What is spatial planning?

Believe it or not, it’s not what to put in the corner of your living room after you finally got rid of that old sideboard the in-laws gave you which you’ve always hated.

Spatial planning, according to the Welsh Assembly Government, is “the consideration of what can and should happen where.” It was originally adopted in November 2004, and is a broad 20 year agenda.

It’s all about land-use planning, but in such a way as to address “the interaction of different policies and practice across regional space, and sets the role of places in a wider context.”

According to WAG, the role of the Wales Spatial Plan is:

To ensure the Welsh Assembly Government and its partners and agents develop policy in ways which take account of the different challenges and opportunities in the different parts of Wales; and

To provide a basis and momentum for working together on a shared agenda locally, so that the different parts of Wales can establish their own distinctive approaches to meet objectives and the Assembly’s Sustainable Development Scheme.

In essence, it means: “making sure that decisions are taken with regard to their impact beyond the immediate sectoral or administrative boundaries; that there is co-ordination of investment and services through understanding the roles of and interactions between places; and that we place the core values of sustainable development in everything we do.”

However, there are a number of concerns. The first major one is that the Assembly is trying to embark on a ‘planned’ approach to the Welsh economy which takes no account of market realities. If a major processing plant doesn’t want to move to Mid Wales because the roads are so bad, then the Assembly cannot make it. Reality must underpin this spatial plan.

It is essential the plan recognises the very real and immediate needs of the small business sector in Wales, as well as realistic commitments to the environment, sustainability and the provision of services.

For too long, it has been perceived that strategic decisions have either been for the benefit of business or the environment. Strategies have to be implemented which address the needs of both, but the needs of business should be seen as vital to the realisation of an effective and competitive economy that can also exist with and promote values such as environmental protection and sustainability.

There is little solid definition of what the plan is and what it is intended to do. It is unclear how this document fits into strategies already implemented by the National Assembly such as Winning Wales, or the current Economic Renewal Programme.

The overall vagueness of the plan is reflected in many of the measures contained within the document. More definite measures and actions need to be identified and, more importantly, costed by WAG.

As it stands, the plan is somewhat aspirational and there is very little ‘meat on the bones’ to inform further debate.

There is little sign of a commitment to funding and it is not statutory in nature. If it is really to be taken seriously, then the Assembly needs to be able to direct local authorities in the implementation of any spatial strategy.

Merely directing local authorities to consider the spatial plan in their own policy-making process will undoubtedly mean it will merely get paid lip-service at a local level. It is important that given the cross-boundary nature of the plan, all local authorities must sign up to it.

Although it is easy to broadly welcome the overall vision of the plan, it is worth noting that in its principles and policy priorities there is no mention at all about developing a productive and sustainable economy.

As it stands, the plan is without targets, funding and direction to key partners involved such as Local Authorities. This is of significant concern.

The plan itself is subject to a huge timescale which will mean that it outlives any other current Assembly strategy and so it is important that it is subject to ongoing review and, where necessary, change.

There also needs to be clarification as to whether the body responsible for implementation of the measures contained within the defined is likely to be the Assembly or local authorities themselves.

Overall, there is concern that there is little regard for the role of the private sector and to the vital and overarching issue of wealth creation and its impact in the well being of the economy, the people and indeed the environment of Wales.

For the last two years, I have been chairing the Welsh Conservatives’ Economic Commission.
This was created to develop policies that would drive forward the economy of Wales, currently languishing at the bottom of the UK prosperity league table.

During the Commission’s period of review, the UK economy was hit by the deepest recession since the 1920s, with over 88,000 private sector jobs lost in Wales during this economic downturn.

The Commission therefore had to change its focus not only on revitalising the economy of Wales but also on examining how the business sector could be supported to recover from the recession.

Last week, the Commission published its set of recommendations, aptly called “The Challenge” which it believes could make a real difference to the overall economy of Wales over the next decade.

The overriding philosophy of our approach is that the Welsh economy must be driven by the private sector and every business in Wales has a vital part to play in that.

That is why the Commission believes that business rates should be permanently abolished for the majority of small firms across Wales and that any financial levers, such as grants, to encourage business growth should be available to all firms, regardless of the sector in which they operate.

After the failure of three successive Assembly Governments led by Labour, we need to encourage entrepreneurship and innovation to create a flourishing Welsh economy that is driven by the skills and talents of its people.

In particular, we need to maximise the potential of the SME sector in Wales, from the small local corner shop that may benefit from lower business rates and take on an extra employee to a new high technology spin-off that is selling its products internationally.

We also need to ensure that large businesses attracted to Wales, especially those from the manufacturing sector, are firmly embedded within a new innovation ecosystem.

We are recommending that Welsh Conservatives should lobby for the new high speed rail link to be built from London to South Wales and that there may be a better case for this line to be upgraded prior to the proposed Birmingham-Manchester high speed line.

Wales also needs to ensure that it fully takes advantage of the benefit obtained from any UK Government support for superfast broadband infrastructure.

We believe that business development and skills should be directed by one Minister so as to ensure a clear direction for the development of the Welsh economy, one that hitherto has been missing from government.

More relevantly, that provision must ensure that any form of business development or support mirrors the needs of the business and is flexible enough to be able to respond to the dynamic that comes with an enterprising culture.

However, our main recommendation is that the reduction of corporation tax for Welsh businesses which we believe is the radical step required following years of economic decline.

In order to spur investment by Welsh-based companies and attract high value added foreign direct investment, we believe that the UK government should be lobbied for a reduced corporation tax rate for Wales as this is the only major economic structural change that can lift the Welsh economy from the bottom of the UK prosperity league table.

