14. socio-economic

Proposed Water Bottling Plant at Cowdale Quarry, Buxton Environmental Statement

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14. Socio-Economic

14.1 Introduction

Background

14.1.1 This Socio-Economic Impact Assessment has been prepared by Peter Brett

Associates (‘PBA’) in support of a planning application by Express Park Buxton Ltd

(‘EPBL’) for the construction of a water bottling plant and associated storage areas at

the site of the disused Cowdale Quarry in Buxton, High Peak. The groups of dwellings

that form Cowdale Village are a short distance (200m) to the south east of the

application site, which is located 1.5km to the east of Buxton Town Centre.

14.1.2 This application is very similar to the full planning application which was submitted by

EPBL in April 2011 and given the reference HPK/2011/0182. Only two elements of the

currently proposed scheme have been altered, the first being the access – which will

now be via a tunnel to avoid affecting the Scheduled Monument – and the second

being the removal of the heritage centre.

14.1.3 Accordingly, the currently proposed development consists of the following elements

(all specified floorspace figures are gross):

a bottling plant of approximately 15,845 sq.m, comprising:

- the main plant area, for production and warehousing (15,245 sq.m)

- offices and welfare facilities (600 sq.m)

ancillary car and cycle parking

14.1.4 The application from 2011 was accompanied by a suite of supporting documents

including an Environmental Statement (‘ES’) dated March 2011, which contained

chapters on planning policy context, ecology, transport and access, noise, air quality,

cultural heritage and hydrology. High Peak Borough Council (‘HPBC’) refused

application reference HPK/2011/0182 on 20 June 2011, and on 1 December 2011,

EPBL lodged an appeal against that decision. In a letter dated 12 April 2012, the

Planning Inspectorate advised that, following examination of the ES, the Secretary of

State required the appellant to supply various ‘further information’ for the purposes of

the then forthcoming public inquiry, including the introduction of a chapter describing

the socio-economic implications of the proposal.


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14.1.5 In April 2012, we were instructed to identify the potential socio-economic impacts

associated with the proposed development, and their likely contribution to the economy

and local communities. We completed our Socio-Economic Impact Assessment in May

2012 and subsequently appeared at the Inquiry1 in June 2012, where we presented

evidence on the same subject.

14.1.6 At the outset, we consider it worth highlighting relevant parts of Inspector John Gray's

Appeal Decision of 15 November 2013, namely his comments and conclusions the

evidence that we presented to the Inquiry on socio-economic matters. In paragraphs

91 and 97, the Inspector stated that the employment generated by the proposed

scheme, together with an inward investment of £20 million, a construction contract

value close to £10 million and an increase of £4 million annually to Buxton’s economy

– and over £6 million to Derbyshire’s – amounted to ‘significant benefits’.

14.1.7 However, whilst Inspector Gray agreed with all of the evidence that we presented at

the Inquiry in relation to socio-economic matters, the decisive factor which led to the

Inspector to dismiss the appeal was the ‘significant harm’ that the proposed scheme

would have had on a scheduled monument.

14.2 Our Current Instructions

14.2.1 A pre-application meeting was held on Thursday 25 July 2013 between officers at

HPBC and some members of EPBL’s consultant team. We did not attend the meeting

but we have been apprised of the discussion. Our understanding is that HPBC’s

planning officers have accepted that in most cases the baseline information that

informed and supported the previous application will remain valid and that minimal

changes will be needed to ES chapters.

14.2.2 PBA has been instructed to update the Socio-Economic Impact Assessment to reflect

the current application proposals. At the outset we reiterate that the only change which

affects the socio-economic chapter is the omission of the heritage centre, and so any

amendments to our report are relatively minor in nature.

14.3 Scope of the Socio-Economic Impact Assessment

14.3.1 The main purpose of this Socio-Economic Impact Assessment is to identify the

potential employment impacts associated with the proposed development. It also

1 APP/H1033/A/11/2166189


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assesses the strategic fit of the project with key strategies and policies relating to

economic development and growth.

14.3.2 The Government’s preferred methodology for appraisal and evaluation is set out in the

following documents:

HM Treasury: The Green Book – Appraisal and Evaluation in Central

Government (January 2003);

The 3Rs Guidance (May 2004); and

English Partnerships’ Additionality Guide (October 2008).

14.3.3 The aforementioned publications establish a number of key principles for the appraisal

of socio-economic impacts arising from a project. The objectives of the project should

be defined at the outset, with anticipated outcomes and outputs, and the target

beneficiaries should be identified in terms of geography or target groups.

14.3.4 Our assessment covers the following elements:

the project’s fit with key strategies and policies;

gross employment;

net additional impact;

the number of jobs created at the construction phase; and

gross value added (GVA) per annum.

14.3.5 The impacts associated with the proposed development (the ‘intervention option’)

should be compared to the impact of a ‘reference case’, which is the ‘do nothing’ or ‘do

minimum’ scenario. This approach addresses the issue of ‘deadweight’ and ensures

that the appraisal only captures the additional benefits over and above what would

have happened without the intervention option.

14.3.6 Our appraisal of the socio-economic impacts of the proposed scheme includes an

assessment of:

‘leakage’, which is the proportion of outputs that benefit those outside of the

geographical area of the appraisal, or outside the target groups;


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‘displacement’, which is the proportion of project outputs/outcomes that are

accounted for by reduced outputs/outcomes elsewhere in the defined target

area; and

‘multiplier’ effects, which include the supply linkage multiplier or indirect multiplier,

due to the purchases of goods, and the income multiplier, which is associated

with local expenditure on the part of those who derive incomes from the direct

job creation

14.4 Assumed Employment Levels – Operational Phase

14.4.1 The Planning Statement, and other documents that were submitted in support of the

previous planning application, noted that the proposed bottling plant at Cowdale will

employ approximately 100 persons. HPBC questioned this figure in its letter to the

Planning Inspectorate dated 27 April 2012. In paragraph 4.4 of its letter, the Council

asserted that Nestlé’s new water bottling plant ‘will employ only 60 employees’, and

stated that ‘…they (Nestlé) currently employ less than 40.’ The source of these figures

is said to be an email to HPBC from Nestlé. HPBC then suggests that ‘the appellant

should explain why their plant…is expected to employ 100 employees.’

