The health of the local economy depends on a number of factors, many of which are beyond the control of the City Council or the statutory planning system - not the least of which is the national economic situation. Within these constraints however, it is incumbent on the City Council to do everything in its power to protect and promote the local economy to the benefit of local residents.  In this, the planning system can contribute by ensuring an adequate supply of suitable and convenient sites, an attractive physical environment and a choice of social and cultural facilities.

The Council has encouraged industrial and commercial growth in local firms and actively promotes the City as a location for new inward investment.  Attracting inward investment is a central element in regional policy and an important source of new jobs for the City, particularly in manufacturing.  The Council also works in partnership with other agencies to deliver the economic benefits of regeneration locally.  For areas of severe deprivation (those with high rates of unemployment and benefit dependency) community-based initiatives such as co-operatives and community enterprises can provide a basis for new economic activity and investment.  Economic development has a high priority in the Council’s activities due to the City’s above average levels of unemployment which persist, despite significant progress towards achieving a diversified, sustainable economic base.

There is also the need to ensure that economic regeneration is in a form which can be sustained and which will not prejudice the long term interests of future generations of residents. To do this, the UDP seeks to:

• minimise travel needs
• minimise pollution and ensure that all waste products undergo safe disposal
• promote advanced techniques and new style industries which have a long term sustainable future
• promote the acquisition and development of skills in the local workforce.

Like the economy, the City's workforce has undergone significant changes with a substantial drop in the male workforce being accompanied by an increase in the number of economically active women.  These changes, along with the trend towards a 24-hour economy, have implications for the types of facilities required by the workforce.  This is particularly so in relation to women's traditional areas of responsibility in the domestic sphere.  There may be an increased demand for childcare or shopping facilities to be more closely linked to workplaces as women spend more of their working lives in paid employment and/or as parental and domestic responsibilities are shared.

Employment in the City has undergone many changes:

• the primarysector in Sunderland now provides very few jobs, compared to the heyday of the Durham coalfield.
• despite some decline, Sunderland’s manufacturingsector, provides a relatively high proportion of jobs, contrary to national and regional trends.  There has however been a major shift in the type and location of these jobs, away from shipbuilding and heavy engineering along the riverside towards sites with good access to the primary route network, particularly in Washington.  A new, more broadly based sector is emerging, partly based on traditional strengths - for example in engineering, with Nissan and the automotive components sector. 
• the servicesector is also undergoing significant change from small-scale offices with a strongly local focus towards providing a diverse range of services for the local, national and international economy.  This is demonstrated by the growth of the University, the Inland Revenue's presence in the City Centre and the location of the Nike corporate headquarters and others at Doxford International.

Source: Tyne & Wear R&I Unit

Source: Environment Department

Reflecting economic conditions, industrial land take up was generally low during the early 1980's but increased substantially from 1985 onwards (see Fig 4.3). The City's stock of industrial premises has grown steadily mainly in Washington but more recently in the Enterprise Zones and along the riverside.

The exceptional scale of Nissan's investment means that its development and future requirements should be considered separately from general industrial demand.  The company occupies a 354ha site and less than 30ha of the original allocation now remains.  Land requirements are expected to continue to grow in the longer term, due not only to expansion at Nissan itself but also to the need for suppliers to locate near to the factory in order to meet production requirements.

In considering the present condition of the City's economy, together with expected developments, the main components of the Economic Development Strategy have been determined as:

• encouraging growth in manufacturing and services
• locating jobs and businesses at the most accessible points
• developing heritage and tourism in the City

Economic development policies take account of other City Council Strategies, especially those concerning employment-related land uses.  The Plan allocates a range of sites for new industry and commerce with policies geared to growth over the plan period. It takes into account the increasing importance of services in maintaining the vitality and viability of town centres and it creates the conditions to attract regional and national headquarters.  Industrial sites are retained for economic development purposes.  In relation to both industrial and service sector uses, the Plan maximises the potential of the Enterprise Zones and the opportunities for job creation they represent.  The environment of existing estates will be enhanced and new development should be of a quality which promotes the prestige and attractiveness of the City.

