National Planning Policy Framework, Chapter 7: Building a strong, effective economy (E1–4)

Plan-making policies

E1: Providing the conditions for long-term economic growth

1. To support business investment and employment, development plans should, at the most appropriate level:

 a. Set out a clear economic vision and strategy, which takes a positive, proactive and realistic approach to encouraging sustainable economic growth in both urban and rural areas, having regard to the Industrial Strategy^{[footnote 30]} and any relevant strategic and local strategies for economic development and regeneration. In doing so plans should take into account both local business needs and wider needs and opportunities for economic growth and investment including relevant market signals, priority places for investment in key sectors set out in the Industrial Strategy, and the location of Industrial Strategy Zones^{[footnote 31]} and AI Growth Zones;

 b. Seek to address potential barriers to investment, such as inadequate infrastructure, services or housing, or a poor environment; and

 c. Allocate sites to implement the economic vision and strategy and meet identified needs over the plan period, paying particular regard to facilitating development to meet the needs of a modern economy (including sites and premises which are flexible and adaptable) and the specific locational requirements of different sectors. This includes, where a need exists or is anticipated, making provision for:

  i. Clusters, networks and sites for knowledge and data-driven, creative or high technology industries; and for new, expanded or upgraded facilities and infrastructure to support the growth of these industries (including laboratories, campus facilities, data centres and associated generating capacity, and electricity network infrastructure to provide grid connections);

  ii. Freight and logistics operations at a variety of scales and in suitably accessible locations that allow for the efficient and reliable handling of goods, especially where this is needed to support the supply chain (including ‘last mile’ deliveries), transport innovation and decarbonisation; and

  iii. The expansion or modernisation of other businesses of local, regional or national importance to support economic growth and resilience (such as leisure and tourism, agriculture and other rural and land-based businesses which may be of particular importance in certain areas).

2. Given changing commercial property requirements, development plans should not be overly prescriptive about the types of uses or unit sizes that would be acceptable on particular sites (other than where there is a clear and justified rationale for being specific about acceptable uses at the plan-making stage).

National decision-making policies

E2: Meeting the need for business land and premises

1. To support business growth, substantial weight should be given to:

 a. The economic benefits of proposals for commercial development which allow businesses to invest, expand and/or adapt; especially where this would support the economic vision and strategy for the area, the implementation of the Industrial Strategy, support improvements in freight and logistics and/or reflect proposals for Industrial Strategy Zones and AI Growth Zones; and

 b. Benefits for domestic food production, animal welfare and/or the environment which can be demonstrated through proposals for development for farm and agricultural modernisation.

2. Where a development proposal is required to demonstrate whether an unmet need exists (including under policy S5) consideration should be given to whether:

 a. Market signals indicate an undersupply of specific types of business land or premises, taking into account the anticipated catchment area for the type of development proposed, the changing needs of different sectors and the availability of suitable existing land and buildings; or

 b. The specific locational requirements of the proposal are met by existing allocations in the development plan. This includes, but is not limited to, situations where:

  i. Existing businesses plan to expand or improve their premises, or clusters or networks of businesses need to grow (such as clusters of knowledge and data-driven, creative or high technology industries and associated facilities and infrastructure); or

  ii. The availability of infrastructure (such as electricity network infrastructure to provide adequate grid connections, or water and wastewater capacity) makes certain locations particularly important, including opportunities to co-locate large-scale generators and users of power (such as data centres); or

  iii. Proposals would meet a local, regional or national need for the provision of new, expanded or upgraded facilities that would result in more efficient, reliable or sustainable handling of goods (whether for their receipt, storage, processing, interchange or distribution).

E3: Freight and logistics

1.   To support the effective and efficient movement of goods, development proposals for freight and logistics uses and associated infrastructure should:

 a. Have good access to transport networks (including via sustainable transport modes where possible) appropriate to the type of development;

 b. Be sited and designed to limit environmental impacts (such as through the colocation or intensification of facilities to limit vehicle movements, provision of electric vehicle charging infrastructure and sensitive building design and landscaping). The impact on local residents or other neighbouring uses should be acceptable, taking into account proposed mitigation, especially where night-time operations will be required; and

 c. Provide sufficient and secure parking for lorries or other vehicles to cater for the anticipated use, in accordance with policy TR4(1)(e).

E4: Rural business development

1. In applying policy E2, the sustainable growth of businesses in rural areas should be supported, including through:

 a. The conversion of existing buildings and well-designed new buildings;

 b. The development and diversification of agricultural and other land-based businesses;

 c. Facilities to support rural leisure and tourism and measures to retain and expand accessible local shops and services; and

 d. Development to maintain and enhance farm viability and sustainability and support domestic food production, such as improved accommodation for livestock, on-farm reservoirs, greenhouses, polytunnels, farm shops and temporary accommodation for seasonal workers (where this accommodation is ancillary to the agricultural use and not for permanent occupation).

2. Development proposals to meet business needs in rural areas may need to be located outside settlements, and in locations that are not well served by public transport. In these circumstances:

 a. Development proposals should take opportunities, where they exist, to use previously developed land, and sites that are physically well-related to existing development; and

 b. The siting and design of development should be appropriate having regard to the character of its surroundings.

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Footnotes

30. The UK’s Modern Industrial Strategy published in: Industrial Strategy. ↩

31. Industrial Strategy Zones Action Plan (MHCLG, June 2025) published in: Industrial Strategy Zones Action Plan. ↩