14.4.2 The findings from our assessment are based on the following levels of employment at

the bottling plant and associated offices. These figures represent the number of full-

time positions that are anticipated by the applicant:

72 jobs in the ‘process, plant and machine operatives’ Standard Occupational

Classification (SOC)2 category, consisting of 60 operatives and cleaners (three

shifts of 20) and 12 fork lift truck drivers (three shifts of four);

20 jobs in the ‘administrative and secretarial’ SOC category; and

8 jobs in the ‘managers, directors and senior officials’ and ‘professional’ SOC

categories3.

14.4.3 In total, it is anticipated that the proposed bottling plant and associated offices will

support at least 100 full-time jobs. We have discussed these figures at length with the

2 The SOC 2010 is a common classification of occupational information for the United Kingdom. Jobs are classified within the SOC in terms of their skill level and skill content 3 It is likely that some technical specialists (such as microbiologists) will be required at the site for quality control purposes, and engineers will need to be on site at all times, as down-time is very expensive.


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applicant and its advisors, who advise us that they are confident that the

aforementioned figures are realistic, robust and, indeed, conservative. We suspect

that the number of full-time positions at Nestlé’s new water bottling plant at

Waterswallows Lane (also in Buxton) will be in the same ballpark, at between 90 and

120 jobs – depending on whether the facility has three or four bottling lines – plus office

staff. These figures are backed up by paragraph 4 of the ‘Economic and Business

Case’ (dated December 2010) in support of Nestlé’s application, which referred to 86

permanent employees at Nestlé’s existing factory, and by paragraph 6.14(1) of the

Planning Statement (also dated December 2010), which stated that the Waterswallows

Lane bottling plant would ‘secure around 100 jobs for the long term.’

14.4.4 Furthermore, it is worth noting that Nestlé Waters UK’s executive, sales and

administration operations are based in the firm’s headquarter offices at

Rickmansworth, Hertfordshire, which employs around 120 persons. Considerably

more than 100 employees will therefore be associated with Nestlé’s new water bottling

facility at Waterswallows Lane, with some of the support staff based in Rickmansworth.

14.4.5 Accordingly, we firmly believe that the employment figures we have used for our socio-

economic assessment are robust and realistic. Indeed, the employment figures should

be regarded as conservative. The applicant's technical advisors consider that the

proposed water bottling plant could conceivably support in excess of 100 full-time

positions, which is backed up by the fact that Nestlé’s new water bottling facility will

clearly employ considerably more than 100 employees.

14.4.6 The proposed development will not act as a replacement facility for one already in

operation and there are no alternative employment proposals for the site. Therefore,

we assume that there is no employment associated with the ‘reference case’.

14.5 Structure of Our Report

14.5.1 The remainder of our report is structured as follows:

Section 14.6 sets out the ‘baseline’ socio-economic conditions across various

geographical areas in order to provide the context for the remainder of our report;

Section 14.7 summarises some key trends in the UK water bottling industry,

which are likely to drive growth;

Section 14.8 contains our assessment of the ‘strategic fit’ of the proposed

scheme with key strategies and policies;


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Section 14.9 provides our assessment of the economic impacts associated with

the proposed scheme; and

Section 14.10 contains a summary of our findings.

14.6 Baseline Socio-economic Conditions

Demographic Profile

14.6.1 The population profile of the district of High Peak, the county of Derbyshire, the East

Midlands region and England as a whole is set out in Tables 14.1 and 14.2 below. The

tables show the population by age both as absolute figures (Table 14.1) and in

percentage terms (Table 14.2).

14.6.2 The tables show that High Peak and Derbyshire have a lower proportion of residents

aged between 20 and 34 years, and a higher proportion of residents aged 50 and over,

than the national and regional averages.

Table 14.1: Population (absolute)

Age(years) High Peak Derbyshire East Midlands England

0 - 19 21,600 174,400 1,055,600 12,417,500

20 - 34 14,300 118,300 848,900 10,500,500

35 - 49 21,600 172,700 963,900 11,291,200

50 - 64 19,300 156,600 844,700 9,418,800

65 and over 16,000 141,700 768,400 8,606,300

Total 92,800 763,700 4,481,500 52,234,300

Source: Nomis/ONS, mid-year population estimates 2010

Table 14.2: Population (percentage)

Age(years) High Peak Derbyshire East Midlands England

0 - 19 23 23 24 24

20 - 34 15 15 19 20

35 - 49 23 23 22 22

50 - 64 21 21 19 18

65 and over 17 19 17 16

Total 100 100 100 100

Source: Nomis/ONS, mid-year population estimates, 2010


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14.6.3 Figure 14.1 highlights that the working age population of High Peak has grown by five

percentage points over the last ten years. This is two percentage points below the

corresponding rate for the East Midlands region, one percentage point below the rate

for England and one percentage point above the rate for Derbyshire.

Figure 14.1: Indexed Change in Working Age Population

Source: Nomis/ONS, mid-year population estimates, 2010

14.6.4 It is important for HPBC to ensure that there is sufficient provision of economic

opportunities if its younger population is to be retained and an adequate supply of

labour is maintained to support economic growth.

Economic Activity and Employment

14.6.5 Table 14.3 shows that the economic activity rate for High Peak in June 2011 was 78.7

per cent. Whilst this is 0.3 percentage points below the rate for Derbyshire as a whole,

it is 1.8 percentage points above the regional average and 2.4 percentage points above

the rate for England.

Table 14.3: Economic Activity

High Peak Derbyshire East Midlands England

Absolute number 46,800 383,100 2,208,200 25,670,300

Percentage 78.7 79.2 76.9 76.3

Source: Annual Population Survey, June 2011

96

98

100

102

104

106

108

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

England

East Midlands

Derbyshire

High Peak


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Unemployment and Worklessness

14.6.6 Table 14.4 shows that the unemployment4 rate for High Peak was 8.7 per cent in June

2011. This is 0.2 percentage points above the rate for Derbyshire as a whole, 1.1

percentage points above regional average and 1.0 percentage points above the rate

for England.