This policy outlines in general terms how the Economic Development objectives will be achieved.  'Encourage' means that sympathetic consideration will be given to planning applications for the types of development indicated, subject to the constraints outlined in EC4 and 5.

Even though the structure of the economy has undergone fundamental changes in recent years, manufacturing is, relatively, a greater source of employment in Sunderland than elsewhere in the County and the skills base of the local workforce is attractive to potential new industries.  The City has a remarkable record  of achievement for attracting inward investment, particularly from the Far East and USA amounting to some £1,000 million worth of investment and 10,000 new jobs.  This strengthens the City's claim to be the Advanced Manufacturing Centre of the North.

Service sector growth can be encouraged by identifying new sites which are well located and attractive to business users particularly in the City Centre and along main transport corridors.  Expansion related to the University and further education is also providing a significant boost to the service sector locally.  As well as responding to the needs of industry for particular skills, education and training has in fact been an important source of economic growth in its own right.  For example, the University generates significant direct and indirect employment, income and investment.  It provides employment for some 1,400 FTE staff and has some 15,600 students - thus proving to be a significant actor in the local economy. Through further expansion, the University expects to create up to a further 1,100 jobs by the year 2000.

As noted in Chapter 2, a recent analysis of 1981 and 1991 Census data showed that the same six Sunderland electoral wards were ranked in the 10% most deprived wards in the Region in 1991 as had been in 1981 (Castletown, Grindon, South Hylton, Southwick, Thorney Close and Town End Farm).  Because there are spatial concentrations of unemployment and deprivation, there is a need for specific local initiatives such as through support for co-operatives and community enterprises.

Planning applications will also be assessed on whether a location is suitable for the use in question, in accordance with Central Government guidance (PPG4) which states that, through the UDP, the Council can take account of the locational needs of industry whilst also working towards wider objectives, notably:-

• minimising the length and number of trips, especially by road
• discouraging development which would add to congestion
• encouraging more energy-efficient modes of transport
• directing development requiring access to mainly local roads away from trunk roads.  This approach also receives further support in PPG13 Transport.

These policies set out the Council's approach to development for economic purposes.  The figure of 1,250ha comprises the following allocations:- some 1,215ha under EC4; 27ha under EC6; and smaller sites identified in the area chapters.  The total is based on an assessment of past and expected rates of take up (see Fig 4.3) and should be adequate to meet the demand for manufacturing and commercial sites as well as providing employment opportunities for Sunderland's residents.  Choice is essential to the health of the local economy because firms have differing requirements, depending on the type of activity - from those generating noise or heavy traffic to more prestigious office developments.

Source: Environment Department

The provisions in these policies also reflect Government guidance which states that local planning authorities should ensure there is a variety of sites available to meet differing needs.  These should have ready access to transport networks and be capable of accommodating specialised forms of development which can contribute to the country's economic well-being and inward investment.  Encouragement will be given to enable people to live near their work.  This is particularly important for sites and premises suitable for small or community businesses which should be situated as close as possible to the residential areas they are intended to serve.

A strategic site should provide:-

• good access to the primary road network
• optimum accessibility for the workforce
• good links by existing or potential public transport services
• reasonably level topography
• the minimum need for off-site drainage and other infrastructure requirements
• sufficient separation from residential and other sensitive areas so as to be able to operate without undue adverse consequences
• measures to minimise any impact on features of natural or archaeological interest and good quality agricultural land.

