Workshop report from RTPI's Planning Convention 2009.
Break out session 17: 3.50, Thursday 18 June

Speakers:

Chair Matthew Spry MRTPI (Nathaniel Litchfield & Partners (NLP))
Ciaran Gunne Jones (Senior Economics Consultant, NLP)
Andy Groves MRTPI (NLP)

The Chair opened the session and proposed two agendas for planners to consider: dramatic economic change and subsequent new challenges for the planning system. Key questions were: Where is the economy heading? What are the implications? What are the potential responses of the planning system?

Gunne Jones gave a concise overview of recent changes in the world economy – how the bubble grew and the monumental ‘burst’ that has led to the recession. The outlook is challenging; with a contraction in the service sector, a major correction of house prices and fall in residential land prices, only the public sector is likely to see any short-term growth, but potentially with medium-term contraction. Recessions tend to last four quarters and the UK will soon reach this point. A muted recovery is predicted for 2010.

Examples of the spatial impacts of the recession will be:

1. fewer housing completions, with developers focusing on lower risk locations;
2. a reduction in housing-led regeneration schemes;
3. slower recovery in some locations (the more diverse a local economy, the stronger its position);
4. slower retail growth;

5. financial services consolidation to 'safe havens' (e.g. London)

Groves led the next presentation offering an insight into surviving the recession. The audience were advised to expect slower growth, as development happens through developer-led risk taking, and the emerging climate will be risk averse. Policy and regulatory measures such as extending the time for planning permissions will help, but planners need to understand the impact of constraint policies and base this understanding on evidence. Choices and trade-offs will need to be made, which will require:

1. better judgement and leadership;
2. the acknowledgement that not all obligations (i.e S106) can be met;
3. focused public sector investment where necessary to prop up fragile schemes that meet longer term goals.

NLP have called for fresh thinking, for a better understanding of the new environment so that short and medium term responses will support the investments and business that emerge. The challenge for Local Authorities is to ensure they have the skills in place to ensure they support and encourage recovery.

Author:

Kate Webster

Publisher:

The Royal Town Planning Institute

Date:

26-Jun-09

Sections:

News & Media

This article has been read 923 times.