Table 14.4 Unemployment Rate


Number of unemployed 4,200 33,900 173,700 2,029,100

Rate 8.7 8.5 7.6 7.7


14.6.7 Table 14.5 shows that the claimant count5 rate for High Peak was 3.3 per cent in March

2011. Whilst this is below the rates for Derbyshire, East Midlands and England, it

represents a significant increase from the rate of 1.6 per cent recorded in March 2008

as a consequence of the economic downturn experienced over this period at a national

level.

Table 14.5: Claimant Count at March 2012


Number of claimants 1,964 17,421 115,783 1,370,504

Rate 3.3 3.6 4.0 4.0

Source: Nomis, Claimant Count, March 2012

14.6.8 Whilst the claimant count is lower across High Peak as a whole than the sub-regional,

regional and national averages, more detailed analysis demonstrates that the claimant

count is higher in the area surrounding the application site, as shown in Table 14.6

below.

Table 14.6: Claimant Count in the Local Area 6

Local Area

Number of claimants 363

Rate 4.5

4 Unemployment is measured by the Annual Population Survey following the internationally agreed definition recommended by the International Labour Organisation. Unemployed people are those who: are without a job; have actively sought work in the last four weeks and are available to start work in the next two weeks; or out of work, have found a job and are waiting to start it in the next two weeks 5 The ‘claimant count’ measures the number of people claiming Jobseeker's Allowance. 6 For the purposes of this part of our analysis, we have defined the ‘local area’ as the 2003 Census Area Statistics (CAS) Wards of Cote Heath, Stone Bench and Buxton Central.


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Source: Nomis, Claimant Count March 2012

14.6.9 The level of worklessness7 is set out in Table 14.7, which shows that the worklessness

rate for High Peak was 12.2 per cent in August 2011.

Table 14.7: Worklessness


Number of claimants 7,320 68,840 408,340 4,860,180

Rate 12.2 14.2 14.1 14.4

Source: Work and Pensions Longitudinal Study, August 2011

14.6.10 The worklessness rate for High Peak is therefore lower than the corresponding rates

at the Derbyshire, East Midlands and England levels. As with the claimant count,

however, further analysis demonstrates that there are more significant concentrations

of worklessness in the local area.

Table 14.8 Worklessness in the Local Area8

Local Area

Number of claimants 1,280

Rate 15.8

Source: Department for Work and Pensions, Longitudinal Study, August 2011

14.6.11 The above table shows that the level of worklessness in the area surrounding the

application site is above the average for High Peak and the sub-regional, regional

and national averages.

Industrial Structure

14.6.12 The industrial structure in High Peak is shown below in Figure 14.2, which shows the

largest sector is ‘Public Admin, Education and Health’, with a 26 per cent share, while

‘Distribution, Hotels and Restaurants’ is the second largest sector, with a 17 per cent

share.

7 There are many definitions of ‘worklessness’. For the purpose of our analysis, we have used the definition referred to in various DWP publications, whereby people are defined as ‘workless’ if they are ‘involuntarily excluded from the labour market and in receipt of certain benefits’. 8 Again, the ‘local area’ is defined here as the CAS Wards of Cote Heath, Stone Bench and Buxton Central.


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Figure 14.2: Industrial Structure, High Peak


14.6.13 The number of jobs available in the ‘Public Admin, Education and Health’ sector within

High Peak is likely to reduce in the near future as public spending continues to

contract as part of the Government’s strategy for deficit reduction. Following a period

of significant economic downturn and decline in economic activity, rising

unemployment and deterioration of the public finances, the Public Spending Review

2010 covered the planned expenditure by the Government for the period to 2015 and

set out the Government’s strategy for deficit reduction, which entails cuts of some

£81 billion in public spending over a four year period. The role of the private sector

will therefore be vital in creating job opportunities and delivering a return to economic

growth in the context of severe cutbacks in public sector expenditure.

14.6.14 The share of employment in the ‘Distribution, Hotels and Restaurants’ sector reflects

the significance of High Peak as a tourist destination. However, the national economy

is still emerging from a long recession, and so the levels of discretionary spending on

which this employment sector depends remain subdued..

14.6.15 Table 14.9 below shows that whilst ‘Public Admin, Education and Health’ and

‘Distribution, Hotels and Restaurants’ are the largest employment sectors in High

Peak, they are below the shares for the sub-regional, regional and national levels.

The percentage of jobs in generally lower represented sectors including ‘Agriculture

and Fishing’, ‘Energy and Water’ and ‘Other Services’ is above average in High Peak.

4 7

10

4

17

12

13

26

7

Agriculture & Fishing

Energy & Water

Manufacturing

Construction

Distribution, Hotels &RestaurantsTransport & Communications

Banking, Finance & Insurance

Public Admin, Education &HealthOther Services


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Table 14.9: Industrial Structure at the Local, Sub-regional and Regional Levels

Sector High Peak Derbyshire East

Midlands England

Agriculture & Fishing 1,800 8,200 34,200 247,100

Energy & Water 3,300 8,800 38,800 367,400

Manufacturing 4,500 57,600 305,700 2,406,700

Construction 1,700 34,400 150,400 1,823,000

Distribution, Hotels & Restaurants

7,700 70,200 413,200 4,532,400

Transport & Communications 5,300 25,100 161,500 2,167,600

Banking, Finance & Insurance 5,700 34,800 266,100 4,023,300

Public Admin, Education & Health

11,400 100,500 608,700 7,304,800

Other Services 3,100 23,200 111,000 1,359,600


Occupational Structure

14.6.16 Analysis of the occupational structure in High Peak demonstrates that a relatively

high proportion of the population work in higher level occupations, with 46 per cent

employed in the ‘managers and senior officials’, ‘professional’, and ‘associate

professional and technical’ SOC categories. This is above the sub-regional, regional

and national averages.

