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City launches £30m fund to unlock building log-jam
SHEFFIELD is planning to launch a £30m investment fund to kickstart economic development schemes in the city and surrounding region.
The city council plans to borrow against some of its property assets to help pay for infrastructure improvements, which it hopes will encourage more private sector investment.
John Mothersole, chief executive, met with Cities Minister Greg Clark yesterday to discuss the ambitious scheme.
Mr Mothersole told the Yorkshire Post: “My message was that Sheffield city region actually has strong demand for growth.
“We don’t need to stimulate growth – what we need to do is invest to make it happen.
“There is a chance for bigger, better, faster growth now. The country needs it. That’s what we can offer.”
He gave the example of the Lower Don Valley, where he said development is being held back because more investment in road infrastructure is needed.
“In a buoyant market, the private sector would invest in that. But the market is not sufficiently buoyant,” he said.
The Sheffield fund investment would bring land forward for development, create jobs and increase land values, he added.
Mr Mothersole said: “What the council will be wanting to do is to unlock potential where the money can be paid back once the success is achieved.
“In buoyant markets, the banks are sufficiently confident to invest in that.
“At the moment, across the whole country, bank finance is hard to find but there are still a lot of schemes that need to be brought forward.
“Sheffield, like many Northern cities, has viable schemes but they are not fundable at the moment.
“This is about breaking that log-jam. This is not about grants; this is about investment to keep Sheffield economy going forward.”
A new council report said the fund would “use the city’s asset base more effectively to deliver sustainable economic growth and increased prosperity for Sheffield, engaging the private sector more widely”.
Mr Mothersole said the council would not “underpin” the fund with core assets like schools, libraries or elderly care centres.
Instead, he said the council would use non-core assets as “internal security” to raise money.
He was in London yesterday to press for Sheffield to win more powers from Whitehall under the Government’s new ‘City Deals’ initiative.
The city wants more power over training cash to help close the skills gap, greater control over its transport system, support for technological innovation and backing to develop Rotherham’s Advanced Manufacturing Research Centre.
Coun Bryan Lodge, deputy council leader, said: “We believe in innovation and forward thinking and that is why the council is taking steps to create a fund to invest in economic growth.”
@bernardginns
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Wednesday 23 May 2012
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