Now that we have all had a bit of time to digest the government’s 332-page Levelling Up white paper and reflect, what have we learned?
Firstly, I think it’s fair to acknowledge that this government does have a clear ambition and is prepared to shape policy around this principal aim. There is a real impetus to deliver meaningful change across the country. There were some important structural changes with the potential to enable this, such as the greater devolution of powers from Westminster – something the BPF has previously called for – and the offer to open up mayoral government to any area that seeks it. The government must be brave in following through on this.
We also now understand a bit more about what this government means by “levelling up”, with the white paper stating 12 missions, all of which are laudable aims around skills, productivity, crime, employment, housing and infrastructure. Although only two of the 12 missions seem to speak directly to the real estate sector – the aims around local pride and improved housing – most, if not all, of these challenges crystallise in the revitalisation of town and city centres.
The white paper also demonstrates that the government is going to rely on the private sector to pay for levelling up – with little new public funding announced. In the words of the prime minister, private sector investment must be unleashed – levelling up is only going to be achievable as a public-private partnership, with government providing the blueprint and incentivising investment.
Missed opportunity
Turning that into reality in relation to town centres was, however, a missed opportunity in the white paper. This was the moment for a “system change” in how government approaches town centre and high street regeneration, with a real opportunity for a visionary approach to incentivising private sector investment into marginal places up and down the land. Instead, we got what amounted to the government continuing to try to pick a handful of “winners” and continued pepper pot funding. King’s Cross was identified as an exemplar for city centre transformation but with no real attempt to unpack and recreate the complex set of circumstances that made such a scheme possible, nor a recognition of the timescale it takes to deliver.
The BPF, however, is here to help government – we have proposed the creation of Town Centre Investment Zones (TCIZ), where a mix of business rates relief, planning flexibility and greater local authority development powers could provide the catalyst for private sector investment. Alongside an ambitious public-private partnership and a cohesive vision for delivery based on an understanding of each other’s objectives and mutual trust, TCIZs have the potential to replicate many of the conditions that allowed schemes such as King’s Cross, Liverpool One and Paradise Circus in Birmingham to be delivered. The government cannot afford not to look seriously at this model.
Seize the moment
Welcome in the white paper was the government committing to a more positive approach to employment land in national planning policy and more support for development on brownfield land. This could go some way to addressing the chronic shortage of the industrial space across the UK which is critical national infrastructure and the bedrock of supply chains.
Overall, therefore, although the white paper was short on detail and new money, it does give us a framework for engagement with government and regional stakeholders over the next few months which our sector needs to seize. Now is the time to put forward our own tangible ideas in areas such as town centre regeneration and position real estate as a key partner for delivery.
Melanie Leech is chief executive of the British Property Federation