Figure 14.3: Occupational Structure, High Peak


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21

14

6

15

9

7

8

8

High PeakManagers, directors and seniorofficials

Professional

Associate prof & technical

Administrative and secretarial

Skilled trades

Caring, leisure and otherservices

Sales and customer service

Process, plant and machineoperatives

Elementary occupations


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14.6.17 High Peak also has a relatively high representation in the ‘skilled trades’ categories,

with a total of 15 per cent of the Borough's residents employed in this sector, which

is above the sub-regional, regional and national levels.

Table 14.10: Occupational Structure at Local, Sub-regional, Regional and National Levels

SOC Category High Peak Derbyshire East Midlands England

Managers, directors and senior officials

4,900 36,000 199,700 2,465,700

Professional 9,400 62,500 348,200 4,737,800

Associate prof & technical 6,300 48,600 270,100 3,408,000

Administrative and secretarial 2,900 36,300 222,800 2,719,900

Skilled trades 6,600 50,500 249,900 2,581,600

Caring, leisure and other services

4,100 26,700 192,700 2,171,800

Sales and customer service 3,100 28,800 166,300 1,965,400

Process, plant and machine operatives

3,700 30,900 172,200 1,554,900

Elementary occupations 3,600 42,700 271,400 2,665,600


14.6.18 The proposed scheme will provide employment opportunities across a mix of

occupations. This mix of higher and lower occupational positions will provide

opportunities for both high and lower skilled employees, with possibilities for career

progression.

Skills and Qualifications

14.6.19 The qualifications profile presented in Table 14.11 and Figure 14.4, below, shows that

37 per cent of High Peak residents of working age hold NVQ Level 2 qualifications or

lower as their highest qualification. A total of 7 per cent of the Borough’s residents

have no qualifications, and 39 per cent of residents in High Peak hold NVQ Level 4+

qualifications.

Table 14.11: Qualifications, Working Age - Percentage


NVQ 4+ 39 30 27 31

NVQ 3 only 20 17 17 16

Trade Apprenticeships 5 5 4 4

NVQ 2 only 15 17 17 16

NVQ 1 only 9 13 13 13

Other qualifications 6 6 8 9

No qualifications 7 12 13 11


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Source: Annual Population Survey, December 2010

Figure 14.4: Qualifications, Working Age – Percentage

Source: Annual Population Survey, December 2010

14.6.20 The above information demonstrates that High Peak, as a whole, has a relatively well

qualified population.

Deprivation

14.6.21 The Indices of Multiple Deprivation (IMD) 2010 is a measure of multiple deprivation

based on seven domains, each with a number of component indicators. The overall

IMD is conceptualised as a weighted area level aggregation of these specific

dimensions of deprivation. The weightings specified in Table 14.12 below are used

to combine the domains into an index of multiple deprivation.

39

205

159

6 7

High PeakNVQ 4+

NVQ 3 only

TradeApprenticeshipsNVQ 2 only

NVQ 1 only

Otherqualifications

30

175

17

13

612

DerbyshireNVQ 4+

NVQ 3 only


NVQ 1 only

Otherqualifications

27

17

417

138

13

East MidlandsNVQ 4+

NVQ 3 only


NVQ 1 only

Otherqualifications

31

164

16

13

911

EnglandNVQ 4+

NVQ 3 only


NVQ 1 only

Otherqualifications


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Table 14.12: IMD Deprivation Domain Weightings

Domain Domain Weight

Income Deprivation 22.5%

Employment Deprivation 22.5%

Health Deprivation and Disability 13.5%

Education, Skills and Training Deprivation 13.5%

Barriers to Housing and Services 9.3%

Crime 9.3%

Living Environment Deprivation 9.3%

TOTAL 100%

Source: IMD 2010

14.6.22 Figure 14.5 maps the 59 Lower Super Output Areas (LSOAs) in High Peak according

to their percentage rank in the IMD 2010. LSOAs are built from groups of contiguous

Output Areas and have been automatically generated to be as consistent in

population size as possible, and typically contain from four to six Output Areas. The

minimum population of an LSOA is 1,000 and the mean is 1,500. There are 32,482

LSOAs in England.

14.6.23 At local authority level, High Peak does not experience significant deprivation. The

authority ranks 190th out of 354 nationally (where 1 equals the most deprived and

354 equals the least deprived) .


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Figure 14.5: Indices of Multiple Deprivation Map

Source: IMD 2010


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14.6.24 Table 14.13 below shows the 20 per cent most deprived LSOAs within High Peak.

These LSOAs are primarily concentrated in the urban areas around the towns of

Buxton and Glossop (the areas highlighted in red in Figure 14.1).

Table 14.13: 20 Per Cent Most Deprived LSOAs, High Peak

LSOA Ward IMD Score IMD Rank

(out of 32,482)

E01019729 Gamesley 52.06 1,842

E01019728 Gamesley 51.71 1,884

E01019761 Stone Bench 41.87 4,013

E01019768 Whitfield 32.64 7,072

E01019730 Hadfield North 31.64 7,499

E01019739 Howard Town 30.63 7,922

E01019743 New Mills 30.58 7,939

E01019759 Stone Bench 27.42 9,411

E01019717 Buxton Central 24.42 11,024

E01019724 Cote Heath 23.99 11,283

E01019710 Barms 22.79 12,029

E01019752 Padfield 20.58 13,553

Source: IMD 2010

Summary

14.6.25 The socio-economic baseline demonstrates that, on the whole, High Peak and

Buxton are not areas that suffer from acute levels of deprivation. However, we draw

attention to the following points:

According to the IMD 2010, the 20 per cent most deprived LSOAs within High

Peak are primarily concentrated in the urban areas around the towns of Buxton

and Glossop; five of these LSOAs are in the vicinity of the application site.

High Peak has a low proportion of residents aged between 20 and 34 years when

compared to national and regional averages. It is important to ensure that there

are sufficient economic opportunities within High Peak in order that its younger

population is retained and that an adequate supply of labour is maintained to

support economic growth.