A proposal for a separate strategic site in the Green Belt north of Nissan was included in previous stages of this plan to provide for possible demand either from a major inward investor or in the event of a major expansion of Nissan.  The Inspector referred in his report to Government advice (PPG2) that detailed Green Belt boundaries defined in adopted local plans should be altered only exceptionally.  Although he found that the allocation was essentially speculative, he also stated:

“Whilst I accept the desirability of making provision for a major inward investor, it is my view that the selection of a strategic site should ... be considered on a regional basis. Updated Regional Planning Guidance is being prepared and it would be unwise to pre-empt its outcome. Site selection could therefore form part of the first review of the UDP, or an earlier update, if necessary.”

The Council will review the need for a strategic allocation north of Nissan in the light of Regional Guidance.

The lower option assumes that the pattern of demand since 1980 will continue largely unchanged.  It excludes the development of Nissan's own site together with its associated factories.  On this basis, a further 114ha. could be required to 2006, well within the 205ha presently available.  One of the City's key assets in attracting investment has been the readily available supply of relatively cheap industrial land and this should be maintained as far as possible.  Option 2 is a straightforward projection of demand on the basis of total take-up 1980-97 which includes Nissan.  If another large scale investment were attracted to the City, present allocations could be inadequate, with a shortfall of up to 80ha by 2006.

The current supply of land approximately matches expected demand to 2006.  The main concern of the UDP is therefore one of quality not quantity in terms of site size, type and location.  To ensure an adequate supply of land is available for incoming and expanding economic developments, approximately 30ha of new land is allocated for employment generating uses.  This, with the 205ha of vacant land on existing sites, is expected to provide sufficient land for the plan period, giving a choice of size and location as well as allowing for more generous landscaping.

The story of Nissan's location in Sunderland is one of continuing expansion and growth.  There has also been a significant multiplier effect with almost 3,000 people employed by Nissan suppliers within the City area, as well as the 4,000 or so who are directly employed.  Following Nissan's decision to locate in the North East in 1984, some 28 Japanese companies have chosen to settle here, forming the largest concentration of Japanese engineering investment in Europe.  Despite market fluctuations, sales of Nissan cars in Western Europe are expected to increase.  Nissan is now one of the UK's largest car manufacturers with a substantial proportion of production going for export.  It claims to contribute some £500million annually to the Region's economy.

The company operates a lean production system keeping stocks to a minimum, requiring regular and frequent deliveries of parts, meaning that suppliers often need to be physically close to their customer.  Some, such as Ikeda Hoover, are literally at the factory gate.  This track record of rapid development and expansion is exceptional and the Council recognises the important role which the Nissan company plays in the economy.  An extension into other land north of the A1290 by Nissan itself or for an associated business which needs to be located close to the Nissan complex may be considered. Because of the area's Green Belt status, any proposal will have to demonstrate exceptional need and include appropriate nature conservation measures.

Some parts of the City, particularly the western edge of Sunderland and inner city areas, are more seriously affected by unemployment and present few investment opportunities for the benefit of local residents.  In these cases, community-based initiatives could be a major means of regenerating the local economy and providing job opportunities for those who are most disadvantaged in employment terms.  Additional help is given through the training programmes of Sunderland TEC.

Improvement Area legislation has been a successful tool in restoring the economic viability of some older urban areas.  However changes in Government funding regimes have created uncertainty amongst potential beneficiaries of grant schemes.  The Council will, where possible, continue to identify those areas which could benefit from improvement schemes and direct its remaining resources accordingly.

The re-use of land and premises helps maintain a range and choice of sites for economic development purposes as well as reducing pressure on previously undeveloped sites or for the allocation of further land.  It is important for the regeneration of an area and encourages the re-use of sites which are already well served by public transport.  For example, the new University campus at St. Peter's Riverside has been instrumental in the regeneration of the North Sands area.

Where necessary, works can be undertaken to provide or improve infrastructure such as highways and utility services.  This can be done in response to the needs of existing firms or to make estates more attractive to potential investors.

