Flagship levelling up plan fails to impress

The government’s long-awaited flagship levelling up strategy has failed to impress the industry, as leaders call for real action. After more than two years in the making, the government’s blueprint for regional regeneration has arrived in a flurry of new legislation and devolution proposals. While the industry waited for the full 400-page levelling up white paper to be published on Wednesday (2 February), initial proposals were criticised for lack of new money and ideas. Levelling up secretary Michael Gove said 12 “bold” proposals would “shift government focus and resources to Britain’s forgotten communities”. They include plans for 20 big regeneration projects, beginning in Wolverhampton and Sheffield, and spearheaded by Homes England; a push to increase research and development investment outside of the capital; and devolution deals for nine new areas across the country. Aspirations for regeneration projects similar to King’s Cross – to revive town centres in Wolverhampton and Sheffield in particular – seem to have missed the mark, with leaders fearing the government has underestimated the weight of the task. Liz Peace, chair of the Old Oak and Park Royal Development Corporation, said the announcement appeared to be “thin on new policy and thin on money”, adding that the very notion of “levelling up” still seemed unclear. “I haven’t the faintest idea what they really mean by levelling up,” said Peace. “They’ve done the usual civil service job, which they do very efficiently, of pulling in as much as they conceivably can.” Peace said a push for King’s Cross-esque redevelopment in other towns and cities failed to acknowledge the work needed on such schemes. “You can’t just conjure up out of nothing a mega regeneration development,” she said. “For a start, no private sector investor or developer is going to come along and pour money and resources into something without it being clear that there is a demand and customer base for it. You can’t create demand out of nowhere. So you’ve got to get a whole lot else right before a King’s Cross is going to work.” The point was echoed by Melanie Leech, chief executive of the British Property Federation, who called for “a much bolder vision” from government. Leech said the government must harness the BPF’s proposal for town centre investment zones “creating the conditions for delivering the prime minister’s aim to unleash private sector investment through a mix of tax incentives, planning flexibility and greater local authority powers across all parts of the country”. Neil Sinclair, chief executive at Palace Capital, a London-listed REIT with assets in various regional towns and cities, said the announcement was “late in coming” and still lacked “meat on the bones”. But he welcomed the intention and said the plans were “improving sentiment” towards the regions adding: “This is not for the Manchesters or Leeds. This is for the Wolverhamptons and the Burnleys and the Blackburns.” He added: “King’s Cross is absolutely huge. I can think of a few cities where there are those sites that could be available, and if there’s government money it would help, but the private sector needs to come in. And let’s be honest, there are some places where the capital values are just not big enough, so they’re going to need government help.” At Landsec, which has grown its regional exposure through its acquisition of U+I and purchase of a stake in Salford’s MediaCity, chief executive Mark Allan said the company was ready to engage with government on the initiative. “Engagement and collaboration with the private sector will be crucial in delivering against the missions that the government has set out,” he said. James Thompson, chief executive of Gleeson Homes, said that “significant steps” would be required “to tackle the major issues we face and which are impacting our ability to deliver much-needed houses”. “We have a planning system which is creating long delays and increasing costs for builders, particularly in areas designated for regeneration,” said Thompson. “Ultimately, these delays and costs are having to be absorbed by sites but will reach the point where sites in areas of regeneration will become unviable.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Image © Guy Bell/Shutterstock