The rate of unemployment in High Peak is above the sub-regional, regional and

national averages. Furthermore, whilst the claimant count and level of

worklessness is lower across High Peak as a whole than the sub-regional,


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regional and national averages, our analysis demonstrates that there are more

significant concentrations in the area surrounding the application site.

The largest employment sectors in High Peak, ‘Public Admin, Education and

Health’ and ‘Distribution, Hotels and Restaurants’, are especially vulnerable to

planned cuts in public expenditure and subdued levels of discretionary spending

following the long economic recession.

14.6.26 The application proposal will help to improve the socio-economic conditions in Buxton

and the surrounding area and thereby contribute towards national policy objectives,

which promote social inclusion and seek to deliver sustainable economic growth. It

is also important to consider the vital role of the private sector in creating job

opportunities and delivering a return to economic growth in the context of the adverse

economic conditions experienced nationally since 2008 and the severe cutbacks in

public sector expenditure.

14.7 Trends in the UK Water Bottling Industry

14.7.1 Zenith International’s 199-page ‘Report on UK Bottled Water’ (April 2011) contains a

wealth of information in relation to the water bottling industry. The report identifies

various trends and drivers for growth in the UK bottled water industry which are worthy

of note here in relation to the proposed development at Cowdale Quarry. For instance,

the report highlights that:

mineral water has a strong heritage in the UK, which is driven by the naturalness

and provenance of the water;

the UK consumer is becoming increasingly concerned about health and

wellbeing in the face of the greater focus on obesity;

UK consumers attach a premium on source water over purified water;

per person consumption in the UK is low at present relative to other countries

such as the US;

Zenith predicts steady market volume growth over the period to 2015, with

consistent average growth per annum of around 3 per cent for small packaged

water;


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the overall UK bottled water market is predicted to grow from an estimated 2,055

million litres in 2010, to 2,340 million litres by 2015;

the growth in the overall UK bottled water market in the period to 2015 is primarily

due to the predicted growth in the still water sector, which is projected to increase

its share of the market from 1,760 million litres in 2010 to 2,022 million litres by

2015;

spring water has steadily grown its share of the overall UK bottled water market

in recent years, rising from 466 million litres in 2004 (21.7 per cent market share)

to an estimated 580 million litres in 2010 (28.2 per cent market share); and

the scale of bottled water imports to the UK is substantial, at an estimated 546.7

million litres in 2010, which indicates that there is potential to meet some of this

demand by increasing output in the UK.

14.7.2 It is clear from the Zenith report that whilst the UK bottled water market is already

substantial, it is set to grow further in future years for a variety of reasons, some of

which are summarised above. The proposed water bottling plant at Cowdale Quarry

represents a unique opportunity to capture some of this predicted growth by

capitalising upon the nearby Rockhead Spring, which is one of very few natural

sources of pure water in the UK. As well as creating a significant number of

employment opportunities for local people through the attraction of a large new

business to Buxton, the scheme will consolidate Buxton's position as one of the leading

players in the UK’s bottled water industry and, more specifically, as an important

source of high quality mineral water.

14.8 Fit with Strategies Policies

Introduction

14.8.1 In this section we consider the ‘fit’ of the proposed development with national and local

policies and strategies.

14.8.2 At the outset, we would emphasise that the proposed development seeks to capitalise

upon the unique opportunity offered by the Rockhead Spring, which is located close to

the application site and is within the applicant’s ownership. There are very few natural

sources of pure water in the UK, with Rockhead Spring being one of only two Artesian

wells in the Buxton area – and, indeed, the whole of Derbyshire – the other being St

Ann’s Spring, which is the source of Nestlé’s Buxton Water brand.


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Strategic Fit with National Planning Policy

14.8.3 Paragraph 14 of the National Planning Policy Framework (‘NPPF’) makes clear that at

the heart of the NPPF is a ‘presumption in favour of sustainable development’, which

is the ‘golden thread’ running through both plan-making and decision-taking. Indeed,

the term ‘presumption in favour of sustainable development’ appears in the NPPF

some nine times.

14.8.4 Amongst other things, paragraph 14 of the NPPF advises that local planning authorities

(LPAs) should positively seek opportunities to meet the development needs of their

area; and that development proposals that accord with the development plan should

be approved without delay.

14.8.5 Paragraph 17 of the NPPF sets out 12 core planning principles and advises that,

amongst other things, planning should:

proactively drive and support sustainable economic development to deliver the

homes, business and industrial units, infrastructure and thriving local places that

the country needs; and

encourage the effective use of land by reusing land that has been previously

developed, provided that it is not of high environmental value.

14.8.6 The Government’s drive for sustainable economic growth and job creation is a

recurring theme in the NPPF. For instance, paragraph 18 of the NPPF states that the

Government is ‘committed to securing economic growth in order to create jobs and

prosperity’; paragraph 19 advises that ‘significant weight should be placed on the need

to support economic growth’; and paragraph 21 urges LPAs to set out a clear economic

strategy for their area which ‘positively and proactively encourages sustainable

economic growth.’

14.8.7 The second bullet under paragraph 21 of the NPPF advises LPAs that they should set

criteria, or identify strategic sites, for local and inward investment, and the third bullet

encourages LPAs to ‘support existing business sectors, taking account of whether they

are expanding or contracting…’

14.8.8 The final part of the NPPF that we wish to highlight is paragraph 187, which

pronounces that:


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‘…local planning authorities should look for solutions rather than problems,

and decision-takers at every level should seek to approve applications for

sustainable development where possible. Local planning authorities should

work proactively with applicants to secure developments that improve the

economic, social and environmental conditions of the area.’

14.8.9 Against the background set by paragraph 187, the NPPF reiterates (paragraph 197)

that when they are assessing and determining development proposals, LPAs should

apply the presumption in favour of sustainable development.

