Three years after it opened, Lauren Mills assesses the impact of the M40 on the economy of local towns.
Bad timing has dogged the M40’s potential to become established as a major corridor for growth. The final section, linking Oxford and Birmingham, opened in January 1991 – just as the recession was biting and the property market took a nose dive.
Consequently, the anticipated “corridor effect,” felt in towns such as Maidenhead and Reading along the M4, has so far failed to materialise to any significant extent along the M40.
Banbury-based Cherwell District Council is responsible for most of the area through which the latest 58-mile section of motorway runs. And, as the council’s chief executive, Grahame Handley, argues, the completion of the M40 is encouraging economic recovery in certain areas.
For evidence, he points to recent unemployment figures. In the 12 months to December 1993, Bicester achieved a 28% fall in unemployment from 8.1% to 6.4% – the largest decrease in England. Banbury’s unemployment fell by 18.3% – from 9.9% to 8.1% – which was the seventh largest fall in the country. As a result, these towns now boast two of the lowest unemployment rates in the South East.
Handley, who also chairs the Cherwell M40 Investment Partnership, a joint venture between the public and private sectors to promote the area, says: “Reasons for improvement in the employment situation are not difficult to find. Following the completion of the M40, companies are realising how accessible north Oxfordshire is. The number of companies moving to the area has risen tremendously.”
Handley is further cheered by news that several companies, already established in the area, are growing. These include Talkland, De Boer Tent Rental and AW Chapman. “The signs are very encouraging,” he says.
But St Quintin’s Michael Pain maintains that economic progress in towns along the M40 has, to some extent, been hampered by the absence of motorway service stations. Heavy goods vehicles have been unable to use the road for long-haul journeys because of the difficulty in taking statutory rest breaks.
Pain is confident, however, that prospects for the corridor should be boosted now that Cherwell Valley Services has opened close to junction 10 at Ardley. He believes that the availability of services could establish the motorway as a major alternative to the M1 for commercial vehicles travelling between London and Birmingham. “There should be an increase in heavy goods vehicles using the road,” he says.
This, in turn, should have a knock-on effect on demand for commercial floorspace along the corridor. In this respect, Pain picks out Banbury as one of the corridor’s major growth hotspots: “I suspect that there will be more interest in industrial development in Banbury because it is strategically located between London and Birmingham. It is an obvious stopping-off point.”
Several major warehousing and distribution inquiries are already looking in the area. For instance, Hodder Headline and Mars are, between them, said to be looking for up to about 550,000 sq ft. This could augur well for London & Metropolitan’s Bicester Park, where up to 750,000 sq ft of B1, B2 and B8 is proposed.
These inquiries could also encourage more development activity on a number of sites adjacent to the motorway at Banbury. AMEC Developments and Abbey Life Property Fund are keen to shift their 102,000-sq ft MXL Centre, completed last summer, and Wilson Connolly plans to build another 100,000 sq ft, known as Cherwell 40, nearby.
In the retail sector, Value Retail is building a 100,000-sq ft factory-outlet scheme to take advantage of easy access to the M40. The development, known as Bicester Village, is on the A41 Bicester bypass, and is expected to generate 180 new jobs. Another 70 jobs will be created when Sainsbury opens its 30,000-sq ft store on the outskirts of Banbury.
Banbury’s bid to become established as a commercial location should be boosted by Raglan Property Trust’s plans to double retail floorspace in the town centre. Raglan is to build a 200,000-sq ft shopping scheme, which, according to Adkin Commercial’s Chris White, could change perceptions of the town’s commercial potential.
While the office sector has yet to take off in Banbury and Bicester, the northern section of the M40 is attracting considerable interest. This is largely due to the existence of Birmingham Business Park near Solihull. Fujitsu Fulcrum Communications is one of the companies most recently seduced by the park’s attractions. It is building a 140,000-sq ft office and research complex on 10 acres purchased at the end of last year.
Grimley J R Eve’s Carl Potter points to Christiani Nielson’s decision to move its UK base to Tachbrook Park, Warwick, as evidence of the region’s popularity as a relocation destination.
But, he fears that further relocations could be deterred because of the lack of suitable sites. Warwickshire county council refuses to promote economic growth at the expense of the county’s green belt, and opportunities for development are, therefore, concentrated in existing town centres.
Warwick’s deputy county planner, David Scott, defends the council’s policy: “There is no evidence of a shortage of space. Our basic policy is to restrict development along the M40 corridor.”
Oxfordshire and Buckinghamshire take a similar view. Both counties operate general policies of restraint, with Banbury, Bicester, Didcot and Witney earmarked as the preferred locations for development.
Although Oxford is arguably the most established office centre along the M40, opportunities for major relocations have so far been restricted to Oxford Spires business park at Kidlington. But, the primacy of this location, which has attracted the likes of Pergamon Press, is coming under threat now that Arlington is building the first phase of Oxford business park at Cowley.
Further south, on the original stretch of the M40, Wycombe District Council is leading a marketing initiative aimed at raising the district’s business profile.
The council’s planning information services officer, David Frost, says: “This is a specific response to general economic problems.”
Nevertheless, he is keen to point out that the area’s economic fortunes have already taken a turn for the better. Unemployment has fallen by 17% to 6.3% in the 12 months to February 1994, and the number of job vacancies is steadily increasing.
In terms of land supply, the local planners concentrate on encouraging the recycling of existing employment land. Frost explains that this is because the area did not experience increased pressure for development following the opening of the M40 extension. “The main development pressures come from west London,” he adds.
This district supports about 593 acres of employment land, together with substantial areas of white land – sandwiched between the urban area and the green belt – which can be released if demand exceeds supply.
Raffety Buckland’s Crispin Harris maintains that the proximity of the motorway is an important influence on High Wycombe’s economic performance. He believes that the area is increasingly attractive to overseas companies seeking a share of the European market. In this respect he cites two examples: American-owned Neutrogena and Quad Europe, both of which recently took space at Century Point, on Cressex industrial estate near junction 4.
At the London end of the M40, Uxbridge is experiencing mixed fortunes. NCR’s decision to pull out of negotiations for the 142,000-sq ft Uxbridge One was a big disappointment.
Jansons & Partners’ Andrew Jansons confirms that the news caused a lot of local disappointment. But, he maintains that Uxbridge retains its cachet as a sought-after office location.
To some extent Jansons’ opinion has been vindicated by Lincoln National, which is said to be purchasing the freehold of Burton Property Trust’s 88,000-sq ft The Quays.
Jansons is confident that, if this deal completes, confidence will return to the Uxbridge market. Various road improvements should also enhance the area’s attractiveness. For instance, the M40 is being upgraded from Hillingdon Circus to Swakeley’s Roundabout, which will provide a clean sweep on to the M40.
Although the M40 has some way to go before it becomes established as a corridor of growth, it is clear that a positive trend has already been set in motion. And, if commercial traffic increases as anticipated and planning polices permit, there is every reason to believe that the corridor will go from strength to strength.
