We need a more agile planning system

Jenna Strover is head of commercial delivery at Potter Space

But as long-standing advocates of small to medium warehouses, we question whether it goes far enough.

Small- to mid-box I&L units, typically between 10,000 sq ft and 100,000 sq ft, are the backbone of many regional economies. From manufacturers and logistics operators to ecommerce ventures and emerging sector R&D, a wide range of businesses depend on high-quality, flexible spaces to operate, grow and adapt. They are especially vital in areas undergoing large-scale housebuilding, where employment land and supporting infrastructure must be delivered in parallel. But these units are still underappreciated within planning frameworks.

At Potter Space, we understand how important these units are to the businesses that occupy them. The diverse occupier base has a wide range of needs in relation to location and design, as well as the ability to scale and adapt as economic and business circumstances evolve. The new bill represents welcome progress, but challenges remain – particularly around the capacity of local authority planning teams to keep up the pace.

The reality is that this will bring additional pressure to under-resourced local authority planning departments. Our interactions with council planning teams have shown us that we need planners with experience and a thorough understanding of the system, who are capable of applying sound judgement to planning decisions. The reforms don’t address the issues of training or retention of planners and the exodus of experienced planners to better-paid jobs in the private sector remains an unresolved challenge.

If small- to mid-box developers are overlooked, we risk a shortage of essential facilities near growing communities

There is also the broader concern that small- to mid-box developments are still not fully understood within the planning framework. These units are critical infrastructure that support employment, distribution and long-term economic resilience. To support the new housing mandate that promises to deliver 1.5 million homes across the UK, we must also be able to provide the space businesses need to support those new communities.

We need a planning system that is agile enough to respond to the flexibility of this sector and to meet the evolving needs of modern occupiers, from sustainability requirements to changing supply chains and hybrid working models.

Instead, the system is set up to prioritise housing development at every level.

Industry data shows that 109 sq ft of I&L space is required for every household. The imbalance of residential housing and warehousing space threatens economic sustainability, particularly for small and mid-sized enterprises that rely on affordable, well-located distribution hubs. If small- to mid-box developers are overlooked, the country risks a shortage of essential facilities near growing communities.

This bill sends a strong signal of intent from the UK government. The focus must now turn to implementation: ensuring that local planning authorities are properly supported and that commercial infrastructure, especially small- to mid-box I&L, is recognised as essential to the UK’s economic future.

Jenna Strover is head of commercial delivery at Potter Space