In order to monitor and implement these policies the Council will continue to produce the Office Sites and Industrial Land Availability Registers.  Where the supply is not adequate and there are gaps in provision, the Council will act to remedy this through preparing existing vacant sites and identifying and assembling new ones, where necessary through using its compulsory purchase powers.  It will continue to work with other agencies for example through the City of Sunderland Partnership, to encourage and facilitate private sector investment in the City.  It will also continue to channel funding from other bodies such as the European Commission and Central Government for infrastructure and preparatory works.

Development plans are required to give industrial and commercial developers and local communities greater certainty about the types of development that will or will not be permitted in a given location.  This policy sets out the principal uses expected on land allocated for economic development purposes.  It provides the general framework for more specific proposals contained in the relevant Part II area proposals.  These may also specify certain areas of an industrial estate e.g. where it borders housing, where the range of uses may be restricted. 

An acceptable use is one which the Council could be expected to approve in principle, though detailed matters would still be subject to negotiation.  The primary use would be that which constitutes the main land use, as stated on a planning application or in the original allocation.  An ancillary use is a subsidiary one which would contribute to the improved functioning of the primary use, for example by creating better conditions for employees or providing minor additional services to support the economic viability of the site.

The Council's priority is to reduce unemployment through protecting existing jobs and enabling the creation of new ones.  It is important therefore to ensure that areas are available where enterprises can operate without causing nuisance to other, more sensitive uses such as housing.  Also, industrial land is a scarce resource. It is expensive to prepare for development and the need for additional industrial land should be kept to a minimum, limiting its intrusion into the countryside.  Existing industrial allocations are generally well related to housing areas and transport infrastructure.  They are suitable for their purpose and should be retained. 

In some circumstances an applicant may wish to include provision which would not normally be considered appropriate in an industrial area because of wider social changes - more women in the workforce, more single parent families.  Some limited provision of other facilities on industrial estates may become economically attractive as well as socially desirable.  Where provision can be shown to:

• meet proven needs in the locality
• improve facilities for employees
• support the economic viability of the enterprise

and providing it does not interfere with the primary purpose of the estate, the use may be permitted.  This could include the provision of sport and recreation facilities by employers, a long-standing tradition which the Council will continue to encourage; it may also include childcare or very limited shopping facilities either as part of a specific industrial/ office development proposal or aimed at serving the needs of workers in the general locality.

Retail uses, especially those which attract a large number of visiting members of the public, are not considered acceptable because of the potential impact on the operations of other firms as well as the vitality/viability of shopping centres.  Adequate provision for other uses, such as housing and retailing, is made elsewhere in this Plan.

Mixed Use Areas are those where no single land use is dominant.  They can fulfil an important role in the community by providing opportunities for jobs and services that are difficult to create in areas with a single dominant use - activities such as car showrooms or caravan sales and servicing would fall into this category.  As with EC4, this policy provides the general framework for those mixed use areas identified in the appropriate Part II area proposals, which define the actual uses acceptable for each site.  The definitions of primary and ancillary are as set out in paragraph 4.35 above.

Where a mixture of uses has evolved, these are not necessarily mutually exclusive.  Most sites reflect past decisions either by the Council or on appeal; others represent established uses not subject to planning control. In such areas a mixture of uses will be allowed, with planning conditions or obligations being used as appropriate to achieve the following aims:-

• to prevent subsequent intensification from becoming unacceptably intrusive, thus safeguarding local amenity
• to ensure that retailing is confined to specific uses such as bulky goods or retail warehousing which, by their scale and nature, may be inappropriate within existing shopping areas
• to control changes of use within use classes such as from car showrooms to convenience retailing in order to protect the vitality and viability of centres protected under S1.

Where retailing is permitted or is already present, it will not be allowed to an extent where it could undermine the mixed use nature of the site.  Convenience retailing may be permissible if it is needed to ensure a balanced provision of facilities in accordance with policies S1 and S4.  In such cases, the applicant should be able to show that there are no other, more appropriate sites available and there would be no adverse effect on existing facilities.

