It is impossible to ignore the Government’s focus on economic growth at the moment. It has been reported that the Prime Minister and Chancellor have asked all Government departments to place economic growth as a cross-cutting key factor in all of their decision-making, whilst the ongoing reform of the planning system is being heavily influenced by its ability to support economic growth.
It is against this backdrop that the judgement in SPVRG Ltd v Pembrokeshire County Council is a timely reminder to both local authorities and applicants for planning permission of the need to tackle economic issues in a robust manner. Economic issues weighed heavily in the Pembrokeshire case, which related to the provision of infrastructure associated with visitor/tourist accommodation on a site near Narberth. However, the Court found that mistakes were made in the way that the key issues were addressed in the overall decision.
Acknowledging economic issues as material considerations in the determination of planning applications is well-trodden ground. It is one of the three objectives of sustainable development and is an issue to which all sections of the community can relate. Indeed, applicants for planning permission regularly use economic issues as a positive factor in their case for permission.
References to economic benefits and effects can be found in the assessment of many types of development, from the most obvious examples of office, logistics and manufacturing through to retail, leisure and also the economic benefits of new housing development. Indeed, the economic impacts of data centres, being built to power the push for growth in A.I., gained regular column inches in the press in early 2025.
The need to assess net economic benefits
This was the case in the issues raised by the proposed development in Narberth, Pembrokeshire. It was clear that there were benefits associated with the development, particularly when viewed through a certain lens. However, when deciding to grant planning permission two problems occurred.
First, the Court found that the decision of the Council focused too heavily on the benefits of the proposal and not the wider impacts across the surrounding area. Second, the Court was critical of the absence of a proper assessment of the net economic benefits. These issues were amplified by the planning application being recommended for refusal by officers and the decision of elected members to support the application.
All of this points to much greater attention to detail for local planning authorities and applicants when extolling the benefits of a particular development or seeking to understand the full range of benefits of a development proposal in terms of, for example, job opportunities or the wider Gross Value Added impact on the local economy.
Why headline figures are not enough
It may be very easy to state the gross impact of a development in terms of the number of jobs it creates or the ‘headline’ investment for the economy. These are eye-catching ‘headlines’ for the local press or the members of a planning committee. However, to concentrate on these alone would be too narrow and, as suggested by the Pembrokeshire judgement, they don’t tell the full story.
Unfortunately, it is surprisingly common for proposals to ignore the valuable ‘net’ and ‘indirect’ benefits of a development project. Examination of these factors is valuable for two reasons. First, it shows that the development promoter and decision maker have both been thorough in their interrogation and explanation of the key issues. Second, it lays the foundations for a robust decision-making process.
This occasional lack of attention to detail may be reinforced by the planned change to Environmental Outcome Reports, which could drop the need to deal with socio-economic issues.
The opportunity for better economic and social assessment
However, we, at Nexus, see this as a significant opportunity for both applicants and local authorities to re-visit the usefulness of stand-alone economic and social infrastructure assessments which can help all parties through the decision-making process.
It is for these reasons that many organisations in the private and public sectors are working in partnership with Nexus Analytics & Research, NAR, to place economic issues and robust economic assessment at the front and centre of development proposals and spatial planning strategies.
In recent years NAR has worked with promoters of strategic development allocations, local authorities, and media / arts organisations, such as the Barbican and BBC, to research, assess and explain the economic effects of specific development projects and planning strategies. This work has also been extended into the social impacts of these same development projects and planning strategies.
How Nexus Analytics & Research can support projects
We offer a number of services which assess economic impacts, including Environmental Statement chapters, economic reports, economic benefit infographics, and our new Vitality Assessments, which evaluate how development can boost the local economy and key local services.
Our assessments are fully cognisant not just of the headline figures, such as job creation and GVA, but also indirect and induced impacts, which can have wider positive effects on economic and social issues.
The work of NAR is relied upon by our clients to support decision-making throughout the life of a development project. We are integral to the initial investment decision, through to detailed design development and then the preparation of assessments which are required for the formal planning application decision-making process.
We are also an important partner for our local authority clients, working to ensure that officers and elected members are in possession of a comprehensive suite of information to assist with decision-taking and plan-making.
If your development project or planning strategy initiative requires support in relation to the comprehensive assessment of economic development issues then please get in touch with NAR: Fiona Bruce, f.bruce@nexusresearch.co.uk.
Director
Senior Analyst
