Hoveton and their surrounds.  This area has historically had high levels of employment in agriculture, the defence sector, manufacturing (concentrated in North Walsham, Catfield and Hoveton) and Broads based tourism. This area also accommodates the Bacton Gas Terminal site. As discussed previously there has been a decline in manufacturing but a growth in the plastics and boat building and marine engineering sectors – with investment and employment growth in these sectors in North Walsham and Catfield.  More recently  2500 jobs have been lost from the defence sector with the closure of the RAF Coltishall airbase and significant run-down of the RAF Neatishead Air Surveillance and Control Centre. There are few public service sector jobs in this part of the District. Levels of employment in the tourism sector in this part of the district remain stable but with a change from Broads based boating related activity to small scale land-based accommodation and attractions. The proximity of this part of the district to Norwich has meant that there is increasing levels of out-commuting.

2.7.12 Looking forward, it is anticipated that this part of the district will continue to see a turnover of manufacturing employment, with indigenous businesses being the largest source of jobs growth resulting in a turnover of sites and premises as evidenced over many years. In order that opportunities exist to support this it is important that a choice of sites and premises is provided in locations across the area. This part of the district might also benefit from investment related to the development of the Eastport proposal at Great Yarmouth. Further opportunities may also exist at the former RAF Coltishall site, although at this point in time there is uncertainty as to its future use, and it is somewhat remote from main settlements / centres of population.

2.7.13 In this part of the district the Core Strategy seeks to retain current employment land designations at Catfield, Hoveton and North Walsham and makes small additional allocations at Stalham. The North Norfolk Local Plan made a large greenfield employment land allocation (26 hectares) in North Walsham, however, this was dependent on infrastructure development which is no longer planned. It is therefore proposed that the future supply of employment land in North Walsham is provided through a choice of brownfield and greenfield site opportunities.

2.7.14 Central area of the District:- covering the towns of Cromer, Holt and Sheringham, this part of the district has a high degree of self-containment for employment.  Tourism is the dominant sector with the resort towns of Cromer and Sheringham and the Area of Outstanding Natural Beauty providing a large number of jobs in the hospitality sector. Traditional industries such as fishing also continue to offer employment and add to the character of the area. There is also a large number of jobs in retailing and public administration - with Cromer being the administrative centre of North Norfolk District Council, and having a small district hospital, job centre, magistrates court. With a large retired population, there is also a growth of employment in social care.

2.7.15 Further there are a number of private schools operating in this part of the district - namely Greshams at Holt, Beeston Hall School and Wood Dene and children's outdoor activity centres at Sheringham, Overstrand and West Runton. All three towns have small industrial estates, although employment in this sector is considerably lower than in the other two parts of the district.

2.7.16 The analysis of 'Travel to Work' patterns undertaken by Land Use Consultants identified that the towns of Cromer, Holt and Sheringham function as a network in terms of movement for employment within and between these towns; with Sheringham being seen as a dormitory settlement with fewer people travelling into the town for employment than is the case for either Cromer or Holt. The Council’s approach for the future employment related development of these towns and their hinterlands is to support their roles as tourist destinations and as retail / local service centres. Most of the employment land allocations made in the Local Pan continue to be allocated and at Holt, based upon its relatively good strategic location on the A148 road corridor, the association with Gresham School and the cachet of the NR25 postcode area, it is proposed to identify further employment land for B1 business uses in an attempt to broaden the economic base of the area and indeed the wider district. 

2.7.17 West of District:- covering Fakenham and Wells-next-the-Sea. Fakenham provides employment for 4,800 people and is the dominant centre of employment for a large rural area of north-west Norfolk, extending beyond the district boundaries. The town has a high degree of self-containment for employment, probably reflecting its somewhat remote location from many other centres of employment. Although strategically being in the west of the district Fakenham occupies the most accessible location in terms of access to the national road network. As a result Fakenham has a strong manufacturing base and presence of distribution companies, and is seen as an attractive location for investment. The town has seen some change in its manufacturing base with the loss of some jobs in the food processing sector, although this remains the single largest employment sector in the town. Traditional industries, such as boat building at Morston and fishing at Wells-next-the-Sea, also continue in this area.

