Ensuring Liverpool sees ‘good growth’ in new developments

COMMENT Once a city of a million people, then known as a city of exodus, Liverpool today is one of the fastest-growing urban centres in the UK, and the concept of “good growth” lies at the heart of the city council’s vision. But what does “good growth” mean? It is easy to claim that we want positive, sustainable development. But the term carries deeper meaning in Liverpool’s context. Essentially, good growth means ensuring that every development project in the city is inclusive — socially, physically and economically — and that sustainability is at the forefront. More than a trend Liverpool’s approach is rooted in environmental, social and governance principles. These three pillars are becoming essential across councils nationwide, influencing decision-making, and shaping how cities evolve. In the public sector, ESG is not just a trend. Emphasis on the “social” is evident in everything from children’s services to addressing the growing need for temporary housing. The council’s primary duty is to the people of Liverpool, with the aim of having social, physical and economic inclusion embedded. In the real estate context, it means asking what more can be done as projects emerge, not necessarily at additional cost, to promote long-term inclusion. For example, is there a way to open up part of the buildings or consider uses? Thinking of all the lab space coming forward, how do we encourage our young people and schools by making this more accessible? In a physical context, how can development be responsive to the community in which it sits? We look for ways to add value through basics such as designing out crime, activating streets, reducing severance, and adding quality and connectivity in the public realm. As well as attracting talent into Liverpool and retaining graduates, economically we want our developments to accommodate good jobs for local people. That means long-term jobs but also construction work and a percentage of local labour as part of our development and construction pipeline. Climate and housing challenges The “environment” aspect is equally critical. Liverpool declared a Climate Emergency in 2019. Since then, the council has been working tirelessly, not just on its own estate but in collaboration with city partners, to tackle the many issues that come with climate change. The government’s announcement of a National Wealth Fund to support a green transition was a welcome one. Cities have been in dire need of such financial support. We hope this fund enables investment in projects that reduce carbon footprints and foster a greener future. The city’s ambitious environmental targets coupled with the welcomed ambition to build more than 1.5m homes led to an interesting discussion at the recent Housing Community Summit in Liverpool. The country needs to build more homes at pace, but rising costs, higher borrowing rates and diminished subsidies have put pressure on viability. Will viability and pace challenge the ability to deliver homes that meet the net-zero challenge? One developer told me that increased environmental standards cost an extra £40,000 per unit; another from the energy sector said it is just an additional £10,000. Addressing this is not for the faint hearted and will require collaboration, innovation and a relentless pursuit of opportunities. Partnerships for good governance Which brings me to “governance”. It receives less attention, yet I believe it is critical to ensuring the long-term success and sustainability of development. In particular, forms of public-private partnerships will be crucial in bringing forward development. Despite the financial pressures facing local authorities – particularly for cities facing rising temporary accommodation costs – central government funding is severely limited. Therefore, the public sector needs to leverage external expertise, resources and investment to drive growth. These partnerships must be built on a foundation of trust, shared values and mutual benefit. It is about finding the right partners — those committed to long-term, sustainable, inclusive development — and working together to create projects that align with the city’s ESG goals. Liverpool’s Paddington Village is a prime example of a successful PPP. Liverpool’s journey to one of the fastest-growing cities in the UK means it is on an upward trajectory that demands detailed analysis of capacity and potential. The good news is we have land available which can contribute to government housing targets. And investment in transport infrastructure is gaining pace, with a new station for the city centre on the horizon and plans taking shape to finally upgrade the Liverpool-Manchester connections. Liverpool has a plethora of emerging brownfield sites and given that the nascent NPPF guidelines point to a brownfield first focus, this will require investment, with the likes of UK Infrastructure Bank and private sector partners who can help form suitable financial vehicles for investment, as well as grow key sectors, such as life sciences. Challenges remain, but by embedding ESG principles into every aspect of development, the council is laying the groundwork for a sustainable, inclusive and prosperous future. Nuala Gallagher is corporate director of city development, Liverpool City Council