Southampton City Council

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Enterprise and Innovation

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Southampton is the regional centre for the growing Solent metropolitan area. Around 120,000 people work in the city and 330,000 in the city region. Current economic strengths in the city region include:

  • The Port

  • Research and development, applied innovation and technology transfer

  • Business services

  • Manufacturing

  • Health and medical sciences and applied research

  • Computer and communication technologies

  • Media

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The city is also a regional transport interchange for air (Southampton International Airport), sea, rail, road and public transport.

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Through identifying and safeguarding sites for employment, the Local Plan can help encourage and promote the global competitiveness of the city and its region; and ensure the benefits of sustained prosperity are shared by all. An adequate supply of sites for industrial and other commercial development, particularly for technology and innovative business will:

  • ensure those economic activities in which the city/ city region has, or could have a competitive edge in global terms can be promoted;

  • encourage companies and research bodies in related fields to locate within the city/ city region;

  • encourage the development of local innovation-based clusters of economic activity; and

  • enable the expansion of existing companies.

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Sites that have been identified are predominantly those already in industrial or commercial use. Their protection will ensure land uses between the cross section of the employment sector remain provided for and the City retains a broad employment base. This protection will also ensure there remains a balance between the provision of employment land and housing sites during the Local Plan period.

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The city council in collaboration with Hampshire County Council has been monitoring the supply and take up of new office accommodation in the city. The total availability of office premises in Southampton has now been falling steadily since the early 1990s, due to increased stock take up rates and conversion of the older office stock to housing. At June 2001 there was approximately 45-50% less available office accommodation than at August 1993. Much that remains is poorly located, of low quality and not compatible with modern office needs. There is a shortage of new office opportunities. The total office floorspace potential on sites over 200 sq. m. in the city within the short to medium term is around 31,334 sq. m. The severe shortage of office sites within the city is demonstrated by a years supply figure of office sites in the city. On past analysis of annual demand for office accommodation in the city (11,200 sq. m. per annum) and the estimated office floorspace potential (31,334 sq. m.) it results in a 2.79 years supply of office sites in the city.

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In line with Government Guidance PPS6 on the location of major office development, the focus of new office developments will continue to be within the city centre boundary where accessibility to public transport is high. A full assessment has not been undertaken in terms of the sequential approach. It has not been possible to allocate sites in the Primary Retail Frontage, particularly on the ground floor, as this is safeguarded for retail uses providing active frontages. Policy REI 3 does not restrict new office development on upper floors within the Primary Shopping Area and further office development has been identified as part of mixed use more central MSA allocations. Available development areas for office use allocations have been identified in edge-of-centre locations within 500 metres of a public transport interchange and walking distance of the city centre facilities and services.

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The emergence of concentrations of major offices in three areas of the city centre are evident - North of the Parks, Commercial Road and Ocean Village. The "quarters" at North of the Parks and Commercial Road will be consolidated as locations for new office development. Further office development at Ocean Village will depend on improvements to public transport accessibility and in particular the development of a passenger rail link.

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Monitoring of industrial land and premises in the city over the past four years shows a similarly acute shortage of land available for development. In 1997 there was 12.25 ha of industrial sites greater than 200 sq. m. gross floorspace available in the city, this had fallen to 7.84 hectares in 2000. Southampton now accounts for only 1% of the industrial land supply generally available in the whole of Hampshire. However demand remains high, not just from the more traditional industrial and warehousing occupiers but also from new high tech industries for sites to become available. There is also significant demand for move-on accommodation as local businesses expand.

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Given the constraints on land availability in the city, safeguarding existing employment sites and encouraging the redevelopment of under-utilised land or out-dated accommodation will reduce the pressure on industrial land and premises for housing as well as retail or leisure uses.

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Major employment sites, home to international companies, have been identified on the Proposal Map for protection. This is due to the vital contribution these employment sites make to the city economy and local employment.

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A successful economy needs a supply of land for new offices, industrial and commercial uses to generate jobs and wealth. Key sites in the city centre, waterfront and inner city have been identified for mixed use development in Part 3 of the Local Plan. These sites have an important role to play in meeting occupier demand and lifting the quality and image of Southampton.

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