Summary of Conformity with National Planning Policy Objectives

14.8.10 The proposed development is entirely consistent with the core planning principles

and requirements of the NPPF. The application scheme embodies sustainable

development principles by reusing a vacant, previously developed site to enable the

expansion of an existing business sector which is central to Buxton’s economy.

14.8.11 The proposed development represents significant inward investment for Buxton and

High Peak, and there will be a range of associated social and economic benefits

including widening the choice of employment opportunities (and therefore spending

power) for local residents.

14.8.12 Accordingly, for the reasons outlined above, the application scheme is exactly the

type of development advocated by the NPPF.

Strategic Fit with Local Planning Policy

14.8.13 Below, we summarise the strategic fit of the proposed development with adopted and

emerging development plan documents. We necessarily focus on those policies of

key relevance to this socio-economic assessment. For a more comprehensive

overview of the full suite of planning policies against which the application must be

assessed, please refer to other reports which form part of the planning application

submission..

High Peak Local Plan (adopted March 2005)

14.8.14 Following examination of the High Peak Local Plan, the Inspector’s Report stated:

‘There is no dispute that the Rockhead Spring is an important natural resource for

Buxton, for the mineral water has the potential to further promote the name of the


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town as well as to provide employment.’ Paragraph 2.33 of the Local Plan, which

relates to saved Policy GD13 (Buxton Mineral Water), provides a similar message:

‘Buxton's famous mineral water is particularly important to the High Peak.’

14.8.15 Paragraph 2.34 goes onto state:

‘Today, Buxton Mineral Water, because of its long association with the Spa,

plays an increasingly important role in the Council's plans to develop Buxton,

not only as a tourist area, but as an important local centre.’

14.8.16 Accordingly, it is clear that Buxton's mineral water is viewed by the Borough Council

as fundamentally important to the economic and tourism roles not only of Buxton, but

also for High Peak. Whilst the statement at paragraph 2.34 of the Local Plan refers

specifically to ‘Buxton Mineral Water’, it is not a purpose of the planning system to

restrict competition and so we assume that in drafting paragraph 2.34, the Council

was not seeking to protect the Buxton Water brand from competition and that the

statement was intended to refer more generally to mineral water in Buxton.

Emerging High Peak Local Plan (Preferred Options February 2013)

14.8.17 The ‘Key Characteristics and Issues’ part of the preferred options document of the

High Peak Local Plan (HPLP) states, at paragraph 2.15, that:

‘There is a need to diversify the local economy and attract a range of

businesses to the area, to improve the local job offer and reduce the level of

out-commuting to the surrounding major cities.’

‘There is a need to diversify the local economy and attract a range of

businesses to the area, to improve the local job offer and reduce the level of

out-commuting to the surrounding major cities.’

14.8.18 Section 3 of the emerging HPLP sets out 12 strategic objectives. The proposed

bottling plant and offices will help to achieve at least two of the three objectives under

the heading ‘Enhancing Prosperity’, namely:

Strategic Objective 6, which seeks to support sustainable development and the

diversification of the local economy; and

Strategic Objective 7, which seeks to support and promote the area’s tourism

and cultural sectors.


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14.8.19 Policy S 1 of the emerging HPLP identifies 14 ‘Sustainable Development Principles’,

the fifth of which is of most relevance to the proposed development, stating that

sustainable development will be achieved by ‘Supporting the local economy and

businesses by providing for a range of economic development that provide

employment opportunities suitable for local people in sustainable locations’.

14.8.20 The importance of growing the local economy is reiterated in other parts of the

document, including Policy S 4, which states that High Peak Borough Council (HPBC)

will maintain and where possible enhance the economic base of the Plan Area by

(inter alia) supporting proposals that help to deliver the areas of economic focus and

strategic priorities of the Local Enterprise Partnership. Office development within the

Market Towns (which include Buxton) is specifically encouraged by Policy S 4.

14.8.21 The HPLP also includes a specific policy for the Buxton sub-area. Policy S 7 states

that growth of local employment opportunities and diversification will be encouraged,

through supporting the needs of local businesses and employers and encouraging

tourism growth.

14.8.22 Policy E 1 of the emerging HPLP sets out the approach to ‘New Employment

Development’ states that ‘new business and industrial developments in sustainable

locations that contribute towards the creation and retention of a wide range of jobs,

education and training opportunities will be supported’.

14.8.23 Policy E 6 of the emerging HPLP makes clear that the provision of new visitor and

cultural attractions and facilities which expand the breadth and quality of the tourism

offer will be supported.

Summary of conformity with the emerging High Peak Local Plan

14.8.24 The proposed development will attract a new water bottling business to Buxton,

thereby creating job opportunities for local residents and strengthening the mineral

water industry, which is hugely important to the town’s economy and tourism role.

The scheme is therefore consistent with many of the objectives and policies in the

emerging High Peak Local Plan.


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Strategic Fit with Other Key Strategies

D2N2 Strategic Priorities & Areas of Economic Focus (2011)

14.8.25 The purpose of the Derby, Derbyshire, Nottingham and Nottinghamshire Local

Economic Partnership (D2N2 LEP), as stated in its ‘Strategic Priorities’ document, is

to ‘support and encourage economic growth’. The same document states that the

LEP will focus on local business sectors that ‘show a high potential to positively affect

the local economy’. The manufacturing of food and drink products is specifically

identified as being important across the D2N2 area, with above average growth

predicted.

Summary of Strategic Fit

14.8.26 The strategic fit of the project is summarised in Table 14.14 below, which

demonstrates a strong link with a range of key policy documents and strategies.

Table 14.14: Strategic Fit

Policy Objectives

National Planning Policy Framework

Local Growth: Realising Every Places Potential

D2N2 LEP Purpose, Vision, Ambition

D2N2 LEP Strategic Priorities

High Peak Local Plan (March 2005)

High Peak Local Plan: Preferred options

Create new employment

Reduce economic inactivity and unemployment in the local area

Make better use of a previously developed site

Support the long term conservation of heritage assets

Promote the town of Buxton

Contribute to the tourism market

14.9 Economic Assessment

Overview

14.9.1 The proposed development scheme at Cowdale Quarry will generate a range of

benefits for the local community and the wider economy. In this section of our report


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we seek to quantify these benefits where possible, concentrating on the economic and

employment impact.

