Consultation runs from: 1 December 2025 9:00am - 30 January 2026 5:00pm
What this policy does
This policy seeks affordable workspace to be included in large commercial developments, specifying the size of developments on which affordable workspace will be sought and setting out the ways in which they must be operated and managed.
Employment or mixed development schemes of an appropriate scale will be required to provide an element of affordable workspace.
Where this is applied in other areas, proposals are typically required to deliver between 10 and 20 per cent of total NIA floorspace as affordable rentable floorspace either over a fixed period of time or in perpetuity. Market discounts are then specified which often vary to reflect the prevailing market rate, for example 10 per cent in low cost areas and 50% in higher cost areas. A threshold is set for when the requirement would be applied, such as developments over than 2,500 sqm GIA of new (net) employment.
The Councils are still refining the nature and scale of the employment floorspace the policy will apply to, the affordable workspace percentage to be applied to total floorspace, the level of discounts applied to different areas of
and payments in-lieu calculations. We would welcome feedback on the approach though this consultation.
Policy J/AW: Affordable workspace and creative industries
The following requirements would apply when affordable workspace is secured:
1. The type and specification of affordable workspace must address an identified local need. Workspace types may be affordable artist studios, office, research and development, light industrial or general industrial workspace and maker spaces in light industrial use.
2. schemes must be operated and managed:
a. by an affordable workspace provider on the councils’ approved list; or
b. by the owner, or alternative party, where it is demonstrated to the satisfaction of the council that they have the necessary skills and experience; or
c. where occupiers are from specific sectors that have cultural or social value such as cultural organisations, charities, public health services, voluntary and community organisations, the councils will explore opportunities for long term management and delivery of workspace.
3. An Affordable Workspace Management Plan must be prepared by the developer and agreed with the Councils at least three months prior to the implementation of the development.
4. The affordable workspace should be made available for occupation at the same time as, or prior to, the first occupation of 50 percent of the non-affordable element of the remaining economic floorspace in the development, unless justified on specific site circumstances.
5. secured should be provided on-site. Where off-site provision may be agreed it will only be acceptable in the following exceptional circumstances:
a. Where a hard to let vacant property is brought back into use, or
b. Where there is strong existing provision within the area of the development, or
c. Where an occupier requires exclusive use of a single office property, such as a global headquarters building, or
d. Within the overall development on mixed use sites where there are a range of landowners.
6. Payment in lieu will only be acceptable where:
a. The Councils consider that the economic benefits of pooling affordable workspace funds are significantly more positive than on-site or off-site provision.
b. Where on-site or off-site provision is demonstrated not to be feasible, payments in-lieu will be considered.
Supporting information
There is a shortage of affordable workspace for start-up businesses and small and medium-sized enterprises (SMEs) across . The issue is more apparent and increases further towards Cambridge city centre. Tenants are priced out of the market due to high rents and long waiting lists for new space, leading to the workspace market being difficult for micro-enterprises and SMEs to enter.
The creative sector has a significant economic role in the and in supporting wider community well-being. There is an identified shortage of available, affordable space to support creative industries growth and expansion, particularly for smaller businesses. Affordability has been identified as is a key concern with these smaller creative businesses likely to work from home or in other unsuitable set ups.
Reduced rent workspace provision helps encourage individuals to start a new business or grow their previously homebased business. In conjunction with tailored business support shared spaces can help entrepreneurs develop sustainable companies. It can ensure a sufficient supply of affordable business space and can support sectors that have cultural or social value such as artists, charities, and community organisations for which low-cost space can be important.
Affordable workspaces have an important role in helping to address social inclusion, helping people from deprived communities start businesses by providing affordable flexible spaces to overcome financial barriers and absorb risk.
Affordable Workspace Management Plans should include details of management, user target sectors and tenants, details of the final workspace provision, fit-out, charges and leasing, additional facilities and support, and next steps assistance.
Where fit out costs are likely to be high, for example in R&D or workshop space the proportion of affordable workspace provided could be lower than the policy requirement given the lower values associated with this type of space. The proportion of discounted floorspace in these cases will be determined through consideration of site characteristics and viability.
Applicants should work with council officers to determine the nature of the affordable workspace provision on a case-by-case basis. and contributions will be secured via Section 106 agreements.
For all schemes that provide affordable workspace, the council will require an annual monitoring report to be submitted to show how policy requirements are being met. This requirement will also be secured via a Section 106 agreement.
Further guidance will be provided in an Affordable Workspace Supplementary Planning Document where further detail the requirement for the Councils’ need for affordable workspaces is described.
The councils will be commissioning viability and affordable workspace studies to help to determine the policy variables in order to ensure that these are viable from the point of view of both developers and affordable workspace providers. The nature of the need in will also be considered. The council’s approved list of affordable workspace providers will be developed as the nears adoption.
Supporting topic paper and evidence studies
Tell us what you think
We will consider all comments while developing the next version of the .
All comments must be received by 30 January 2026 at 5pm.