The Royal Town Planning Institute (RTPI) warns that the planning system must be better equipped to handle automation, AI and advanced manufacturing, which are reshaping how land is used and employment is planned for.
The Institute’s Economic Development Policy Briefing argues that existing methods for planning for businesses and employment are outdated in the face of new technologies.
While AI and advanced manufacturing are set to boost economic value in a local area, automation is reducing the number of conventional jobs, leaving planning authorities struggling to predict future employment levels and economic value.
Planning authorities are left in a difficult position when attempting to plan proactively for emerging sectors, where limited historical data exists.
The paper warns that the current Economic Needs Assessment (ENA) guidance, which underpins Local Planning Authorities’ employment land allocation, was last updated in 2019 and relies on outdated employment prediction, which does not reflect the realities of today’s technology and evolving industry.
Robbie Calvert, Head of Policy and Public Affairs at the RTPI, said: “Since coming into power, the Government has made economic development and planning reform a central focus of its growth mission.
“But if the government wants planning to actively support AI, advanced manufacturing and clean technologies while predicting and shaping the employment centres of local areas, planners need clearer tools, better data and updated guidance to unlock growth sectors.”
To address this, the RTPI is calling for:
- Integration of plans and strategies: Government should establish a National Spatial Framework bringing together spatial elements of the Industrial Strategy and the 10-year Infrastructure Strategy, to support the preparations of Spatial Development Strategies (SDSs) and Local Growth Plans. Emerging combined authorities should use SDSs as spatial investment strategies to coordinate housing, infrastructure and industrial growth across sub-regional economies.
- Ensure regional collaboration to better support industrial clusters: Effective inter-authority coordination is crucial for emerging sectors such as AI, advanced manufacturing and data centres, which are increasing demand for energy and water infrastructure. Joint working arrangements should support industrial clusters that span multiple strategic authorities, backed by funding for strategic site accelerators and infrastructure delivery. This would support the Government’s wider growth and infrastructure ambitions as well as forthcoming legislation.