14.9.2 The key employment impacts will comprise the following:

gross employment;

net employment impact;

the number of jobs created at the construction phase; and

gross value added (‘GVA’) per annum.

Methodology

14.9.3 Most projects have positive and negative impacts that need to be taken into account

in delivering the additional impact or ‘additionality’. The guidance on ‘Assessing the

Impacts of Spatial Interventions’9 defines additionality as:

‘The extent to which activity takes place at all, on a larger scale, earlier or within

a specific designated area or target group as a result of the intervention’.

Figure 14.6: The Concept of ‘Net Additional Impact’

Source: English Partnerships Additionality Guide (2008)

14.9.4 We have undertaken a net additional economic impact assessment of the proposed

development in line with the English Partnerships guidance on additionality10. In broad

9 Assessing the Impacts of Spatial Interventions: Regeneration, Renewal and Regional Development, ‘The 3Rs guidance’, published by the ODPM (a precursor to the DCLG) in 2004 10 English Partnerships. Additionality Guide: A Standard Approach to Assessing the Additional Impact of Interventions (2008) (Third Edition).


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terms the appraisal identifies the additional economic impacts (primarily jobs) that the

proposed scheme will deliver.

14.9.5 The assessment examines the economic impact of the proposed development (the

‘intervention case’) and the impact of the ‘reference case’ (the ‘do nothing’ or ‘do

minimum’ option). The reference case is also known as ‘deadweight’, capturing the

impact of what would have happened in the absence of the proposed scheme.

14.9.6 For this assessment, the reference case assumes that the site remains vacant. There

are no alternative employment generating proposals for this site and therefore no jobs

associated with the reference case.

Figure 14.7: Key Components in the Approach to Assessing Project Level

Additionality

Source: English Partnerships Additionality Guide (2008)

14.9.7 Figure 14.7, reproduced from the English Partnerships Additionality Guide, shows the

approach adopted in assessing the additionality of an intervention.

14.9.8 ‘Gross direct effects’ is an estimate of the total effect of an intervention option or the

reference case in terms of a specific output. The number of jobs to be created by the

proposed development is estimated by the application of employment densities to the

quantum of floorspace that is proposed using the English Partnerships guidance.


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14.9.9 Once the gross number of jobs to be created by the scheme is established, it is

necessary to consider a variety of other factors to arrive at an estimate of the net

additional impact. As we explained in Section 1, the following factors need to be taken

into account:

i. ‘Leakage’ – the number or proportion of outputs that benefit those outside the

intervention’s target area should be deducted from the gross direct effects. This

entails taking into account the extent to which jobs created are taken up by local

people or people from outside the locality.

ii. ‘Displacement’ – the proportion of outputs accounted for by reduced outputs

elsewhere in the target area, which should therefore be deducted.

iii. ‘Economic multiplier effects’ – the further economic activity associated with

additional local income, local supplier purchases and longer-term development

effects, which need to be added to the impact.

14.9.10 The effects vary depending on the geographical scale at which the assessment is

undertaken. For the purposes of this proposed development scheme, we have

assessed impacts at the following levels:

The Local Level: Buxton11

The District Level: High Peak

The County Level: Derbyshire

Gross Employment

14.9.11 The anticipated employment associated with the operation of the proposed

development is shown in Table 14.15 below. For the reasons given in Section 1 of

our report, we consider that our assumed levels of employment at the proposed

facility are conservative.

Table 14.15: Estimated Employment Associated with the Proposed Floorspace

SOC Job Category Number of

Full-time Jobs

Bottling Plant/Associated Offices

11 Defined for this exercise as the Local Plan Buxton Sub Area which comprises the wards of Barms, Burbage, Buxton Central, Corbar, Cote Heath, Limestone Peak, Stone Bench, and Temple.


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Process, plant and machine operatives 72

Administrative and secretarial 20

Managerial and senior official 8

Total Employment 100

14.9.12 The employment created by the proposed development will not involve the relocation

of any existing facility or the loss of any employment already associated with the site.

Net Employment Impact

14.9.13 In order to determine the net additional employment impact of the proposed scheme,

the ‘additionality’ generated by the development needs to be considered. In order to

assess additionality, the effects of leakage, displacement and economic multiplier

effects need to be assessed. We do this below.

Leakage

14.9.14 The appropriate leakage factor entails taking into account the extent to which jobs

created are taken up by local people, or people from outside the locality. The English

Partnerships Additionality Guidance sets out the following guidance for the

assessment of leakage effects:

All benefits go to people living in the target area: 0 per cent

The majority of benefits will go to people living within the target area: 10 per cent

A reasonably high proportion of the benefits will be retained within the target

area: 25 per cent

Many of the benefits will go to people living outside the area of benefit: 50 per

cent

A substantial proportion of those benefiting will live outside the area of benefit:

75 per cent

None of the benefits go to members of the target area: 100 per cent

14.9.15 For the purposes of this appraisal the following leakage factors have been used:


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Buxton: 40 per cent

High Peak: 25 per cent

Derbyshire: 15 per cent

14.9.16 A leakage factor of 40 per cent at the Buxton level means that there is a reasonable

expectation that 60 per cent of all those employed in connection with the proposed

scheme will be drawn from within Buxton itself. A leakage of 25 per cent at the High

Peak level implies an expectation that 75 per cent of all employees will come from

within the Borough. A leakage rate of 15 per cent at the Derbyshire level implies that

85 per cent of those employed in connection with the proposed scheme will be drawn

from within the County.

14.9.17 The leakage factors used are based on analysis of travel to work patterns and

analysis of the nature of the employment that will be created by the proposed

development.