2.7.18 Given the strategic location of Fakenham, it is anticipated that the Fakenham area will enjoy continued economic growth in the future. The Core Strategy proposes significant new housing at Fakenham and this requires the provision of additional employment land to support the balanced development of the town. Beyond Fakenham, the existing workshop space at Wells-next-the-Sea will be retained to support local business growth and development. Further land will be identified at the former RAF Sculthorpe Technical Site to the west of Fakenham as a location for specialist industrial / distribution uses recognising the good access the site enjoys on to the main A148 road to Kings Lynn.

Tourism

2.7.19 Tourism makes a vital contribution to the economy of North Norfolk. Figures from East of England Tourist Board show that in 2003 total direct tourism spend in North Norfolk was over £357 million and supported over 7,000 full time equivalent jobs. The Sustainable Community Strategy recognises that all year round tourist attractions are essential to the prosperity and well being of the area and the local economy. However, the main tourism appeal in North Norfolk is based on the unique natural environmental assets and it is also important to protect these. Therefore activities such as cycling, walking and heritage tourism that can be shown to have a minimal effect on the environment will be particularly supported.

2.7.20 The Tourism Study undertaken by Scott Wilson Associates ¹⁶ identified the following gaps in accommodation provision and niche markets for future development. Any proposals for these will be considered in accordance with Policy EC 7 ‘ The Location of New Tourism Development ’

• high quality (4-5*) hotels including spa and health facilities;
• hotels with the capacity and appeal to attract groups, conferences and special occasions;
• accommodation space within pubs;
• woodland lodge-style developments;
• a budget accommodation operation;
• cycling tourism;
• walking;
• water-sports ;
• nature and wildlife;
• outdoor activity;
• health and wellness; and
• heritage and cultural tourism

Retail

2.7.21 The Government is committed to strengthening the role of market towns and other service centres and increasing the viability and vitality of such centres. The Sustainable Community Strategy found that a good range of shops emerge as extremely important to residents and one of the areas that is most lacking in many parts of North Norfolk. Consequently 'better and more varied shops' is one of the key issues in the Community Strategy. The retail study ¹⁷ undertaken to inform the Core Strategy noted the strong influence of Norwich as a regional shopping centre. It undertook "health checks" on the district's town centres and identified the need to regenerate and update retail and leisure provision, to increase the range of goods and improve the pedestrian environment in order to maintain the attractiveness of these centres. The study considered that there was no quantitative need for further allocations for convenience floor-space up to 2016 and as such no allocations for convenience floor space are proposed. However, in respect of comparison goods, the Study concludes that there was potential for some 13,300 - 19,900sqm (net) floor-space to be provided. Taking account of permissions since the study was completed of nearly 5,000sqm in Cromer and North Walsham, the potential is approximately 8,400sqm to 15,000sqm distributed as follows:

• Fakenham / Wells-next-the-Sea: 4,000 - 6,000sqm
• Cromer / Holt / Sheringham: 2,000 - 5,000sqm
• Hoveton / North Walsham / Stalham: 2,500 - 4,000sqm

2.7.22 Local food production and sales direct from farms and at farmers markets and weekly town markets add to the choice and local distinctiveness of the retail offer and the Council wishes to support these activities. National sales of local produce also contributes to recognition of the 'North Norfolk' brand which contributes to the tourism economy.

2.7.23 The strategic economic policy has been informed by all the background information and aims to broaden the employment base across North Norfolk through policies that support local businesses through identification of sufficient employment land and support the tourist industry and farm diversification as well as promotion of town centre vitality and viability. The key role that the Districts market towns play in providing employment opportunities across the area is recognised by the strategy which seeks to improve levels of self containment by providing good quality jobs close to where people live.