Although over 200ha. is potentially available Table 4.2 shows that there are only 4 sites above 10ha. in the entire City area.  Of these, only Rainton Bridge South is immediately available for general industrial development - two sites require preparation and the other is under option to Nissan. Thus in order to offer a choice of larger sites, additional land is required.

The Council proposes these sites with regard to:-

• the increased need for new jobs in the wake of closures of shipyards and the last coal mine
• analysis of past patterns of industrial land take-up, which indicates the level of demand could remain high in the future
• the need to strengthen the City's role as a regional manufacturing centre - ensuring the Council can continue to offer a range of site size, type and location to potential investors
• the demand for employment in terms of the number of economically active in the City
• the long lead-in time between identifying a site and it becoming available for development

With the completion of Leechmere industrial estate and allowing for the development of Doxford International, there will be no site of any significant size (over 4ha) in the southern part of Sunderland, yet substantial sites for new housing have been allocated.  South Ryhope was originally included in the Structure Plan, though it was not brought forward for development due to the need for road improvements. The site would strengthen the City's longer term economic strategy, particularly in Sunderland South. It also has the potential for a link to the rail network.

The Enterprise Zone at Doxford International was declared in 1990 and has assisted in the rapid development of the Business Park. It has attracted strong tenants and currently provides for B1 uses only. Building on this success, a further area of 7ha has been identified as an extension making maximum use of existing infrastructure.  These two sites will improve the portfolio available in this part of the City as well as offering employment in locations easily accessible from those areas with relatively high rates of unemployment.

Any development proposals will be expected to protect environmentally sensitive sites, particularly at Ryhope and to address the impact on the road network as set out in Policy T14 and the supporting text.  Development may involve some consolidation of ownership, requiring the financial support of the Council.

EC4 addresses the provision of offices on industrial estates. However, the Council is also seeking to maintain the vitality and viability of the main centres in the City.  Office employment contributes greatly to the general viability of these, as well as making a more sustainable use of public transport provision, existing premises and service infrastructure. Sites are also available for those office uses which may be more appropriate to a business park location such as in the Enterprise Zones.

The structure plan identified Sunderland city centre as second in the hierarchy of office provision in Tyne and Wear after Newcastle. However with a city-wide total of 273,000m2 in 1994, Sunderland is still substantially smaller than Newcastle which has over 500,000m2 in its city centre alone. Although floorspace has increased since 1984, Sunderland has not matched the rate of growth in Newcastle, nor the rapid rate of development in Gateshead's Enterprise Zone.

Tourism and leisure activities are increasingly being recognised as valuable contributors to the local economy.  These include hotels, guest houses, restaurants, cafes, public houses, clubs, cultural facilities such as libraries museums and art galleries, and sport.  Because most tourist provision is leisure-related, it is expected that hotel development will largely take place adjacent to leisure or tourist facilities.  However Sunderland is experiencing a growth in industrial tourism - visits which are related to business activities - where visitors may need accommodation close to factories. In such a case, it may be appropriate to locate a hotel on an industrial estate, though any such development would be required to ensure that general amenities for visitors and employees alike were acceptable.

In 1991 over 31,000 jobs in Tyne and Wear were in tourism and leisure, with perhaps a further 2,000 self employed  Almost a quarter of these were in the City of Sunderland. As well as providing jobs, tourism and leisure can help in the following ways:-

• by increasing spending in the locality
• improving the local quality of life through environmental and leisure projects
• enhancing the image of the city, thus assisting with industrial promotion and inward investment
• developing cultural activities

Tourist-related activities are particularly notable around Sunderland city centre, the seafront area and Washington.