Recently, there have been calls from the private sector for corporation tax to be reduced within another devolved region of the UK.

Last year, the Northern Ireland Economic Reform Group of senior economists, accountants and business interests launched a major report on reduced corporation tax for the province.

It concluded that “reduced corporation tax is the fastest way we know to revitalise the Northern Ireland economy” and estimated “that more than 90,000 extra jobs could be created over 20 years and that the subvention could be cut at a relatively small cost to public expenditure”.

This was followed by a further study from the accountants PWC that noted that “as economies with relatively large public sectors in an environment where UK public spending is to be cut, the status quo with respect to policy (including continuation of the Treasury’s traditional one size fits all approach to taxation across the UK) will simply doom Northern Ireland, Scotland and Wales to fall further behind the UK average”.

The UK Coalition Government has already indicated that it may be willing to consider a regional tax approach after offering new firms based outside the three most prosperous regions in the UK a £900 million tax break i.e. any company set up outside London, the South East of England and East England will not have to pay employer National Insurance contributions (NICs) for the first ten employees taken on during its first year in business.

Given that the reduction in NICs for new firms has been regionally focused, there is no reason as to why other future tax measures may also focus on those parts of the UK in greatest need of support i.e. those areas that are overly dependent on the public sector and desperately need private sector jobs.

With Wales remaining at the bottom of the UK prosperity league table, any measure that directly helps those running Welsh businesses cannot come quickly enough.

The Commission therefore proposes that the next Welsh Assembly Government should seek immediate and urgent discussions with the UK Government and the other devolved administrations about the feasibility of reducing corporation tax in Wales to encourage investment and create vital employment at a time when the economy is recovering from recession.

This, in the opinion of the Commission, is the only major policy that can engender the massive step change needed to turn around the nation’s economic fortunes and ensure that Wales stops propping up the UK economic league table.

Are you confident that your business is pro-active when it comes to stamping out discrimination? Or do you see the discrimination rules as a minefield which can only be navigated successfully by pure chance?

If the latter is the case, then identifying key requirements and risk areas are the first steps toward meeting your legal obligations as an employer.

Your business cannot discriminate against an employee, potential employee or agency worker on the grounds of sex, race, disability, religion or belief, sexual orientation and, most recently, their age.

The detailed law is contained in various pieces of legislation: Sex Discrimination Act 1975; Race Relations Act 1976; Disability Discrimination Act 1996; Employment Equality (Religion or Belief) Regulations 2003; Employment Equality (Sexual Orientation) Regulations 2003; and Employment Equality (Age) Regulations 2006.

The legislation identifies four types of discrimination. There is direct discrimination, which is often the easiest to spot and occurs where someone is treated less favourably, for example because of their race or sex.

Indirect discrimination is more subtle and arises where a policy of treating everyone the same leads to members of a particular group being placed at a disadvantage. So a requirement for everyone to work full time may affect more women than men, enabling a woman to bring a claim for sex discrimination.

Victimisation occurs when an employer treats a person less favourably so that they are placed at a detriment, as would be the case if a woman missed out on a discretionary bonus because she had been on maternity leave.

Harassment tends to be synonymous with bullying. Taunting someone for their religious beliefs or sexual orientation would fall into this category. However even so-called friendly banter – such as calling an older worker a ‘dinosaur’ – could amount to harassment.

Employers who ignore the rules do so at their peril and risk being brought before an employment tribunal. Such cases can prove particularly costly. Unlike other types of claims there is no financial limit on the level of compensation that can be awarded to the Claimant.

In a recent case, a gay man who, amongst other taunts, was called a ‘wee poof’ by his employer, was then, after only eight days in the job, sacked for not being ‘psychologically balanced’.

A tribunal found that he had been discriminated against on the basis of his sexual orientation and awarded him £118,309. The sum included £10,000 for injury to feelings and £76,937 for loss of earnings.

Never underestimate the cost of defending a discrimination case and, even if you win, it is very unlikely you will be able to recover costs from the Claimant. In the longer term, your business may suffer from negative publicity and you may struggle to attract the right type of candidates.

Recruitment is one main danger area, and here even big companies sometimes fall foul of the law. In a now infamous case, Ryanair was fined 8,000 euros after advertising for a ‘young dynamic professional’. Despite arguing that ‘young’ meant ‘young at heart’, it was decided that Ryanair had breached the age discrimination law and was guilty of ‘overt and public discrimination’.

Be careful when assessing CVs. Ensure that all personal information, such as name, sex and date of birth, is removed before CVs are passed to those who will review them. This means they can be sifted objectively and there can be no argument that candidates have not been invited to interview because of their sex, race or age.

Never ignore banter or bullying – even seemingly harmless fun can be damaging. Train your managers to be proactive in identifying potential dangers and respond quickly to any complaints.

The best way to remove the risks is to ensure that all your policies, especially your recruitment polices, are up to date and that you have clear procedures in place for dealing with any complaints you may receive, no matter how trivial they appear to be.

The University of Wales was invited to attend an OECD workshop last year on the role of universities and strategic partnerships in the local and global context.

Some of the themes discussed included how to successfully manage opportunities; threats in public and private funding; attractiveness and internationalisation; and how to balance global linkages with local success.

Dr Niall Mackenzie, Research Fellow at the University of Wales and Director of the Institute for Innovation Studies, contributed to the programme.

His discussion can be seen 2 minutes and 40 seconds into the video.