Displacement

14.9.18 It is necessary to consider whether some of the benefits generated by the scheme

will lead to displacement elsewhere. The scale of the displacement effect will vary

depending on the nature of the activity supported and local markets. The English

Partnerships Additionality Guidance provides the following guidance for the

assessment of displacement effects:

No other firms/demand affected: 0 per cent

There are expected to be some displacement effects, although only to a limited

extent: 25 per cent

About half of the activity would be displaced: 50 per cent

A high level of displacement is expected to arise: 75 per cent

All of the activity generated will be displaced: 100 per cent

14.9.19 Displacement factors at a local level are more modest than for larger areas as there

is less direct competition with existing provision. Nevertheless, given the nature of

the proposed development, we expect that displacement effects will be low across all

of the geographical areas that we have assessed.


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14.9.20 For the purposes of this appraisal the following displacement factors have been used:

Buxton: 5 per cent

High Peak: 10 per cent

Derbyshire: 10 per cent

Economic Multiplier Effects

14.9.21 The economic impact (jobs, expenditure or income) of an intervention is multiplied

because of the knock-on effects within the local economy. There are two multipliers:

a supply linkage multiplier (indirect multiplier) due to purchases associated with

linked firms along the supply chain; and

an income multiplier due to local expenditure as a result of those deriving

incomes from the direct and supply linkage impacts of the intervention.

14.9.22 Applying the multiplier gives an estimate of the total direct and multiplier effects. The

English Partnerships Additionality Guidance provides advice in relation to the

assessment of multiplier effects. The scale of multiplier effects can vary substantially

but general ranges are:

Limited local supply linkages and induced or income effects: 1.05 to 1.3

Average linkages: 1.1 to 1.5

Strong local supply linkages and income or induced benefits: 1.15 to 1.7

14.9.23 For the purposes of this appraisal, we have applied the following multiplier factors, all

of which should be regarded as conservative as they are at, or very close to, the lower

end of the general ranges specified above:

Buxton: 1.05 per cent

High Peak: 1.15 per cent

Derbyshire: 1.20 per cent


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Net Additional Jobs

14.9.24 The additionality factors set out above are applied to the gross direct effects of the

proposed scheme to enable an estimate of the total net local effect. Table 14.16

summarises the estimated net additional employment impact of the proposed bottling

plant and associated offices.

Table 14.16: Net Additional Employment Impact (Bottling Plan/Offices) – The

Intervention Option

Intervention Option Buxton High Peak Derbyshire

Gross direct effects 100 100 100

Less leakage 40 25 15

Gross local direct effects 60 75 85

Less displacement 3 8 9

Net local direct effects 57 68 77

Plus multiplier 3 10 15

Total Net Local Effects 60 78 92

Less reference case 0 0 0

Total Net Additional Employment

60 78 92

Source: RTP

14.9.25 There are no jobs associated with the reference case, which assumes that in the

absence of the proposed development the site will remain vacant.

14.9.26 The net additional employment impact in relation to jobs, assessed above, is the

minimum additional impact that could be expected to result from delivery of the

proposed scheme.

Construction Employment

14.9.27 The standard Office for National Statistics source12 shows that £60,037 of

construction expenditure supported one construction job (employee or self-

employed) in 2011. This is applied to the total development contract value of £9.8m,

so as to establish a total construction employment of 82 jobs per annum over an

assumed contract period of 24 months.

12 Output in the construction industry: 4th quarter 2011’ and ‘Labour Market Statistics, Workforce Jobs by Industry:

March 2012’, Office for National Statistics


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Net Additional Gross Value Added (GVA)

14.9.28 The value of the net additional employment created by the proposed scheme in terms

of gross value added (GVA) is estimated to be £3.90m per annum at the Buxton level,

£5.70m per annum at the High Peak level and £5.98m per annum at the Derbyshire

level.

14.9.29 This estimated impact is calculated on the basis of the figures set out in Tables 2.3

and 2.5 of The UK National Accounts, Blue Book 201113, using the Standard Industrial

Classifications (SIC) for Production14. The GVA figure per head, for these SICs

combined, is approximately £65,000 per employee (based on a mixture of full-time

and part-time workers).

14.10 Summary of Findings

14.10.1 The proposed water bottling plant at Cowdale Quarry – with associated offices– will

create around 100 gross additional jobs. We estimate that the number of net

additional jobs associated with the bottling plant and offices, after allowing for

leakage, displacement and multiplier effects, will be 60 full-time jobs in Buxton, 78 in

High Peak and 92 in Derbyshire. Furthermore, the proposed scheme will support a

total construction employment of 82 full-time jobs per annum over an assumed

contract period of 24 months.

14.10.2 We have estimated the value of the net additional employment in terms of GVA per

annum at £3.90m in Buxton, £5.70m in High Peak and £5.98m in Derbyshire.

14.10.3 Whilst at local authority level, High Peak does not experience significant deprivation,

there are clusters of relative deprivation in the urban area around the town of Buxton.

The proposed development will primarily draw its workforce from the Buxton area,

and it is noteworthy that this area experiences above average levels of worklessness

and claimant count.

14.10.4 For the reasons set out in this report, we conclude that the proposed development is

entirely consistent with the core planning principles and requirements of national and

local planning policy (both adopted and emerging). The application scheme

embodies sustainable development principles by reusing a vacant, previously

13 UK National Accounts: The Blue Book, 2009 edition, Office for National Statistics. 14 SIC B = Mining and Quarrying, SIC C = Manufacturing, SIC D = Electricity, Gas, Steam and Air Conditioning Supply, SIC E = Water Supply, Sewerage, Waste Management and Remediation


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developed site to enable the expansion of an existing business sector which is central

to Buxton’s economy. An alternative scheme for the site is unlikely to emerge. As

well as capturing some of the predicted growth in the UK water bottling industry in

Buxton, the proposed development will also provide a boost to the local tourism

economy. Moreover, the creation of a significant number of new jobs through inward

investment at the application site represents a major economic benefit for Buxton and

High Peak, particularly as the national economy emerges from a long and deep

recession. Against this background, the role of the private sector in creating new job

opportunities will be especially important to the delivery of sustainable economic

growth in the Borough.

14. socio-economic

Documents