In addition to the high level of business visitors staying overnight in hotels and guest houses, Sunderland's tourist trade generally consists of people on academic and sporting visits.  There is also a strong 'visits to friends and relatives' (VFR) market with visitors overspilling into serviced accommodation. Major factors which will influence the local tourism sector are the expansion of the University and the continued growth of the Nissan car company. The potential impact of new facilities such as the Sunderland Glass Centre and the new football stadium need to be considered. Whilst the Council is keen to support developments which would improve facilities - through promotion and marketing, or grants where applicable - it is also aware of the need to protect the original characteristics of the attraction.

Recently there has been substantial interest in developing hotel provision.  The tourism strategy for the Northumbria region identified the need for the development of an additional 3,000 bed-spaces in a variety of accommodation together with the creation of showpiece developments.  There are a number of sites in the City which are available for major hotel developments. Implementation will be through the development control system and negotiation with developers.

The Enterprise Zones consist of three sites made up of:-

• Hylton Riverside/ Southwick (35ha.) designated as part business park, part general industrial use
• Castletown (6.5ha.) designated for business, industry and warehousing
• Doxford International (40ha. in total, of which 20ha. has enterprise zone status) designated for B1 and B2 uses together with an hotel.

The benefits available for industrial and commercial properties in enterprise zones include:

• exemption from rates
• capital allowances of 100%
• relaxed planning regime/ speedy handling of remaining planning controls

Government guidance encourages diversification and the accommodation of change while continuing to conserve the countryside for the benefit of residents and visitors.  It emphasises the need to accommodate changes in agriculture following revisions to the European Community's Common Agricultural Policy (CAP) and the current reduced emphasis on food production. Clearly this will affect the rural parts of Sunderland where agriculture is a major land use (29% of the City's area is in agricultural use). However it is also important in the context of Sunderland to consider the consequences of coalfield closures, which have particularly affected the southern, rural part of the City, and the consequent pressures for diversification and job creation.

Local authorities are required to make realistic provision for industries which may be detrimental to amenity or a potential source of pollution - sometimes described as 'bad neighbour uses'.  These do not necessarily pose any threat to public health or safety, but can give rise to unpleasant effects and annoyance through noise, vibration, airborne particles or other sources of nuisance. Some business sites identified in Part II are sufficiently separate from residential and other sensitive uses to be considered as suitable locations for special industries.

This policy lists those planning requirements which any proposal would be expected to meet. Separation from residential uses in particular is necessary to protect local amenity.  Where a development requires access to the primary road network, defined routes shall, as far as possible, avoid built up areas in order to minimise any danger to other road users and residents.

Hazardous or unpleasant uses can cause problems for others in the locality.  A special form of planning control applies to the keeping of hazardous substances (gases, liquids or powders which are explosive, flammable or poisonous) at or above certain quantities, known as hazardous substances consent.  The substances and their controlled quantities are specified in the Planning (Hazardous Substances) Regulations 1992.  Hazardous Installations and explosives sites must also be registered with, or licensed by, the Health and Safety Executive (HSE).  Any development nearby must follow the prescribed consultation procedure.

Although a great deal of progress has been made, there are still some premises which are inappropriately located. The Council recognises that this can cause a nuisance to neighbouring residential and commercial areas or to neighbouring industry of a sensitive nature. For example, most scrap yards are located along the River Wear corridor and within the inner urban area of Sunderland.  A Council report identified three main problems presented by the existing distribution which are still relevant. These are sites which:

occupy physically constricted sites which deny their owners the opportunity to expand;

are affected by planning and/or reclamation proposals or constitute non-conforming uses;

are "unsightly" in their appearance.

The increase in concern for environmental issues has, to some extent, lent greater support to the process of recycling and re-using waste materials - including scrapyards. The Council's intention is to provide for the continuance of this activity and limited expansion of the recycling industry where this is consistent with wider planning and environmental objectives and the well-being of the community. New or improved facilities should have adequate perimeter fencing and landscaping, parking, servicing and loading/unloading facilities, with covered or well-screened storage areas. These operations will be tightly controlled through the use of conditions and appropriate S106 agreements as well as being regulated through the waste disposal licensing system.