PROPERTY’S impact on our lives is defining and transformational. It is no better demonstrated than in Liverpool through its recent regeneration and reinvigoration.
Over more than a decade, the vision of Liverpool City Council and Grosvenor came together to undertake, arguably, the most colossal regeneration project of a lifetime, Liverpool One. This £1bn investment alongside the council’s city centre movement strategy has confirmed Liverpool as a top European city in which to live and do business.
But how can we focus on replicating such transformation in other parts of the UK that are also in need of investment in jobs and homes?
One lesson from Liverpool’s experience is the collaborative approach taken by both the private and public sectors – Grosvenor and the council in particular. While it was an informal partnership, it demonstrated that regeneration is more successful when vision and delivery can be agreed and driven forward together.
More effective partnerships are now, more than ever, the key to regeneration. Both the private and public sectors are keen to deliver and invest, but neither is able to go it alone. Collaborative working between sectors can ensure that regeneration continues across the country.
One particular partnership model is receiving considerable attention – tax increment financing (TIF). TIF works on the principle that regeneration leads to an increase in business rates revenue. This future income can be used to raise the money needed to kick-start development.
While the Chancellor announced his intention to look into the idea earlier this year in the Budget, the discussions between his officials and the industry have produced nothing concrete thus far. The biggest barrier to TIF getting off the ground is death by detail. Allowing a very promising idea to die because of minor technical hang-ups would be a shame, especially in the current economic climate.
The Government should be encouraging fresh thinking and new ways to encourage investment. We are pushing them to set up TIF pilots so that other cities can see the same reinvigoration as experienced in Liverpool.
